Noble plc(NE)

Search documents
Noble plc(NE) - 2022 Q4 - Earnings Call Presentation
2023-02-27 18:52
| --- | --- | |-------------------------------------------------------------------------------------------|-------| | | | | | | | Noble Corporation plc Fourth Quarter 2022 Earnings Conference Call February 27 th , 2023 | | Disclaimer Forward-Looking Statements This presentation and the conference call to which it pertains contains "forward-looking statements" about Noble Corporation plc's ("Noble" or the "Company") business, financial performance and position, contracts and prospects. Words such as "anticip ...
Noble plc(NE) - 2022 Q4 - Earnings Call Transcript
2023-02-27 18:51
Financial Data and Key Metrics Changes - For the fourth quarter, the company reported diluted earnings per share of $0.92 and contract drilling services revenue totaling $586 million, with adjusted EBITDA of $157 million, resulting in an adjusted EBITDA margin of 25% [134] - The year-end revenue backlog stands at $3.9 billion, with an average day rate across the floater backlog of approximately $400,000 [29][130] - The company anticipates total revenue for 2023 to be between $2.35 billion and $2.55 billion, with adjusted EBITDA expected to be between $725 million and $825 million [30] Business Line Data and Key Metrics Changes - The company secured 24 months of additional backlog across various drillships at an average day rate above $420,000, including contracts in Nigeria and the Gulf of Mexico [9] - The contracted ultra-deepwater (UDW) rig count has increased to 91 rigs with a utilization rate of 91% for the marketed fleet [6] - The jackup market is showing signs of improvement, with day rates for harsh environment class rigs expected to rise to the $110,000 to $125,000 range [103] Market Data and Key Metrics Changes - The deepwater Gulf of Mexico market has maintained a steady demand of 20 to 22 rigs, with expectations for slight increases through 2024 [100] - Brazil's Petrobras has been the most active operator, recently increasing its deepwater rig count from approximately 20 to 24, with potential for an additional 5 to 7 floaters over the next 12 to 18 months [24] - The company’s marketed UDW rigs are currently 75% contracted throughout 2023, with visibility towards securing additional utilization [26] Company Strategy and Development Direction - The company is focused on maintaining a conservative through-cycle balance sheet while returning at least 50% of free cash flow to shareholders [33] - The strategic emphasis is on maximizing the potential of the existing fleet and selectively pursuing new contracts, particularly in high-demand regions like South America and West Africa [78] - The company is optimistic about a sustained multi-year upcycle in the offshore drilling market, driven by structural supply constraints and increasing demand [34][125] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market conditions are the best seen in the past 20 years, with a multi-year rise in UDW rig demand expected [125][99] - Inflationary pressures are anticipated to persist, with high-single digit inflation rates factored into the 2023 guidance [14][65] - The company is confident in its ability to navigate the evolving market landscape, with a focus on disciplined bidding and capital allocation [34][82] Other Important Information - The company has realized $15 million in run rate synergies as it progresses towards a target of $125 million in annual cost synergies by October 2024 [12] - The company has repurchased nearly $100 million in shares as part of a $400 million share repurchase program [110] - The Noble Resolve has commenced a pilot scope at Project Greensand, marking the company's involvement in offshore carbon capture initiatives [132] Q&A Session Summary Question: What is the outlook for rig reactivations and opportunities in Brazil? - Management indicated that opportunities for rig reactivations are primarily focused in Brazil, with a careful approach to securing contracts that ensure cash flow [114] Question: How does the company view the jackup market and potential relocations? - Management stated that they are not actively seeking to relocate rigs from the North Sea but are focused on maintaining economic viability [116] Question: What is the strategy regarding long-term contracts versus short-term contracts? - The company has been leveraging long-term visibility in contracts while also being open to short-term contracts to capitalize on rising day rates [118] Question: How is the company managing inflationary pressures in its guidance? - Management confirmed that inflationary pressures are embedded in the guidance, with expectations for high-single digit inflation to continue into 2024 [65][45] Question: What are the expectations for capital expenditures in relation to the Meltem activation? - The company clarified that the CapEx guidance for 2023 does not include costs associated with the activation of the Meltem, which will depend on securing favorable contract terms [121]
Noble plc(NE) - 2022 Q3 - Earnings Call Transcript
2022-11-03 19:01
Financial Data and Key Metrics Changes - Noble Corporation's contract winning services revenue for Q3 2022 totaled $289 million, an increase from $262 million in Q2 2022 [31] - Adjusted EBITDA for Q3 was $97 million compared to $84 million in the previous quarter, resulting in an adjusted EBITDA margin of approximately 32% [32] - Free cash flow in Q3 was $44 million, with capital expenditures totaling $41 million [32] Business Line Data and Key Metrics Changes - The legacy Maersk Drilling reported revenue of $283 million and adjusted EBITDA of $63 million for Q3 2022 [32] - The deepwater segment is experiencing day rates in the low to mid $400,000 per day range, with a utilization rate of around 85% for marketed ultra-deepwater rigs [17][18] - The jack-up segment is seeing steady demand and utilization above 90%, but day rate increases are more moderate compared to deepwater [23] Market Data and Key Metrics Changes - Brent prices have averaged close to $100 per barrel year-to-date, with expectations of a tapering down to the mid-70s per barrel through 2024-2025 [15] - 80% of offshore projects have estimated breakeven thresholds at or below $40 per barrel, indicating a favorable environment for offshore drilling [16] - The company expects a higher level of deepwater rig demand next year, driven by a recovery from previous underinvestment [16] Company Strategy and Development Direction - The merger with Maersk Drilling aims to create necessary scale for deep customer relationships and leadership in innovation and sustainability [10] - The company is targeting at least $125 million in annual cost synergies to be realized within two years post-merger [11] - A $400 million share repurchase program has been authorized as part of the capital allocation framework [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges extraordinary uncertainty regarding inflation, recession, and geopolitical unrest but remains confident in the long-term demand for oil and gas [13] - The strategic positioning towards deepwater and harsh environment shallow water markets is seen as advantageous for future growth [14] - The company is optimistic about the multi-year upturn in offshore drilling, with limited inventory of stacked rigs available [17] Other Important Information - Noble's revenue backlog stood at $3.9 billion as of November 2, 2022, not including additional non-drilling services [33] - The company plans to refinance existing Maersk Drilling credit group debt with a new three-year $350 million bank term loan [35] - The integration activities are well underway, with expectations to realize over 70% of targeted cost synergies by the fourth quarter of next year [41] Q&A Session Summary Question: Share buybacks and debt buyback plans - Management confirmed significant flexibility within credit agreements to buy back shares and clarified that the $220 million drawn was related to reinvestment of proceeds from asset sales [51][52] Question: Follow-up contract for the Gerry de Souza rig - Management expressed confidence in securing a follow-on contract for the rig, with expectations for a start in the first quarter of next year [54] Question: Customer conversations and tender participation - Management reported encouraging feedback from customer conversations, recognizing the strategic benefits of the combined organization [60][61] Question: Capital expenditures guidance - Management indicated that the $65 million to $85 million guidance for Q4 may be higher in the future due to inflation and the age of some rigs [62]
Noble plc(NE) - 2022 Q2 - Earnings Call Transcript
2022-08-09 16:11
Noble Corporation (NYSE:NE) Q2 2022 Earnings Conference Call August 9, 2022 9:00 AM ET Company Participants Ian Macpherson - Investor Relations Robert Eifler - President and Chief Executive Officer Richard Barker - Senior Vice President and Chief Financial Officer Blake Denton - Vice President, Marketing and Contracts Joey Kawaja - Vice President, Operations Conference Call Participants Fredrik Stene - Clarkson Securities Greg Lewis - BTIG Samantha Hoh - Evercore David Smith - Pickering Energy Ian Macpherso ...
Noble plc(NE) - 2022 Q1 - Earnings Call Transcript
2022-05-03 18:22
Noble Corporation (NYSE:NE) Q1 2022 Earnings Conference Call May 3, 2022 8:30 AM ET Company Participants Craig Muirhead ??? Vice President of Investor Relations and Treasurer Robert Eifler ??? President and Chief Executive Officer Richard Barker ??? Senior Vice President and Chief Financial Officer Conference Call Participants Greg Lewis ??? BTIG Samantha Hoh ??? Evercore ISI Operator Good morning. My name is Chantal, and I will be your conference operator today. At this time, I would like to welcome everyo ...
Noble plc(NE) - 2021 Q4 - Earnings Call Transcript
2022-02-17 17:59
Financial Data and Key Metrics Changes - Contract drilling services revenue for Q4 2021 totaled $192 million, down from $231 million in Q3 2021, primarily due to the sale of four jack-ups in Saudi Arabia and other operational impacts [29] - Adjusted EBITDA for Q4 2021 was $12 million, down from $47 million in Q3 2021, with full-year adjusted EBITDA at $97 million, towards the low end of the previously guided range [31][33] - At year-end, net debt stood at $22 million, with cash of $194 million and debt of $216 million in second lien notes [34][35] Business Line Data and Key Metrics Changes - The decrease in contract drilling services revenue was partially offset by the start of the Noble Lloyd Noble contract in Norway [29] - Capital expenditures for full year 2021 were $170 million, slightly below previous guidance due to project delays [33] Market Data and Key Metrics Changes - The ultra-deepwater market rates grew by over 50% in the last three quarters of 2021, driven by fixtures in the U.S. Gulf of Mexico [12] - Customers' drilling budgets are generally up by double digits in 2022 compared to 2021, indicating a positive outlook for offshore rig demand [13] Company Strategy and Development Direction - The company completed a transformative year in 2021, emerging from restructuring and closing the acquisition of Pacific Drilling, with plans to combine with Maersk Drilling in mid-2022 [10][11] - The combination with Maersk Drilling is expected to create a world-class offshore driller with significant synergies and a robust balance sheet [11][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the offshore rig market, expecting continued demand improvement across all segments [27] - Inflationary pressures are a concern, particularly in North and South America, but the company is focused on controlling costs and making disciplined capital decisions [42][43] Other Important Information - The company announced the scrapping of the Noble Clyde Boudreaux due to challenging economics and low utilization prospects in Southeast Asia [42] - The revenue backlog at the end of the year stood at $41.2 billion, excluding the conditional award of 7.4 years of contract term with ExxonMobil in Guyana [35][67] Q&A Session Summary Question: Insights on rig pricing in Guyana and future revenue drivers - Management noted that specific rates cannot be disclosed but emphasized that rates are set several months in advance and reflect market conditions at that time [54][56] Question: Future of the Globetrotter I in the Gulf of Mexico - The rig is expected to enter the spot market, with ongoing bids in various locations, indicating confidence in securing continued work [59] Question: Shareholder returns post-Maersk merger - Management indicated that returning capital to shareholders will be a high priority after the merger, with a focus on dividends or share buybacks [70]
Noble plc(NE) - 2021 Q2 - Earnings Call Transcript
2021-08-04 18:22
Financial Data and Key Metrics Changes - Contract drilling services revenue for Q2 2021 totaled $200 million, an increase from $159 million in the combined first quarter [33] - Adjusted EBITDA for Q2 2021 was $10 million, down from $28 million in the combined first quarter [40] - Total liquidity at June 30 was $636 million, including $161 million in cash and $475 million available under the credit facility [44] Business Line Data and Key Metrics Changes - The acquisition of Pacific Drilling contributed to increased revenue, with the Pacific Santa Ana and Pacific Sharav earning revenue during the quarter [34] - The company secured three new contracts for its ultra-deepwater rigs, adding approximately 180 operating days and a cumulative contract value of over $55 million [10][12] Market Data and Key Metrics Changes - The U.S. Gulf of Mexico ultra-deepwater market saw a five-fold increase in contract fixtures in the first half of 2021, with rig utilization rising sharply [13] - In West Africa, drillship utilization increased from 56% in Q1 to 73% in Q2, indicating a recovery in the market [18] - Global demand for ultra-deepwater rigs is expected to exceed 2020 levels by over 25% in 2022 [22] Company Strategy and Development Direction - The company is focused on integrating the Pacific Drilling acquisition and achieving $30 million in annual synergies by the end of Q3 2021 [41] - Noble is pursuing strategies to reduce fuel consumption and emissions, including power plant optimization and installation of Selective Catalytic Reduction systems [53] - The company aims to maintain cost discipline and make responsible investment decisions to enhance its value proposition [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the ultra-deepwater market and the potential for increased dayrates and contract durations [23] - The company expects to generate positive free cash flow by early 2022, supported by new contracts and improving market conditions [49] - Management acknowledged ongoing challenges in the industry but emphasized the importance of oil and gas in the global energy mix [52] Other Important Information - The company completed the disposal of two rigs, generating approximately $30 million in cash and eliminating $10 million in annual stacking costs [41] - Capital expenditures for Q2 2021 were $55 million, reflecting contract-specific projects and preparations for upcoming contracts [40] Q&A Session Summary Question: Insights on the jackup market and its recovery - Management noted that typically the jackup market leads the recovery, but recent volatility has caused a topsy-turvy situation, with the floater market currently showing more activity [61][64] Question: Technical aspects of drilling and customer demand for managed pressure drilling (MPD) - Management confirmed that MPD is gaining momentum but is not yet standard; it is a useful tool for certain wells and customers are willing to pay for it [66][68] Question: M&A strategy and potential acquisitions - Management stated that they are focused on high-spec floaters and jackups, emphasizing the importance of fleet quality and potential synergies in any future M&A activities [75][76]
Noble plc(NE) - 2021 Q1 - Earnings Call Transcript
2021-05-05 15:53
Noble Corporation plc (NYSE:NE) Q1 2021 Earnings Conference Call May 5, 2021 9:00 AM ET Company Participants Craig Muirhead - VP, IR and Treasurer Robert Eifler - President and CEO Richard Barker - SVP and CFO Conference Call Participants Operator Craig Muirhead Okay. Thank you and welcome everyone to Noble Corporation's First Quarter 2021 Earnings Conference Call. We appreciate your continued interest in the company. You can find a copy of Noble's earnings report issued yesterday evening along with the sup ...
Noble plc(NE) - 2020 Q3 - Earnings Call Transcript
2020-11-05 19:33
Noble Corporation PLC (NYSE:NE) Q3 2020 Earnings Conference Call November 5, 2020 9:00 AM ET Company Participants Craig Muirhead - VP, IR & Treasurer Robert Eifler - President, CEO & Director Richard Barker - SVP & CFO Conference Call Participants Operator Ladies and gentlemen, thank you for standing by, and welcome to the Noble Corporation plc Third Quarter 2020 Results Conference Call. [Operator Instructions]. I would now like to turn the call over to Craig Muirhead, VP of Investor Relations and Treasurer ...
Noble plc(NE) - 2020 Q2 - Earnings Call Transcript
2020-08-06 15:42
Noble Corporation plc (NYSE:NE) Q2 2020 Earnings Conference Call August 6, 2020 9:00 AM ET Company Participants Craig Muirhead - VP, IR and Treasurer Richard Barker - SVP and CFO Robert Eifler - President and CEO Conference Call Participants Operator Ladies and gentlemen, thank you for standing by. And welcome to the Noble Corporation plc Second Quarter 2020 Results. At this time all participants are in a listen-only mode. [Operator Instructions] I will now like to turn the conference over to your speaker f ...