##### 



NEWS
    
    NOBLE CORPORATION
13135 South Dairy Ashford, Suite 800
Sugar Land, TX 77478
Phone: 281-276-6100 Fax: 281-491-2092
    
    (Noble Corporation Logo)
 Noble Corporation Reports Record Third Quarter Earnings of $1.18 Per Share (Post-Split);
Up 55 Percent from Third Quarter 2006




---



##### 



Operations Highlights
 Noble Sam Noble Noble John Sandifer
( Noble Tom Jobe . Noble Roger Lewis Noble George McLeod Noble Chuck Syring
 Noble Paul Romano Romano
  This news release may contain forward-looking statements about the business, financial
performance and prospects of the Company. Statements about the Companys or managements plans,
intentions, expectations, beliefs, estimates, predictions, or similar expressions for the future
are forward-looking statements. No assurance can be given that the outcomes of these
forward-looking statements will be realized, and actual results could differ materially from those
expressed as a result of various factors. A discussion of these factors, including risks and
uncertainties, is set forth from time to time in the Companys filings with the U.S. Securities and
Exchange Commission.
 2




---



##### 



Conference Call
     For Investors:
    
    Lee M. Ahlstrom, Vice President  Investor Relations and Planning,
Noble Drilling Services Inc., 281-276-6440
 For Media:
    
    John S. Breed, Director of Corporate Communications,
Noble Drilling Services Inc., 281-276-6729
 3




---



##### 



NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
 Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006OPERATING REVENUESContract drilling services
    
    $
    718,756
    
    
    $
    503,837
    
    
    $
    1,953,175
    
    
    $
    1,379,141Reimbursables
    
    
    31,478
    
    
    
    24,800
    
    
    
    91,229
    
    
    
    68,512Labor contract drilling services
    
    
    40,622
    
    
    
    30,263
    
    
    
    116,342
    
    
    
    84,128Engineering, consulting and other
    
    
    420
    
    
    
    3,086
    
    
    
    2,953
    
    
    
    9,634791,276
    
    
    
    561,986
    
    
    
    2,163,699
    
    
    
    1,541,415OPERATING COSTS AND EXPENSESContract drilling services
    
    
    227,276
    
    
    
    179,001
    
    
    
    636,167
    
    
    
    513,092Reimbursables
    
    
    27,675
    
    
    
    21,534
    
    
    
    79,829
    
    
    
    59,130Labor contract drilling services
    
    
    32,324
    
    
    
    24,553
    
    
    
    93,181
    
    
    
    69,572Engineering, consulting and other
    
    
    6,073
    
    
    
    3,262
    
    
    
    16,970
    
    
    
    13,809Depreciation and amortization
    
    
    77,992
    
    
    
    65,560
    
    
    
    210,780
    
    
    
    187,466Selling, general and administrative
    
    
    24,617
    
    
    
    11,875
    
    
    
    59,145
    
    
    
    32,815Hurricane losses and recoveries, net
    
    
    1,600
    
    
    
    
    
    
    
    1,600
    
    
    
    (4,404
    )397,557
    
    
    
    305,785
    
    
    
    1,097,672
    
    
    
    871,480OPERATING INCOME
    
    
    393,719
    
    
    
    256,201
    
    
    
    1,066,027
    
    
    
    669,935OTHER INCOME (EXPENSE)Interest expense, net of amount capitalized
    
    
    (9,146
    )
    
    
    (882
    )
    
    
    (11,881
    )
    
    
    (15,134
    )Other, net
    
    
    6,954
    
    
    
    2,037
    
    
    
    8,624
    
    
    
    6,272INCOME BEFORE INCOME TAXES
    
    
    391,527
    
    
    
    257,356
    
    
    
    1,062,770
    
    
    
    661,073INCOME TAX PROVISION
    
    
    (73,247
    )
    
    
    (50,184
    )
    
    
    (204,139
    )
    
    
    (128,909
    )NET INCOME
    
    $
    318,280
    
    
    $
    207,172
    
    
    $
    858,631
    
    
    $
    532,164NET INCOME PER SHARE:Basic
    
    $
    1.19
    
    
    $
    0.77
    
    
    $
    3.22
    
    
    $
    1.95Diluted
    
    $
    1.18
    
    
    $
    0.76
    
    
    $
    3.19
    
    
    $
    1.93WEIGHTED AVERAGE SHARES OUTSTANDING:Basic
    
    
    266,684
    
    
    
    271,330
    
    
    
    266,575
    
    
    
    272,784Diluted
    
    
    269,476
    
    
    
    273,996
    
    
    
    269,270
    
    
    
    275,826
 4




---



##### 



NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 September 30,
    
    
    December 31,2007
    
    
    2006ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    150,579
    
    
    $
    61,710Accounts receivable
    
    
    519,604
    
    
    
    408,241Insurance receivables
    
    
    27,037
    
    
    
    54,191Inventories
    
    
    4,430
    
    
    
    4,461Prepaid expenses
    
    
    24,850
    
    
    
    20,491Other current assets
    
    
    25,543
    
    
    
    20,886Total current assets
    
    
    752,043
    
    
    
    569,980PROPERTY AND EQUIPMENTDrilling equipment and facilities
    
    
    6,072,695
    
    
    
    5,215,477Other
    
    
    86,875
    
    
    
    71,8706,159,570
    
    
    
    5,287,347Accumulated depreciation
    
    
    (1,584,461
    )
    
    
    (1,428,954
    )4,575,109
    
    
    
    3,858,393OTHER ASSETS
    
    
    181,761
    
    
    
    157,541$
    5,508,913
    
    
    $
    4,585,914LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESCurrent maturities of long-term debt
    
    $
    10,148
    
    
    $
    9,629Accounts payable
    
    
    197,832
    
    
    
    196,111Accrued payroll and related costs
    
    
    110,557
    
    
    
    93,251Taxes payable
    
    
    60,020
    
    
    
    52,793Interest payable
    
    
    8,285
    
    
    
    9,683Other current liabilities
    
    
    60,990
    
    
    
    64,793Total current liabilities
    
    
    447,832
    
    
    
    426,260LONG-TERM DEBT
    
    
    776,823
    
    
    
    684,469DEFERRED INCOME TAXES
    
    
    232,718
    
    
    
    219,521OTHER LIABILITIES
    
    
    56,555
    
    
    
    34,0191,513,928
    
    
    
    1,364,269COMMITMENTS AND CONTINGENCIESMINORITY INTEREST
    
    
    (6,097
    )
    
    
    (7,348
    )SHAREHOLDERS EQUITYOrdinary shares-par value $0.10 per share; 400,000 shares authorized;
268,639 shares issued and outstanding in 2007; 134,592 shares (pre-stock split)
issued and outstanding in 2006
    
    
    26,864
    
    
    
    13,459Capital in excess of par value
    
    
    727,087
    
    
    
    789,354Retained earnings
    
    
    3,266,159
    
    
    
    2,446,056Accumulated other comprehensive loss
    
    
    (19,028
    )
    
    
    (19,876
    )4,001,082
    
    
    
    3,228,993$
    5,508,913
    
    
    $
    4,585,914
 5




---



##### 



NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Nine Months Ended September 30,2007
    
    
    2006CASH FLOWS FROM OPERATING ACTIVITIESNet income
    
    $
    858,631
    
    
    $
    532,164Adjustments to reconcile net income to net cash provided by
operating activities:Depreciation and amortization
    
    
    210,380
    
    
    
    187,466Impairment loss on assets
    
    
    10,189
    
    
    
    4,849Deferred income tax provision
    
    
    13,197
    
    
    
    9,791Share-based compensation expense
    
    
    25,951
    
    
    
    15,830Pension contribution
    
    
    (37,615
    )
    
    
    (4,300
    )Other
    
    
    24,027
    
    
    
    13,640Other changes in current assets and liabilities:Accounts receivable
    
    
    (111,363
    )
    
    
    (113,541
    )Other current assets
    
    
    18,535
    
    
    
    (21,861
    )Accounts payable
    
    
    (36,914
    )
    
    
    32,614Other current liabilities
    
    
    20,367
    
    
    
    38,610Net cash provided by operating activities
    
    
    995,385
    
    
    
    695,262CASH FLOWS FROM INVESTING ACTIVITIESNew construction
    
    
    (541,976
    )
    
    
    (474,208
    )Other capital expenditures
    
    
    (330,707
    )
    
    
    (266,426
    )Major maintenance expenditures
    
    
    (69,756
    )
    
    
    (44,515
    )Accrued capital expenditures
    
    
    55,940
    
    
    
    Proceeds from sales of property and equipment
    
    
    4,643
    
    
    
    Proceeds from Smedvig disposition
    
    
    
    
    
    
    691,261Proceeds from sales and maturities of marketable securities
    
    
    
    
    
    
    15,461Net cash used for investing activities
    
    
    (881,856
    )
    
    
    (78,427
    )CASH FLOWS FROM FINANCING ACTIVITIESShort-term debt borrowing
    
    
    685,000
    
    
    
    Short-term debt payment
    
    
    (685,000
    )
    
    
    Borrowings on bank credit facilities
    
    
    220,000
    
    
    
    Payments on bank credit facilities
    
    
    (120,000
    )
    
    
    (135,000
    )Payments of other long-term debt
    
    
    (7,158
    )
    
    
    (606,667
    )Proceeds from issuance of senior notes, net of debt issuance costs
    
    
    
    
    
    
    295,851Net proceeds from employee stock transactions, including tax benefit
    
    
    24,713
    
    
    
    10,932Dividends paid
    
    
    (21,528
    )
    
    
    (16,423
    )Repurchases of ordinary shares
    
    
    (120,687
    )
    
    
    (147,275
    )Net cash used for financing activities
    
    
    (24,660
    )
    
    
    (598,582
    )NET INCREASE IN CASH AND CASH EQUIVALENTS
    
    
    88,869
    
    
    
    18,253CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
    
    61,710
    
    
    
    121,845CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    150,579
    
    
    $
    140,098
 6




---



##### 



NOBLE CORPORATION AND SUBSIDIARIES
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT
 Three Months Ended September 30,
    
    
    Three Months Ended June 30,2007
    
    
    2006
    
    
    2007International
    
    
    Domestic
    
    
    
    
    
    
    
    
    
    
    International
    
    
    Domestic
    
    
    
    
    
    
    
    
    
    
    International
    
    
    DomesticContract
    
    
    Contract
    
    
    
    
    
    
    
    
    
    
    Contract
    
    
    Contract
    
    
    
    
    
    
    
    
    
    
    Contract
    
    
    ContractDrilling
    
    
    Drilling
    
    
    Other
    
    
    Total
    
    
    Drilling
    
    
    Drilling
    
    
    Other
    
    
    Total
    
    
    Drilling
    
    
    Drilling
    
    
    Other
    
    
    TotalOPERATING REVENUESContract drilling services
    
    $
    541,347
    
    
    $
    177,409
    
    
    $
    
    
    
    $
    718,756
    
    
    $
    363,330
    
    
    $
    140,507
    
    
    $
    
    
    
    $
    503,837
    
    
    $
    490,962
    
    
    $
    166,542
    
    
    $
    
    
    
    $
    657,504Reimbursables
    
    
    21,179
    
    
    
    3,055
    
    
    
    7,244
    
    
    
    31,478
    
    
    
    16,215
    
    
    
    2,703
    
    
    
    5,882
    
    
    
    24,800
    
    
    
    16,766
    
    
    
    3,090
    
    
    
    8,752
    
    
    
    28,608Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    40,622
    
    
    
    40,622
    
    
    
    
    
    
    
    
    
    
    
    30,263
    
    
    
    30,263
    
    
    
    
    
    
    
    
    
    
    
    39,165
    
    
    
    39,165Engineering, consulting and other
    
    
    259
    
    
    
    142
    
    
    
    19
    
    
    
    420
    
    
    
    1,119
    
    
    
    162
    
    
    
    1,805
    
    
    
    3,086
    
    
    
    268
    
    
    
    108
    
    
    
    346
    
    
    
    722$
    562,785
    
    
    $
    180,606
    
    
    $
    47,885
    
    
    $
    791,276
    
    
    $
    380,664
    
    
    $
    143,372
    
    
    $
    37,950
    
    
    $
    561,986
    
    
    $
    507,996
    
    
    $
    169,740
    
    
    $
    48,263
    
    
    $
    725,999OPERATING COSTS AND EXPENSESContract drilling services
    
    $
    177,062
    
    
    $
    50,214
    
    
    $
    
    
    
    $
    227,276
    
    
    $
    145,442
    
    
    $
    33,559
    
    
    $
    
    
    
    $
    179,001
    
    
    $
    170,691
    
    
    $
    41,359
    
    
    $
    
    
    
    $
    212,050Reimbursables
    
    
    18,382
    
    
    
    2,438
    
    
    
    6,855
    
    
    
    27,675
    
    
    
    13,211
    
    
    
    2,537
    
    
    
    5,786
    
    
    
    21,534
    
    
    
    13,946
    
    
    
    2,760
    
    
    
    7,902
    
    
    
    24,608Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    32,324
    
    
    
    32,324
    
    
    
    
    
    
    
    
    
    
    
    24,553
    
    
    
    24,553
    
    
    
    
    
    
    
    
    
    
    
    32,454
    
    
    
    32,454Engineering, consulting and other
    
    
    (44
    )
    
    
    51
    
    
    
    6,066
    
    
    
    6,073
    
    
    
    (145
    )
    
    
    37
    
    
    
    3,370
    
    
    
    3,262
    
    
    
    12
    
    
    
    3
    
    
    
    7,240
    
    
    
    7,255Depreciation and amortization
    
    
    54,136
    
    
    
    21,491
    
    
    
    2,365
    
    
    
    77,992
    
    
    
    52,486
    
    
    
    12,052
    
    
    
    1,022
    
    
    
    65,560
    
    
    
    49,824
    
    
    
    16,284
    
    
    
    2,215
    
    
    
    68,323Selling, general and administrative
    
    
    19,144
    
    
    
    4,968
    
    
    
    505
    
    
    
    24,617
    
    
    
    7,482
    
    
    
    3,556
    
    
    
    837
    
    
    
    11,875
    
    
    
    15,591
    
    
    
    4,152
    
    
    
    559
    
    
    
    20,302Hurricane losses and recoveries, net
    
    
    
    
    
    
    1,600
    
    
    
    
    
    
    
    1,600
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    268,680
    
    
    $
    80,762
    
    
    $
    48,115
    
    
    $
    397,557
    
    
    $
    218,476
    
    
    $
    51,741
    
    
    $
    35,568
    
    
    $
    305,785
    
    
    $
    250,064
    
    
    $
    64,558
    
    
    $
    50,370
    
    
    $
    364,992OPERATING INCOME
    
    $
    294,105
    
    
    $
    99,844
    
    
    $
    (230
    )
    
    $
    393,719
    
    
    $
    162,188
    
    
    $
    91,631
    
    
    $
    2,382
    
    
    $
    256,201
    
    
    $
    257,932
    
    
    $
    105,182
    
    
    $
    (2,107
    )
    
    $
    361,007OPERATING STATISTICSJackups:Average Rig Utilization
    
    
    95
    %
    
    
    N/A
    
    
    
    
    
    
    
    95
    %
    
    
    97
    %
    
    
    N/A
    
    
    
    
    
    
    
    97
    %
    
    
    98
    %
    
    
    N/A
    
    
    
    
    
    
    
    98
    %Operating Days
    
    
    3,532
    
    
    
    N/A
    
    
    
    
    
    
    
    3,532
    
    
    
    3,560
    
    
    
    N/A
    
    
    
    
    
    
    
    3,560
    
    
    
    3,553
    
    
    
    N/A
    
    
    
    
    
    
    
    3,553Average Dayrate
    
    $
    126,342
    
    
    
    N/A
    
    
    
    
    
    
    $
    126,342
    
    
    $
    78,860
    
    
    
    N/A
    
    
    
    
    
    
    $
    78,860
    
    
    $
    112,804
    
    
    
    N/A
    
    
    
    
    
    
    $
    112,804Semisubmersibles  (6,000 feet or greater):Average Rig Utilization
    
    
    100
    %
    
    
    98
    %
    
    
    
    
    
    
    99
    %
    
    
    100
    %
    
    
    100
    %
    
    
    
    
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    
    
    
    
    100
    %Operating Days
    
    
    184
    
    
    
    452
    
    
    
    
    
    
    
    636
    
    
    
    184
    
    
    
    368
    
    
    
    
    
    
    
    552
    
    
    
    182
    
    
    
    373
    
    
    
    
    
    
    
    555Average Dayrate
    
    $
    165,565
    
    
    $
    330,490
    
    
    
    
    
    
    $
    282,807
    
    
    $
    166,951
    
    
    $
    290,976
    
    
    
    
    
    
    $
    249,634
    
    
    $
    166,795
    
    
    $
    343,754
    
    
    
    
    
    
    $
    285,758Semisubmersibles  (less than 6,000 feet):Average Rig Utilization
    
    
    100
    %
    
    
    100
    %
    
    
    
    
    
    
    100
    %
    
    
    83
    %
    
    
    90
    %
    
    
    
    
    
    
    85
    %
    
    
    81
    %
    
    
    100
    %
    
    
    
    
    
    
    87
    %Operating Days
    
    
    184
    
    
    
    92
    
    
    
    
    
    
    
    276
    
    
    
    153
    
    
    
    83
    
    
    
    
    
    
    
    236
    
    
    
    148
    
    
    
    91
    
    
    
    
    
    
    
    239Average Dayrate
    
    $
    181,073
    
    
    $
    173,063
    
    
    
    
    
    
    $
    178,403
    
    
    $
    163,221
    
    
    $
    155,307
    
    
    
    
    
    
    $
    160,438
    
    
    $
    166,705
    
    
    $
    173,462
    
    
    
    
    
    
    $
    169,283Drillships:Average Rig Utilization
    
    
    87
    %
    
    
    N/A
    
    
    
    
    
    
    
    87
    %
    
    
    100
    %
    
    
    N/A
    
    
    
    
    
    
    
    100
    %
    
    
    100
    %
    
    
    N/A
    
    
    
    
    
    
    
    100
    %Operating Days
    
    
    241
    
    
    
    N/A
    
    
    
    
    
    
    
    241
    
    
    
    276
    
    
    
    N/A
    
    
    
    
    
    
    
    276
    
    
    
    273
    
    
    
    N/A
    
    
    
    
    
    
    
    273Average Dayrate
    
    $
    130,019
    
    
    
    N/A
    
    
    
    
    
    
    $
    130,019
    
    
    $
    97,242
    
    
    
    N/A
    
    
    
    
    
    
    $
    97,242
    
    
    $
    128,874
    
    
    
    N/A
    
    
    
    
    
    
    $
    128,874Submersibles:Average Rig Utilization
    
    
    N/A
    
    
    
    68
    %
    
    
    
    
    
    
    68
    %
    
    
    N/A
    
    
    
    100
    %
    
    
    
    
    
    
    100
    %
    
    
    N/A
    
    
    
    100
    %
    
    
    
    
    
    
    100
    %Operating Days
    
    
    N/A
    
    
    
    188
    
    
    
    
    
    
    
    188
    
    
    
    N/A
    
    
    
    276
    
    
    
    
    
    
    
    276
    
    
    
    N/A
    
    
    
    273
    
    
    
    
    
    
    
    273Average Dayrate
    
    
    N/A
    
    
    $
    63,812
    
    
    
    
    
    
    $
    63,812
    
    
    
    N/A
    
    
    $
    74,529
    
    
    
    
    
    
    $
    74,529
    
    
    
    N/A
    
    
    $
    82,137
    
    
    
    
    
    
    $
    82,137Total:Average Rig Utilization
    
    
    95
    %
    
    
    88
    %
    
    
    
    
    
    
    94
    %
    
    
    97
    %
    
    
    99
    %
    
    
    
    
    
    
    97
    %
    
    
    97
    %
    
    
    100
    %
    
    
    
    
    
    
    98
    %Operating Days
    
    
    4,141
    
    
    
    732
    
    
    
    
    
    
    
    4,873
    
    
    
    4,173
    
    
    
    727
    
    
    
    
    
    
    
    4,900
    
    
    
    4,156
    
    
    
    737
    
    
    
    
    
    
    
    4,893Average Dayrate
    
    $
    130,731
    
    
    $
    242,376
    
    
    
    
    
    
    $
    147,501
    
    
    $
    87,067
    
    
    $
    193,270
    
    
    
    
    
    
    $
    102,824
    
    
    $
    118,138
    
    
    $
    225,872
    
    
    
    
    
    
    $
    134,364
 
 (1)
    
    Effective January 1, 2007, the Companys 30 percent net profit interest in theNoble Kolskayais reported in labor contract drilling services. For the quarters
ended September 30, 2007, 2006 and June 30, 2007,Noble Kolskayalabor contract drilling margin was $4.1 million, $2.0 million and $3.7 million, respectively. 7