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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
DECEMBER 13, 1996
NOBLE DRILLING CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 0-13857 73-0374541
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
10370 Richmond Avenue, Suite 400, Houston, Texas 77042
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(713) 974-3131
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Item 2. Acquisition or Disposition of Assets.
On December 13, 1996, Noble Drilling Corporation (unless otherwise required
by the context, together with its consolidated subsidiaries, the "Company")
completed its previously announced agreement to sell its land drilling assets.
The sale price was $60 million in cash. The Company had previously announced
that it had entered into an Asset Purchase Agreement dated November 15, 1996 by
and between the Company, Noble Properties, Inc. and Noble Drilling (Canada) Ltd.
and Nabors Industries, Inc. ("Nabors").
The assets sold consisted principally of (i) 19 marketed land drilling rigs
and 28 mothballed land drilling rigs, (ii) certain inventory related to the
maintenance and operation of the rigs, (iii) leasehold interests and real
property fee interests related to the maintenance and operation of the rigs and
(iv) drilling contracts for the employment of the rigs in existence on the
closing date. The assets sold were transferred at the closing to certain
subsidiaries of Nabors pursuant to an Agreement dated December 13, 1996 by and
among the Company, Noble Properties, Inc., Noble Drilling (Canada) Ltd., Noble
Drilling (U.S.) Inc. and Noble Drilling Land Limited, and Nabors Industries,
Inc., Nabors Drilling USA, Inc. and Nabors Drilling Limited.
Item 7. Financial Statements and Exhibits.
(b) Pro Forma Financial Information.
The pro forma financial information required by this item of Form 8-K is
filed as part of this Report.
(c) Exhibits.
Exhibit 2.1 - Asset Purchase Agreement dated November 15, 1996 by
and between Noble Drilling Corporation, Noble
Properties, Inc. and Noble Drilling (Canada) Ltd. and
Nabors Industries, Inc.
Exhibit 2.2 - Agreement dated December 13, 1996 by and among Noble
Drilling Corporation, Noble Properties, Inc., Noble
Drilling (Canada) Ltd., Noble Drilling (U.S.) Inc.
and Noble Drilling Land Limited, and Nabors
Industries, Inc., Nabors Drilling USA, Inc. and
Nabors Drilling Limited.
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: December 27, 1996 NOBLE DRILLING CORPORATION
By: /s/ Byron L. Welliver
--------------------------------
Byron L. Welliver,
Senior Vice President-Finance,
Treasurer and Controller
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NOBLE DRILLING CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
The following sets forth the unaudited pro forma consolidated balance sheet
of the Company as of September 30, 1996 and the unaudited pro forma consolidated
statements of operations for the Company for the nine months ended September 30,
1996 and the year ended December 31, 1995, after giving effect to the sale of
the Company's land drilling assets on December 13, 1996 for $60 million in cash.
The unaudited pro forma consolidated statements of operations assume that the
sale occurred as of January 1, 1995, and the unaudited pro forma consolidated
balance sheet assumes that the sale occurred on September 30, 1996.
The following unaudited pro forma consolidated financial statements should
be read in conjunction with the unaudited consolidated financial statements and
notes thereto included in the Company's Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 1996 and the audited consolidated
financial statements and notes thereto included in the Company's Annual Report
on Form 10-K for the year ended December 31, 1995. The pro forma information
may not be indicative of what the financial condition or results of operations
of the Company would have been, had the sale been completed on the dates
assumed, nor is such information necessarily indicative of the financial
condition or results of operations of the Company that may exist in the future.
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NOBLE DRILLING CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1996
(In thousands)
<TABLE>
<CAPTION>
COMPANY SALE OF
HISTORICAL LAND RIGS PRO FORMA
---------- --------- ---------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents . . . . . . . . . . . . . . . . . $ 143,841 $ 60,000 A $ 203,841
Investment in marketable equity securities . . . . . . . . 1,749 -- 1,749
Investment in marketable debt securities . . . . . . . . . 27,530 -- 27,530
Accounts receivable . . . . . . . . . . . . . . . . . . . . 108,222 -- 108,222
Inventories . . . . . . . . . . . . . . . . . . . . . . . . 39,632 -- 39,632
Other current assets . . . . . . . . . . . . . . . . . . . 45,904 -- 45,904
----------- --------- -----------
Total current assets . . . . . . . . . . . . . . . . . 366,878 60,000 426,878
----------- --------- -----------
PROPERTY AND EQUIPMENT
Drilling equipment and facilities . . . . . . . . . . . . . 1,246,842 (145,943) B 1,100,899
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,379 (3,383) B 22,996
----------- --------- -----------
1,273,221 (149,326) 1,123,895
Accumulated depreciation . . . . . . . . . . . . . . . . . (349,189) 136,968 B (212,221)
----------- --------- -----------
924,032 (12,358) 911,674
----------- --------- -----------
OTHER ASSETS . . . . . . . . . . . . . . . . . . . . . . . . 12,181 -- 12,181
----------- --------- -----------
$ 1,303,091 $ 47,642 $ 1,350,733
=========== ========= ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term debt and current installments of long-term debt $ 6,088 -- $ 6,088
Accounts payable . . . . . . . . . . . . . . . . . . . . . 44,370 -- 44,370
Accrued payroll and related costs . . . . . . . . . . . . . 22,025 -- 22,025
Taxes payable . . . . . . . . . . . . . . . . . . . . . . . 15,360 3,936 C 19,296
Interest payable . . . . . . . . . . . . . . . . . . . . . 8,630 -- 8,630
Other current liabilities . . . . . . . . . . . . . . . . . 64,473 2,200 D 66,673
----------- --------- -----------
Total current liabilities . . . . . . . . . . . . . . 160,946 6,136 167,082
LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . . . . . 250,532 -- 250,532
OTHER LIABILITIES . . . . . . . . . . . . . . . . . . . . . . 859 11,731 C 12,590
MINORITY INTEREST . . . . . . . . . . . . . . . . . . . . . . 904 -- 904
----------- --------- -----------
413,241 17,867 431,108
----------- --------- -----------
SHAREHOLDERS' EQUITY
Preferred stock . . . . . . . . . . . . . . . . . . . . . . 4,025 -- 4,025
Common stock . . . . . . . . . . . . . . . . . . . . . . . 12,185 -- 12,185
Capital in excess of par value. . . . . . . . . . . . . . . 907,146 -- 907,146
Unrealized losses on marketable securities . . . . . . . . (60) -- (60)
Minimum pension liability . . . . . . . . . . . . . . . . . (3,403) -- (3,403)
Cumulative translation adjustment . . . . . . . . . . . . . (2,049) -- (2,049)
Retained earnings (Accumulated deficit) . . . . . . . . . . (26,131) 29,775 E 3,644
Treasury stock, at cost . . . . . . . . . . . . . . . . . . (1,863) -- (1,863)
----------- --------- -----------
889,850 29,775 919,625
----------- --------- -----------
COMMITMENTS AND CONTINGENCIES. . . . . . . . . . . . . . . . -- -- --
----------- --------- -----------
$ 1,303,091 $ 47,642 $ 1,350,733
=========== ========== ===========
</TABLE>
See accompanying notes to the pro forma financial statements.
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NOBLE DRILLING CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1996
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
COMPANY SALE OF
HISTORICAL LAND RIGS PRO FORMA
---------- --------- ---------
<S> <C> <C> <C>
OPERATING REVENUES
Contract drilling services . . . . . . . . . . . . . . . . . . $ 238,891 $ (18,317) F $ 220,574
Labor contract drilling services . . . . . . . . . . . . . . . 24,247 -- 24,247
Turnkey drilling services . . . . . . . . . . . . . . . . . . . 98,782 -- 98,782
Engineering and consulting services . . . . . . . . . . . . . . 4,084 -- 4,084
Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . 6,511 (107) F 6,404
---------- ---------- ----------
372,515 (18,424) 354,091
---------- ---------- ----------
OPERATING COSTS AND EXPENSES
Contract drilling services . . . . . . . . . . . . . . . . . . 142,634 (13,439) F 129,195
Labor contract drilling services . . . . . . . . . . . . . . . 17,474 -- 17,474
Turnkey drilling services . . . . . . . . . . . . . . . . . . . 70,394 -- 70,394
Engineering and consulting services . . . . . . . . . . . . . . 2,625 -- 2,625
Other expense . . . . . . . . . . . . . . . . . . . . . . . . . 3,910 (178) F 3,732
Depreciation and amortization . . . . . . . . . . . . . . . . . 32,904 (844) F 32,060
Selling, general and administrative . . . . . . . . . . . . . . 38,517 (1,619) F 36,898
Impairments, net of gains on asset sales . . . . . . . . . . . 73 -- 73
Minority interest . . . . . . . . . . . . . . . . . . . . . . . (101) -- (101)
---------- ---------- ----------
308,430 (16,080) 292,350
---------- ---------- ----------
OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . 64,085 (2,344) 61,741
OTHER INCOME (EXPENSE)
Interest expense . . . . . . . . . . . . . . . . . . . . . . . (12,906) -- (12,906)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . 4,030 (165) F 3,865
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . 2,447 (607) F 1,840
---------- ---------- ----------
INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . . . 57,656 (3,116) 54,540
INCOME TAX PROVISION . . . . . . . . . . . . . . . . . . . . . . (5,456) 283 F (5,173)
---------- ---------- ----------
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,200 (2,833) 49,367
PREFERRED STOCK DIVIDENDS . . . . . . . . . . . . . . . . . . . . (4,529) -- (4,529)
---------- ---------- ----------
NET INCOME APPLICABLE TO COMMON SHARES . . . . . . . . . . . . . $ 47,671 $ (2,833) $ 44,838
========== ========== ==========
NET INCOME APPLICABLE TO COMMON SHARES PER SHARE . . . . . . . . $ 0.45 $ 0.43
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING . . . . . . . . . . . 104,968 104,968
</TABLE>
See accompanying notes to the pro forma financial statements.
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NOBLE DRILLING CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
COMPANY SALE OF
HISTORICAL LAND RIGS PRO FORMA
---------- --------- -----------
<S> <C> <C> <C>
OPERATING REVENUES
Contract drilling services . . . . . . . . . . . . . . . . . $ 205,110 $ (28,641) F $ 176,469
Labor contract drilling services . . . . . . . . . . . . . . 35,136 -- 35,136
Turnkey drilling services. . . . . . . . . . . . . . . . . . 71,273 -- 71,273
Engineering and consulting services. . . . . . . . . . . . . 11,264 -- 11,264
Other revenue . . . . . . . . . . . . . . . . . . . . . . . 5,185 (96) F 5,089
----------- ------------ ------------
327,968 (28,737) 299,231
----------- ------------ ------------
OPERATING COSTS AND EXPENSES
Contract drilling services . . . . . . . . . . . . . . . . . . 138,340 (20,657) F 117,683
Labor contract drilling services . . . . . . . . . . . . . . . 26,540 -- 26,540
Turnkey drilling services. . . . . . . . . . . . . . . . . . . 64,471 -- 64,471
Engineering and consulting services. . . . . . . . . . . . . . 7,311 -- 7,311
Other expense . . . . . . . . . . . . . . . . . . . . . . . . 3,440 (163) F 3,277
Depreciation and amortization. . . . . . . . . . . . . . . . . 36,492 (922) F 35,570
Selling, general and administrative. . . . . . . . . . . . . . 40,139 (1,771) F 38,368
Minority interest. . . . . . . . . . . . . . . . . . . . . . . (214) -- (214)
----------- ------------ ------------
316,519 (23,513) 293,006
----------- ------------ ------------
OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . 11,449 (5,224) 6,225
OTHER INCOME (EXPENSE)
Interest expense . . . . . . . . . . . . . . . . . . . . . . . (12,156) -- (12,156)
Interest income . . . . . . . . . . . . . . . . . . . . . . . 5,323 (337) F 4,986
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . 250 (220) F 30
----------- ------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES . . . . . . . . . . . . . . . 4,866 (5,781) (915)
INCOME TAX PROVISION . . . . . . . . . . . . . . . . . . . . . . (3,272) 1,440 F (1,832)
----------- ------------ ------------
NET INCOME (LOSS). . . . . . . . . . . . . . . . . . . . . . . . 1,594 (4,341) (2,747)
PREFERRED STOCK DIVIDENDS. . . . . . . . . . . . . . . . . . . . (7,199) -- (7,199)
----------- ------------ ------------
NET LOSS APPLICABLE TO COMMON SHARES . . . . . . . . . . . . . . $ (5,605) $ (4,341) $ (9,946)
=========== ============ ============
NET LOSS APPLICABLE TO COMMON SHARES PER SHARE . . . . . . . . . $ (0.08) $ (0.13)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING . . . . . . . . . . . 89,736 89,736
</TABLE>
See accompanying notes to the pro forma financial statements.
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NOBLE DRILLING CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
GENERAL
The following notes set forth the assumptions used in preparing the
unaudited pro forma consolidated financial statements. The pro forma
adjustments are based on estimates made by the Company's management using
information currently available. The sale of the land drilling assets would
have resulted in a gain assuming that the sale occurred as of January 1, 1995.
This nonrecurring gain has not been included in the unaudited pro forma
consolidated statements of operations for the nine months ended September 30,
1996 or the year ended December 31, 1995. However, the estimated gain, net of
the related income taxes, is reflected in the unaudited pro forma consolidated
balance sheet assuming the sale occurred on September 30, 1996.
PRO FORMA ADJUSTMENTS
The adjustments to the accompanying unaudited pro forma consolidated
balance sheet are described below:
(A) To reflect the receipt of $60 million in cash as consideration for the
sale of the land drilling assets.
(B) To reflect the retirement of the land drilling asset book values.
(C) To reflect the estimated current and deferred tax liabilities relating
to the estimated gain on the sale of the land drilling assets.
(D) To reflect the accrual of estimated disposal costs associated with the
transaction.
(E) To reflect the estimated gain, net of tax, relating to the sale of the
land drilling assets.
The adjustments to the accompanying unaudited pro forma consolidated
statements of operations are described below:
(F) To reflect the exclusion of the historical results of the land
drilling operations.
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