Noble Corp plc Q4 FY2024 earnings call

• Completed acquisition of Diamond Offshore, with half of $100M synergies already realized. - Return of Capital program: paid $80M in dividends and repurchased $50M of shares in Q4, with full year 2024 return over $575M. - Industry market outlook: global deepwater demand has seen a mid-cycle lull, with contracted deepwater demand dipping, but expecting improvement by late '26 or '27. - Regional demand: Americas and West Africa shoulder over 75% of global deepwater demand; Asia-Pacific and North Sea have softer demand. - Fleet status: retired Meltem and other rigs to shed stacking costs, focusing on high-spec and utilized fleet.

The tier-1 drillships, which are the core earnings engine of Noble, comprise approximately 75% of expected total company EBITDA this year. In the fourth quarter, contract drilling services revenue totaled $882 million, adjusted EBITDA was $319 million. For the full year 2024, Noble generated $3.1 billion in revenue and $1.1 billion in adjusted EBITDA. The total backlog as of February 17th stands at $5.8 billion, with approximately $2.4 billion scheduled for revenue conversion during the remainder of 2025.

• 2025 total revenue range: $3.25 billion to $3.45 billion, including ~$150M in other/reimbursable revenue. - Adjusted EBITDA range: $1.05 billion to $1.15 billion. - Capital expenditures: $375 million to $425 million. - Over half of $100M synergies from Diamond acquisition realized, with remaining expected by end of 2025. - Anticipates 2025 to be a step up in free cash flow vs 2024, with excess free cash flow after dividends to be used for share buybacks.

• Market demand variability with timing differences. - Oversupply of rigs leading to rational decisions on retired rigs. - Political influence and regulatory factors affecting capital deployment in some regions. - Impact of tariffs on costs, with inflation assumptions embedded in guidance but fluid situation.

Q: On the tier-1 drillship market, can you provide more detail on prospects for BlackRhino, Voyager, and Valiant?

A: Robert Eifler mentioned there are more programs with '26 starts than '25 starts, with opportunities across the golden triangle via tenders and direct negotiations.

Q: Why was the decision made to retire the Meltem?

A: Robert Eifler stated diminished near-term call on stack capacity, soft near-term demand, and past issues with the rig's activation and drilling performance.

Q: Thoughts on 2025 guidance and fleet optimization?

A: Richard Barker said ~90% of midpoint revenue is in backlog, with 10% to secure; Robert Eifler discussed optimization and hope for improvement in Norway jackup market.

Q: Modifications to Globetrotter rigs for intervention space?

A: Robert Eifler said no major modifications needed, as intervention equipment is transferable from service companies.

Q: Impact of tariffs on costs?

A: Richard Barker stated it's a fluid situation with tariffs likely causing price increases, embedded in guidance with inflation assumptions.