ne-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________________________________________________________

FORM 10-Q

_____________________________________________________________________________________________________


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

_____________________________________________________________________________________________________

Commission file number: 001-41520

Noble Corporation plc

(Exact name of registrant as specified in its charter)

_____________________________________________________________________________________________________


England and Wales						98-1644664
(State or other jurisdiction of incorporation or organization)						(I.R.S. employer identification number)

2101 City West Boulevard, Suite 600, Houston, Texas, 77042

(Address of principal executive offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (281) 276-6100

_____________________________________________________________________________________________________

_______________________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
A Ordinary Shares, par value $0.00001 per share	NE	New York Stock Exchange
Tranche 1 Warrants of Noble Corporation plc	NE WS	New York Stock Exchange
Tranche 2 Warrants of Noble Corporation plc	NE WSA	New York Stock Exchange

_____________________________________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☑ No ☐

Number of shares outstanding at April 24, 2026: Noble Corporation plc - 159,545,944

TABLE OF CONTENTS

Page

PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets as of March 31, 2026, and December 31, 2025

Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025

Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2026 and 2025

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025

Condensed Consolidated Statements of Equity for the three months ended March 31, 2026 and 2025

Notes to Unaudited Condensed Consolidated Financial Statements

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Item 4.

Controls and Procedures

PART II

OTHER INFORMATION

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 5.

Item 6.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

NOBLE CORPORATION plc AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)


	March 31, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	662,650	$	471,399
Accounts receivable, net	595,878		589,597
Taxes receivable	58,576		78,827
Prepaid expenses and other current assets	117,658		132,459
Total current assets	1,434,762		1,272,282

Property and equipment, at cost	6,778,292		6,639,045
Accumulated depreciation	(1,372,621)		(1,236,222)
Property and equipment, net	5,405,671		5,402,823

Other assets	637,284		854,662
Total assets	$	7,477,717	$	7,529,767
LIABILITIES AND EQUITY
Current liabilities

Accounts payable	$	307,596	$	298,751
Accrued payroll and related costs	51,800		81,754
Taxes payable	81,670		83,256
Interest payable	73,173		35,827
Other current liabilities	205,168		260,141
Total current liabilities	719,407		759,729
Long-term debt	1,917,272		1,975,791
Deferred income taxes	5,536		5,402

Other liabilities	247,843		239,995
Total liabilities	2,890,058		2,980,917
Commitments and contingencies (Note 8)
Shareholders’ equity
Common stock, $0.00001 par value; 159,473,464 and 158,853,799 ordinary shares outstanding as of March 31, 2026, and December 31, 2025, respectively	1		1
Additional paid-in capital	4,259,479		4,257,059
Retained earnings	324,756		286,630
Accumulated other comprehensive income (loss)	3,423		5,160
Total shareholders’ equity	4,587,659		4,548,850
Total liabilities and equity	$	7,477,717	$	7,529,767

See accompanying notes to the unaudited condensed consolidated financial statements.

NOBLE CORPORATION plc AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended March 31,
	2026		2025
Operating revenues
Contract drilling services	$	742,553	$	832,428
Reimbursables and other	43,137		42,059
	785,690		874,487
Operating costs and expenses
Contract drilling services	450,125		462,099
Reimbursables	30,112		31,784
Depreciation and amortization	137,340		143,137
General and administrative	30,048		35,208
Merger and integration costs	2,615		14,920
(Gain) loss on sale of operating assets, net	(89,858)		—

	560,382		687,148
Operating income (loss)	225,308		187,339
Other income (expense)
Interest expense, net of amounts capitalized	(40,559)		(40,467)

Gain (loss) on extinguishment of debt, net	726		—
Interest income and other, net	8,197		1,837
Income (loss) before income taxes	193,672		148,709
Income tax benefit (provision)	(72,947)		(40,406)
Net income (loss)	$	120,725	$	108,303
Basic earnings (loss) per share	$	0.76	$	0.68
Diluted earnings (loss) per share	$	0.75	$	0.67

See accompanying notes to the unaudited condensed consolidated financial statements.

NOBLE CORPORATION plc AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)


	Three Months Ended March 31,
	2026		2025
Net income (loss)	$	120,725	$	108,303
Other comprehensive income (loss)


Net changes in pension and other postretirement plan assets and benefit obligations, net of tax benefit (provision) of $2,233 and $0 for the three months ended March 31, 2026 and 2025, respectively.	(1,737)		201

Other comprehensive income (loss), net	(1,737)		201
Comprehensive income (loss)	$	118,988	$	108,504

See accompanying notes to the unaudited condensed consolidated financial statements.

NOBLE CORPORATION plc AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Three Months Ended March 31,
	2026		2025
Cash flows from operating activities
Net income (loss)	$	120,725	$	108,303
Adjustments to reconcile net income (loss) to net cash flow from operating activities:
Depreciation and amortization	137,340		143,137
Amortization of intangible assets and contract liabilities, net	—		(7,450)

(Gain) loss on extinguishment of debt, net	(726)		—
(Gain) loss on sale of operating assets, net	(89,858)		—

Deferred income taxes	46,338		20,499
Amortization of share-based compensation	9,521		7,051
Other costs, net	3,388		(11,469)
Net changes in operating assets and liabilities	46,562		10,989
Net cash provided by (used in) operating activities	273,290		271,060
Cash flows from investing activities
Capital expenditures	(103,853)		(113,536)
Proceeds from insurance claims	—		15,391

Proceeds from disposal of assets, net	206,400		—
Net cash provided by (used in) investing activities	102,547		(98,145)
Cash flows from financing activities



Repayments of debt	(56,650)		—


Warrants exercised	2,569		38
Share repurchases	—		(20,000)
Dividend payments	(83,691)		(81,406)
Withholding tax related to employee stock transactions	(9,670)		(9,073)
Finance lease payments	(41,756)		(6,019)

Net cash provided by (used in) financing activities	(189,198)		(116,460)
Net increase (decrease) in cash, cash equivalents, and restricted cash	186,639		56,455
Cash, cash equivalents, and restricted cash, beginning of period	479,960		252,279
Cash, cash equivalents, and restricted cash, end of period	$	666,599	$	308,734

See accompanying notes to the unaudited condensed consolidated financial statements.

NOBLE CORPORATION plc AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In thousands)

(Unaudited)


	Shares			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Total Equity
	Balance	Par Value
Balance at December 31, 2025	158,854	$	1	$	4,257,059	$	286,630	$	5,160	$	4,548,850
Employee related equity activity
Amortization of share-based compensation	—	—		9,521		—		—		9,521
Issuance of share-based compensation	507	—		—		—		—		—
Shares withheld for taxes on equity transactions	—	—		(9,670)		—		—		(9,670)
Warrants exercised	112	—		2,569		—		—		2,569

Dividends	—	—		—		(82,599)		—		(82,599)
Net income (loss)	—	—		—		120,725		—		120,725
Other comprehensive income (loss), net	—	—		—		—		(1,737)		(1,737)
Balance at March 31, 2026	159,473	$	1	$	4,259,479	$	324,756	$	3,423	$	4,587,659

See accompanying notes to the unaudited condensed consolidated financial statements.

NOBLE CORPORATION plc AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - CONTINUED

(In thousands)

(Unaudited)


	Shares			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Total Equity
	Balance	Par Value
Balance at December 31, 2024	158,947	$	1	$	4,236,172	$	411,244	$	3,969	$	4,651,386
Employee related equity activity
Amortization of share-based compensation	—	—		7,051		—		—		7,051
Issuance of share-based compensation	564	—		—		—		—		—
Shares withheld for taxes on equity transactions	—	—		(9,073)		—		—		(9,073)
Warrants exercised	1	—		38		—		—		38
Share repurchases	(737)	—		—		(20,000)		—		(20,000)
Dividends	—	—		—		(79,997)		—		(79,997)
Net income (loss)	—	—		—		108,303		—		108,303
Other comprehensive income (loss), net	—	—		—		—		201		201
Balance at March 31, 2025	158,775	$	1	$	4,234,188	$	419,550	$	4,170	$	4,657,909

See accompanying notes to the unaudited condensed consolidated financial statements.

NOBLE CORPORATION plc AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise indicated, dollar and share amounts in tables are in thousands, except per share data)

Note 1 — Organization and Basis of Presentation

Noble Corporation plc, a public limited company incorporated under the laws of England and Wales (“Noble”, the “Company”, or “we”), is a leading offshore drilling contractor for the oil and gas industry. We provide contract drilling services to the international oil and gas industry with our global fleet of mobile offshore drilling units. Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921. As of the filing date of this report, our fleet of 31 drilling rigs consisted of 25 floaters and 6 jackups.

We report our contract drilling operations as a single reportable segment, Contract Drilling Services, which reflects how we manage our business. The mobile offshore drilling units comprising our offshore rig fleet operate in a global market for contract drilling services and are often redeployed to different regions due to changing demands of our customers, which consist primarily of large, integrated, independent, and government-owned or controlled oil and gas companies throughout the world.

The accompanying unaudited condensed consolidated financial statements of Noble have been prepared pursuant to the rules and regulations of the US Securities and Exchange Commission (“SEC”) as they pertain to Quarterly Reports on Form 10-Q. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The unaudited financial statements are prepared on a going concern basis and reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the financial position and results of operations for the interim periods on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a recurring nature. The December 31, 2025, Condensed Consolidated Balance Sheet presented herein is derived from the December 31, 2025, audited consolidated financial statements. These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed by Noble. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Note 2 — Accounting Pronouncements

Accounting Standards Adopted

There have been no new accounting standards adopted during the current quarter.

Recently Issued Accounting Standards

In December 2025, the FASB issued ASU No. 2025‑12, Codification Improvements. This ASU includes amendments that clarify or improve various areas within the Accounting Standards Codification. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

In December 2025, the FASB issued ASU No. 2025‑11, Interim Reporting (Topic 270): Narrow‑Scope Improvements. This ASU clarifies the application of interim reporting guidance and certain interim disclosure requirements. The guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, for public business entities, and after December 15, 2028, for entities other than public business entities. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

In November 2025, the FASB issued ASU No. 2025‑09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. This ASU clarifies certain aspects of the hedge accounting guidance and addresses incremental hedge accounting issues arising from global reference rate reform. The guidance is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, and for entities other than public business entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

In November 2025, the FASB issued ASU No. 2025‑08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. This ASU expands the use of the gross‑up approach for certain acquired loans by requiring purchased seasoned loans to be accounted for consistent with purchased credit‑deteriorated financial assets. The amendments are effective for annual

NOBLE CORPORATION plc AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise indicated, dollar and share amounts in tables are in thousands, except per share data)

reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

Note 3 — Earnings (Loss) Per Share

The following table presents the computation of basic and diluted earnings (loss) per share:


	Three Months Ended March 31,
	2026		2025
Numerator:
Net income (loss)	$	120,725	$	108,303
Denominator:
Weighted average shares outstanding – basic	159,219		159,006
Dilutive effect of share-based awards	1,119		2,134
Dilutive effect of warrants	1,241		797
Weighted average shares outstanding – diluted	161,579		161,937
Earnings (loss) per share data:
Basic	$	0.76	$	0.68
Diluted	$	0.75	$	0.67

Only those items having a dilutive impact on our basic earnings (loss) per share are included in diluted earnings (loss) per share. The following table displays the share-based instruments that have been excluded from diluted earnings (loss) per share since the effect would have been anti-dilutive:


	Three Months Ended March 31,
	2026	2025

Warrants (1)	—	2,773

(1)Represents the total number of warrants outstanding which did not have a dilutive effect. In periods where the warrants are determined to be dilutive, the number of shares which will be included in the computation of diluted shares is determined using the Treasury Stock Method, adjusted for mandatory exercise provisions under the warrant agreements, if applicable.

Share Capital

As of March 31, 2026, Noble had approximately 159.5 million Ordinary Shares outstanding as compared to approximately 158.9 million Ordinary Shares outstanding at December 31, 2025. In addition, as of March 31, 2026, 0.9 million Tranche 1 Warrants and 0.8 million Tranche 2 Warrants were outstanding and exercisable. Furthermore, new equity awards may be granted under the Noble Corporation plc 2022 Long-Term Incentive Plan, pursuant to which, up to 3.9 million new Ordinary Shares may be issued.

The declaration and payment of dividends require authorization of the Board of Directors, provided that such dividends on issued share capital may be paid only out of the Company’s “distributable reserves” as determined by reference to relevant statutory accounts in accordance with English law. The Company is not permitted to pay dividends out of share capital, which includes share premiums. The payment of future dividends will depend on our results of operations, financial condition, cash requirements, future business prospects, the availability of sufficient distributable reserves, contractual and indenture restrictions, and other factors deemed relevant by our Board of Directors. During each of the quarters ended March 31, 2026 and 2025, we declared and paid a dividend of $0.50 per share.

Share Repurchases

Under English law, the Company is only permitted to purchase its own Ordinary Shares by way of an “off-market purchase” pursuant to a contract approved by shareholders (except where the purchase is for the purposes of, or pursuant to, any employees’ share scheme). Such purchases may be paid for either (i) out of the Company’s “distributable reserves” as determined by reference to relevant statutory accounts in accordance with English law or (ii) from the proceeds of a fresh

NOBLE CORPORATION plc AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise indicated, dollar and share amounts in tables are in thousands, except per share data)

issue of shares made for the purpose of financing the purchase. On October 22, 2024, the Company’s Board of Directors authorized an increased share repurchase authorization of up to an additional $400.0 million and, at the 2025 annual general meeting of shareholders, shareholders approved the repurchase of up to 23,800,068 Ordinary Shares. The authorization by the Board of Directors has approximately $370.0 million remaining, does not have a fixed expiration, and may be modified, suspended, or discontinued at any time. None of the shareholder authorization to purchase up to 23,800,068 Ordinary Shares has yet been utilized and the authorization by shareholders expires on May 8, 2030 (subject to certain exceptions). The program does not obligate the Company to acquire any particular amount of Ordinary Shares. During the three months ended March 31, 2026 and 2025, the Company repurchased none and 0.7 million of the Company’s Ordinary Shares, respectively. All repurchased shares were subsequently cancelled, and the nominal value of the repurchased shares was transferred to the Capital Redemption reserve. Under this program, repurchases may be made from time to time using a variety of methods such as open market purchases and privately negotiated transactions, in compliance with relevant rules and regulations. In establishing this program, the Board considered the benefits to shareholders of providing the business with this additional capital allocation flexibility to promote long-term value for shareholders alongside other uses of capital.

Warrants

The tranche 1 warrants (the “Tranche 1 Warrants”) are exercisable for one Ordinary Share per warrant at an exercise price of $19.27 per warrant, the tranche 2 warrants (the “Tranche 2 Warrants”) are exercisable for one Ordinary Share per warrant at an exercise price of $23.13 per warrant, and the tranche 3 warrants (the “Tranche 3 Warrants”), which expired on February 4, 2026, were exercisable for one Ordinary Share per warrant at an exercise price of $124.40 per warrant.

Note 4 — Property and Equipment

Property and equipment, at cost, for Noble consisted of the following:


	March 31, 2026		December 31, 2025
Drilling equipment and facilities	$	6,439,563	$	6,332,098
Construction in progress	246,484		215,637
Other	92,245		91,310
Property and equipment, at cost	$	6,778,292	$	6,639,045

Capital additions, including capitalized interest, during the three months ended March 31, 2026 and 2025, totaled $137.3 million and $89.5 million, respectively.

During the first quarter of 2026, we sold the Noble Tom Prosser, Noble Mick O'Brien, Noble Regina Allen, Noble Resilient, and Noble Resolute for net proceeds of $346.7 million, resulting in a pre-tax gain of $89.5 million.

As of March 31, 2026, the Noble Resolve qualified as held for sale and was included in “Other assets” on our Consolidated Balance Sheet at its carrying value of $64.2 million.

Note 5 — Debt

Partial Redemption of Debt Principal

On March 27, 2026, we redeemed $55.0 million aggregate principal amount of our 8.500% Senior Secured Second Lien Notes due 2030 for $56.7 million, plus accrued interest, and recognized a gain of approximately $0.7 million.

Secured Revolving Credit Agreement

The revolving credit facility under the Amended and Restated Senior Secured Revolving Credit Agreement, dated April 18, 2023, and as amended on June 24, 2024, and on December 16, 2025 (the “2023 Revolving Credit Facility”), provides for commitments of $550.0 million with maturity in 2028. The guarantors under the 2023 Revolving Credit Facility are the same subsidiaries of Noble Finance II LLC, a wholly-owned, indirect subsidiary of Noble (“Noble Finance II”), that are or will be guarantors of the 2030 Notes (as defined below). As of March 31, 2026, we had no borrowings outstanding and $6.7 million of letters of credit issued under the 2023 Revolving Credit Facility.

NOBLE CORPORATION plc AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise indicated, dollar and share amounts in tables are in thousands, except per share data)

8.000% Senior Notes due 2030

In 2023, Noble Finance II, a wholly owned subsidiary of Noble, issued $600.0 million in aggregate principal amount of its 8.000% Senior Notes due 2030 (the “Initial 2030 Notes”). On August 22, 2024, Noble Finance II issued an additional $800.0 million in aggregate principal amount of its 8.000% Senior Notes due 2030 (the “Additional 2030 Notes” and, together with the Initial 2030 Notes, the “2030 Notes”) at a premium of 103% bringing the total outstanding principal amount to $1.4 billion. The 2030 Notes were issued pursuant to an indenture, dated as of April 18, 2023 (as supplemented or otherwise modified from time to time, the “Noble Indenture”), among Noble Finance II, the subsidiaries of Noble Finance II party thereto, as guarantors, and U.S. Bank Trust Company, National Association, as trustee, paying agent, and registrar.

The 2030 Notes are unconditionally guaranteed on a senior unsecured basis by the above guarantors and will be unconditionally guaranteed on the same basis by certain of Noble Finance II’s future subsidiaries that guarantee certain indebtedness of Noble Finance II and the above guarantors, including the 2023 Revolving Credit Facility.

The 2030 Notes will mature on April 15, 2030, and interest on the 2030 Notes is payable semi-annually in arrears on each April 15 and October 15, commencing October 15, 2023, to holders of record on the April 1 and October 1 immediately preceding the related interest payment date, at a rate of 8.000% per annum.

8.500% Senior Secured Second Lien Notes due 2030

In 2023, Diamond Foreign Asset Company and Diamond Finance, LLC (collectively referred to as the “Issuers”) issued $550.0 million aggregate principal amount of 8.500% Senior Secured Second Lien Notes due October 2030 (the “Diamond Second Lien Notes”) with interest payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2024. On March 27, 2026, Diamond Foreign Asset Company redeemed $55.0 million aggregate principal amount of its 8.500% Senior Secured Second Lien Notes due 2030 for $56.7 million bringing the total outstanding principal amount to $495.0 million. The Diamond Second Lien Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by Noble Offshore Drilling, Inc. (formerly known as Dolphin Merger Sub 2, Inc. and as successor by merger with Diamond Offshore Drilling, Inc.) (“NODI”) and each of its existing restricted subsidiaries (other than the Issuers) and by certain of NODI’s future restricted subsidiaries.

The Diamond Second Lien Notes obligate NODI and its subsidiaries to comply with an indenture dated as of September 21, 2023 (as supplemented and otherwise modified from time to time, the “Diamond Second Lien Indenture”), among the Issuers, NODI, certain of its subsidiaries party thereto, as guarantors, and HSBC Bank USA, National Association, as trustee and collateral agent. The Diamond Second Lien Indenture contains covenants that, among other things, restrict NODI’s ability and the ability of certain of its subsidiaries to: (i) incur additional debt and issue certain preferred stock; (ii) incur or create liens; (iii) make certain dividends, distributions, investments, and other restricted payments; (iv) sell or otherwise dispose of certain assets; (v) engage in certain transactions with affiliates; and (vi) merge, consolidate, amalgamate, or sell, transfer, lease, or otherwise dispose of all, or substantially all, of the assets of NODI and such subsidiaries taken as a whole. These covenants are subject to important exceptions and qualifications.

Fair Value of Debt

Fair value represents the amount at which an instrument could be exchanged in a current transaction between willing parties. The estimated fair value of our debt instruments was based on the quoted market prices for similar issues or on the current rates offered to us for debt of similar remaining maturities (Level 2 measurement). The fair value of the 2023 Revolving Credit Facility approximates its respective carrying amount as its interest rate is variable and reflective of market rates.

NOBLE CORPORATION plc AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise indicated, dollar and share amounts in tables are in thousands, except per share data)

The following table presents the carrying value, net of unamortized debt issuance costs and discounts or premiums, and the estimated fair value of our total debt, not including the effect of unamortized debt issuance costs, respectively:


	March 31, 2026				December 31, 2025
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Senior secured notes
8.000% Senior Notes due April 2030	$	1,400,925	$	1,446,774	$	1,400,983	$	1,454,656
8.500% Senior Secured Second Lien Notes due October 2030	516,347		522,814		574,808		583,775
Credit facility
Amended and Restated Senior Secured Revolving Credit Facility	—		—		—		—
Total debt	1,917,272		1,969,588		1,975,791		2,038,431
Less: Current maturities of long-term debt	—		—		—		—
Long-term debt	$	1,917,272	$	1,969,588	$	1,975,791	$	2,038,431

Note 6 — Revenue and Customers

Disaggregation of Revenue

The following table provides information about contract drilling services revenue by rig types:


	Three Months Ended March 31,
	2026		2025
Floaters	$	620,557	$	693,451
Jackups	121,996		138,977
Total	$	742,553	$	832,428

Contract Balances

Accounts receivables are recognized when the right to the consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 to 60 days. Customer contract assets and liabilities generally consist of contract costs and deferred revenue resulting from past transactions related to the provision of services under contracts with customers. Current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Other current liabilities,” respectively, and noncurrent contract assets and liabilities are included in “Other assets” and “Other liabilities,” respectively, on our Condensed Consolidated Balance Sheets.

Certain direct and incremental costs incurred for upfront preparation, initial rig mobilization, and modifications are costs of fulfilling a contract and are recoverable. These recoverable costs are deferred and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process.

Certain of our contracts also include capital rig enhancements used to satisfy our performance obligations. Payments for these modifications are initially recognized as a contract liability and amortized ratably as contract drilling revenue over the initial term of the related drilling contract. The costs are capitalized in accordance with our existing property and equipment accounting policy and depreciated over the estimated useful life of the improvement.

NOBLE CORPORATION plc AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise indicated, dollar and share amounts in tables are in thousands, except per share data)

The following table provides information about contract assets and contract liabilities from contracts with customers:


	March 31, 2026		December 31, 2025
Current customer contract assets	$	17,868	$	29,525
Noncurrent customer contract assets	389		1,112
Total customer contract assets	18,257		30,637

Current deferred revenue	(53,911)		(64,400)
Noncurrent deferred revenue	(44,942)		(32,718)
Total deferred revenue	$	(98,853)	$	(97,118)

Significant changes in the remaining performance obligation contract assets and the contract liabilities balances for the three months ended March 31, 2026 and 2025, are as follows:


	Contract Assets		Contract Liabilities
Net balance at December 31, 2025	$	30,637	$	(97,118)

Additions to deferred costs	7,155		—
Additions to deferred revenue	—		(25,108)
Amortization of deferred costs	(19,535)		—
Amortization of deferred revenue	—		23,373
Total	(12,380)		(1,735)

Net balance at March 31, 2026	$	18,257	$	(98,853)

Net balance at December 31, 2024	$	37,091	$	(101,945)

Additions to deferred costs	10,183		—
Additions to deferred revenue	—		(59,999)
Amortization of deferred costs	(13,435)		—
Amortization of deferred revenue	—		56,961
Total	(3,252)		(3,038)

Net balance at March 31, 2025	$	33,839	$	(104,983)

Off-market Customer Contract Assets and Liabilities

Off-market customer contract assets and liabilities were recognized in connection with the merger, pursuant to a Business Combination Agreement, dated November 10, 2021, as amended, by and among Noble, Noble Finco Limited (n/k/a Noble Corporation plc), Noble Newco Sub Limited, the Drilling Company of 1972 A/S, a Danish public limited liability company (“Maersk Drilling”), and the other parties thereto (the “Business Combination with Maersk Drilling”) and the agreement and plan of merger, dated June 9, 2024, with Diamond Offshore Drilling, Inc. (“Diamond”), Dolphin Merger Sub 1, Inc., and Dolphin Merger Sub 2, Inc., under which Noble would acquire Diamond in a stock plus cash transaction (the “Diamond Transaction”), and are included in “Other assets” and “Noncurrent contract liabilities,” respectively.

In connection with the Business Combination with Maersk Drilling, the Company recognized additional fair value adjustments of $23.0 million. As of March 2025, these intangible assets were fully amortized as a reduction of contract drilling services revenue from October 3, 2022, through the remainder of the contracts.

NOBLE CORPORATION plc AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise indicated, dollar and share amounts in tables are in thousands, except per share data)

In connection with the Business Combination with Maersk Drilling and the Diamond Transaction, the Company recognized fair value adjustments of $237.7 million and $27.7 million, respectively, related to certain unfavorable customer contracts acquired. As of June 2025, these liabilities were fully amortized as an increase to contract drilling services revenue from October 3, 2022, and September 4, 2024, respectively, through the remainder of the contracts.


	Unfavorable contacts		Favorable contracts





Balance at December 31, 2024	$	(8,580)	$	214

Amortization	7,664		(214)
Balance at March 31, 2025	$	(916)	$	—

Note 7 — Income Taxes

During the three months ended March 31, 2026, the Company recognized additional discrete deferred tax benefits of $16.6 million related to releases and adjustments of valuation allowance for deferred tax benefits primarily in Luxembourg and Switzerland.

During the three months ended March 31, 2025, the Company recognized additional discrete deferred tax benefits of $18.5 million related to releases and adjustments of valuation allowance for deferred tax benefits in Guyana, Nigeria, Switzerland, and Luxembourg.

In deriving the above net deferred tax benefits, the Company relied on sources of income attributable to the projected taxable income for the period covered by the Company’s relevant existing drilling contracts based on the assumption that the relevant rigs will be owned by the relevant rig owners during the relevant existing drilling contract periods. Given the mobile nature of the Company’s assets, we are not able to reasonably forecast the jurisdictions in which taxable income from future drilling contracts may arise. We also have limited objective positive evidence in historical periods. Accordingly, in determining the amount of additional deferred tax assets to recognize, we did not consider projected book income beyond the conclusion of existing drilling contracts. As new drilling contracts are executed or as current contracts are extended, we will reassess the amount of deferred tax assets that are realizable. Finally, once we have established sufficient objective positive evidence for historical periods, we may consider reliance on forecasted taxable income from future drilling contracts.

At March 31, 2026, the reserves for uncertain tax positions totaled $116.5 million (net of related tax benefits of $0.9 million). At December 31, 2025, the reserves for uncertain tax positions totaled $119.2 million (net of related tax benefits of $0.9 million).

During the three months ended March 31, 2026, our tax provision included tax benefits of $16.6 million related to adjustments to valuation allowance for deferred tax benefits primarily in Luxembourg and Switzerland. Such tax benefits were offset by tax effects of $23.5 million related to the gain on sale of operating assets and recurring quarterly accruals of $66.1 million mostly in Guyana, Luxembourg, Switzerland, and the United States.

Note 8 — Commitments and Contingencies

Tax Matters

Audit claims of approximately $374.1 million at March 31, 2026, attributable to income and other business taxes, remain outstanding and are under continued objection by Noble. Such audit claims are mostly attributable to Brazil and remain under continued monitoring and evaluation on a quarterly basis as facts change and as audits and/or litigation continue to progress. We intend to vigorously defend our reported positions and currently believe the ultimate resolution of the audit claims will not have a material adverse effect on our consolidated financial statements.

We operate in numerous countries throughout the world and our tax returns filed in those jurisdictions are subject to review and examination by tax authorities within those jurisdictions. We recognize uncertain tax positions that we believe have a greater than 50% likelihood of being sustained upon challenge by a tax authority. We cannot predict nor provide assurance as to the ultimate outcome of any existing or future assessments.

NOBLE CORPORATION plc AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise indicated, dollar and share amounts in tables are in thousands, except per share data)

Letters of Credit and Surety Bonds

As of March 31, 2026, we had $6.7 million of letters of credit issued under the 2023 Revolving Credit Facility and an additional $42.8 million in letters of credit and surety bonds issued under bilateral arrangements which guarantee our performance as it relates to our drilling contracts, contract bidding, tax appeals, customs duties, and other obligations in various jurisdictions. We expect to comply with the underlying performance requirements and we expect obligations under these letters of credit and surety bonds will not be called.

Other Contingencies

We are a defendant in certain other claims and litigation arising out of operations in the ordinary course of business, including personal injury claims, the resolution of which, in the opinion of management, will not be material to our financial position, results of operations, or cash flows. There is inherent risk in any litigation or dispute and no assurance can be given as to the outcome of these claims.

Note 9 — Supplemental Financial Information

Condensed Consolidated Balance Sheets Information

Restricted cash

Noble’s restricted cash balance as of March 31, 2026, and December 31, 2025, was $3.9 million and $8.6 million, respectively. All restricted cash is recorded in “Prepaid expenses and other current assets.”

Leases

Our lease agreements are primarily for real estate, equipment, storage, dock space, and automobiles and are included within “Other assets”, “Other current liabilities”, and “Other liabilities” on our Condensed Consolidated Balance Sheets. In connection with the Diamond Transaction, the Company assumed several finance leases for well control equipment used on the drillships that included an option to purchase the leased equipment at the end of the respective lease term.

During the first quarter of 2026, Noble exercised the option to purchase the leased equipment and entered into a purchase and sale agreement with EFS BOP, LLC, as seller for the purchase of four blowout preventer (“BOP”) systems. The aggregate purchase price for the equipment is $73.0 million. As a result, two of the four BOP systems were purchased in March 2026 and were reclassified to “Property and equipment” from “Other assets” on our Condensed Consolidated Balance Sheet. The closings for the remaining two BOP systems are due to occur during the second and fourth quarters of 2026, respectively, consistent with the remaining lease term.

Supplemental balance sheet information related to finance leases was as follows:


	March 31, 2026		December 31, 2025
Right-of-use assets	$	45,011

SEC Form 10-Q filed by Noble Corporation plc A