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Exhibit 99.1

Unaudited combined pro forma financial statements for Noble-Swiss

As of, and for, the six months ended June 30, 2013 and for the year ended December 31, 2012

On September 24, 2013, Noble Corporation, a Swiss company (“Noble-Swiss”), announced that its Board of Directors has approved a plan to reorganize its business by means of a separation and spin-off of a newly formed subsidiary (“Newco”) whose assets and liabilities would consist of most of Noble-Swiss’ standard specification drilling units, and related assets, liabilities and business.

The unaudited pro forma financial information of Noble-Swiss assumes that the standard specification units to be owned and operated by Newco would include five drillships, three semisubmersibles, 34 jackups, two submersibles, and one floating production storage and offloading unit, as well as the Hibernia platform operations offshore Canada (collectively the “subject fleet”). The separation of the subject fleet from Noble-Swiss, including its transfer to Newco, is referred to herein as the “Separation.”

The plan approved by the Board of Directors contemplates the execution of the Separation through the distribution of the shares of Newco to Noble-Swiss shareholders in a spin-off (the “Distribution” and, together with the Separation, the “Spin-Off”). Subject to business, market, regulatory and other considerations, the Distribution may be preceded by an initial public offering of up to 20 percent of the shares of Newco. In connection with the Separation, Noble-Swiss expects to repay certain outstanding indebtedness with payments received from Newco. Newco is expected to fund such payments to Noble-Swiss with proceeds from borrowings and, if Noble-Swiss proceeds with the initial public offering of Newco shares, its initial public offering. Following the Spin-Off, Noble-Swiss will continue to own and operate its high-specification assets with particular operating focus in deepwater and ultra-deepwater markets for drillships and semisubmersibles and harsh environment and high-specification markets for jackups. Completion of the Spin-Off is subject to receipt of a tax ruling from the U.S. Internal Revenue Service, approval of the shareholders of Noble-Swiss, and business, market, regulatory and other considerations beyond the control of Noble-Swiss.

The historical financial information of the subject fleet has been derived from the historical financial statements of Noble-Swiss, and the pro forma financial information of Noble-Swiss presents solely the impact of the removal of the subject fleet. No pro forma adjustments have been made for any assumptions regarding Newco as a standalone company or any transactions to be effected in connection with the Separation, including any financings or debt repayments.

The following unaudited pro forma combined financial information sets forth: (i) the historical financial information of Noble- Swiss and the subject fleet as of June 30, 2013 and for the six months then ended, as derived from the unaudited financial statements of Noble-Swiss and the unaudited combined financial statements of the subject fleet, (ii) the historical financial information of Noble-Swiss and the subject fleet for the year ended December 31, 2012, as derived from the audited financial statements of Noble-Swiss and the unaudited combined financial statements of the subject fleet and (iii) the pro forma financial information of Noble-Swiss retained assuming the proposed Spin-Off was completed as of June 30, 2013 for purposes of the unaudited pro forma combined balance sheet and as of January 1, 2012 for purposes of the unaudited pro forma combined statements of operations.

In July 2013, Noble-Swiss sold the Noble Lewis Dugger. As the sale of the rig is not deemed material to the overall pro forma Noble-Swiss retained financials, no pro forma adjustments have been made to reflect the sale of this rig.

The unaudited pro forma combined financial information should be read in conjunction with, and is qualified in its entirety by, the notes thereto and the historical annual and interim consolidated financial statements of Noble-Swiss, including the notes thereto, which were filed with the Securities and Exchange Commission in Noble-Swiss’ Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2013. The adjustments made herein are preliminary and are based on certain estimates and assumptions and currently available information. Such adjustments could change as additional information becomes available, as estimates and assumptions are refined or as additional events occur.

The unaudited pro forma combined financial statements are presented for comparative purposes only and may not necessarily be indicative of what the actual financial position or results of operations of Noble-Swiss or Newco would have been as of, and for, the periods presented, nor does it purport to represent the future financial position or results of operations of Noble-Swiss or Newco.


Noble Corporation (Noble-Swiss)

Unaudited pro forma combined balance sheet

As of June 30, 2013

(in thousands)

 

           Removal of     Pro forma  
     Historical     subject     Noble-Swiss  
     Noble-Swiss     fleet     Retained  
           (Note 2)        

Assets

      

Current assets

      

Cash and cash equivalents

   $ 166,207      $ 45,952      $ 120,255   

Accounts receivable

     834,576        366,648        467,928   

Taxes receivable (Note 2)

     148,281        7,576        140,705   

Prepaid expenses

     71,824        22,082        49,742   

Other current assets

     123,338        40,719        82,619   
  

 

 

   

 

 

   

 

 

 

Total current assets

     1,344,226        482,977        861,249   
  

 

 

   

 

 

   

 

 

 

Property and equipment, at cost

     18,198,504        5,343,177        12,855,327   

Accumulated depreciation

     (4,354,168     (2,313,705     (2,040,463
  

 

 

   

 

 

   

 

 

 

Property and equipment, net

     13,844,336        3,029,472        10,814,864   
  

 

 

   

 

 

   

 

 

 

Other assets

     277,524        78,774        198,750   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 15,466,086      $ 3,591,223      $ 11,874,863   
  

 

 

   

 

 

   

 

 

 

Liabilities and Equity

      

Current liabilities

      

Accounts payable

   $ 344,468      $ 123,100        221,368   

Accrued payroll and related costs

     126,267        48,572        77,695   

Interest payable

     67,255        413        66,842   

Taxes payable (Note 2)

     123,234        —          123,234   

Dividends payable

     256,420        —          256,420   

Other current liabilities

     168,946        29,522        139,424   
  

 

 

   

 

 

   

 

 

 

Total Current liabilities

     1,086,590        201,607        884,983   
  

 

 

   

 

 

   

 

 

 

Long-term debt (Note 2)

     5,276,304        —          5,276,304   

Deferred income taxes (Note 2)

     218,513        88,459        130,054   

Other liabilities

     324,379        98,049        226,330   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     6,905,786        388,115        6,517,671   
  

 

 

   

 

 

   

 

 

 

Shareholders’ equity

     7,807,466        3,203,108        4,604,358   

Noncontrolling interest

     752,834        —          752,834   
  

 

 

   

 

 

   

 

 

 

Total Equity

     8,560,300        3,203,108        5,357,192   
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 15,466,086      $ 3,591,223      $ 11,874,863   
  

 

 

   

 

 

   

 

 

 

See accompanying notes to the unaudited pro forma combined financial statements


Noble Corporation (Noble-Swiss)

Unaudited pro forma combined statement of operations

For the six months ended June 30, 2013

(in thousands)

 

           Removal of     Pro forma  
     Historical     subject     Noble-Swiss  
     Noble-Swiss     fleet     Retained  
           (Note 2)        

Operating revenues

      

Contract drilling services

   $ 1,904,192      $ 776,734      $ 1,127,458   

Reimbursables

     49,434        21,336        28,098   

Labor contract drilling services

     34,657        17,684        16,973   

Other

     77        66        11   
  

 

 

   

 

 

   

 

 

 
     1,988,360        815,820        1,172,540   
  

 

 

   

 

 

   

 

 

 

Operating expenses

      

Contract drilling services

     976,070        409,498        566,572   

Reimbursables

     37,623        15,748        21,875   

Labor contract drilling services

     21,651        11,727        9,924   

Depreciation & amortization

     418,745        179,191        239,554   

General & administrative (Note 2)

     52,420        27,807        24,613   

Gain on contract settlements/extinguishments, net

     (1,800     (1,800     —     
  

 

 

   

 

 

   

 

 

 
     1,504,709        642,171        862,538   
  

 

 

   

 

 

   

 

 

 

Operating Income

     483,651        173,649        310,002   

Other income (expense)

      

Interest expense

     (51,966     (2,235     (49,731

Interest income and other, net

     530        1,420        (890
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     432,215        172,834        259,381   

Income tax (provision) (Note 2)

     (71,176     (33,973     (37,203
  

 

 

   

 

 

   

 

 

 

Net income

     361,039        138,861        222,178   

Income attributable to non-controlling interests

     (34,359     —          (34,359
  

 

 

   

 

 

   

 

 

 

Net income attributable to controlling interests

   $ 326,680      $ 138,861      $ 187,819   
  

 

 

   

 

 

   

 

 

 

See accompanying notes to the unaudited pro forma combined financial statements


Noble Corporation (Noble-Swiss)

Unaudited pro forma combined statement of operations

For the year ended December 31, 2012

(in thousands)

 

           Removal of     Pro forma  
     Historical     subject     Noble-Swiss  
     Noble-Swiss     fleet     Retained  
           (Note 2)        

Operating revenues

      

Contract drilling services

   $ 3,349,362      $ 1,259,741      $ 2,089,621   

Reimbursables

     115,495        49,727        65,768   

Labor contract drilling services

     81,890        36,591        45,299   

Other

     265        254        11   
  

 

 

   

 

 

   

 

 

 
     3,547,012        1,346,313        2,200,699   
  

 

 

   

 

 

   

 

 

 

Operating expenses

      

Contract drilling services

     1,776,481        794,149        982,332   

Reimbursables

     94,096        38,672        55,424   

Labor contract drilling services

     46,895        21,930        24,965   

Depreciation & amortization

     758,621        321,809        436,812   

General & administrative (Note 2)

     99,990        54,298        45,692   

Gain on contract settlements/extinguishments, net

     (12,871     —          (12,871
  

 

 

   

 

 

   

 

 

 
     2,763,212        1,230,858        1,532,354   
  

 

 

   

 

 

   

 

 

 

Operating Income

     783,800        115,455        668,345   

Other income (expense)

      

Interest expense

     (85,763     (3,746     (82,017

Interest income and other, net

     5,188        1,721        3,467   
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     703,225        113,430        589,795   

Income tax (provision) (Note 2)

     (147,088     (43,192     (103,896
  

 

 

   

 

 

   

 

 

 

Net income

     556,137        70,238        485,899   

Income attributable to non-controlling interests

     (33,793     —          (33,793
  

 

 

   

 

 

   

 

 

 

Net income attributable to controlling interests

   $ 522,344      $ 70,238      $ 452,106   
  

 

 

   

 

 

   

 

 

 

See accompanying notes to the unaudited pro forma combined financial statements


NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

1. Basis of Presentation

On September 24, 2013, Noble Corporation, a Swiss company (“Noble-Swiss”), announced that its Board of Directors has approved a plan to reorganize its business by means of a separation and spin-off of a newly formed subsidiary (“Newco”) whose assets and liabilities would consist of most of Noble-Swiss’ standard specification drilling units, and related assets, liabilities and business.

The unaudited pro forma financial information of Noble-Swiss assumes that the standard specification units to be owned and operated by Newco would include five drillships, three semisubmersibles, 34 jackups, two submersibles, and one floating production storage and offloading unit, as well as the Hibernia platform operations offshore Canada (collectively the “subject fleet”). The separation of the subject fleet from Noble-Swiss, including its transfer to Newco is referred to herein as the “Separation.” The plan approved by the Board of Directors contemplates the execution of the Separation through the distribution of the shares of Newco to Noble-Swiss shareholders in a spin-off (the “Distribution” and, together with the Separation, the “Spin-Off”).

The historical financial information of the subject fleet has been derived from the historical financial statements of Noble-Swiss, and the pro forma financial information of Noble-Swiss presents solely the impact of the removal of the subject fleet. No pro forma adjustments have been made for any assumptions regarding Newco as a standalone company or any transactions to be effected in connection with the Spin-Off, including any financings or debt repayments.

The unaudited pro forma combined financial statements were prepared in accordance with Securities and Exchange Commission Regulation S-X Article 11 and are based on the historical financial statements of Noble-Swiss. The unaudited pro forma combined financial statements are in conformity with accounting principles generally accepted in the United States.

The unaudited pro forma combined financial statements are presented for comparative purposes only and may not necessarily be indicative of what the actual financial position or results of operations of Noble-Swiss and Newco would have been as of, and for, the periods presented, nor does it purport to represent the future combined financial position or results of operations of Noble-Swiss or Newco.

2. Removal of subject fleet as pro forma adjustments

The pro forma adjustments included in the accompanying financial statements include assets, liabilities, revenues and costs that are specifically identifiable or have been allocated directly to the subject fleet. Shareholders’ equity for the subject fleet represents Noble-Swiss’ interest in the recorded net assets of the subject fleet and includes cumulative operating results.

Long-term debt

In connection with the Separation, Noble-Swiss expects to repay certain outstanding indebtedness with payments received from Newco. Newco is expected to fund such payments to Noble-Swiss with proceeds from borrowings and, if Noble-Swiss proceeds with the initial public offering of Newco shares, its initial public offering. As described above, no pro forma adjustments have been made regarding the use of proceeds or financing costs, including interest, which might be incurred as a result of any such financings.

General and administrative expenses

The subject fleet receives service and support functions from Noble-Swiss and certain of its subsidiaries. The costs associated with these support functions have been allocated relative to Noble-Swiss in its entirety, which is considered to be the most meaningful under the circumstances. These allocated costs are primarily related to corporate administrative expenses, employee related costs, including pensions and other benefits, and corporate and shared employees for the following functional groups:


    information technology,

 

    legal services,

 

    accounting,

 

    finance services,

 

    human resources,

 

    marketing and product support,

 

    treasury and

 

    other corporate and infrastructural services.

Income taxes

A reasonable allocation of income taxes to the subject fleet has been made in instances where the operations of the subject fleet were included in the filing of a consolidated or combined return of Noble-Swiss. These estimates may not necessarily reflect the ultimate tax rate of either the subject fleet, or Noble-Swiss retained, following the Spin-Off.

3. Sale of Noble Lewis Dugger

In July 2013, Noble-Swiss sold the Noble Lewis Dugger. As the sale of the rig is not deemed material to the overall pro forma Noble-Swiss retained financials, no pro-forma adjustments have been made to reflect the sale of this rig.

4. Noble-Swiss earnings per share

The following details the unaudited pro forma earnings per share for Noble-Swiss retained:

 

    Six months     Year  
    ended     ended  
    June 30, 2013     December 31, 2012  

Allocation of net income

   

Basic

   

Net income attributable to Noble Corporation

  $ 187,819      $ 452,106   

Earnings allocated to unvested share-based payment awards

    (2,197     (4,595
 

 

 

   

 

 

 

Net income to common shareholders—basic

  $ 185,622      $ 447,511   
 

 

 

   

 

 

 

Diluted

   

Net income attributable to Noble Corporation

  $ 187,819      $ 452,106   

Earnings allocated to unvested share-based payment awards

    (2,195     (4,589
 

 

 

   

 

 

 

Net income to common shareholders—diluted

  $ 185,624      $ 447,517   
 

 

 

   

 

 

 

Weighted average shares outstanding—basic

    253,184        252,435   

Incremental shares issuable from assumed exercise of stock options

    265        356   
 

 

 

   

 

 

 

Weighted average shares outstanding—diluted

    253,449        252,791   
 

 

 

   

 

 

 

Weighted average unvested share-based payment awards

    2,998        2,592   
 

 

 

   

 

 

 

Earnings per share

   

Basic

  $ 0.73      $ 1.77   

Diluted

  $ 0.73      $ 1.77