Net Income of $95 million, Diluted Earnings Per Share of $0.66, Adjusted EBITDA of $183 million, cash provided by operating activities of $129 million, and Free Cash Flow of $(38) million. 2024 major projects tracking on schedule ahead of key contract commencements in Q2 and Q3. Full year 2024 guidance maintained. SUGAR LAND, Texas, May 6, 2024 /PRNewswire/ -- Noble Corporation plc (NYSE:NE, CSE:NOBLE, ", Noble", , or the ", Company", )) today reported first quarter 2024 results. Three Months Ended (in millions, except per share amounts) March 31, 2024 March 31, 2023 December 31, 2023 Total Revenue $                   637 $                   610 $                   643 Contract Drilling Services Revenue 612 575 609 Net Income (Loss) 95 108 150 Adjusted EBITDA* 183 138 201 Adjusted Net Income (Loss)* 66 27 56 Basic Earnings (Loss) Per Share 0.67 0.80 1.06 Diluted Earnings (Loss) Per Share 0.66 0.74 1.03 Adjusted Diluted Earnings (Loss) Per Share* 0.45 0.19 0.39 * A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release. Robert W. Eifler, President and Chief Executive Officer of Noble Corporation plc, stated, "Our first quarter results reflect continued strong operational performance in a rising market, resulting in a 32% improvement in Adjusted EBITDA compared to a year ago. Following the short-term slow down in deepwater contracting activity during late 2023, first quarter contracting momentum for 7G rigs has been back on trend for this up-cycle, with a significant pipeline of contracts due to come to market this year for 2025 and 2026 project commencements. With a highly successful integration now behind us, I'd like to thank all Noble employees worldwide for continuing to deliver uncompromising service excellence on behalf of our customers." First Quarter ResultsContract drilling services revenue for the first quarter of 2024 totaled $612 million compared to $609 million in the fourth quarter of 2023, with the sequential increase driven by utilization. Marketed fleet utilization was 72% in the three months ended March 31, 2024, compared to 68% in the previous quarter. Contract drilling services costs for the first quarter of 2024 were $390 million, up from $374 million the fourth quarter of 2023, with elevated contract preparation and mobilization expenses preceding several pending contract commencements. Net income decreased to $95 million in the first quarter of 2024, down from $150 million in the fourth quarter of 2023, and Adjusted EBITDA decreased to $183 million in the first quarter of 2024, down from $201 million in the fourth quarter of 2023. Net cash provided by operating activities in the first quarter of 2024 was $129 million, capital expenditures were $167 million, and free cash flow (non-GAAP) was $(38) million. Balance Sheet and Capital AllocationThe Company's balance sheet as of March 31, 2024, reflected total debt principal value of $600 million and cash (and cash equivalents) of $212 million. Today, Noble's Board of Directors approved an interim dividend of $0.40 per share in the second quarter of 2024. This dividend is to be expected to be paid on June 27, 2024, to shareholders of record at close of business on June 6, 2024. The Company intends to continue to pay dividends on a quarterly basis, and the second quarter dividend represents $1.60 on an annualized basis. Future quarterly dividends and other shareholder returns will be subject to, amongst other things, approval by the Board of Directors and may be modified as market conditions dictate. Operating Highlights and BacklogNoble's marketed fleet of sixteen floaters was 76% contracted through the first quarter, compared with 75% in the prior quarter. Industry utilization has stabilized over the past year, with mid-90%s contracted utilization of the marketed fleet of ultra-deepwater floaters. Leading edge dayrates for tier-1 drillships are now approaching or eclipsing $500,000 per day, with discounts applicable for longer term duration fixtures as well as for lower specification sixth generation floaters. Within the latter category, Noble's two Globetrotter drillships and the Noble Developer continue to have limited backlog presently and are being actively marketed for 2024 and 2025 opportunities. Utilization of Noble's thirteen marketed jackups improved to 67% in the first quarter, up from 61% utilization during the prior quarter. While the international jackup market is presently digesting a release of several rigs from the Middle East, this dynamic has not impacted the North Sea and Norway markets where Noble's jackup fleet in primarily concentrated. Leading edge harsh environment jackup dayrates are in the mid $200,000s per day in Norway and $130,000 to $150,000 per day in other North Sea. Subsequent to last quarter's earnings press release, new contracts for Noble's fleet with total contract value of approximately $215 million (including mobilization payments) include the following: Noble Venturer was awarded a three well contract for an estimated 150 days with Trident Energy in Equatorial Guinea expected to commence in June 2024. Additionally, the Noble Venturer was awarded two wells, plus options, with Rhino Resources in Namibia at a dayrate of $410,000, excluding additional fees for MPD services, mobilization, and demobilization fees. These new contracts are scheduled to follow in direct continuation of the rig's current contract with Tullow which we expect will conclude early due in part to drilling efficiency outperformance. Noble Viking was awarded three wells (plus one well option) with Prime Energy in the Philippines at a dayrate of $499,000, excluding additional fees for MPD services, mobilization, and demobilization fees. Noble Voyager was awarded a one well option exercised by Petronas in Suriname for a minimum term of 60 days at a dayrate of $470,000. Noble Innovator was awarded a one well extension with BP in the UK at a dayrate of $145,000. Two well-based options remain under the contract. Noble's backlog as of May 6, 2024, stands at $4.4 billion. OutlookFor the full year 2024, Noble is maintaining guidance as follows: Total revenue in a range of $2,550 to $2,700 million, Adjusted EBITDA in a range of $925 to $1,025 million, and capital additions (net of reimbursements) in a range of $400 to $440 million. Commenting on Noble's outlook, Mr. Eifler stated, "Offshore drilling fundamentals, especially for high-spec floaters, remain supportive of a continuing multi-year uptrend in both dayrates and average term duration, while near-term white space for lower-spec units persists as a 2024 headwind. Our outlook for an earnings and cash flow inflection in the second half of this year is well supported by several meaningful contract startups that are on schedule to commence over the next several months. As Noble progresses into this next stage of earnings growth, we will remain committed to returning the significant majority of free cash flow to shareholders via dividends and share repurchases." Due to the forward-looking nature of Adjusted EBITDA, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure. Accordingly, the Company is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to the most directly comparable forward-looking GAAP financial measure without unreasonable effort. The unavailable information could have a significant effect on Noble's full year 2024 GAAP financial results. Conference CallNoble will host a conference call related to its first quarter 2024 results on Tuesday, May 7th, 2024, at 8:00 a.m. U.S. Central Time. Interested parties may dial +1 929-203-0901 and refer to conference ID 31391 approximately 15 minutes prior to the scheduled start time. Additionally, a live webcast link will be available on the Investor Relations section of the Company's website. A webcast replay will be accessible for a limited time following the call. For additional information, visit www.noblecorp.com or email About Noble Corporation plcNoble is a leading offshore drilling contractor for the oil and gas industry. The Company owns and operates one of the most modern, versatile, and technically advanced fleets in the offshore drilling industry. Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921. Noble performs, through its subsidiaries, contract drilling services with a fleet of offshore drilling units focused largely on ultra-deepwater and high specification jackup drilling opportunities in both established and emerging regions worldwide. Additional information on Noble is available at www.noblecorp.com. Dividend DetailsDividends payable to Noble shareholders will generally be paid in U.S. dollars (USD). However, holders of shares in the form of share entitlements admitted to trading on NASDAQ Copenhagen will receive an equivalent dividend payment in Danish krone (DKK) as determined by the exchange rate on a specified date. The holders of such share entitlements bear the risk of fluctuations in USD and DKK exchange rates. Forward-looking StatementsThis communication includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, as amended. All statements other than statements of historical facts included in this communication are forward looking statements, including those regarding future guidance, including revenue, adjusted EBITDA, the offshore drilling market and demand fundamentals, realization and timing of integration synergies, related costs to achieve, free cash flow expectations, capital expenditure, capital additions, capital allocation expectations including planned dividend and share repurchases, contract backlog, rig demand, expected future contracts, anticipated contract start dates, major project schedules, dayrates and duration, fleet condition and utilization, and 2024 financial guidance. Forward-looking statements involve risks, uncertainties and assumptions, and actual results may differ materially from any future results expressed or implied by such forward-looking statements. When used in this communication, or in the documents incorporated by reference, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "on track," "plan," "possible," "potential," "predict," "project," "should," "would," "shall," "target," "will" and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot assure you that such expectations will prove to be correct. These forward-looking statements speak only as of the date of this communication and we undertake no obligation to revise or update any forward-looking statement for any reason, except as required by law. Risks and uncertainties include, but are not limited to, those detailed in Noble's most recent Annual Report on Form 10-K, Quarterly Reports Form 10-Q and other filings with the U.S. Securities and Exchange Commission. We cannot control such risk factors and other uncertainties, and in many cases, we cannot predict the risks and uncertainties that could cause our actual results to differ materially from those indicated by the forward-looking statements. You should consider these risks and uncertainties when you are evaluating us. With respect to our capital allocation policy, distributions to shareholders in the form of either dividends or share buybacks are subject to the Board of Directors' assessment of factors such as business development, growth strategy, current leverage and financing needs. There can be no assurance that a dividend will be declared or continued. NOBLE CORPORATION plc AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Operating revenues Contract drilling services $         612,425 $         575,290 Reimbursables and other 24,659 34,764 637,084 610,054 Operating costs and expenses Contract drilling services 389,867 361,789 Reimbursables 17,680 26,006 Depreciation and amortization 86,698 69,942 General and administrative 25,961 30,037 Merger and integration costs 9,331 11,631 Hurricane losses and (recoveries), net — 3,544 529,537 502,949 Operating income (loss) 107,547 107,105 Other income (expense) Interest expense, net of amounts capitalized (17,544) (16,872) Interest income and other, net (4,735) 2,026 Income (loss) before income taxes 85,268