##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  Commission file number: 0-13857
 NOBLE CORPORATION
  Cayman Islands
    
    98-0366361(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. employer identification number)13135 South Dairy Ashford, Suite 800Sugar Land, Texas
    
    77478(Address of principal executive offices)
    
    (Zip code)
 Registrants telephone number, including area code: (281) 276-6100
 þ o
 þ o
 o þ




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TABLE OF CONTENTS
 PAGEPART
    
    ITEM 1.
    
    FINANCIAL STATEMENTS
    
    
    3I
    
    ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    25Forward-Looking Statements
    
    
    25Executive Overview
    
    
    26Results of Operations
    
    
    27Liquidity and Capital Resources
    
    
    38Accounting Pronouncements
    
    
    39ITEM 3.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
    
    
    40ITEM 4.
    
    CONTROLS AND PROCEDURES
    
    
    40PART
    
    ITEM 1.
    
    LEGAL PROCEEDINGS
    
    
    41II
    
    ITEM 6.
    
    EXHIBITS
    
    
    42SIGNATURES
    
    
    43INDEX TO EXHIBITS
    
    
    44Employment Agreement - Bruce W. BusmireParent Guaranty of Employment AgreementCertification of James C. Day pursuant to Rule 13a-14(a)Certification of Bruce W. Busmire pursuant to Rule 13a-14(a)Certification of James C. Day pursuant to Rule 18 U.S.C. Section 1350Certification of Bruce W. Busmire pursuant to Rule 18 U.S.C. Section 1350
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PART I. FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 September 30,
    
    
    December 31,2005
    
    
    2004ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    166,673
    
    
    $
    58,790Investment in marketable securities
    
    
    44,837
    
    
    
    132,788Accounts receivable
    
    
    269,788
    
    
    
    205,023Inventories
    
    
    4,162
    
    
    
    4,013Prepaid expenses
    
    
    13,404
    
    
    
    12,454Other current assets
    
    
    41,469
    
    
    
    12,215Total current assets
    
    
    540,333
    
    
    
    425,283PROPERTY AND EQUIPMENTDrilling equipment and facilities
    
    
    4,050,199
    
    
    
    3,739,338Other
    
    
    65,452
    
    
    
    65,5504,115,651
    
    
    
    3,804,888Accumulated depreciation
    
    
    (1,196,607
    )
    
    
    (1,061,268
    )2,919,044
    
    
    
    2,743,620INVESTMENTS IN AND ADVANCES TO JOINT VENTURES
    
    
    
    
    
    
    18,804OTHER ASSETS
    
    
    132,835
    
    
    
    120,266$
    3,592,212
    
    
    $
    3,307,973LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESCurrent maturities of long-term debt
    
    $
    8,815
    
    
    $
    8,361Accounts payable
    
    
    161,636
    
    
    
    83,012Accrued payroll and related costs
    
    
    73,016
    
    
    
    60,911Taxes payable
    
    
    30,987
    
    
    
    22,883Interest payable
    
    
    2,331
    
    
    
    8,981Other current liabilities
    
    
    9,394
    
    
    
    30,018Total current liabilities
    
    
    286,179
    
    
    
    214,166LONG-TERM DEBT
    
    
    431,625
    
    
    
    503,288DEFERRED INCOME TAXES
    
    
    217,894
    
    
    
    206,506OTHER LIABILITIES
    
    
    8,149
    
    
    
    8,110943,847
    
    
    
    932,070COMMITMENTS AND CONTINGENCIES (Note 5)MINORITY INTEREST
    
    
    (7,897
    )
    
    
    (8,531
    )SHAREHOLDERS EQUITYOrdinary shares-par value $0.10 per share; 400,000 shares authorized;
136,916 shares issued and outstanding in 2005; 134,407 shares issued
and outstanding in 2004
    
    
    13,691
    
    
    
    13,441Capital in excess of par value
    
    
    1,023,407
    
    
    
    926,652Retained earnings
    
    
    1,640,169
    
    
    
    1,452,974Restricted stock (unearned compensation)
    
    
    (18,930
    )
    
    
    (11,171
    )Accumulated other comprehensive (loss) income
    
    
    (2,075
    )
    
    
    2,5382,656,262
    
    
    
    2,384,434$
    3,592,212
    
    
    $
    3,307,973
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NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
 Three Months Ended September 30,2005
    
    
    2004OPERATING REVENUESContract drilling services
    
    $
    328,101
    
    
    $
    232,057Reimbursables
    
    
    18,078
    
    
    
    12,161Labor contract drilling services
    
    
    17,275
    
    
    
    15,146Engineering, consulting and other
    
    
    3,751
    
    
    
    6,274367,205
    
    
    
    265,638OPERATING COSTS AND EXPENSESContract drilling services
    
    
    156,026
    
    
    
    133,235Reimbursables
    
    
    15,219
    
    
    
    10,504Labor contract drilling services
    
    
    14,967
    
    
    
    12,455Engineering, consulting and other
    
    
    5,349
    
    
    
    4,875Depreciation and amortization
    
    
    61,276
    
    
    
    52,723Selling, general and administrative
    
    
    9,324
    
    
    
    7,831Hurricane losses and recoveries, net (Note 11)
    
    
    10,465
    
    
    
    272,626
    
    
    
    221,623OPERATING INCOME
    
    
    94,579
    
    
    
    44,015OTHER INCOME (EXPENSE)Interest expense
    
    
    (5,153
    )
    
    
    (8,382
    )Other, net
    
    
    2,093
    
    
    
    1,199INCOME BEFORE INCOME TAXES
    
    
    91,519
    
    
    
    36,832INCOME TAX PROVISION
    
    
    (14,996
    )
    
    
    (6,261
    )NET INCOME
    
    $
    76,523
    
    
    $
    30,571NET INCOME PER SHARE:Basic
    
    $
    0.56
    
    
    $
    0.23Diluted
    
    $
    0.55
    
    
    $
    0.23
 .
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NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
 Nine Months Ended September 30,2005
    
    
    2004OPERATING REVENUESContract drilling services
    
    $
    894,416
    
    
    $
    676,307Reimbursables
    
    
    61,235
    
    
    
    31,765Labor contract drilling services
    
    
    52,947
    
    
    
    35,615Engineering, consulting and other
    
    
    12,940
    
    
    
    20,3931,021,538
    
    
    
    764,080OPERATING COSTS AND EXPENSESContract drilling services
    
    
    445,955
    
    
    
    380,068Reimbursables
    
    
    54,671
    
    
    
    27,663Labor contract drilling services
    
    
    44,632
    
    
    
    28,702Engineering, consulting and other
    
    
    16,970
    
    
    
    19,756Depreciation and amortization
    
    
    177,182
    
    
    
    154,333Selling, general and administrative
    
    
    27,241
    
    
    
    24,140Hurricane losses and recoveries, net (Note 11)
    
    
    10,465
    
    
    
    777,116
    
    
    
    634,662OPERATING INCOME
    
    
    244,422
    
    
    
    129,418OTHER INCOME (EXPENSE)Interest expense
    
    
    (16,280
    )
    
    
    (26,070
    )Other, net
    
    
    8,304
    
    
    
    5,722INCOME BEFORE INCOME TAXES
    
    
    236,446
    
    
    
    109,070INCOME TAX PROVISION
    
    
    (41,083
    )
    
    
    (15,858
    )NET INCOME
    
    $
    195,363
    
    
    $
    93,212NET INCOME PER SHARE:Basic
    
    $
    1.44
    
    
    $
    0.70Diluted
    
    $
    1.42
    
    
    $
    0.70
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NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Nine Months Ended September 30,2005
    
    
    2004CASH FLOWS FROM OPERATING ACTIVITIESNet income
    
    $
    195,363
    
    
    $
    93,212Adjustments to reconcile net income to net cash provided by
operating activities:Depreciation and amortization
    
    
    177,182
    
    
    
    154,333Deferred income tax provision
    
    
    23,745
    
    
    
    1,728Loss on sales of marketable securities
    
    
    69
    
    
    
    131Equity in income of joint venture
    
    
    (2,790
    )
    
    
    (2,821
    )Distributions received from joint venture
    
    
    2,194
    
    
    
    1,452Compensation expense from stock-based plans
    
    
    5,546
    
    
    
    4,257Hurricane losses and recoveries, net
    
    
    10,465
    
    
    
    Other
    
    
    2,503
    
    
    
    2,224Changes in current assets and liabilities:Accounts receivable
    
    
    (61,194
    )
    
    
    (31,645
    )Other current assets
    
    
    (9,466
    )
    
    
    (5,483
    )Accounts payable
    
    
    903
    
    
    
    (5,805
    )Other current liabilities
    
    
    (6,568
    )
    
    
    1,073Net cash provided by operating activities
    
    
    337,952
    
    
    
    212,656CASH FLOWS FROM INVESTING ACTIVITIESAcquisitions and related capital upgrades
    
    
    (89,497
    )
    
    
    (69,473
    )Other capital expenditures
    
    
    (139,752
    )
    
    
    (95,601
    )Deferred repair and maintenance expenditures
    
    
    (50,140
    )
    
    
    (46,538
    )Proceeds from sales of property and equipment
    
    
    1,035
    
    
    
    1,616Purchase of remaining 50% equity interest in the Panon,
net of cash acquired
    
    
    (28,374
    )
    
    
    Repayments from joint venture
    
    
    
    
    
    
    2,295Investment in marketable securities
    
    
    (24,149
    )
    
    
    (138,219
    )Proceeds from sales and maturities of marketable securities
    
    
    111,736
    
    
    
    184,356Net cash used for investing activities
    
    
    (219,141
    )
    
    
    (161,564
    )CASH FLOWS FROM FINANCING ACTIVITIESPayments of borrowing on credit facility
    
    
    (65,000
    )
    
    
    Payments of other long-term debt
    
    
    (6,371
    )
    
    
    (66,397
    )Proceeds from issuance of ordinary shares
    
    
    68,611
    
    
    
    52,344Payments of dividends
    
    
    (8,168
    )
    
    
    Repurchase of ordinary shares
    
    
    
    
    
    
    (39,714
    )Net cash used for financing activities
    
    
    (10,928
    )
    
    
    (53,767
    )NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
    
    107,883
    
    
    
    (2,675
    )CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
    
    58,790
    
    
    
    62,567CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    166,673
    
    
    $
    59,892
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NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 Three Months Ended September 30,2005
    
    
    2004NET INCOME
    
    $
    76,523
    
    
    $
    30,571OTHER COMPREHENSIVE INCOME, NET OF TAX:Foreign currency translation adjustments
    
    
    (117
    )
    
    
    (258
    )Unrealized holding gains on securities arising during period
    
    
    533
    
    
    
    362Unrealized gains on foreign currency forward contracts
    
    
    563
    
    
    
    31Other comprehensive income
    
    
    979
    
    
    
    135COMPREHENSIVE INCOME
    
    $
    77,502
    
    
    $
    30,706
 Nine Months Ended September 30,2005
    
    
    2004NET INCOME
    
    $
    195,363
    
    
    $
    93,212OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX:Foreign currency translation adjustments
    
    
    (3,603
    )
    
    
    3,802Unrealized holding (losses) gains on securities arising during period
    
    
    919
    
    
    
    (165
    )Unrealized (losses) gains on foreign currency forward contracts
    
    
    (1,929
    )
    
    
    264Other comprehensive (loss) income
    
    
    (4,613
    )
    
    
    3,901COMPREHENSIVE INCOME
    
    $
    190,750
    
    
    $
    97,113
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NOBLE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 NOTE 1  BASIS OF ACCOUNTING
      NOTE 2  STOCK-BASED COMPENSATION PLANS
 Accounting for
Stock-Based Compensation Accounting for Stock-Based
Compensation-Transition and Disclosure Accounting for Stock Issued to Employees
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Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Net income  as reported
    
    $
    76,523
    
    
    $
    30,571
    
    
    $
    195,363
    
    
    $
    93,212Stock-based compensation expense, net of tax  as
reported
    
    
    1,418
    
    
    
    1,061
    
    
    
    3,605
    
    
    
    2,767Stock-based compensation expense, net of tax  pro forma
    
    
    (2,907
    )
    
    
    (2,792
    )
    
    
    (8,869
    )
    
    
    (9,917
    )Net income  pro forma
    
    $
    75,034
    
    
    $
    28,840
    
    
    $
    190,099
    
    
    $
    86,062Net income per share:Basic  as reported
    
    $
    0.56
    
    
    $
    0.23
    
    
    $
    1.44
    
    
    $
    0.70Basic  pro forma
    
    $
    0.55
    
    
    $
    0.22
    
    
    $
    1.40
    
    
    $
    0.65Diluted  as reported
    
    $
    0.55
    
    
    $
    0.23
    
    
    $
    1.42
    
    
    $
    0.70Diluted  pro forma
    
    $
    0.54
    
    
    $
    0.22
    
    
    $
    1.38
    
    
    $
    0.64
 Share-Based Payment .
  NOTE 3  NET INCOME PER SHARE
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Net
    
    
    Basic
    
    
    Basic
    
    
    Diluted
    
    
    DilutedIncome
    
    
    Shares
    
    
    EPS
    
    
    Shares
    
    
    EPSThree Months Ended:September 30, 2005
    
    $
    76,523
    
    
    
    136,708
    
    
    $
    0.56
    
    
    
    138,113
    
    
    $
    0.55September 30, 2004
    
    $
    30,571
    
    
    
    132,519
    
    
    $
    0.23
    
    
    
    133,810
    
    
    $
    0.23
 Net
    
    
    Basic
    
    
    Basic
    
    
    Diluted
    
    
    DilutedIncome
    
    
    Shares
    
    
    EPS
    
    
    Shares
    
    
    EPSNine Months Ended:September 30, 2005
    
    $
    195,363
    
    
    
    136,013
    
    
    $
    1.44
    
    
    
    137,347
    
    
    $
    1.42September 30, 2004
    
    $
    93,212
    
    
    
    132,562
    
    
    $
    0.70
    
    
    
    133,717
    
    
    $
    0.70
  NOTE 4 MARKETABLE SECURITIES
  NOTE 5  COMMITMENTS AND CONTINGENCIES
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prima facie
  Noble Clyde Boudreaux Noble Dave Beard
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NOTE 6  SHAREHOLDERS EQUITY
  Restricted
    
    
    AccumulatedCapital in
    
    
    
    
    
    
    Stock
    
    
    Other
    
    
    TotalOrdinary Shares
    
    
    Excess of
    
    
    Retained
    
    
    (Unearned
    
    
    Comprehensive
    
    
    Shareholders'Shares
    
    
    Amount
    
    
    Par Value
    
    
    Earnings
    
    
    Compensation)
    
    
    Income (Loss)
    
    
    EquityBalance at December 31, 2004
    
    
    134,407
    
    
    $
    13,441
    
    
    $
    926,652
    
    
    $
    1,452,974
    
    
    $
    (11,171
    )
    
    $
    2,538
    
    
    $
    2,384,434Exercise of stock options
    
    
    2,198
    
    
    
    220
    
    
    
    68,391
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    68,611Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    195,363
    
    
    
    
    
    
    
    
    
    
    
    195,363Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,613
    )
    
    
    (4,613
    )Dividends ($0.06 per ordinary
share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,168
    )
    
    
    
    
    
    
    
    
    
    
    (8,168
    )Tax benefit of stock options
    
    
    
    
    
    
    
    
    
    
    12,357
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,357Compensation expense recognized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,546
    
    
    
    
    
    
    
    5,546Issuance of restricted shares
    
    
    283
    
    
    
    28
    
    
    
    13,277
    
    
    
    
    
    
    
    (13,305
    )
    
    
    
    
    
    
    Other
    
    
    28
    
    
    
    2
    
    
    
    2,730
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,732Balance at September 30, 2005
    
    
    136,916
    
    
    $
    13,691
    
    
    $
    1,023,407
    
    
    $
    1,640,169
    
    
    $
    (18,930
    )
    
    $
    (2,075
    )
    
    $
    2,656,262
 NOTE 7  EMPLOYEE BENEFIT PLANS
    Three Months Ended September 30,2005
    
    
    2004International
    
    
    Domestic
    
    
    International
    
    
    DomesticService cost
    
    $
    618
    
    
    $
    1,159
    
    
    $
    573
    
    
    $
    1,162Interest cost
    
    
    659
    
    
    
    1,079
    
    
    
    599
    
    
    
    1,025Return on plan assets
    
    
    (733
    )
    
    
    (1,179
    )
    
    
    (748
    )
    
    
    (1,069
    )Amortization of prior service cost
    
    
    
    
    
    
    111
    
    
    
    
    
    
    
    65Amortization of transition obligation
    
    
    61
    
    
    
    
    
    
    
    91
    
    
    
    Recognized net actuarial (gain) loss
    
    
    (18
    )
    
    
    162
    
    
    
    (64
    )
    
    
    225Net pension expense
    
    $
    587
    
    
    $
    1,332
    
    
    $
    451
    
    
    $
    1,408
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Nine Months Ended September 30,2005
    
    
    2004International
    
    
    Domestic
    
    
    International
    
    
    DomesticService cost
    
    $
    1,855
    
    
    $
    3,478
    
    
    $
    1,717
    
    
    $
    3,486Interest cost
    
    
    1,977
    
    
    
    3,238
    
    
    
    1,795
    
    
    
    3,073Return on plan assets
    
    
    (2,200
    )
    
    
    (3,538
    )
    
    
    (2,242
    )
    
    
    (3,205
    )Amortization of prior service cost
    
    
    
    
    
    
    334
    
    
    
    
    
    
    
    195Amortization of transition obligation
    
    
    183
    
    
    
    
    
    
    
    273
    
    
    
    Recognized net actuarial (gain) loss
    
    
    (55
    )
    
    
    485
    
    
    
    (194
    )
    
    
    675Net pension expense
    
    $
    1,760
    
    
    $
    3,997
    
    
    $
    1,349
    
    
    $
    4,224
  NOTE 8  DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 Accounting for Derivative Instruments and
Hedging Activities, Accounting for Certain Derivative Instruments and
Certain Hedging Activities (an amendment of FASB Statement No. 133), Amendment of
Statement 133 on Derivative Instruments and Hedging Activities
  13




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Three Months Ended September 30,2005
    
    
    2004Net unrealized (loss) gain at June 30
    
    $
    (2,492
    )
    
    $
    233Activity during period:Settlement of forward contracts outstanding at June 30
    
    
    933
    
    
    
    (113
    )Net unrealized (loss) gain on outstanding forward contracts
    
    
    (370
    )
    
    
    144Net unrealized (loss) gain at September 30
    
    $
    (1,929
    )
    
    $
    264
 Nine Months Ended September 30,2005
    
    
    2004Net unrealized gain (loss) at December 31
    
    $
    
    
    
    $
    Activity during period:Net unrealized gain (loss) on outstanding forward contracts
    
    
    (1,929
    )
    
    
    264Net unrealized gain (loss) at September 30
    
    $
    (1,929
    )
    
    $
    264
 NOTE 9  PARENT GUARANTEE OF REGISTERED SECURITIES ISSUED BY SUBSIDIARY
   14




---



##### Table of Contents



NOBLE CORPORATION AND OTHER SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
September 30, 2005
 Noble Holding
    
    
    NobleNoble
    
    
    (Subsidiary
    
    
    Drilling
    
    
    Other
    
    
    Consolidating(Guarantor)
    
    
    Guarantor)
    
    
    (Issuer)
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    TotalASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    38,077
    
    
    $
    
    
    
    $
    
    
    
    $
    128,596
    
    
    $
    
    
    
    $
    166,673Investment in marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44,837
    
    
    
    
    
    
    
    44,837Accounts receivable
    
    
    
    
    
    
    
    
    
    
    6,849
    
    
    
    262,939
    
    
    
    
    
    
    
    269,788Inventories
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,162
    
    
    
    
    
    
    
    4,162Prepaid expenses
    
    
    
    
    
    
    
    
    
    
    249
    
    
    
    13,155
    
    
    
    
    
    
    
    13,404Accounts receivable from affiliates
    
    
    247,335
    
    
    
    
    
    
    
    521,148
    
    
    
    
    
    
    
    (768,483
    )
    
    
    Other current assets
    
    
    
    
    
    
    
    
    
    
    246
    
    
    
    70,100
    
    
    
    (28,877
    )
    
    
    41,469Total current assets
    
    
    285,412
    
    
    
    
    
    
    
    528,492
    
    
    
    523,789
    
    
    
    (797,360
    )
    
    
    540,333PROPERTY AND EQUIPMENTDrilling equipment and facilities
    
    
    
    
    
    
    
    
    
    
    99,591
    
    
    
    3,950,608
    
    
    
    
    
    
    
    4,050,199Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    65,452
    
    
    
    
    
    
    
    65,452
    
    
    
    
    
    
    
    99,591
    
    
    
    4,016,060
    
    
    
    
    
    
    
    4,115,651Accumulated depreciation
    
    
    
    
    
    
    
    
    
    
    (54,994
    )
    
    
    (1,141,613
    )
    
    
    
    
    
    
    (1,196,607
    )
    
    
    
    
    
    
    
    44,597
    
    
    
    2,874,447
    
    
    
    
    
    
    
    2,919,044NOTES RECEIVABLE FROM AFFILIATES
    
    
    511,835
    
    
    
    
    
    
    
    44,159
    
    
    
    476,139
    
    
    
    (1,032,133
    )
    
    
    INVESTMENTS IN AFFILIATES
    
    
    1,859,015
    
    
    
    2,154,404
    
    
    
    1,941,059
    
    
    
    
    
    
    
    (5,954,478
    )
    
    
    INVESTMENT IN AND ADVANCES
TO JOINT VENTURES
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    OTHER ASSETS
    
    
    
    
    
    
    
    
    
    
    4,753
    
    
    
    128,082
    
    
    
    
    
    
    
    132,835$
    2,656,262
    
    
    $
    2,154,404
    
    
    $
    2,563,060
    
    
    $
    4,002,457
    
    
    $
    (7,783,971
    )
    
    $
    3,592,212LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESCurrent maturities of long-term debt
    
    $
    
    
    
    $
    21,070
    
    
    $
    
    
    
    $
    8,815
    
    
    $
    (21,070
    )
    
    $
    8,815Accounts payable
    
    
    
    
    
    
    
    
    
    
    1,844
    
    
    
    159,792
    
    
    
    
    
    
    
    161,636Accrued payroll and related costs
    
    
    
    
    
    
    
    
    
    
    16,422
    
    
    
    56,594
    
    
    
    
    
    
    
    73,016Taxes payable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,987
    
    
    
    
    
    
    
    30,987Interest payable
    
    
    
    
    
    
    7,561
    
    
    
    1,339
    
    
    
    1,238
    
    
    
    (7,807
    )
    
    
    2,331Accounts payable to affiliates
    
    
    
    
    
    
    143,572
    
    
    
    
    
    
    
    624,911
    
    
    
    (768,483
    )
    
    
    Other current liabilities
    
    
    
    
    
    
    
    
    
    
    (27
    )
    
    
    9,421
    
    
    
    
    
    
    
    9,394Total current liabilities
    
    
    
    
    
    
    172,203
    
    
    
    19,578
    
    
    
    891,758
    
    
    
    (797,360
    )
    
    
    286,179LONG-TERM DEBT
    
    
    
    
    
    
    
    
    
    
    386,656
    
    
    
    44,969
    
    
    
    
    
    
    
    431,625NOTES PAYABLE TO AFFILIATES
    
    
    
    
    
    
    476,139
    
    
    
    
    
    
    
    555,994
    
    
    
    (1,032,133
    )
    
    
    DEFERRED INCOME TAXES
    
    
    
    
    
    
    (2,700
    )
    
    
    13,853
    
    
    
    206,741
    
    
    
    
    
    
    
    217,894OTHER LIABILITIES
    
    
    
    
    
    
    1,043
    
    
    
    4,367
    
    
    
    2,739
    
    
    
    
    
    
    
    8,149
    
    
    
    646,685
    
    
    
    424,454
    
    
    
    1,702,201
    
    
    
    (1,829,493
    )
    
    
    943,847COMMITMENTS AND CONTINGENCIES
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    MINORITY INTEREST
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,897
    )
    
    
    
    
    
    
    (7,897
    )SHAREHOLDERS EQUITYOrdinary Shares-par value $0.10 per share
    
    
    13,691
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,691Capital in excess of par value
    
    
    1,023,407
    
    
    
    870,744
    
    
    
    870,744
    
    
    
    690,820
    
    
    
    (2,432,308
    )
    
    
    1,023,407Retained earnings
    
    
    1,640,169
    
    
    
    636,975
    
    
    
    1,267,862
    
    
    
    1,619,408
    
    
    
    (3,524,245
    )
    
    
    1,640,169Restricted stock (unearned compensation)
    
    
    (18,930
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18,930
    )Accumulated other comprehensive income
    
    
    (2,075
    )
    
    
    
    
    
    
    
    
    
    
    (2,075
    )
    
    
    2,075
    
    
    
    (2,075
    )2,656,262
    
    
    
    1,507,719
    
    
    
    2,138,606
    
    
    
    2,308,153
    
    
    
    (5,954,478
    )
    
    
    2,656,262$
    2,656,262
    
    
    $
    2,154,404
    
    
    $
    2,563,060
    
    
    $
    4,002,457
    
    
    $
    (7,783,971
    )
    
    $
    3,592,212
 15




---



##### Table of Contents



NOBLE CORPORATION AND OTHER SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
December 31, 2004
 Noble Holding
    
    
    NobleNoble
    
    
    (Subsidiary
    
    
    Drilling
    
    
    
    
    
    
    Consolidating(Guarantor)
    
    
    Guarantor)
    
    
    (Issuer)
    
    
    Other Subsidiaries
    
    
    Adjustments
    
    
    TotalASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    8,130
    
    
    $
    
    
    
    $
    
    
    
    $
    50,660
    
    
    $
    
    
    
    $
    58,790Investments in marketable securities
    
    
    23,707
    
    
    
    
    
    
    
    
    
    
    
    109,081
    
    
    
    
    
    
    
    132,788Accounts receivable
    
    
    
    
    
    
    
    
    
    
    7,434
    
    
    
    197,589
    
    
    
    
    
    
    
    205,023Inventories
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,013
    
    
    
    
    
    
    
    4,013Prepaid expenses
    
    
    
    
    
    
    
    
    
    
    1,285
    
    
    
    11,169
    
    
    
    
    
    
    
    12,454Accounts receivable from affiliates
    
    
    177,091
    
    
    
    
    
    
    
    588,705
    
    
    
    
    
    
    
    (765,796
    )
    
    
    Other current assets
    
    
    19,918
    
    
    
    
    
    
    
    262
    
    
    
    11,963
    
    
    
    (19,928
    )
    
    
    12,215Total current assets
    
    
    228,846
    
    
    
    
    
    
    
    597,686
    
    
    
    384,475
    
    
    
    (785,724
    )
    
    
    425,283PROPERTY AND EQUIPMENTDrilling equipment and facilities
    
    
    
    
    
    
    
    
    
    
    99,624
    
    
    
    3,639,714
    
    
    
    
    
    
    
    3,739,338Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    65,550
    
    
    
    
    
    
    
    65,550
    
    
    
    
    
    
    
    99,624
    
    
    
    3,705,264
    
    
    
    
    
    
    
    3,804,888Accumulated depreciation
    
    
    
    
    
    
    
    
    
    
    (51,581
    )
    
    
    (1,009,687
    )
    
    
    
    
    
    
    (1,061,268
    )
    
    
    
    
    
    
    
    48,043
    
    
    
    2,695,577
    
    
    
    
    
    
    
    2,743,620NOTES RECEIVABLE FROM AFFILIATES
    
    
    492,139
    
    
    
    
    
    
    
    44,159
    
    
    
    
    
    
    
    (536,298
    )
    
    
    INVESTMENTS IN AFFILIATES
    
    
    1,664,904
    
    
    
    1,987,843
    
    
    
    1,773,952
    
    
    
    
    
    
    
    (5,426,699
    )
    
    
    INVESTMENT IN AND ADVANCES
TO JOINT VENTURES
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,804
    
    
    
    
    
    
    
    18,804OTHER ASSETS
    
    
    
    
    
    
    
    
    
    
    5,929
    
    
    
    114,337
    
    
    
    
    
    
    
    120,266$
    2,385,889
    
    
    $
    1,987,843
    
    
    $
    2,469,769
    
    
    $
    3,213,193
    
    
    $
    (6,748,721
    )
    
    $
    3,307,973LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESCurrent maturities of long-term debt
    
    $
    
    
    
    $
    19,682
    
    
    $
    
    
    
    $
    8,361
    
    
    $
    (19,682
    )
    
    $
    8,361Accounts payable
    
    
    
    
    
    
    
    
    
    
    2,374
    
    
    
    80,638
    
    
    
    
    
    
    
    83,012Accrued payroll and related costs
    
    
    26
    
    
    
    
    
    
    
    15,222
    
    
    
    45,663
    
    
    
    
    
    
    
    60,911Taxes payable
    
    
    1,429
    
    
    
    
    
    
    
    
    
    
    
    21,454
    
    
    
    
    
    
    
    22,883Interest payable
    
    
    
    
    
    
    
    
    
    
    7,912
    
    
    
    1,315
    
    
    
    (246
    )
    
    
    8,981Accounts payable to affiliates
    
    
    
    
    
    
    114,330
    
    
    
    
    
    
    
    651,466
    
    
    
    (765,796
    )
    
    
    Other current liabilities
    
    
    
    
    
    
    
    
    
    
    809
    
    
    
    29,209
    
    
    
    
    
    
    
    30,018Total current liabilities
    
    
    1,455
    
    
    
    134,012
    
    
    
    26,317
    
    
    
    838,106
    
    
    
    (785,724
    )
    
    
    214,166LONG-TERM DEBT
    
    
    
    
    
    
    
    
    
    
    451,650
    
    
    
    51,638
    
    
    
    
    
    
    
    503,288NOTES PAYABLE TO AFFILIATES
    
    
    
    
    
    
    492,139
    
    
    
    
    
    
    
    44,159
    
    
    
    (536,298
    )
    
    
    DEFERRED INCOME TAXES
    
    
    
    
    
    
    (2,700
    )
    
    
    15,083
    
    
    
    194,123
    
    
    
    
    
    
    
    206,506OTHER LIABILITIES
    
    
    
    
    
    
    1,043
    
    
    
    4,674
    
    
    
    2,393
    
    
    
    
    
    
    
    8,1101,455
    
    
    
    624,494
    
    
    
    497,724
    
    
    
    1,130,419
    
    
    
    (1,322,022
    )
    
    
    932,070COMMITMENTS AND CONTINGENCIESMINORITY INTEREST
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,531
    )
    
    
    
    
    
    
    (8,531
    )SHAREHOLDERS EQUITYOrdinary Shares-par value $0.10 per share
    
    
    13,441
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,441Capital in excess of par value
    
    
    926,652
    
    
    
    870,744
    
    
    
    870,744
    
    
    
    691,289
    
    
    
    (2,432,777
    )
    
    
    926,652Retained earnings
    
    
    1,452,974
    
    
    
    492,605
    
    
    
    1,101,301
    
    
    
    1,397,478
    
    
    
    (2,991,384
    )
    
    
    1,452,974Restricted stock (unearned compensation)
    
    
    (11,171
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,171
    )Accumulated other comprehensive income
    
    
    2,538
    
    
    
    
    
    
    
    
    
    
    
    2,538
    
    
    
    (2,538
    )
    
    
    2,5382,384,434
    
    
    
    1,363,349
    
    
    
    1,972,045
    
    
    
    2,091,305
    
    
    
    (5,426,699
    )
    
    
    2,384,434$
    2,385,889
    
    
    $
    1,987,843
    
    
    $
    2,469,769
    
    
    $
    3,213,193
    
    
    $
    (6,748,721
    )
    
    $
    3,307,973
 16




---



##### Table of Contents



NOBLE CORPORATION AND OTHER SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2005
 NobleHolding
    
    
    NobleNoble
    
    
    (Subsidiary
    
    
    Drilling
    
    
    Other
    
    
    Consolidating(Guarantor)
    
    
    Guarantor)
    
    
    (Issuer)
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    TotalOPERATING REVENUESContract drilling services
    
    $
    
    
    
    $
    
    
    
    $
    7,605
    
    
    $
    320,496
    
    
    $
    
    
    
    $
    328,101Reimbursables
    
    
    
    
    
    
    
    
    
    
    27
    
    
    
    18,051
    
    
    
    
    
    
    
    18,078Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,275
    
    
    
    
    
    
    
    17,275Engineering, consulting and other
    
    
    
    
    
    
    
    
    
    
    20
    
    
    
    3,731
    
    
    
    
    
    
    
    3,751
    
    
    
    
    
    
    
    7,652
    
    
    
    359,553
    
    
    
    
    
    
    
    367,205OPERATING COSTS AND EXPENSESContract drilling services
    
    
    66
    
    
    
    
    
    
    
    1,295
    
    
    
    154,665
    
    
    
    
    
    
    
    156,026Reimbursables
    
    
    
    
    
    
    
    
    
    
    27
    
    
    
    15,192
    
    
    
    
    
    
    
    15,219Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,967
    
    
    
    
    
    
    
    14,967Engineering, consulting and other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,349
    
    
    
    
    
    
    
    5,349Depreciation and amortization
    
    
    
    
    
    
    
    
    
    
    1,446
    
    
    
    59,830
    
    
    
    
    
    
    
    61,276Selling, general and administrative
    
    
    601
    
    
    
    
    
    
    
    (222
    )
    
    
    8,945
    
    
    
    
    
    
    
    9,324Hurricane losses and recoveries, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,465
    
    
    
    
    
    
    
    10,465667
    
    
    
    
    
    
    
    2,546
    
    
    
    269,413
    
    
    
    
    
    
    
    272,626OPERATING INCOME (LOSS)
    
    
    (667
    )
    
    
    
    
    
    
    5,106
    
    
    
    90,140
    
    
    
    
    
    
    
    94,579OTHER INCOME (EXPENSE)Equity earnings in affiliates (net
of tax)
    
    
    76,773
    
    
    
    62,547
    
    
    
    63,882
    
    
    
    
    
    
    
    (203,202
    )
    
    
    Interest expense
    
    
    (2
    )
    
    
    (10,996
    )
    
    
    (7,160
    )
    
    
    2,009
    
    
    
    10,996
    
    
    
    (5,153
    )Other, net
    
    
    419
    
    
    
    
    
    
    
    
    
    
    
    12,670
    
    
    
    (10,996
    )
    
    
    2,093INCOME BEFORE INCOME TAXES
    
    
    76,523
    
    
    
    51,551
    
    
    
    61,828
    
    
    
    104,819
    
    
    
    (203,202
    )
    
    
    91,519INCOME TAX (PROVISION) BENEFIT
    
    
    
    
    
    
    3,848
    
    
    
    719
    
    
    
    (19,563
    )
    
    
    
    
    
    
    (14,996
    )NET INCOME
    
    $
    76,523
    
    
    $
    55,399
    
    
    $
    62,547
    
    
    $
    85,256
    
    
    $
    (203,202
    )
    
    $
    76,523
 17




---



##### Table of Contents



NOBLE CORPORATION AND OTHER SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2004
 NobleHolding
    
    
    NobleNoble
    
    
    (Subsidiary
    
    
    Drilling
    
    
    Other
    
    
    Consolidating(Guarantor)
    
    
    Guarantor)
    
    
    (Issuer)
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    TotalOPERATING REVENUESContract drilling services
    
    $
    
    
    
    $
    
    
    
    $
    7,635
    
    
    $
    224,422
    
    
    $
    
    
    
    $
    232,057Reimbursables
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    12,157
    
    
    
    
    
    
    
    12,161Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,146
    
    
    
    
    
    
    
    15,146Engineering, consulting and other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,274
    
    
    
    
    
    
    
    6,274
    
    
    
    
    
    
    
    7,639
    
    
    
    257,999
    
    
    
    
    
    
    
    265,638OPERATING COSTS AND EXPENSESContract drilling services
    
    
    (102
    )
    
    
    
    
    
    
    1,955
    
    
    
    131,382
    
    
    
    
    
    
    
    133,235Reimbursables
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    10,500
    
    
    
    
    
    
    
    10,504Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,455
    
    
    
    
    
    
    
    12,455Engineering, consulting and other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,875
    
    
    
    
    
    
    
    4,875Depreciation and amortization
    
    
    
    
    
    
    
    
    
    
    1,616
    
    
    
    51,107
    
    
    
    
    
    
    
    52,723Selling, general and administrative
    
    
    352
    
    
    
    
    
    
    
    31
    
    
    
    7,448
    
    
    
    
    
    
    
    7,831250
    
    
    
    
    
    
    
    3,606
    
    
    
    217,767
    
    
    
    
    
    
    
    221,623OPERATING INCOME (LOSS)
    
    
    (250
    )
    
    
    
    
    
    
    4,033
    
    
    
    40,232
    
    
    
    
    
    
    
    44,015OTHER INCOME (EXPENSE)Equity earnings in affiliates (net
of tax)
    
    
    19,713
    
    
    
    34,653
    
    
    
    36,646
    
    
    
    
    
    
    
    (91,012
    )
    
    
    Interest expense
    
    
    
    
    
    
    (11,855
    )
    
    
    (6,992
    )
    
    
    (1,390
    )
    
    
    11,855
    
    
    
    (8,382
    )Other, net
    
    
    11,826
    
    
    
    
    
    
    
    (107
    )
    
    
    1,335
    
    
    
    (11,855
    )
    
    
    1,199INCOME BEFORE INCOME TAXES
    
    
    31,289
    
    
    
    22,798
    
    
    
    33,580
    
    
    
    40,177
    
    
    
    (91,012
    )
    
    
    36,832INCOME TAX (PROVISION) BENEFIT
    
    
    (718
    )
    
    
    5,841
    
    
    
    1,073
    
    
    
    (12,457
    )
    
    
    
    
    
    
    (6,261
    )NET INCOME
    
    $
    30,571
    
    
    $
    28,639
    
    
    $
    34,653
    
    
    $
    27,720
    
    
    $
    (91,012
    )
    
    $
    30,571
 18




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##### Table of Contents



NOBLE CORPORATION AND OTHER SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2005
 NobleHolding
    
    
    NobleNoble
    
    
    (Subsidiary
    
    
    Drilling
    
    
    Other
    
    
    Consolidating(Guarantor)
    
    
    Guarantor)
    
    
    (Issuer)
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    TotalOPERATING REVENUESContract drilling services
    
    $
    
    
    
    $
    
    
    
    $
    21,965
    
    
    $
    872,451
    
    
    $
    
    
    
    $
    894,416Reimbursables
    
    
    
    
    
    
    
    
    
    
    29
    
    
    
    61,206
    
    
    
    
    
    
    
    61,235Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52,947
    
    
    
    
    
    
    
    52,947Engineering, consulting and other
    
    
    
    
    
    
    
    
    
    
    63
    
    
    
    12,877
    
    
    
    
    
    
    
    12,940
    
    
    
    
    
    
    
    22,057
    
    
    
    999,481
    
    
    
    
    
    
    
    1,021,538OPERATING COSTS AND EXPENSESContract drilling services
    
    
    100
    
    
    
    
    
    
    
    4,351
    
    
    
    441,504
    
    
    
    
    
    
    
    445,955Reimbursables
    
    
    
    
    
    
    
    
    
    
    29
    
    
    
    54,642
    
    
    
    
    
    
    
    54,671Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44,632
    
    
    
    
    
    
    
    44,632Engineering, consulting and other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16,970
    
    
    
    
    
    
    
    16,970Depreciation and amortization
    
    
    
    
    
    
    
    
    
    
    4,635
    
    
    
    172,547
    
    
    
    
    
    
    
    177,182Selling, general and administrative
    
    
    816
    
    
    
    
    
    
    
    228
    
    
    
    26,197
    
    
    
    
    
    
    
    27,241Hurricane losses and recoveries, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,465
    
    
    
    
    
    
    
    10,465916
    
    
    
    
    
    
    
    9,243
    
    
    
    766,957
    
    
    
    
    
    
    
    777,116OPERATING INCOME (LOSS)
    
    
    (916
    )
    
    
    
    
    
    
    12,814
    
    
    
    232,524
    
    
    
    
    
    
    
    244,422OTHER INCOME (EXPENSE)Equity earnings in affiliates (net of tax)
    
    
    193,988
    
    
    
    166,561
    
    
    
    172,312
    
    
    
    
    
    
    
    (532,861
    )
    
    
    Interest expense
    
    
    (2
    )
    
    
    (34,193
    )
    
    
    (21,660
    )
    
    
    5,382
    
    
    
    34,193
    
    
    
    (16,280
    )Other, net
    
    
    2,377
    
    
    
    
    
    
    
    (1
    )
    
    
    40,121
    
    
    
    (34,193
    )
    
    
    8,304INCOME BEFORE INCOME TAXES
    
    
    195,447
    
    
    
    132,368
    
    
    
    163,465
    
    
    
    278,027
    
    
    
    (532,861
    )
    
    
    236,446INCOME TAX (PROVISION) BENEFIT
    
    
    (84
    )
    
    
    12,002
    
    
    
    3,096
    
    
    
    (56,097
    )
    
    
    
    
    
    
    (41,083
    )NET INCOME
    
    $
    195,363
    
    
    $
    144,370
    
    
    $
    166,561
    
    
    $
    221,930
    
    
    $
    (532,861
    )
    
    $
    195,363
 19




---



##### Table of Contents



NOBLE CORPORATION AND OTHER SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2004
 NobleHolding
    
    
    NobleNoble
    
    
    (Subsidiary
    
    
    Drilling
    
    
    Other
    
    
    Consolidating(Guarantor)
    
    
    Guarantor)
    
    
    (Issuer)
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    TotalOPERATING REVENUESContract drilling services
    
    $
    
    
    
    $
    
    
    
    $
    22,637
    
    
    $
    653,670
    
    
    $
    
    
    
    $
    676,307Reimbursables
    
    
    
    
    
    
    
    
    
    
    17
    
    
    
    31,748
    
    
    
    
    
    
    
    31,765Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35,615
    
    
    
    
    
    
    
    35,615Engineering, consulting and other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,393
    
    
    
    
    
    
    
    20,393
    
    
    
    
    
    
    
    22,654
    
    
    
    741,426
    
    
    
    
    
    
    
    764,080OPERATING COSTS AND EXPENSESContract drilling services
    
    
    (241
    )
    
    
    
    
    
    
    6,353
    
    
    
    373,956
    
    
    
    
    
    
    
    380,068Reimbursables
    
    
    
    
    
    
    
    
    
    
    17
    
    
    
    27,646
    
    
    
    
    
    
    
    27,663Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,702
    
    
    
    
    
    
    
    28,702Engineering, consulting and other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,756
    
    
    
    
    
    
    
    19,756Depreciation and amortization
    
    
    
    
    
    
    
    
    
    
    4,411
    
    
    
    149,922
    
    
    
    
    
    
    
    154,333Selling, general and administrative
    
    
    380
    
    
    
    
    
    
    
    376
    
    
    
    23,384
    
    
    
    
    
    
    
    24,140139
    
    
    
    
    
    
    
    11,157
    
    
    
    623,366
    
    
    
    
    
    
    
    634,662OPERATING INCOME
    
    
    (139
    )
    
    
    
    
    
    
    11,497
    
    
    
    118,060
    
    
    
    
    
    
    
    129,418OTHER INCOME (EXPENSE)Equity earnings in affiliates (net of tax)
    
    
    59,489
    
    
    
    81,476
    
    
    
    86,383
    
    
    
    
    
    
    
    (227,348
    )
    
    
    Interest expense
    
    
    
    
    
    
    (35,724
    )
    
    
    (20,806
    )
    
    
    (7,134
    )
    
    
    37,594
    
    
    
    (26,070
    )Other, net
    
    
    36,030
    
    
    
    
    
    
    
    2,084
    
    
    
    5,202
    
    
    
    (37,594
    )
    
    
    5,722INCOME BEFORE INCOME TAXES
    
    
    95,380
    
    
    
    45,752
    
    
    
    79,158
    
    
    
    116,128
    
    
    
    (227,348
    )
    
    
    109,070INCOME TAX (PROVISION) BENEFIT
    
    
    (2,168
    )
    
    
    14,195
    
    
    
    2,642
    
    
    
    (30,527
    )
    
    
    
    
    
    
    (15,858
    )NET INCOME
    
    $
    93,212
    
    
    $
    59,947
    
    
    $
    81,800
    
    
    $
    85,601
    
    
    $
    (227,348
    )
    
    $
    93,212
 20




---



##### Table of Contents



NOBLE CORPORATION AND OTHER SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2005
 NobleHolding
    
    
    NobleNoble
    
    
    (Subsidiary
    
    
    Drilling
    
    
    Other
    
    
    Consolidating(Guarantor)
    
    
    Guarantor)
    
    
    (Issuer)
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    TotalCASH FLOWS
FROM OPERATING ACTIVITIESNet income
    
    $
    195,363
    
    
    $
    144,370
    
    
    $
    166,561
    
    
    $
    221,930
    
    
    $
    (532,861
    )
    
    $
    195,363Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and amortization
    
    
    
    
    
    
    
    
    
    
    4,635
    
    
    
    172,547
    
    
    
    
    
    
    
    177,182Deferred income tax provision
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,745
    
    
    
    
    
    
    
    23,745Loss on sales of marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    69
    
    
    
    
    
    
    
    69Equity in income of joint ventures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,790
    )
    
    
    
    
    
    
    (2,790
    )Distributions received from joint venture
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,194
    
    
    
    
    
    
    
    2,194Compensation expense from stock-based plans
    
    
    5,546
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,546Equity earnings in affiliates
    
    
    (193,988
    )
    
    
    (166,561
    )
    
    
    (172,312
    )
    
    
    
    
    
    
    532,861
    
    
    
    Hurricane losses and recoveries, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,465
    
    
    
    
    
    
    
    10,465Other
    
    
    
    
    
    
    
    
    
    
    (576
    )
    
    
    3,079
    
    
    
    
    
    
    
    2,503Changes in current assets and liabilities:Accounts receivable
    
    
    
    
    
    
    
    
    
    
    585
    
    
    
    (61,779
    )
    
    
    
    
    
    
    (61,194
    )Accounts receivable from affiliates
    
    
    (79,480
    )
    
    
    
    
    
    
    71,963
    
    
    
    
    
    
    
    7,517
    
    
    
    Other current assets
    
    
    19,918
    
    
    
    
    
    
    
    1,052
    
    
    
    (30,436
    )
    
    
    
    
    
    
    (9,466
    )Accounts payable
    
    
    
    
    
    
    
    
    
    
    (530
    )
    
    
    1,433
    
    
    
    
    
    
    
    903Accounts payable to affiliates
    
    
    
    
    
    
    29,242
    
    
    
    
    
    
    
    (21,725
    )
    
    
    (7,517
    )
    
    
    Other current liabilities
    
    
    (1,455
    )
    
    
    7,561
    
    
    
    (6,209
    )
    
    
    (6,465
    )
    
    
    
    
    
    
    (6,568
    )Net cash provided by (used for )
operating
activities
    
    
    (54,096
    )
    
    
    14,612
    
    
    
    65,169
    
    
    
    312,267
    
    
    
    
    
    
    
    337,952CASH FLOWS FROM INVESTING ACTIVITIESAcquisitions and related capital upgrades
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (89,497
    )
    
    
    
    
    
    
    (89,497
    )Other capital expenditures
    
    
    
    
    
    
    
    
    
    
    (42
    )
    
    
    (139,710
    )
    
    
    
    
    
    
    (139,752
    )Deferred repair and maintenance expenditures
    
    
    
    
    
    
    
    
    
    
    (127
    )
    
    
    (50,013
    )
    
    
    
    
    
    
    (50,140
    )Repayments from affiliates
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,612
    
    
    
    (14,612
    )
    
    
    Proceeds from sales of property and equipment.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,035
    
    
    
    
    
    
    
    1,035Purchase of remaining 50% equity interest in
the Panon, net of cash acquired
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (28,374
    )
    
    
    
    
    
    
    (28,374
    )Investment in marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (24,149
    )
    
    
    
    
    
    
    (24,149
    )Proceeds from sales and maturities of
marketable securities
    
    
    23,600
    
    
    
    
    
    
    
    
    
    
    
    88,136
    
    
    
    
    
    
    
    111,736Net cash (used for) provided by
investing activities
    
    
    23,600
    
    
    
    
    
    
    
    (169
    )
    
    
    (227,960
    )
    
    
    (14,612
    )
    
    
    (219,141
    )CASH FLOWS FROM FINANCING ACTIVITIESPayments of borrowings on credit facility
    
    
    
    
    
    
    
    
    
    
    (65,000
    )
    
    
    
    
    
    
    
    
    
    
    (65,000
    )Payments of long-term debt
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,371
    )
    
    
    
    
    
    
    (6,371
    )Payments to affiliates
    
    
    
    
    
    
    (14,612
    )
    
    
    
    
    
    
    
    
    
    
    14,612
    
    
    
    Proceeds from issuance of ordinary shares
    
    
    68,611
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    68,611Payments of dividends
    
    
    (8,168
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,168
    )Net cash provided by (used for)
financing
activities
    
    
    60,443
    
    
    
    (14,612
    )
    
    
    (65,000
    )
    
    
    (6,371
    )
    
    
    14,612
    
    
    
    (10,928
    )INCREASE IN CASH
AND CASH EQUIVALENTS
    
    
    29,947
    
    
    
    
    
    
    
    
    
    
    
    77,936
    
    
    
    
    
    
    
    107,883CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD
    
    
    8,130
    
    
    
    
    
    
    
    
    
    
    
    50,660
    
    
    
    
    
    
    
    58,790CASH AND CASH EQUIVALENTS,
END OF PERIOD
    
    $
    38,077
    
    
    $
    
    
    
    $
    
    
    
    $
    128,596
    
    
    $
    
    
    
    $
    166,673
 21




---



##### Table of Contents



NOBLE CORPORATION AND OTHER SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2004
 NobleHolding
    
    
    NobleNoble
    
    
    (Subsidiary
    
    
    Drilling
    
    
    Other
    
    
    Consolidating(Guarantor)
    
    
    Guarantor)
    
    
    (Issuer)
    
    
    Subsidiaries
    
    
    Adjustments
    
    
    TotalCASH FLOWS FROM OPERATING ACTIVITIESNet income
    
    $
    93,212
    
    
    $
    59,947
    
    
    $
    81,476
    
    
    $
    85,925
    
    
    $
    (227,348
    )
    
    $
    93,212Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and amortization
    
    
    
    
    
    
    
    
    
    
    4,411
    
    
    
    149,922
    
    
    
    
    
    
    
    154,333Deferred income tax provision
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,728
    
    
    
    
    
    
    
    1,728Loss on sales of marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    131
    
    
    
    
    
    
    
    131Equity in income of joint ventures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,821
    )
    
    
    
    
    
    
    (2,821
    )Distribution received from joint
ventures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,452
    
    
    
    
    
    
    
    1,452Compensation expense from stock-based plans
    
    
    4,257
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,257Equity earnings in affiliates
    
    
    (59,489
    )
    
    
    (81,476
    )
    
    
    (86,383
    )
    
    
    
    
    
    
    227,348
    
    
    
    Other
    
    
    
    
    
    
    (1,657
    )
    
    
    (258
    )
    
    
    4,139
    
    
    
    
    
    
    
    2,224Changes in current assets and liabilities:Accounts receivable
    
    
    
    
    
    
    
    
    
    
    (2,520
    )
    
    
    (29,125
    )
    
    
    
    
    
    
    (31,645
    )Accounts receivable from affiliates
    
    
    (72,852
    )
    
    
    
    
    
    
    28,583
    
    
    
    
    
    
    
    44,269
    
    
    
    Other current assets
    
    
    (6,146
    )
    
    
    
    
    
    
    5,299
    
    
    
    (4,636
    )
    
    
    
    
    
    
    (5,483
    )Accounts payable
    
    
    (5
    )
    
    
    
    
    
    
    (1,700
    )
    
    
    (4,100
    )
    
    
    
    
    
    
    (5,805
    )Accounts payable to affiliates
    
    
    
    
    
    
    36,636
    
    
    
    
    
    
    
    7,633
    
    
    
    (44,269
    )
    
    
    Other current liabilities
    
    
    2,986
    
    
    
    (128
    )
    
    
    (3,842
    )
    
    
    2,057
    
    
    
    
    
    
    
    1,073Net cash provided by (used for)
operating
activities
    
    
    (38,037
    )
    
    
    13,322
    
    
    
    25,066
    
    
    
    212,305
    
    
    
    
    
    
    
    212,656CASH FLOWS FROM INVESTING ACTIVITIESAcquisitions and related capital upgrades
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (69,473
    )
    
    
    
    
    
    
    (69,473
    )Other capital expenditures
    
    
    
    
    
    
    
    
    
    
    334
    
    
    
    (95,935
    )
    
    
    
    
    
    
    (95,601
    )Deferred repair and maintenance expenditures
    
    
    
    
    
    
    
    
    
    
    (400
    )
    
    
    (46,138
    )
    
    
    
    
    
    
    (46,538
    )Proceeds from sales of property and
equipment...
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,616
    
    
    
    
    
    
    
    1,616Repayments from joint venture
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,295
    
    
    
    
    
    
    
    2,295Repayments from affiliates
    
    
    13,322
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13,322
    )
    
    
    Investment in marketable securities
    
    
    (51,500
    )
    
    
    
    
    
    
    
    
    
    
    (86,719
    )
    
    
    
    
    
    
    (138,219
    )Proceeds from sales and maturities of
marketable securities
    
    
    67,366
    
    
    
    
    
    
    
    
    
    
    
    116,990
    
    
    
    
    
    
    
    184,356Net cash provided by (used for)
investing
activities
    
    
    29,188
    
    
    
    
    
    
    
    (66
    )
    
    
    (177,364
    )
    
    
    (13,322
    )
    
    
    (161,564
    )CASH FLOWS FROM FINANCING ACTIVITIESPayments of other long-term debt
    
    
    
    
    
    
    
    
    
    
    (25,000
    )
    
    
    (41,397
    )
    
    
    
    
    
    
    (66,397
    )Payments to affiliates
    
    
    
    
    
    
    (13,322
    )
    
    
    
    
    
    
    
    
    
    
    13,322
    
    
    
    Proceeds from issuance of ordinary shares
    
    
    52,344
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52,344Repurchase of ordinary shares
    
    
    (39,714
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (39,714
    )Net cash used for financing
activities
    
    
    12,630
    
    
    
    (13,322
    )
    
    
    (25,000
    )
    
    
    (41,397
    )
    
    
    13,322
    
    
    
    (53,767
    )NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS
    
    
    3,781
    
    
    
    
    
    
    
    
    
    
    
    (6,456
    )
    
    
    
    
    
    
    (2,675
    )CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD
    
    
    33,991
    
    
    
    
    
    
    
    
    
    
    
    28,576
    
    
    
    
    
    
    
    62,567CASH AND CASH EQUIVALENTS,
END OF PERIOD
    
    $
    37,772
    
    
    $
    
    
    
    $
    
    
    
    $
    22,120
    
    
    $
    
    
    
    $
    59,892
 22




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##### Table of Contents



NOTE 10  SEGMENT AND RELATED INFORMATION
 Disclosure about Segments of an Enterprise and Related Information
   International
    
    
    Domestic
    
    
    EngineeringContract
    
    
    Contract
    
    
    &Drilling
    
    
    Drilling
    
    
    ConsultingServices
    
    
    Services
    
    
    Services
    
    
    Other
    
    
    TotalThree Months Ended September 30, 2005Revenues from external
customers
    
    $
    259,733
    
    
    $
    82,736
    
    
    $
    2,954
    
    
    $
    21,782
    
    
    $
    367,205Depreciation and amortization
    
    
    48,126
    
    
    
    12,247
    
    
    
    84
    
    
    
    819
    
    
    
    61,276Operating costs and expenses
    
    
    183,333
    
    
    
    63,717
    
    
    
    5,162
    
    
    
    20,414
    
    
    
    272,626Equity in income of
unconsolidated subsidiaries
    
    
    402
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    402Net income (loss)
    
    
    64,264
    
    
    
    12,536
    
    
    
    (2,400
    )
    
    
    2,123
    
    
    
    76,523Total assets (at end of period)
    
    
    2,349,819
    
    
    
    1,077,043
    
    
    
    30,081
    
    
    
    135,269
    
    
    
    3,592,212Three Months Ended September 30, 2004Revenues from external
customers
    
    $
    182,557
    
    
    $
    60,876
    
    
    $
    3,748
    
    
    $
    18,457
    
    
    $
    265,638Depreciation and amortization
    
    
    40,479
    
    
    
    11,202
    
    
    
    162
    
    
    
    889
    
    
    
    52,732Operating costs and expenses
    
    
    148,822
    
    
    
    50,210
    
    
    
    5,657
    
    
    
    16,934
    
    
    
    221,623Equity in income of
unconsolidated subsidiaries
    
    
    1,017
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,017Net income (loss)
    
    
    28,389
    
    
    
    5,447
    
    
    
    (2,352
    )
    
    
    (913
    )
    
    
    30,571Total assets (at end of period)
    
    
    1,586,978
    
    
    
    1,216,908
    
    
    
    34,401
    
    
    
    396,420
    
    
    
    3,234,707
 23




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##### Table of Contents



International
    
    
    Domestic
    
    
    EngineeringContract
    
    
    Contract
    
    
    &Drilling
    
    
    Drilling
    
    
    ConsultingServices
    
    
    Services
    
    
    Services
    
    
    Other
    
    
    TotalNine Months Ended September 30, 2005Revenues from external
customers
    
    $
    707,846
    
    
    $
    228,051
    
    
    $
    18,810
    
    
    $
    66,831
    
    
    $
    1,021,538Depreciation and amortization
    
    
    139,462
    
    
    
    35,030
    
    
    
    281
    
    
    
    2,409
    
    
    
    177,182Operating costs and expenses
    
    
    528,729
    
    
    
    161,705
    
    
    
    25,035
    
    
    
    61,647
    
    
    
    777,116Equity in income of
unconsolidated subsidiaries
    
    
    2,790
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,790Net income (loss)
    
    
    148,277
    
    
    
    46,980
    
    
    
    (6,258
    )
    
    
    6,364
    
    
    
    195,363Nine Months Ended September 30, 2004Revenues from external
customers
    
    $
    511,977
    
    
    $
    189,911
    
    
    $
    13,445
    
    
    $
    48,747
    
    
    $
    764,080Depreciation and amortization
    
    
    114,220
    
    
    
    36,950
    
    
    
    490
    
    
    
    2,673
    
    
    
    154,333Operating costs and expenses
    
    
    423,631
    
    
    
    146,171
    
    
    
    18,989
    
    
    
    45,871
    
    
    
    634,662Equity in income of
unconsolidated subsidiaries
    
    
    2,821
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,821Net income (loss)
    
    
    68,430
    
    
    
    28,881
    
    
    
    (6,169
    )
    
    
    2,070
    
    
    
    93,212
 NOTE 11  DRILLING UNIT DEVELOPMENTS
 Hurricane Losses and Recoveries
 Noble Jim Thompson Noble Max Smith Noble Paul Romano Noble Amos
Runner
 Noble Jim Thompson Noble Max Smith Noble Paul Romano Noble Amos Runner Noble Lorris Bouzigard Noble Therald Martin Noble Joe Alford
 Noble Lorris Bouzigard Noble Therald Martin Noble Jim Thompson Noble
Paul Romano Noble Amos Runner Noble Max Smith Noble Joe Alford
 India Bombay High Fire
 Noble Charlie Yester Noble Charlie Yester
 Acquisition of the Remaining 50 Percent Equity Interest in Noble Crosco Drilling Ltd.
 Panon Panon Noble Harvey
Duhaney
 24




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##### Table of Contents



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
 FORWARD-LOOKING STATEMENTS
   
    
    volatility in crude oil and natural gas prices;
    
    changes in our customers drilling programs or budgets due to their own internal
corporate events, changes in the markets and prices for oil and gas, or shifts in the
relative strengths of various geographic drilling markets brought on by things such as
a general economic slowdown, or regional or worldwide recession, any of which could
result in deterioration in demand for our drilling services;
    
    our inability to execute any of our business strategies;
    
    cost overruns or delays in shipyard repair, maintenance, conversion or upgrade projects;
    
    changes in tax laws, tax treaties or tax regulations or the interpretation or
enforcement thereof, including taxing authorities not agreeing with our assessment of
the effects of such laws, treaties and regulations;
    
    cancellation by our customers of drilling contracts or letter agreements or letters
of intent for drilling contracts or their exercise of early termination provisions
generally found in our drilling contracts;
    
    intense competition in the drilling industry;
    
    changes in the rate of economic growth in the U.S. or in other major international economies;
    
    political and economic conditions in markets where we from time to time operate;
    
    adverse weather (such as hurricanes and monsoons) and seas;
    
    operational risks (such as blowouts, fires and loss of production);
    
    changes in oil and gas drilling technology or in our competitors drilling rig
fleets that could make our drilling rigs less competitive or require major capital
investment to keep them competitive;
    
    costs and effects of unanticipated legal and administrative proceedings;
    
    limitations on our insurance coverage or our inability to obtain or maintain
insurance coverage at rates and with deductible amounts that we believe are
commercially reasonable;
    
    the discovery of significant additional oil and/or gas reserves or the construction
of significant oil and/or gas delivery or storage systems that impact regional or
worldwide energy markets;
    
    requirements and potential liability imposed by governmental regulation of the
drilling industry (including environmental regulation);
    
    acts of war or terrorism;
 25




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##### Table of Contents




    
    significant changes in trade, monetary or fiscal policies worldwide, including changes
in interest rates; and
    
    currency fluctuations between the U.S. dollar and other currencies.
  
 EXECUTIVE OVERVIEW
 Noble Clyde Boudreaux Noble Dave
Beard
       26




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##### Table of Contents



RESULTS OF OPERATIONS
 Hurricane Losses and Recoveries
 Noble Jim Thompson Noble Max Smith Noble Paul Romano Noble Amos Runner Noble Joe Alford Noble Lorris Bouzigard Noble
Therald Martin
 Noble Jim Thompson Noble Max Smith Noble Paul Romano Noble Amos Runner Noble Lorris Bouzigard Noble Therald Martin Noble Joe Alford
 Noble Lorris Bouzigard Noble Therald Martin Noble Jim Thompson Noble Paul Romano Noble Amos Runner Noble Max Smith Noble Joe Alford
 For the Three Months Ended September 30, 2005 and 2004
 General
   27




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##### Table of Contents



International
    
    
    DomesticContract
    
    
    Contract
    
    
    EngineeringDrilling
    
    
    Drilling
    
    
    & ConsultingServices
    
    
    Services
    
    
    Services
    
    
    Other
    
    
    Total(In thousands)Three Months Ended September 30, 2005Operating Revenues:Contract drilling services
    
    $
    248,536
    
    
    $
    79,565
    
    
    $
    
    
    
    $
    
    
    
    $
    328,101Reimbursables
    
    
    10,423
    
    
    
    2,943
    
    
    
    205
    
    
    
    4,507
    
    
    
    18,078Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,275
    
    
    
    17,275Engineering, consulting and other
    
    
    774
    
    
    
    228
    
    
    
    2,749
    
    
    
    
    
    
    
    3,751$
    259,733
    
    
    $
    82,736
    
    
    $
    2,954
    
    
    $
    21,782
    
    
    $
    367,205Operating Costs and Expenses:Contract drilling services
    
    $
    120,700
    
    
    $
    35,326
    
    
    $
    
    
    
    $
    
    
    
    $
    156,026Reimbursables
    
    
    8,053
    
    
    
    2,740
    
    
    
    242
    
    
    
    4,184
    
    
    
    15,219Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,967
    
    
    
    14,967Engineering, consulting and other
    
    
    35
    
    
    
    606
    
    
    
    4,603
    
    
    
    105
    
    
    
    5,349Depreciation and amortization
    
    
    48,126
    
    
    
    12,247
    
    
    
    84
    
    
    
    819
    
    
    
    61,276Selling, general and administrative
    
    
    6,419
    
    
    
    2,333
    
    
    
    233
    
    
    
    339
    
    
    
    9,324Hurricane losses and recoveries, net
    
    
    
    
    
    
    10,465
    
    
    
    
    
    
    
    
    
    
    
    10,465$
    183,333
    
    
    $
    63,717
    
    
    $
    5,162
    
    
    $
    20,414
    
    
    $
    272,626
 International
    
    
    DomesticContract
    
    
    Contract
    
    
    EngineeringDrilling
    
    
    Drilling
    
    
    & ConsultingServices
    
    
    Services
    
    
    Services
    
    
    Other
    
    
    Total(In thousands)Three Months Ended September 30, 2004Operating Revenues:Contract drilling services
    
    $
    174,821
    
    
    $
    57,236
    
    
    $
    
    
    
    $
    
    
    
    $
    232,057Reimbursables
    
    
    5,874
    
    
    
    3,334
    
    
    
    685
    
    
    
    2,268
    
    
    
    12,161Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,146
    
    
    
    15,146Engineering, consulting and other
    
    
    1,862
    
    
    
    306
    
    
    
    3,063
    
    
    
    1,043
    
    
    
    6,274$
    182,557
    
    
    $
    60,876
    
    
    $
    3,748
    
    
    $
    18,457
    
    
    $
    265,638Operating Costs and Expenses:Contract drilling services
    
    $
    99,159
    
    
    $
    34,067
    
    
    $
    
    
    
    $
    
    
    
    $
    133,226Reimbursables
    
    
    4,611
    
    
    
    3,110
    
    
    
    673
    
    
    
    2,110
    
    
    
    10,504Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,455
    
    
    
    12,455Engineering, consulting and other
    
    
    (706
    )
    
    
    (115
    )
    
    
    4,562
    
    
    
    1,134
    
    
    
    4,875Depreciation and amortization
    
    
    40,479
    
    
    
    11,202
    
    
    
    162
    
    
    
    889
    
    
    
    52,732Selling, general and administrative
    
    
    5,279
    
    
    
    1,946
    
    
    
    260
    
    
    
    346
    
    
    
    7,831$
    148,822
    
    
    $
    50,210
    
    
    $
    5,657
    
    
    $
    16,934
    
    
    $
    221,623
 28




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##### Table of Contents



Rig Utilization, Operating Days and Average Dayrates
  Average RigUtilization (1)
    
    
    Operating Days (2)
    
    
    Average DayrateThree Months Ended
    
    
    Three Months Ended
    
    
    Three Months EndedSeptember 30,
    
    
    September 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004International (3):Jackups
    
    
    98
    %
    
    
    85
    %
    
    
    3,440
    
    
    
    2,864
    
    
    $
    55,271
    
    
    $
    49,954Semisubmersibles  >6,000(4)
    
    
    100
    %
    
    
    50
    %
    
    
    184
    
    
    
    92
    
    
    $
    153,274
    
    
    $
    158,924Semisubmersibles  <6,000(5)
    
    
    100
    %
    
    
    100
    %
    
    
    92
    
    
    
    92
    
    
    $
    84,315
    
    
    $
    57,804Drillships
    
    
    100
    %
    
    
    43
    %
    
    
    276
    
    
    
    119
    
    
    $
    81,401
    
    
    $
    99,277Total International
    
    
    99
    %
    
    
    80
    %
    
    
    3,992
    
    
    
    3,167
    
    
    $
    62,265
    
    
    $
    55,201Domestic (6):Jackups
    
    
    100
    %
    
    
    100
    %
    
    
    184
    
    
    
    184
    
    
    $
    68,990
    
    
    $
    45,935Semisubmersibles  >6,000(4)
    
    
    100
    %
    
    
    100
    %
    
    
    368
    
    
    
    368
    
    
    $
    127,240
    
    
    $
    106,880Semisubmersibles  < 6,000(5)
    
    
    96
    %
    
    
    39
    %
    
    
    176
    
    
    
    72
    
    
    $
    69,241
    
    
    $
    35,708Submersibles
    
    
    67
    %
    
    
    100
    %
    
    
    184
    
    
    
    276
    
    
    $
    42,590
    
    
    $
    24,931Total Domestic
    
    
    90
    %
    
    
    89
    %
    
    
    912
    
    
    
    900
    
    
    $
    87,209
    
    
    $
    63,596
 
 (1)
    
    Information reflects our policy of reporting on the basis of the number of actively
marketed rigs in our fleet. Percentages reflect the results of rigs only during the
period in which they are owned or operated by us.(2)
    
    Information reflects the number of days that our rigs were operating under contractual
terms.(3)
    
    International encompasses contract drilling services conducted in the Middle East,
Mexico, the North Sea, Brazil, West Africa, India and the Mediterranean Sea.(4)
    
    These units have water depth ratings of 6,000 feet or greater depending on the unit.(5)
    
    These units have water depth ratings of less than 6,000 feet.(6)
    
    Domestic encompasses contract drilling services conducted in the U.S. Gulf of Mexico. International Contract Drilling Services
  Operating CostsOperating Revenues
    
    
    and ExpensesThree Months Ended
    
    
    Three Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands)Contract drilling services
    
    $
    248,536
    
    
    $
    174,821
    
    
    $
    120,700
    
    
    $
    99,159Reimbursables (1)
    
    
    10,423
    
    
    
    5,874
    
    
    
    8,053
    
    
    
    4,611Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Engineering, consulting and other
    
    
    774
    
    
    
    1,862
    
    
    
    35
    
    
    
    (706
    )Depreciation and amortization
    
    
    N/A
    
    
    
    N/A
    
    
    
    48,126
    
    
    
    40,479Selling, general and administrative
    
    
    N/A
    
    
    
    N/A
    
    
    
    6,419
    
    
    
    5,279Total
    
    $
    259,733
    
    
    $
    182,557
    
    
    $
    183,333
    
    
    $
    148,822
 
 (1)
    
    We record reimbursements from customers for out-of-pocket expenses as revenues and the
related direct cost as operating expenses. Changes in the amount of these reimbursables
do not have a material effect on our financial position, results of operations or cash
flows. 29




---



##### Table of Contents



Operating Revenues. Noble
Roger Eason Noble
Homer Ferrington Noble Cees van Diemen Noble David Tinsley Noble Dick Favor .
 Operating Costs and Expenses. Noble Homer Ferrington Noble Cees van Diemen Noble David Tinsley Noble Roger Eason Noble Cees van Diemen Noble David Tinsley Noble Roger Eason Noble Homer Ferrington
 Domestic Contract Drilling Services
  Operating CostsOperating Revenues
    
    
    and ExpensesThree Months Ended
    
    
    Three Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands)Contract drilling services
    
    $
    79,565
    
    
    $
    57,236
    
    
    $
    35,326
    
    
    $
    34,067Reimbursables (1)
    
    
    2,943
    
    
    
    3,334
    
    
    
    2,740
    
    
    
    3,110Engineering, consulting and other
    
    
    228
    
    
    
    306
    
    
    
    606
    
    
    
    (115
    )Depreciation and amortization
    
    
    N/A
    
    
    
    N/A
    
    
    
    12,247
    
    
    
    11,202Selling, general and administrative
    
    
    N/A
    
    
    
    N/A
    
    
    
    2,333
    
    
    
    1,946Hurricane losses and recoveries, net
    
    
    
    
    
    
    
    
    
    
    10,465
    
    
    
    Total
    
    $
    82,736
    
    
    $
    60,876
    
    
    $
    63,717
    
    
    $
    50,210
 
 (1)
    
    We record reimbursements from customers for out-of-pocket expenses as revenues and the
related direct cost as operating expenses. Changes in the amount of these reimbursables
do not have a material effect on our financial position, results of operations or cash
flows. Operating Revenues. Noble Homer Ferrington, Noble Therald
Martin Noble Lorris Bouzigard
 30




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##### Table of Contents



Operating Costs and Expenses . Noble Lorris Bouzigard Noble Therald
Martin, Noble Homer Ferrington
  Engineering & Consulting Services
  Operating CostsOperating Revenues
    
    
    and ExpensesThree Months Ended
    
    
    Three Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands)Engineering, consulting and other
    
    $
    2,749
    
    
    $
    3,063
    
    
    $
    4,603
    
    
    $
    4,562Reimbursables (1)
    
    
    205
    
    
    
    685
    
    
    
    242
    
    
    
    673Depreciation and amortization
    
    
    N/A
    
    
    
    N/A
    
    
    
    84
    
    
    
    162Selling, general and administrative
    
    
    N/A
    
    
    
    N/A
    
    
    
    233
    
    
    
    260Total
    
    $
    2,954
    
    
    $
    3,748
    
    
    $
    5,162
    
    
    $
    5,657
 
 (1)
    
    We record reimbursements from customers for out-of-pocket expenses as revenues and the
related direct cost as operating expenses. Changes in the amount of these reimbursables
do not have a material effect on our financial position, results of operations or cash
flows. Operating Revenues.
 Operating Costs and Expenses .
 Other
  31




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##### Table of Contents



Operating CostsOperating Revenues
    
    
    and ExpensesThree Months Ended
    
    
    Three Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands)Labor contract drilling services
    
    $
    17,275
    
    
    $
    15,146
    
    
    $
    14,967
    
    
    $
    12,455Reimbursables (1)
    
    
    4,507
    
    
    
    2,268
    
    
    
    4,184
    
    
    
    2,110Engineering, consulting and other
    
    
    
    
    
    
    1,043
    
    
    
    105
    
    
    
    1,134Depreciation and amortization
    
    
    N/A
    
    
    
    N/A
    
    
    
    819
    
    
    
    889Selling, general and administrative
    
    
    N/A
    
    
    
    N/A
    
    
    
    339
    
    
    
    346Total
    
    $
    21,782
    
    
    $
    18,457
    
    
    $
    20,414
    
    
    $
    16,934
 
 (1)
    
    We record reimbursements from customers for out-of-pocket expenses as revenues and the
related direct cost as operating expenses. Changes in the amount of these reimbursables
do not have a material effect on our financial position, results of operations or cash
flows. Operating Revenues .
 Operating Costs and Expenses .
 Other Items
 Selling, General and Administrative Expenses .
 Interest Expense . Noble Clyde Boudreaux
 Other, net.
 Income Tax Provision .
 32




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##### Table of Contents



For the Nine Months Ended September 30, 2005 and 2004
 General
   International
    
    
    DomesticContract
    
    
    Contract
    
    
    EngineeringDrilling
    
    
    Drilling
    
    
    & ConsultingServices
    
    
    Services
    
    
    Services
    
    
    Other
    
    
    Total(In thousands)Nine Months Ended September 30, 2005Operating Revenues:Contract drilling services
    
    $
    678,216
    
    
    $
    216,200
    
    
    $
    
    
    
    $
    
    
    
    $
    894,416Reimbursables
    
    
    27,690
    
    
    
    11,105
    
    
    
    9,115
    
    
    
    13,325
    
    
    
    61,235Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52,947
    
    
    
    52,947Engineering, consulting and other
    
    
    1,940
    
    
    
    746
    
    
    
    9,695
    
    
    
    559
    
    
    
    12,940$
    707,846
    
    
    $
    228,051
    
    
    $
    18,810
    
    
    $
    66,831
    
    
    $
    1,021,538Operating Costs and Expenses:Contract drilling services
    
    $
    348,225
    
    
    $
    97,730
    
    
    $
    
    
    
    $
    
    
    
    $
    445,955Reimbursables
    
    
    22,160
    
    
    
    10,547
    
    
    
    9,199
    
    
    
    12,765
    
    
    
    54,671Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44,632
    
    
    
    44,632Engineering, consulting and other
    
    
    382
    
    
    
    912
    
    
    
    14,854
    
    
    
    822
    
    
    
    16,970Depreciation and amortization
    
    
    139,462
    
    
    
    35,030
    
    
    
    281
    
    
    
    2,409
    
    
    
    177,182Selling, general and administrative
    
    
    18,500
    
    
    
    7,021
    
    
    
    701
    
    
    
    1,019
    
    
    
    27,241Hurricane losses and recoveries, net
    
    
    
    
    
    
    10,465
    
    
    
    
    
    
    
    
    
    
    
    10,465$
    528,729
    
    
    $
    161,705
    
    
    $
    25,035
    
    
    $
    61,647
    
    
    $
    777,116
 33




---



##### Table of Contents



International
    
    
    DomesticContract
    
    
    Contract
    
    
    EngineeringDrilling
    
    
    Drilling
    
    
    & ConsultingServices
    
    
    Services
    
    
    Services
    
    
    Other
    
    
    Total(In thousands)Nine Months Ended September 30, 2004Operating Revenues:Contract drilling services
    
    $
    496,166
    
    
    $
    180,141
    
    
    $
    
    
    
    $
    
    
    
    $
    676,307Reimbursables
    
    
    13,760
    
    
    
    8,408
    
    
    
    2,703
    
    
    
    6,894
    
    
    
    31,765Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35,615
    
    
    
    35,615Engineering, consulting and other
    
    
    2,051
    
    
    
    1,362
    
    
    
    10,742
    
    
    
    6,238
    
    
    
    20,393$
    511,977
    
    
    $
    189,911
    
    
    $
    13,445
    
    
    $
    48,747
    
    
    $
    764,080Operating Costs and Expenses:Contract drilling services
    
    $
    285,222
    
    
    $
    94,846
    
    
    $
    
    
    
    $
    
    
    
    $
    380,068Reimbursables
    
    
    10,549
    
    
    
    7,887
    
    
    
    2,659
    
    
    
    6,568
    
    
    
    27,663Labor contract drilling services
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,702
    
    
    
    28,702Engineering, consulting and other
    
    
    (2,048
    )
    
    
    228
    
    
    
    14,961
    
    
    
    6,615
    
    
    
    19,756Depreciation and amortization
    
    
    114,220
    
    
    
    36,950
    
    
    
    490
    
    
    
    2,673
    
    
    
    154,333Selling, general and administrative
    
    
    15,688
    
    
    
    6,260
    
    
    
    879
    
    
    
    1,313
    
    
    
    24,140$
    423,631
    
    
    $
    146,171
    
    
    $
    18,989
    
    
    $
    45,871
    
    
    $
    634,662
 Rig Utilization, Operating Days and Average Dayrates
  Average RigUtilization(1)
    
    
    Operating Days(2)
    
    
    Average DayrateNine Months Ended
    
    
    Nine Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004International (3):Jackups
    
    
    97
    %
    
    
    83
    %
    
    
    9,792
    
    
    
    8,119
    
    
    $
    52,799
    
    
    $
    50,064Semisubmersibles  >6,000(4)
    
    
    100
    %
    
    
    75
    %
    
    
    546
    
    
    
    274
    
    
    $
    152,396
    
    
    $
    144,361Semisubmersibles  <6,000(5)
    
    
    95
    %
    
    
    100
    %
    
    
    260
    
    
    
    274
    
    
    $
    77,977
    
    
    $
    47,347Drillships
    
    
    87
    %
    
    
    59
    %
    
    
    716
    
    
    
    483
    
    
    $
    80,648
    
    
    $
    76,959Total International
    
    
    96
    %
    
    
    82
    %
    
    
    11,314
    
    
    
    9,150
    
    
    $
    59,947
    
    
    $
    54,226Domestic (6):Jackups
    
    
    100
    %
    
    
    96
    %
    
    
    546
    
    
    
    528
    
    
    $
    61,939
    
    
    $
    44,360Semisubmersibles  >6,000(4)
    
    
    90
    %
    
    
    99
    %
    
    
    986
    
    
    
    1,276
    
    
    $
    120,508
    
    
    $
    104,458Semisubmersibles  <6,000(5)
    
    
    99
    %
    
    
    24
    %
    
    
    538
    
    
    
    130
    
    
    $
    66,883
    
    
    $
    36,885Submersibles
    
    
    87
    %
    
    
    92
    %
    
    
    712
    
    
    
    758
    
    
    $
    38,699
    
    
    $
    24,584Total Domestic
    
    
    93
    %
    
    
    84
    %
    
    
    2,782
    
    
    
    2,692
    
    
    $
    77,704
    
    
    $
    66,917
 
 (1)
    
    Information reflects our policy of reporting on the basis of the number of actively
marketed rigs in our fleet. Percentages reflect the results of rigs only during the
period in which they are owned or operated by us.(2)
    
    Information reflects the number of days that our rigs were operating under contractual
terms.(3)
    
    International encompasses contract drilling services conducted in the Middle East,
Mexico, the North Sea, Brazil, West Africa, India and the Mediterranean Sea.(4)
    
    These units have water depth ratings of 6,000 feet or greater depending on the unit.(5)
    
    These units have water depth ratings less than 6,000 feet.(6)
    
    Domestic encompasses contract drilling services conducted in the U.S. Gulf of Mexico. 34




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##### Table of Contents



International Contract Drilling Services
  Operating CostsOperating Revenues
    
    
    and ExpensesNine Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands)Contract drilling services
    
    $
    678,216
    
    
    $
    496,166
    
    
    $
    348,225
    
    
    $
    285,222Reimbursables (1)
    
    
    27,690
    
    
    
    13,760
    
    
    
    22,160
    
    
    
    10,549Engineering, consulting and other
    
    
    1,940
    
    
    
    2,051
    
    
    
    382
    
    
    
    (2,048
    )Depreciation and amortization
    
    
    N/A
    
    
    
    N/A
    
    
    
    139,462
    
    
    
    114,220Selling, general and administrative
    
    
    N/A
    
    
    
    N/A
    
    
    
    18,500
    
    
    
    15,688Total
    
    $
    707,846
    
    
    $
    511,977
    
    
    $
    528,729
    
    
    $
    423,631
 
 (1)
    
    We record reimbursements from customers for out-of-pocket expenses as revenues and the
related direct cost as operating expenses. Changes in the amount of these reimbursables
do not have a material effect on our financial position, results of operations or cash
flows. Operating Revenues Noble Lewis Dugger Noble Homer Ferrington Noble Cees van Diemen Noble David Tinsley , Noble Dick Favor Noble
Jimmy Puckett Noble George McLeod Noble Roger Eason
 Operating Costs and Expenses. Noble Roger Eason Noble Cees van Diemen Noble David Tinsley Noble Homer Ferrington Noble Cees van Diemen Noble David Tinsley Noble Roger Eason Noble Homer Ferrington.
 Domestic Contract Drilling Services
  35




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##### Table of Contents



Operating CostsOperating Revenues
    
    
    and ExpensesNine Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands)Contract drilling services
    
    $
    216,200
    
    
    $
    180,141
    
    
    $
    97,730
    
    
    $
    94,846Reimbursables (1)
    
    
    11,105
    
    
    
    8,408
    
    
    
    10,547
    
    
    
    7,887Engineering, consulting and other
    
    
    746
    
    
    
    1,362
    
    
    
    912
    
    
    
    228Depreciation and amortization
    
    
    N/A
    
    
    
    N/A
    
    
    
    35,030
    
    
    
    36,950Selling, general and administrative
    
    
    N/A
    
    
    
    N/A
    
    
    
    7,021
    
    
    
    6,260Hurricane losses and recoveries, net
    
    
    
    
    
    
    
    
    
    
    10,465
    
    
    
    Total
    
    $
    228,051
    
    
    $
    189,911
    
    
    $
    161,705
    
    
    $
    146,171
 
 (1)
    
    We record reimbursements from customers for out-of-pocket expenses as revenues and the
related direct cost as operating expenses. Changes in the amount of these reimbursables
do not have a material effect on our financial position, results of operations or cash
flows. Operating Revenues. Noble Homer Ferrington, Noble Lorris Bouzigard Noble
Therald Martin Noble Paul Romano Noble Lester Pettus
 Operating Costs and Expenses . Noble Lorris Bouzigard Noble Therald
Martin Noble Homer Ferrington Noble Homer Ferrington
  Engineering & Consulting Services
  Operating CostsOperating Revenues
    
    
    and ExpensesNine Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands)Engineering, consulting and other
    
    $
    9,695
    
    
    $
    10,742
    
    
    $
    14,854
    
    
    $
    14,961Reimbursables (1)
    
    
    9,115
    
    
    
    2,703
    
    
    
    9,199
    
    
    
    2,659Depreciation and amortization
    
    
    N/A
    
    
    
    N/A
    
    
    
    281
    
    
    
    490Selling, general and administrative
    
    
    N/A
    
    
    
    N/A
    
    
    
    701
    
    
    
    879Total
    
    $
    18,810
    
    
    $
    13,445
    
    
    $
    25,035
    
    
    $
    18,989
 
 (1)
    
    We record reimbursements from customers for out-of-pocket expenses as revenues and the
related direct cost as operating expenses. Changes in the amount of these reimbursables
do not have a material effect on our financial position, results of operations or cash
flows. 36




---



##### Table of Contents



Operating Revenues .
 Operating Costs and Expenses .
 Other
  Operating CostsOperating Revenues
    
    
    and ExpensesNine Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands)Labor contract drilling services
    
    $
    52,947
    
    
    $
    35,615
    
    
    $
    44,632
    
    
    $
    28,702Reimbursables (1)
    
    
    13,325
    
    
    
    6,894
    
    
    
    12,765
    
    
    
    6,568Engineering, consulting and other
    
    
    559
    
    
    
    6,238
    
    
    
    822
    
    
    
    6,615Depreciation and amortization
    
    
    N/A
    
    
    
    N/A
    
    
    
    2,409
    
    
    
    2,673Selling, general and administrative
    
    
    N/A
    
    
    
    N/A
    
    
    
    1,019
    
    
    
    1,313Total
    
    $
    66,831
    
    
    $
    48,747
    
    
    $
    61,647
    
    
    $
    45,871
 
 (1)
    
    We record reimbursements from customers for out-of-pocket expenses as revenues and the
related direct cost as operating expenses. Changes in the amount of these reimbursables
do not have a material effect on our financial position, results of operations or cash
flows. Operating Revenues .
 Operating Costs and Expenses .
 Other Items
 Selling, General and Administrative Expenses .
 Interest Expense . Noble Clyde Boudreaux
 Other, net. Panon Noble Harvey Duhaney Panon Noble Harvey Duhaney
 Income Tax Provision .
 37




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##### Table of Contents



LIQUIDITY AND CAPITAL RESOURCES
 Overview
      Capital Expenditures
  Panon Panon Noble
Harvey Duhaney Noble Clyde
Boudreaux Noble
Mark Burns Noble Paul Romano Noble Clyde
Boudreaux Noble Mark Burns Noble Clyde Boudreaux
 Noble Cees van Diemen Noble Mark Burns
  38




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##### Table of Contents



Noble Clyde Boudreaux Noble Dave Beard
   Credit Facilities and Long-Term Debt
    
 ACCOUNTING PRONOUNCEMENTS
 Share-Based Payment Accounting for
Stock-Based Compensation Accounting for Stock Issued to Employees .
  39




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    Accounting for
Derivative Instruments and Hedging Activities, Accounting for
Certain Derivative Instruments and Certain Hedging Activities (an amendment of FASB Statement
No. 133), Amendment of Statement 133 on Derivative Instruments and Hedging
Activities
 
 ITEM 4. CONTROLS AND PROCEDURES
   40




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##### Table of Contents



PART II. OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
 prima facie
   41




---



##### Table of Contents



ITEM 6. EXHIBITS
  42




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##### Table of Contents



SIGNATURES
  NOBLE CORPORATIONDATE: November 9, 2005
    By:
    /s/ Bruce W. BusmireBruce W. Busmire,Senior Vice President, Chief Financial Officer,
Treasurer and Controller
(Principal Financial and Accounting Officer) 43




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##### Table of Contents



INDEX TO EXHIBITS
 EXHIBITNUMBER
    
    EXHIBIT10.1
    
    Form of Indemnity Agreement entered into between Noble Corporation and each of its
directors and officers (filed as Exhibit 10.1 to the Registrants Quarterly Report on
Form 10-Q for the three-month period ended March 31, 2002 and incorporated herein by
reference).10.2
    
    Employment Agreement, dated as of September 26, 2005, by and between Noble
Drilling Corporation and Bruce W. Busmire.10.3
    
    Parent Guaranty by Noble Corporation, dated as of September 26, 2005, of
Employment Agreement by and between Noble Drilling Corporation and Bruce W. Busmire.31.1
    
    Certification of James C. Day Pursuant to SEC Rule 13a-14(a) or Rule 15d-14(a).31.2
    
    Certification of Bruce W. Busmire Pursuant to SEC Rule 13a-14(a) or Rule 15d-14(a).32.1*
    
    Certification of James C. Day Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2*
    
    Certification of Bruce W. Busmire Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
  44