Q1 2022 Noble Corp (Cayman Island) Earnings Call

May 3, 2022

[Company Representative] (Noble Corp): With the SEC. Also note, we are referencing non-GAAP financial measures in the call today. You will find the required supplemental disclosure for these measures, including the most recently comparable GAAP measure and an associated reconciliation in our earnings report issued yesterday and filed with the SEC. With that, I will now turn the call over to Robert Eifler, President and Chief Executive Officer of Noble.

Also note, we are referencing non-GAAP financial measures in the call today. You will find the required supplemental disclosure for these measures, including the most recently comparable GAAP measure and an associated reconciliation in our earnings report issued yesterday and filed with the SEC.

Also note we are referencing non-GAAP financial measures in the call today, you will find the required supplemental disclosure for these measures, including the most recently comparable GAAP measure and an associated reconciliation in our earnings report issued yesterday and filed with the SEC.

And with that, I will now turn the call over to Robert Eifler, President and Chief Executive Officer of NOBA.

And with that I will now turn the call over to Robert Eifler, President and Chief Executive Officer of Noble.

Robert Eifler: Thanks, Greg, and welcome to everyone joining us on the call today. I'll start with a commentary on underlying improvements to our business outlook and follow with highlights on our global operations in the rig market before turning the call over to Richard to review our financial results for the quarter. Following dramatic improvement in our business through 2021, we conclude Q1 2022 with continued momentum supported by a strong oil price environment and an increasing focus on energy security globally. At Noble, our contracted utilization stands at 100% in our marketed fleet, with contract visibility on our four seventh-generation drill ships in Guyana to late 2025. In the jackup segment, activity has accelerated to accompany the continuing improvement in the ultra-deepwater space, and forecasted demand remains strong across market segments for the foreseeable future.

Thanks, Craig. And welcome to everyone joining us on the call today. I'll start with a commentary on underlying improvements to our business outlook and follow with highlights on our global operations in the rig market before turning the call over to Richard to review our financial results for the quarter.

Thanks, Craig and welcome to everyone joining us on the call today.

Start with the commentary on underlying improvements to our business outlook and follow with highlights on our global operations in the rig market before turning the call over to Richard to review, our financial results for the quarter.

Following dramatic improvement in our business through 2021, we can conclude the first quarter of 2022 with continued momentum supported by a strong oil price environment and an increasing focus on energy security globally.

At Noble, our contracted utilization stands at 100% in our marketed fleet with contract visibility on our four seventh generation drill ships in Guyana to late 2025.

Ed Noble our contracted utilization stands at 100% and our marketed fleet with contract visibility on our 47th generation Drillships in Guyana to late 2025.

In the Jackup segment activity has accelerated to accompany the continuing improvement in the ultra deepwater space.

In the jacked up segment, activity has accelerated to accompany the continuing improvement in the ultra deep water space.

And forecasted demand remains strong across market segments for the foreseeable future.

And forecasted demand remained strong across market.

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Robert Eifler: With that backdrop, let me now provide some highlights on our global operations in the rig market. In the Gulf of Mexico, UDW day rate appreciation continued, with some rates closing in on $400,000 per day and steadily increasing average fixture duration year-over-year. Near-term rig availability in the US Gulf of Mexico remains limited, with only four rigs in the region rolling off contract in 2022. In Q1, our customer, QuarterNorth Energy, exercised priced options for the Noble Faye Kozack at $290,000 per day. Additionally, Noble was awarded two contracts for the Noble Globetrotter I for work in Mexico at $275,000 and $325,000 per day following the demobilization from the long-term Shell contract.

With that backdrop, let me now provide some highlights on our global operations in the rig market.

With that backdrop, let me now provide some highlights on our global operations in the RIG Mark.

In the Gulf of Mexico, UW day rate appreciation continued with some rates closing in on $400 per day and steadily increasing average fixture duration year over year.

In the Gulf of Mexico, UDW day rate appreciation continued with some rates closing in on $400,000 per day and steadily increasing average fixture duration year over year.

Near-term rig availability in the U.S. Gulf of Mexico remains limited, with only four rigs in the region rolling off contract in 2022.

Near term rig availability in the U S. Gulf of Mexico remains limited with only four rigs in the region rolling off contract in 2022.

In the first quarter, our customer, Quarter North Energy, exercised price options for the Noble Fay Kozak at $290,000 per day.

In the first quarter, our customer quarter, North energy exercised priced options for the <unk> at $290000 per day.

Additionally, NOBL was awarded two contracts for the NOBL Globetrotter 1 for work in Mexico at $275,000 and $325,000 per day following the demobilization from the long-term shell contract.

Additionally, <unk> was awarded two contracts for the noble Globetrotter one for work in Mexico at 275 and $325000 per day following the demobilization from the long term shell contract.

Robert Eifler: These two contracts, alongside other sixth-generation fixtures over $300,000 per day elsewhere in the industry, are a particularly strong market signal. The pace of improvement in US Gulf of Mexico has been rapid, and we expect stable UDW demand growth in the coming years. Moving to South America, the Petrobras long-term strategy of growing production and increasing CapEx deployment continued through Q1 as they awarded 4 new contracts for a total of approximately 7 rig years. Just this past Thursday, Petrobras launched additional tenders for up to 8 rigs starting as early as Q4 this year. The South America region is beginning to exhibit the same limited rig availability currently seen in the Gulf of Mexico, and we expect increasing contract opportunities and improving rates through the remainder of 2022. In the Guyana-Suriname Basin, our market-leading position continues to grow.

Robert Eifler: These two contracts, alongside other sixth-generation fixtures over $300,000 per day elsewhere in the industry, are a particularly strong market signal. The pace of improvement in US Gulf of Mexico has been rapid, and we expect stable UDW demand growth in the coming years. Moving to South America, the Petrobras long-term strategy of growing production and increasing CapEx deployment continued through Q1 as they awarded 4 new contracts for a total of approximately seven rig years. Just this past Thursday, Petrobras launched additional tenders for up to eight rigs starting as early as Q4 this year. The South America region is beginning to exhibit the same limited rig availability currently seen in the Gulf of Mexico, and we expect increasing contract opportunities and improving rates through the remainder of 2022. In the Guyana-Suriname Basin, our market-leading position continues to grow.

These two contracts alongside other sixth generation fixtures over $300000 per day elsewhere in the industry are a particularly strong market signal.

These two contracts, alongside other sixth generation fixtures over $300,000 per day elsewhere in the industry, are a particularly strong market signal.

The pace of improvement in US Gulf of Mexico has been rapid, and we expect stable UDW demand growth in the coming years.

The pace of improvement in U S. Gulf of Mexico has been rapid and we expect stable UW demand growth in the coming years.

Moving to South America, the Petrobras long-term strategy of growing production and increasing CAPEX deployment continued through Q1 as they awarded four new contracts for a total of approximately seven rig years.

Moving to South America, the Petrobras long term strategy of growing production and increasing Capex deployment continued through Q1 and they awarded four new contracts for a total of approximately seven rig years.

And just this past Thursday, Petrobras launched additional tenders for up to eight rigs starting as early as Q4 this year.

The South America region is beginning to exhibit the same limited rig availability currently seen in the Gulf of Mexico, and we expect increasing contract opportunities and improving rates through the remainder of 2022.

In the Guyana, Suriname basin, our market, leading position continues to grow.

And the guy on a base and our market leading position continues to grow.

Robert Eifler: The Noble Gerry de Souza arrived in Suriname following the recent installation of an MPD system and a second BOP. The upgraded rig has begun its program for APA Corporation, and we are working intensely to achieve their project goals. We are also pleased to report the Yellowtail project was approved in Guyana on 1 April, satisfying all conditions of the previously announced 7.4 years of additional work under the Commercial Enabling Agreement with ExxonMobil. That work is reflected in our revenue backlog as of 1 April. Lastly, the Noble Regina Allen secured additional work in Trinidad and Tobago this quarter at a rate of $102,000 per day. Tender activity in West Africa has increased with 10 tenders and 2 pre-tenders outstanding for drillship requirements.

The novel Jerry to Susa arrived in Suriname. Following the recent installation of an MPD system and a second DLP.

The Noble Jerry D'Souza arrived in Suriname following the recent installation of an MPD system and a second BOP. The upgraded rig has begun its program for APA Corp, and we are working intensely to achieve their project goals.

The upgraded rig has begun its program for API Court and we are working intensely to achieve their project goals.

We are also pleased to report the Yellowtail project was approved in Guyana on April 1st, satisfying all conditions of the previously announced 7.4 years of additional work under the Commercial Enabling Agreement with ExxonMobil.

We're also pleased to report the Yellowtail project was approved in Guyana on April 1st Satish.

Satisfying all conditions of the previously announced seven four years of additional work under the commercial enabling agreement with Exxonmobil.

That work is reflected in a revenue backlog as of April 1st.

That work is reflected in our revenue backlog as of April one.

Lastly, the noble Regina Allen and secured additional work in Trinidad and Tobago this quarter at a rate of $102000 per day.

Lastly, the noble Regina Allen secured additional work in Trinidad and Tobago this quarter at a rate of $102,000 per day.

Tender activity in West Africa has increased with 10 tenders and 2 free tenders outstanding for drill ship requirements.

Tender activity in West Africa has increased with 10 tenders and two pre tenders outstanding for drillship requirements.

Robert Eifler: Eni is the latest operator to come to the market with requirements for up to two drillships in Angola, commencing in Q2 2023. In addition to that tender, we currently see incremental demand with multiple operators in Gabon, Angola, the Democratic Republic of Congo, Ghana, and Nigeria. The awards announced this quarter include some significant updates for Noble's North Sea jackups. The Noble Sam Hartley received a one-well commitment from TotalEnergies with a contract value of approximately $18 million, plus two one-well options. Our other ready stacked jackup in the region, the Noble Houston Colbert, also secured long-term work during the quarter. The rig will mobilize for Qatargas and join sister rig, the Noble Mick O'Brien, for three and a half years of primary term each. In a broader context, the North Sea jackup demand remains stable with increased activity on the horizon.

E&I is the latest operator to come to the market with requirements for up to two drill ships in Angola, commencing in second quarter 2023.

Eni is the latest operator to come to the market with requirements for up to two drillships in Angola commencing in the second quarter 2023.

In addition to that tender, we currently see incremental demand with multiple operators in Gabon, Angola, the Democratic Republic of Congo, Ghana, and Nigeria.

In addition to that tender, we currently see incremental demand with multiple operators in Gabon, Angola, the Democratic Republic of Congo, Ghana and Nigeria.

The awards announced this quarter include some significant updates for Noble's North Sea Jack.

The awards announced this quarter include some significant updates for Noble's North Sea Jackups.

The Noble Sam Hartley received a one well commitment from Total Energies with a contract value of approximately eighteen million dollars plus two one well options.

The noble Sam Hartley received a one well commitment from total energies with a contract value of approximately $18 million plus two one well options.

Our other ready stack jack up in the region, the noble Houston culvert also secured long term work during the quarter.

Our other ready stacked jackup in the region. The noble Houston Colbert also secured long term work during the quarter.

The rig will mobilize for Qatar gas and join sister rig, the Noble-Mick O'Brien, for three and a half years of primary term each year.

The rig will mobilize for Qatar gas and joined sister rig the noble Mick O'brien for three and a half years of primary term each.

In a broader context, the North Sea jackup demand remains stable with increased activity on the horizon.

In a broader context, the north sea Jackup demand remained stable with increased activity on the horizon.

Robert Eifler: In Norway, based on the latest schedule, the Noble Lloyd Noble will continue to support Equinor into Q2 2023, with priced or indexed options carrying the work into 2024. Noble remains confident in the commercial opportunities to create long-term value in Norway as Europe transitions to a secure and sustainable energy supply, and Norway responds to the compelling tax incentives to produce. Increased jackup requirements in the Middle East had a meaningfully positive impact on both global supply-demand and rates as contractors in the region fought to secure rigs to compete for new contract requirements. Overall, firm demand in the Middle East has remained positive throughout the quarter, accounting for 55% of the 78 rig years of term awarded globally so far this year. To sum it up, we are in an exciting phase for the industry, but in particular for Noble.

In Norway, based on the latest schedule, the noble Lloyd Noble will continue to support Equinor into the second quarter of 2023 with priced or indexed options carrying the work into 2024.

In Norway based on the latest schedule the noble Lloyd Noble will continue to support <unk> into the second quarter of 2023 with price store indexed options carrying the work into 2024.

Nobel remains confident in the commercial opportunities to create long-term value in Norway as Europe transitions to a secure and sustainable energy supply and Norway responds to the compelling tax incentives to produce.

<unk> remains confident in the commercial opportunities to create long term value in Norway.

Transitions to a secure and sustainable energy supply and Norway responds to the compelling tax incentives to produce.

Increased jackup requirements in the Middle East had a meaningfully positive impact on both global supply demand and rates as contractors in the region fought to secure rigs to compete for new contract requirements.

Increased jackup requirements in the Middle East had a meaningfully positive impact on both global supply demand and rates as contractors in the region to secure rigs to compete for new contract requirements.

Overall, firm demand in the Middle East has remained positive throughout the quarter, accounting for 55% of the 78 rig years of term awarded globally so far this year.

Overall firm demand in the Middle East has remained positive throughout the quarter accounting for 55% of the 78 rig years of term rewarded globally. So far this year.

To sum it up we are in an exciting phase for the industry, but in particular for noble we've worked hard to position the company to take full advantage of this upturn and I am pleased to see the market develop in this way.

To sum it up, we're in an exciting phase for the industry, but in particular for Noble. We have worked hard to position the company to take full advantage of this upturn, and I'm pleased to see the market develop in this way.

Robert Eifler: We have worked hard to position the company to take full advantage of this upturn, and I'm pleased to see the market develop in this way. I'll now turn the call over to Richard to provide an overview of our financial results and guidance before taking back over to address our merger with Maersk and questions.

I'll now turn the call over to Richard to provide an overview of our financial results and guidance before taking back over to address our merger with Maersk and Conclusions.

Now I'll turn the call over to Richard to provide an overview of our financial results and guidance before taking back over to address our merger with Maersk and conclusions.

Richard Barker: Thank you, Robert, and good morning all. In my remarks today, I plan to provide some brief highlights of our Q1 results and then discuss our outlook for the remainder of the year, including our revised guidance for 2022. Contract drilling services revenue for the Q1 totaled $195 million, versus $192 million for the Q4 of last year. This quarter's revenue was positively impacted by a full quarter of operating days for the Noble Faye Kozack and Noble Lloyd Noble, the commencement of the Noble Gerry de Souza operations in Suriname towards the end of the quarter, and day rate increases for the rigs operating in Guyana. This increase was partially offset by the sale of our four jackups in Saudi Arabia during the Q4, as well as the divestment of the Noble Clyde Boudreaux.

Thank you, Robert and good morning. All in my remarks today, I plan to provide some brief highlights of our 1st quarter results and then discuss our outlook for the remainder of the year, including our revised guidance for 2020.

Thank you Robert and good morning, all and my remarks today I plan to provide some brief highlights of our first quarter results and then discuss our outlook for the remainder of the year, including our revised guidance for 2022.

Contract drilling services revenue for the first quarter totaled $195 million versus $192 million for the fourth quarter of last year.

This quarter's revenue was positively impacted by a full quarter of operating days for the noble Hey, Kozak and noble Lloyd noble.

This quarter's revenue was positively impacted by a full quarter of operating days for the Noble, Fay Kozak, and Noble Lloyd Noble, the commencement of the Noble Jerry D'Souza operations in Suriname towards the end of the quarter, and day rate increases for the rigs operating in Guyana.

The commencement of the noble Joe just sues operations in suing them towards the end of the quarter and day rate increases for the rigs operating in Guyana.

This increase was partially offset by the sale of our four jackups in Saudi Arabia during the fourth quarter as well as the divestment of the noble Clyde Boudreaux.

This increase was partially offset by the sale of our four jackets in Saudi Arabia during the fourth quarter, as well as the divestment of the noble Clyde Boudreaux.

Richard Barker: Contract drilling services costs for Q1 were $166 million, down from $183 million in Q4 2021. The lower costs were primarily driven by the divestiture of the four jackups in Saudi Arabia, the retirement of the Noble Clyde Boudreaux, and the completion of leg repairs on the Noble Endeavour during Q4. Adjusted EBITDA for the three months ended March 31 was $27 million, compared to $12 million in Q4 2021. Capital expenditures totaled $45 million in Q1, which includes $11 million of client reimbursable investments. The largest driver of capital spending during the quarter was the completion of our upgrades on the Noble Gerry de Souza, which was outfitted with a second BOP and an MPD system.

Contract drilling services costs for the first quarter were $166 million, down from $183 million in the fourth quarter of 2021.

Contract drilling services costs for the first quarter were $166 million down from $183 million in the fourth quarter of 2021.

The lower costs were primarily driven by the divestiture of the four jackups in Saudi Arabia, the retirement of the noble Clyde Boudreaux, and the completion of leg repairs on the noble and stool during the fourth quarter.

The lower costs were primarily driven by the divestiture of the four jackups in Saudi Arabia, the retirement of the noble Clyde Boudreaux and the completion of Languet pass on the noble Hans <unk> during the fourth quarter.

Adjusted EBITDA for the three months ended March 31st was 27 million compared to 12 million in the fourth quarter of 2021.

Adjusted EBITDA for the three months ended March 31st was $27 million compared to $12 million in the fourth quarter of 2021.

Capital expenditures totaled $45 million in the first quarter, which includes $11 million of client Reimbursable investments.

Capital expenditures totaled $45 million in the first quarter, which includes $11 million of client reimbursable investment.

The largest driver of capital spending during the quarter was the completion of our upgrades on the Noble Jerry D'Souza, which was outfitted with a second BOP and an MPD system.

The largest driver of capital spending during the quarter was the completion of our upgrades on the noble Jerry D'souza, which was outfitted with a second VIP and in MPD system.

Richard Barker: As a reminder, this rig came into our fleet as part of the Pacific Drilling acquisition with limited contract backlog. We have now upgraded the rig and put it to work with an important customer in a core region for Noble. Our free cash flow was negatively impacted in Q1 by timing of cash receipts. We expect this to be transitory and to reverse over the coming couple of quarters. During Q1, we recognized $17 million in Hurricane Ida-related expenses. As we have disclosed before, we have insurance coverage for property damage with a $10 million deductible and coverage for P&I with a $5 million deductible. We have seen a meaningful increase in revenue backlog, increasing over $700 million from $1.2 billion at the end of 2021 to $1.9 billion as of 1 April.

As a reminder, this rig came into our fleet as part of the Pacific Drilling Acquisition with limited contract backlog. We have now upgraded the rig and put it to work with an important customer in a core region for NOBL.

As a reminder, this rig came into our fleet as part of the Pacific drilling acquisition with limited contract backlog, we have now upgraded the rig and put it to work with an important customer and a core region for noble.

Our free cash flow was negatively impacted in the first quarter by timing of cash flow.

Our free cash flow was negatively impacted in the first quarter by timing of cash receipts, we expect this to be transitioning and to reverse over the coming couple of quarters.

We expect this to be transitionary and to reverse over the coming couple of quarters.

During the first quarter, we recognized $17 million in hurricane either related expenses.

During the first quarter, we recognized $17 million in hurricane Ida-related expenses.

As we have disclosed before, we have insurance coverage for property damage with a $10 million deductible and coverage for P&I with a $5 million deductible.

As we have disclosed before we have insurance coverage for property damage with a 10 million deductible and coverage for P&I with a $5 million deductible.

We have seen a meaningful increase in revenue backlog, increasing over 700 million from $1 2 billion at the end of 2021 to $1 9 billion as of April 1st.

We have seen a meaningful increase in revenue backlog, increasing over 700 million from 1.2 billion at the end of 2021 to 1.9 billion as of April 1st. Our backlog does not include the 7 years affirmed term associated with the LOA from Qatar Gas.

Richard Barker: Our backlog does not include the 7 years of firm term associated with the LOA from Qatargas. Per our backlog disclosure practice, we carry any unpriced work under the CEA at the most recently negotiated rates. We are still in discussions for setting the rate that will go into effect on 1 September 2022. As I mentioned in the last call, we anticipate significant sequential quarterly improvements throughout this year, especially from Q1 to Q2. While there are several contributing factors to this step up, three key drivers are the following. Firstly, our 4 drillships in Guyana received their biannual day rate adjustment on 1 March 2022, which positively impacted the last month of Q1. The current rate, which was set during Q4 2021, compares favorably to the previous rate that was set in early 2021.

Our backlog does not include this seven years of firm term associated with the <unk> and Qatar gas.

For our backlog disclosure practice, we carry any unpriced work under the CEA at the most recently negotiated rate.

Our backlog disclosure practice, we carry any unpriced work under the CPA at the most recently negotiated rates.

We are still in discussions with setting the rate that will go into effect on September <unk> 2022.

We are still in discussions for setting the rate that will go into effect on September 1st, 2020.

As I mentioned in the last call, we anticipate significant sequential quarterly improvements throughout this year, especially from the first to the second quarter.

While there are several contributing factors to this step up, three key drivers are the following.

While there were several contributing factors to this step up three key drivers are the following.

Firstly, our four drill ships in Guyana received their biannual day rate adjustment on March 1st, which positively impacted the last month of the first quarter.

Firstly, our four Drillships in Guyana, Vascepa biannual day rate adjustment on March 1st which positively impacted the last month of the first quarter.

The current rate, which was set during the fourth quarter of 2021, compares favorably to the previous rate that was set in early 2020.

The current rate, which was set during the fourth quarter of 2021 compares favorably to the previous rate that was set in early 2021 the.

Richard Barker: The Q2 will benefit from a full three-month contribution of this higher rate. Secondly, we expect a full quarter contribution from the Noble Gerry de Souza in Suriname. Thirdly, we expect the Noble Regina Allen to commence its contract in mid-May. Turning now to our full-year outlook for 2022, we are revising guidance this quarter. It is important to note that our guidance does not take into account any potential divestment of Remedy Rigs or the Maersk transaction more broadly. Adjusted revenue and adjusted EBITDA ranges are increased to $1.13 to 1.18 billion and $320 to 350 million respectively. This increase is primarily driven by improved drillship activity and day rates, with adjusted EBITDA partially offset by expected inflationary pressures, which I will address more shortly.

The second quarter will benefit from a full three-month contribution of this higher rate.

The second quarter will benefit from a full three month contribution of this higher rate.

Secondly, we expect a full quarter contribution from the noble Jerry DeSouza in Suriname.

Secondly, we expect a full quarter contribution from the Novo JV d'souza and suing them.

Thirdly, we expect the noble Regina Allen to commence its contract in mid-March.

We expect the noble Regina Allen to commence its contract in mid May.

Turning now to our full year outlook for 2022, we are revising guidance this quarter.

Turning now to our full year outlook for 2022. We are revising guidance this quarter.

It is important to note that our guidance does not take into account any potential divestment of remedy wigs or the maersk transaction more broadly.

It is important to note that our guidance does not take into account any potential divestment of Remedy Rigs or the Maersk transaction more broadly.

Adjusted revenue and adjusted EBITDA ranges are increased to 1.13.

Adjusted revenue and adjusted EBITDA ranges are increased to 113.

to $1.18 billion and $320 to $350 million respectively.

To $1 8 billion and $320 million to $350 million respectively.

This increase is primarily driven by improved real ship activity and day rates with adjusted EBITDA partially offset by expected inflationary pressures, which I will address more shortly.

This increase was primarily driven by improved drillship activity in day rates with adjusted EBITDA, partially offset by expected inflationary pressures, which I will address more shortly.

Richard Barker: As evidenced by our fleet status report that was released yesterday, excluding our two cold stacked rigs, we have visibility to all our rigs operating in Q4. Including the LOA with Qatargas, we currently have approximately 94% of the projected operating days required to realize our guidance for the rest of the year under contract, or approximately 98% if you include the current options on the drillships in the Gulf of Mexico and South America. Full year 2022 capital expenditure guidance range, net of client reimbursables, increased by $15 million to $145 to 160 million. This increase is primarily driven by contract preparation investments required by recent commercial awards on the Noble Globetrotter I and Noble Houston Colbert. We always weigh capital investments against contracting opportunities, and we remain committed to investing at the right time.

As evidenced by our fleet status report that was released yesterday, excluding our two cold stacked rigs, we have visibility to all our rigs operating in the fourth quarter <unk>.

As evidenced by our fleet status report that was released yesterday, excluding our two cold stack rigs, we have visibility to all our rigs operating in the fourth quarter.

Including the LOA with Qatar Gas, we currently have approximately 94% of the projected operating days required to realize our guidance for the rest of the year under contract, or approximately 98% if you include the current options on the drill ships in the Gulf of Mexico and South America.

Including the LOI with Qatar gas, we currently have approximately 94% of the projected operating days required to realize our guidance for the rest of the year under contract for approximately 98%. If you include the current options on the Drillships in the Gulf of Mexico, and South America.

Full year 2022 capital expenditure guidance range net of client reimbursed rolls increased by $15 million to a $145 million to $160 million.

Full year 2022 capital expenditure guidance range, net of client reimbursables, increased by $15 million to $145 to $160 million.

This increase is primarily driven by contract preparation investments required by recent commercial awards on the Noble Globe Chorda I and Noble Houston Colbert.

This increase is primarily primarily driven by contract preparation investments.

<unk> by recent commercial awards on the noble Globetrotter, one and noble Houston Colbert.

We always weigh capital investments against contracting opportunities and we remain committed to investing at the right time.

Richard Barker: Both of these recently awarded contracts provided the right contract economics to invest in the rigs. For the Noble Houston Colbert, our capital investment is being reimbursed through the mobilization fee. Clearly an important topic impacting all industries globally right now is that of inflation and supply chain challenges. We are no different. We are being impacted as well. We are working closely with suppliers and customers to mitigate issues related to the lack of availability of materials and general supply chain issues. We expect our total rig-level expenses, our handrail costs, to increase on average in the high single-digit range in H2 this year as compared to H2 2021. This is incorporated in our guidance.

Both of these recently awarded contracts provided the right contract economics to invest in the rigs. So, the noble Houston Colbert, a capital investment is being reimbursed through the mobilization.

Of these recently awarded contracts provided the right contract economics to invest in the mix.

The noble Houston Colbert, our capital investment is being reimbursed through the mobilization fee.

Clearly, an important topic impacting all industries globally right now is that of inflation and supply chain challenges. We are no different. We are being impacted as well.

Clearly an important topic impacting all industries globally right now is that of inflation and supply chain challenges. We are no different we are being impacted as well.

We are working closely with suppliers and customers to mitigate issues related to the lack of availability of materials and general supply chain issues. We expect our total rig level expenses, our handrail costs, to increase on average in the high single digit range in the second half of this year, as compared to the second half of 2021. This is incorporated.

We are working closely with suppliers and customers to mitigate issues related to the lack of availability of materials and general supply chain issues. We expect that total rig level expenses handrail cost to increase on average in the high single digit range in the second half of this year as compared to the second half of 2021.

This is incorporated in our guidance.

Richard Barker: We currently do not project any major reactivations or capital projects which we believe could have the potential to be challenged by supply chain and inflationary issues from both a cost and timing perspective. The outlook for our business continues to improve, and we have visibility towards exiting the year at a quarterly adjusted EBITDA run rate of $125 million. Supporting this run rate is our recent contracting success and ongoing customer discussions, which result in an expectation for all of our rigs, excluding our cold stacked rigs, to contribute to the top line during Q4. That concludes my prepared remarks, and I'll now hand the call back to Robert.

We currently do not project any major reactivations or capital projects which we believe could have the potential to be challenged by supply chain and inflationary issues for both the cost and timing perspective.

We currently do not project any major reactivation capital projects, which we believe could have the potential to be challenged by <unk> supply chain and inflationary issues for both the cost and timing perspective.

The outlook for our business continues to improve, and we have visibility towards exiting the year at a quarterly adjusted Ambedar run rate of $125 million.

The outlook for our business continues to improve and we have visibility towards exiting the year at a quarterly adjusted EBITDA run rate of $125 million.

Supporting this run rate is our recent contracting success and ongoing customer discussion.

Supporting this run rate is that recent contracting success and ongoing customer discussions.

which results in an expectation for all of our rigs, excluding our cold stack rigs, to contribute to the top line during the fourth quarter.

Which resulted in an expectation for all of our rigs excluding a cold stack rigs to contribute to the top line during the fourth quarter.

That concludes my prepared remarks, and I'll now hand, the call back to Robin.

That concludes my prepared remarks and I'll now hand the call back to Robert.

Robert Eifler: Thank you, Richard. Before we close and move to Q&A, I wanna provide a quick update on our business combination with Maersk Drilling. We remain extremely excited about the combination with Maersk and bringing together our two historic companies. While we are eagerly awaiting the closing of the transaction, we are using this pre-closing time to prepare for a seamless integration. I know that both companies are committed to making sure it is successful in order to continue to offer both sets of customers world-class service, and to maximize value to all stakeholders. In relation to the closing of the transaction, we currently have three remaining steps. Firstly, as you might have read, we are currently working with the UK Competition and Markets Authority, the CMA, to address the agency's concerns over lessened competition in its jurisdiction.

Thank you Richard. Before we close and move to Q&A I want to provide a quick update on our business combination with Mayor Strilling.

Thank you Richard.

Before we close and move to Q&A I wanted to provide a quick update on our business combination with Maersk drilling.

We remain extremely excited about the combination of Maersk and bringing together our two historic companies. While we are eagerly awaiting the closing of the transaction, we are using this pre-closing time to prepare for a seamless integration.

We remain extremely excited about the combination of Maersk and bringing together our two historic companies. While we are eagerly awaiting the closing of the transaction. We are using this pre closing time to prepare for a seamless integration.

I know that both companies are committed to making sure it is successful in order to continue to offer both sets of customers world-class service and to maximize value to all stakeholders.

I know that both companies are committed to making sure. It is successful in order to continue to offer both sets of customers World class service and to maximize value to all stakeholders.

In relation to closing the transaction, we currently have three remaining steps.

In relation to the closing the transaction. We currently have three remaining steps.

Firstly, as you might have read, we are currently working with the UK Competition and Markets Authority, the CMA, to address the agency's concerns over lessened competition in its jurisdiction. As previously disclosed, we have a path that we are working and will continue to provide updates as appropriate.

Firstly as you might have read we are currently working with the UK competition and markets authority of the CMA to address the agency's concerns over lessen competition competition and its jurisdiction as previously disclosed we have a path that we are working and will continue to provide updates as appropriate.

Robert Eifler: As previously disclosed, we have a path that we are working and will continue to provide updates as appropriate. In addition to the ongoing UK regulatory review, Noble shareholders will vote next week on the transaction. Thirdly, we anticipate the tender offer for Maersk Drilling shareholders to commence later this month. We look forward to closing the transaction mid this year and creating a leading offshore driller stronger than the sum of our parts. In closing, I'm extremely excited about Noble's positioning in the current market. Our focus remains on generating cash flow by delivering operational excellence, safety, and customer service across our high-spec fleet, all of which are driven by our exceptional workforce. We have industry-leading utilization and excellent exposure to improving market day rates, where in many cases this exposure comes without any downtime between contracts. Importantly, our growth does not require significant reactivation capital.

In addition to the ongoing U.K. regulatory review, noble shareholders will vote next week on the transaction. And thirdly, we anticipate the tender offer for Mayer Sterling shareholders to commence later this month.

In addition to the ongoing UK regulatory review noble shareholders will vote next week on the transaction and thirdly, we anticipate the tender offer for Maersk drilling shareholders to commence later this month.

We look forward to closing the transaction mid this year and creating a leading offshore driller stronger than the sum of our part.

We look forward to closing the transaction mid this year and creating a leading offshore driller stronger than the sum of our parts.

In closing I am extremely excited about noble's positioning in the current market.

In closing, I'm extremely excited about Noble's positioning in the current market.

Our focus remains on generating cash flow by delivering operational excellence safety and customer service across our high spec fleet all of which are driven by our exceptional workforce.

Our focus remains on generating cash flow by delivering operational excellence, safety, and customer service across our high-spec fleet, all of which are driven by our exceptional work.

We have industry-leading utilization and excellent exposure to improving market day rates, where in many cases this exposure comes without any downtime between contracts.

We have industry, leading utilization and excellent exposure to improving market day rates, where in many cases. This exposure comes without any downtime between contracts.

Importantly, our growth does not require significant reactivation capital.

Robert Eifler: In a world that is structurally short of the supply of hydrocarbons, we believe that Noble represents an attractive financial proposition of both growth and yield. We remain committed to being good stewards of capital and believe we will be well-positioned to put in place a sustainable return of capital policy when appropriate after closing of the Maersk combination. I would like to thank all Noble employees, offshore and onshore, across the globe for their dedication to operating safely and to serving our customers. I look forward to sharing our achievements throughout the remainder of 2022, and thank you for participating in our call today. I'll turn it back over to the operator for Q&A.

In a world that is structurally short of the supply of hydrocarbons, we believe that NOVL represents an attractive financial proposition of both growth and yield. We remain committed to being good stewards of capital and believe we will be well-positioned to put in place a sustainable return of capital policy, when appropriate, after closing of the marriage combination.

In a world that is structurally short of the supply of hydrocarbons. We believe that novel represents an attractive financial proposition above growth and yield we remain committed to being good stewards of capital and believe we will be well positioned to put into place put in place a sustainable return of capital policy when appropriate after closing of the <unk> combination.

I would like to thank all <unk> employees offshore and onshore across the globe for their dedication to operating safely and to serving our customers.

I would like to thank all NOVL employees offshore and onshore across the globe for their dedication to operating safely and to serving our customers.

I look forward to sharing our achievements throughout the remainder of 2022, and thank you for participating in our call today. I'll turn it back over to the operator for Q&A.

Look forward to sharing our achievements throughout the remainder of 2022 and thank you for participating in our call today I'll turn it back over to the operator for Q&A.

Operator: At this time, I would like to remind everyone, in order to ask a question, press star one. We'll pause for just a moment to compile the Q&A roster. Our first question comes from Greg Lewis with BTIG. Your line is open.

At this time, I would like to remind everyone, in order to ask a question, press star 1. We'll pause for just a moment to compile the Q&A roster.

At this time I would like to remind everyone in order to ask a question press Star one we'll pause for just a moment to compile the Q&A roster.

Our first question comes from Greg Lewis with DTIG. Your line is open. Hey, thank you.

Our first question comes from Greg Lewis with <unk>. Your line is open.

Greg Lewis: Hey, thank you and good morning, everybody.

Hey, Thank you and good morning, everybody.

Robert Eifler: Morning, Greg.

Morning, Greg. Robert, I did was hoping you could provide a little bit more color around the the revenue guidance, which was super helpful by the way. So thank you for that. Realizing that. I guess I'll ask it this way, realizing that, you know, clearly we're sensitive around the disclosure of rates and, you know, we mentioned that the pricing is higher as I think about that reset. I guess it's going to be in another 6 months.

Good morning, Greg Robert I did was hoping you could provide a little bit more color around.

Greg Lewis: Robert, I was hoping you could provide a little bit more color around the revenue guidance, which was super helpful, by the way, so thank you for that. Realizing that, I guess I'll ask it this way. Realizing that, you know, clearly we're sensitive around the disclosure of rates and, you know, we mentioned that the pricing is higher. As I think about that reset, I guess it's gonna be in another six months. As I think about full-year guidance, does that imply an additional increase in those, in that pricing on those four rigs?

The revenue guidance, which was super helpful by the way so thank you for that realizing that.

I guess I'll ask it this way realizing that clearly we're sensitive around the disclosure of rates we.

You mentioned that the pricing is higher.

As I think about that reset.

It's going to be in another six months.

As I think about full year guidance, does that imply an additional increase in those, in that pricing?

As I think about full year guidance does that imply an additional <unk> <unk>.

The increase in those in that pricing.

on those four rigs? Yes, it does, Greg. So the price resets on September 1st, as we mentioned in the prepared comments, it has not been set. But the last price, you know, was set last fall. And so, you know, markets have moved since then. And so all that's baked into the numbers we've

Robert Eifler: Yes. It does, Greg. The price resets on 1 September, as we mentioned in the prepared comments. It has not been set. The last price, you know, was set last fall, and markets have moved since then. All that's baked into the numbers we've announced.

On those four rate, yes. It it does Greg so the price resets in September 1st as we mentioned in the prepared comments it has not been set.

The last price.

Set last fall and <unk>.

So markets markets have moved since then and so all of that's baked in baked into the numbers we've announced.

Greg Lewis: Okay, great. You know, I was looking at the Remedy Rigs, you know, interesting. Thank you for that. You know, I'm not gonna debate what the CMA is doing, but I did notice that one of those rigs, the Cold Bear, actually has, I guess, an LOI for work in Qatar, which congratulations, by the way. Is that specific to that rig, or in the event that that's sold, is that something where there could be some sort of swap?

Okay, great. And then, and then, you know, I was looking at the remedy rigs. You know, interesting. Thank you for that. You know, I'm not going to debate what the CMA is.

Okay, Great and then and then I was looking at the remedy regs interesting. Thank you for that.

I'm not going to debate.

The CMA is doing but I did notice that one of those rigs.

But I did notice that one of those rigs, the Colbert, actually has, I guess, an LOI for work in Qatar, which congratulations, by the way. Is that specific to that rig, or in the event that that's sold, is that something where there could be some sort of swap?

Colbert actually has I guess, an LOI for work in Qatar, which congratulations by the way.

Is that specific to that rig or in the event that that sold is that something where there could be some sort of swap.

Robert Eifler: No, look, we anticipate that rig going to Qatar and fulfilling its three-and-a-half year contract. You know, we don't wanna get deep at all into our process, but you know, we would anticipate the rig packages being one of the two that we announced previously.

Yeah. So, um, no, it's look, we anticipate that rig going, uh, uh, to Qatar and fulfilling it's, it's three and a half year contract. Um, you know, we don't want to get.

Yes so.

No look we anticipate that rig going.

To Qatar and fulfilling its its three and a half year contract.

We don't want to get deep at all into into our process.

deep at all into our process, but we would anticipate the rig packages being one of the two that we announced previously.

But we would anticipate the rig packages being one of the two that we announced previously.

Greg Lewis: Okay. I'll just squeeze one more in. I don't think it matters, but you know, I noticed along with the Remedy Rigs, there's a Maersk rig, and then you know, there's two CJ70s, one owned by Maersk, one owned by Noble. Regardless of which one is sold, that shouldn't change any terms around the deal. Should it? Or could it?

Okay, and then I'll just squeeze one more in I don't think it matters, but I noticed in the.

Okay, and then I'll just squeeze one more in. I don't think it matters, but I noticed along with the remedy rigs, there's a Maersk rig. There's two CJ70s, one owned by Maersk, one owned by Noble. Regardless of which one is sold, that shouldn't change any terms around the deal, should it?

Along with the remedy rigs there is a mers Greg.

And then Theres two CJ 71 owned by Mars Quanta by Knowable.

Regardless of which one is.

So, but that shouldnt change any terms around the deal should it.

Or cut it that no, that's that's right. Okay. Perfect. All right. Hey, thank you very much for the time. Everybody.

Robert Eifler: That's right.

Our cut at that.

Yes.

Robert Eifler: That's right.

That's right.

Greg Lewis: Okay, perfect. All right. Hey, thank you very much for the time, everybody.

Okay perfect Hey, Thank you very much for the time everybody.

Robert Eifler: Okay, thanks, Greg.

Okay. Thanks, Greg.

Operator: Again, if you would like to ask a question, press star one. Our next question comes from Samantha Hoh with Evercore ISI. Your line is open.

Again, if you would like to ask a question Press Star One. Our next question comes from Samantha Hawk with Evercore ISI. Your line is open.

Again, if you would like to ask a question, press star 1. Our next question comes from Samantha Hawk with Evercore ISI. Your line is open.

Samantha Hoh: Hey, good morning, guys. Congrats on a great quarter. I wanted to maybe delve in a little bit, Robert, about your commentary on improved Middle East dayrates. I think you said it meaningfully increased. I was just wondering if you could maybe, you know, elaborate a little bit on that. I'm assuming the dayrate on, you know, your rig in Qatar there is moving higher with this new contract.

Hey, good morning, guys congrats on great quarter.

Hey, good morning, guys. Congrats on a great quarter. I wanted to maybe delve in a little bit, Robert, about your commentary on improved Middle East day rates. I think you said it meaningfully increased. And I was just wondering if you could maybe elaborate a little bit on that. I'm assuming the day rate on your rig in Qatar there is moving higher with this new contract.

I wanted to maybe even a little bit.

Robert about your commentary on improve.

Danny.

Meaningfully increase.

Just wondering if you could maybe.

Great.

On that assuming that David.

Yes.

Qatar there is moving higher and your contract.

Robert Eifler: Yeah, sure. I can give some color just around timing on that and then the region more broadly. You know, we've said for quite some time that we see the jackup market a bit behind the recovery in the floater market, with a somewhat flattish outlook, and a large supply overhang. The crisis and the war in Ukraine, I think, changed that market more dramatically than any other. In particular in the Middle East, where you know, ramp up is a bit more short cycle, it's more NOC driven, and seems to be the most quick to have responded post-Ukraine. We think that there are two very different markets, pre- and post-Ukraine.

Yes, sure. So I can give some color just around timing on that and in the region.

I can get some color just around timing on that and then the region more broadly. We've said for quite some time that we see the jackup market a bit behind the recovery in the floater market with a somewhat flattish outlook and a large supply overhang.

More broadly.

We've said for quite some time that we see in the Jack Jackup market a bit behind the recovery in the floater market with the somewhat flattish outlook and a large supply overhang.

The crisis in the war in Ukraine, I think, changed that market more dramatically than any other. And so, and in particular, in the Middle East, where, you know, ramp-up is a bit more short cycle, it's more NOC-driven, and seems to be the most quick to have responded post-Ukraine. So . .

The crisis in the war in Ukraine, I think change that market.

More dramatically than any other and so and in particular in the middle East.

Where.

<unk> is a bit more short cycle, it's more NFC driven.

It seems to be the most.

Quick to have responded.

Post <unk> Ukraine.

So we.

We think that there are two very different markets, pre- and post-Ukraine, and I'll say the, you know, our...

We think that there are two very different markets pre and post Ukraine.

Robert Eifler: I'll say, you know, our contracts there in Qatar were pre-Ukraine, and that market has moved a little bit. I would say it's, you know, hard to predict exactly where that market goes. We do think with the number of open tenders and a great deal of visibility on demand in that region, that particularly the players that are highly focused there, you know, are likely to probably push pricing. There's been a contract, you know, a change in supply demand. We think that's probably a meaningful piece of the story post Ukraine.

And I'll say.

<unk>.

Our contracts there in Qatar were pre-Ukraine, and that market has moved a little bit, and I would say

Our contracts there in Qatar were pre Ukraine, and that market has moved a little bit.

And.

And I would say, it's hard to predict exactly where that market goes.

It's hard to predict exactly where that market goes, but we do think with the number of open tenders and a great deal of visibility on demand in that region, that particularly the players that are highly focused there are likely to probably push pricing. There's been a change in supply-demand, and so we think that's probably a meaningful piece of the story post-Ukraine.

But we do think with the number of open tenders and a great deal of visibility on demand in that region.

That particularly the players that are that are highly focus there are likely to probably.

Pushed pricing theirs.

Been a contract.

A change in supply demand and so we think we think thats probably.

Meaningful piece of the story post to Ukraine.

Okay.

Samantha Hoh: That's really interesting. Okay. My other question then has to do with just the commentary around, you know, the challenges that you foresee in any sort of major reactivations. I'm assuming that's just coming from actual conversations that you're having with the, you know, companies that we either certified and provide equipment. Can you maybe just kinda give us a little bit more information? Are those conversations kinda coming from your existing projects where, you know, you might have to upgrade a equipment or two? Or are you guys having conversations about potentially reactivating the two cold stacked rigs? Maybe not later this year, but potentially next year or the year after.

That's really interesting. OK, so my other question, then.

That's very interesting.

Okay.

My other question then.

have to do with just the commentary around, you know, the challenges that you foresee in any sort of major reactivations. I'm assuming that's just coming from actual conversations that you're having with the, you know, companies that we are certified and provide equipment. Can you maybe just kind of

Has to do with just the commentary around.

The challenges that you foresee.

Any sort of major reactivation.

Im assuming thats, just coming from actual conversations that youre, having with the.

Companies that leaner search by then provide.

On the equipment.

Can you, maybe just kind of give us a little bit more information.

Give us a little bit more information. Is that just are those conversations kind of coming from your existing projects where you know you might have to upgrade equipment or two or are you guys having conversations about potentially reactivating the two cold stack rigs, maybe not, not later this year, but potentially next year or the year after.

Those conversations kind of.

Coming from your existing projects, where you're getting or you might have to upgrade and equipment are you or are you guys, having conversations about potentially reactivating the to cold stack rate maybe not.

Not later this year, but potentially next year the year after.

Robert Eifler: Yes, it's a good question. No, we don't have any news on the two cold stacked rigs. You know, we've said previously what it would take and kinda how we think about the thresholds for reactivating those rigs, which has not changed. I said last quarter that you know, we think the market probably moves a little bit further before we get interested in those rigs. We'll see. We, you know, we see improvement, and we'll see what the world brings going forward. Speaking more specifically to inflation we're seeing and the reference to reactivations, you know, I think we kinda take the opposite approach that included in our guidance for this year. We don't have any more major reactivations.

Yes, it's a it's a good question. So no, we don't have any news on the two cold stack rigs. And, you know, we've said previously what it would take and kind of how we think about the thresholds for reactivating those rigs, which which has not changed.

Yes.

Good question. So no we don't have any news on the two cold stacked rigs and we've said previously what it would take and kind of how we think about the thresholds are for reactivating those rigs which has not changed.

And I said last quarter that, you know, we think the market probably moves a little bit further before we get interested in those rigs. And so we'll see, you know, we see improvement and we'll see what the world brings going forward. But speaking more specifically to inflation we're seeing and the reference to reactivation.

And I said last quarter.

We think the market probably moves a little bit further before we get interested and those rigs.

And so we'll see.

We see improvement in what we will see what the world brings going forward, but speaking more specifically to.

Inflation, we're seeing in the reference to reactivation.

I think we kind of take the opposite approach that included in our guidance for this year. We don't have any more major reactivations. We did have the Jerry D'Souza, which is now back to work. And the other rigs that are going into contract don't involve any reactivation or survey or anything like that. They're hot, recently working rigs that just require mobilization is all.

I think we kind of take the opposite approach that.

Included in our guidance for this year, we don't have any more major reactivation we did.

Robert Eifler: We did have the Gerry de Souza, which is now back to work. The other rigs that are going into contract don't involve any reactivation or survey or anything like that. They're hot, recently working rigs that just require mobilization, is all. We're not waiting on or beholden to delivery. That's really our point. On the supply chain side, you know, we are seeing kind of across the board, we're seeing higher prices, as Richard mentioned, you know, oftentimes in the kinda 20 to 25% range. We're seeing longer lead times and oftentimes doubling or more on lead times.

Have the Jerry to Susa, which is now back to work.

And the other rigs that are going into contract don't involve any reactivation or survey or anything like that they are hot.

Recently working rigs that just require a mobilization is all so we're not we're not we're not waiting on or.

So, we're not waiting on or beholden to delivery. So, that's really our point. But.

Or are beholden to.

To delivery, so that's really our point, but.

On the supply chain side, you know, we are seeing kind of across the board, we're seeing higher prices, as Richard mentioned, you know, oftentimes in the kind of 20 to 25% range.

On the supply chain side, we are seeing kind of across the board, we're seeing higher prices as Richard mentioned.

Oftentimes in the kind of $20 to 25% range.

And we're seeing longer lead times, and oftentimes doubling or more on lead times.

Robert Eifler: As that works through just our normal maintenance CapEx and our operating costs year to year, we're doing planning, we're managing it. You know, I think because of COVID, we were already managing a lot of this. Everything that I've just mentioned is baked into our guidance, and is foreseen going forward. I do think it gets more complicated the bigger the project you have.

So, as that works through just our normal maintenance CapEx and our operating costs year to year, we're doing planning, we're managing it. You know, I think because of COVID, we were already managing a lot of this. So everything that I've just mentioned is baked into our guidance and is foreseen going forward. But I do think it gets more complicated the bigger the project you have.

So as that works through just our normal maintenance capex in our in our operating costs year to year, we're doing planning we're managing it.

Zinc because of Covid, we were already managing a lot of this.

So everything that I've, just mentioned is baked into our guidance.

And as foreseen going forward, but I do think it gets more complicated the bigger the projects you have.

Samantha Hoh: I'm sorry to belabor this point, but the $15 million in incremental CapEx for the Noble Globetrotter I and Noble Houston Colbert, so that's not for any sort of equipment upgrade like MPD or I mean, obviously not a second BOP, but just I'm kind of wondering if you can kinda, you know, identify specific upgrades for those two projects.

Mm-hmm. And I'm sorry to belabor this point, but the $15 million in incremental CapEx for the Globetrotter 1 and Houston Cobert, so that's not for any sort of equipment upgrade like MPD or, I mean, obviously not second DOP, but I'm kind of wondering if you can kind of, you know, identify specific upgrades for those two projects.

Yes.

I'm, sorry to belabor this point, but.

The $15 million in incremental Capex for the globe charter one in Houston Colbert.

That's not for any sort of equipment upgrade like MPD or I mean, obviously not second DLT, but just I'm kind of wondering if you can kind of.

Identify specific upgrades for those two projects.

Richard Barker: Yeah, Sam, it's Richard here. Yeah. That's not for specific stuff on the rig. It's more on the Noble Globetrotter I mean, candidly, if you go back six, nine months ago, you know, the visibility around that rig working beyond its current contract was low, right? Obviously we were careful around how we invested in that rig. I think with the improved outlook, obviously the contracts that we've received, I think we're obviously now putting in the capital required for the upcoming contracts.

Yeah, yeah, Sam, it's Richard here. Yeah, that's not for specific stuff on the rig. It's more on the GT1. I mean, candidly, if you go back,

Yes, Amit it's Richard Yeah, that's not for specific stuff on the rig it's more on the GT one I mean candidly if you go back.

six, nine months ago, you know, the visibility around that rig working beyond its current contract was low, right? And so, obviously, we, you know, we were careful around how we invested in that rig. So, I think with the improved outlook, obviously, the contracts that we've received, I think we're obviously now putting in the capital required for the upcoming contracts.

Six nine months ago.

The visibility around that rig working beyond its current contract with LOE guidance. So obviously we.

<unk>.

We were careful about how we how we invested in that week. So I think with the improved outlook. Obviously the contracts that we've received I think we will see.

Putting in the capital required for the upcoming contracts.

Okay.

Robert Eifler: We may have lost you, Sam.

May of last year and did we lose you, yes, sorry about that I'm, sorry, I guess I'll have to go particularly play I don't want you have to repeat that yes, Mike something happened with my connection there.

We may have lost you, Sven. And did we lose you? Oh, yeah, sorry about that. I'm sorry, I guess I'll have to go dig through the replay. I don't want you to have to repeat that. Yeah, something happened with my connection there. Thanks for your time today, guys.

Richard Barker: Sam, did we lose you?

Samantha Hoh: Oh, yeah, sorry about that. I'm sorry. I guess I'll have to go take you to the replay. I don't want you to have to repeat that. Yeah, something happened with my connection there. Thanks for your time today, guys.

Thanks for your time today guys.

Robert Eifler: Thank you.

[Company Representative] (Noble Corp): Thanks, Samantha.

Thank you thanks John .

Operator: There are no further questions at this time. I'll turn the call back over to Robert Eifler for closing remarks.

There are no further questions at this time I will turn the call back over to Craig for closing remarks.

There are no further questions at this time. I'll turn the call back over to Craig for closing remarks.

[Company Representative] (Noble Corp): We thank you all for your participation on today's call and your continued interest in Noble. Chantelle, we appreciate your time coordinating today's call. Good day, everyone.

Okay. Thank you all for your participation on today's call and your continued interest in noble So I'm, telling we appreciate your time in coordinating today's call good day everyone.

We thank you all for your participation on today's call and your continued interest in NOBLE. Chantel, we appreciate your time coordinating today's call. Good day, everyone. This concludes today's conference call. You may disconnect.

Operator: This concludes today's conference call. You may now disconnect.

This concludes today's conference call you may now disconnect.

[music].

Yeah.

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