Good morning. My name is Lindsay, and I will be your conference operator today. At this time, I would like to welcome everyone to Noble Corporation's Second Quarter 2016 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. Mr. Jeff Chastain, Vice President of Investor Relations, you may begin your conference. Jeffrey L. Chastain - Vice President-Investor Relations & Corporate Communications: All right. Thank you, Lindsay. And welcome, everyone, to Noble Corporation's second quarter 2016 earnings call. We appreciate your interest in the company. In case you missed it, a copy of Noble's earnings report issued last evening, along with the supporting statements and schedules, can be found on Noble's website. And again, that's noblecorp.com. Before I turn the call over to David Williams, I'd like to remind everyone that we may make statements about our operations, opportunities, plans, operational or financial performance, the drilling business or other matters that are not historical facts and are forward-looking statements that are subject to certain risks and uncertainties. Our filings with the U.S. Securities and Exchange Commission, which are posted on our website, discuss the risks and uncertainties in our business and industry and the various factors that could keep outcomes of any forward-looking statements from being realized. And this includes the price of oil and gas, customer demand, operational and other risks. Our actual results could differ materially from these forward-looking statements, and Noble does not assume any obligation to update these statements. Also note, we are referencing non-GAAP financial measures in the call today. You'll find the required supplemental disclosure for these measures, including the most directly comparable GAAP measure and an associated reconciliation on our website. And finally, consistent with our…

Thank you, David, and good morning to everyone. Results for the second quarter included several net favorable after-tax items totaling $322 million, or $1.27 per diluted share, relating largely to the contract cancelation agreement and settlement with Freeport-McMoRan announced in May. Each of the items along with their impact to net income were identified in our press release issued last evening, so I will not take the time to walk through these. Excluding these items, net income attributable to Noble Corporation in the second quarter was slightly greater than $1 million, or $0.01 per diluted share. A 16% decline in total fleet operating days, led by a 31% reduction in our floating rigs fleet, was a critical factor in the second quarter, leading to lower profitability compared to the results in the first quarter. The quarterly results were partially offset by another quarter of strong operational execution, highlighted by a further reduction in downtime across the fleet and lower than expected operating cost. Since our press release issued last evening discusses the changes in our operations compared to the first quarter, I will spend my time this morning reviewing the areas of our operation which fell outside of the guided range provided in April. This will include a quick discussion on fleet downtime, contract drilling and service cost, SG&A and non-controlling interest. I will also bring you up to date on capital expenditures for the first half of 2016 before I update our financial guidance for the remainder of the year. We continued to build upon a favorable downtime trend in the second quarter with total fleet downtime of 2.9%, which was well below our guidance of 5%. For the first six months of 2016, fleet downtime was 3.4%. Reported contract drilling services costs in the second quarter totaled $244…

Our first question comes from the line of Ian Macpherson from Simmons. Your line is now open. Ian Macpherson - Simmons & Company International: Hey. Good morning. Thanks for the good detail in the prepared remarks. I suppose the Bob Douglas day rate is a sensitive data point right now. But if you could, Simon or David, comment on where leading edge spot day rates are relative to cash operating costs, that might be a helpful insight. Simon W. Johnson - Senior Vice President-Marketing & Contracts: Yeah. Good morning, Ian. Look, we're very pleased to be working again for long-term client Apache. We like their operating style, and clearly, they like ours. It was a very competitive process to tender. We're reluctant to disclose the rate just now other than to confirm it was consistent with the prevailing market. In the current market context, I think utilization is everything. We're not so concerned about headline rate so much as we are with keeping rigs working through this difficult time. So the work opportunities aren't necessarily lucrative in terms of an EBITDA contribution perspective. But we're able to preserve the asset work for an important client, maintain our crews and hopefully navigate this difficult time. Ian Macpherson - Simmons & Company International: Okay. Well do you think that you will publish that in the future? Or will this remain an undisclosed day rate? Simon W. Johnson - Senior Vice President-Marketing & Contracts: We'll keep you posted. Ian Macpherson - Simmons & Company International: Okay. Fair enough. I guess my follow-up would be, we moved past the Freeport saga, and it does seem like you got a very, I'd say, a fair shake based on your contract strength there. Is your sense that we have kind of moved past the part of…

Our next question comes from the line of Gregory Lewis from Credit Suisse. Your line is now open. Gregory Lewis - Credit Suisse Securities (USA) LLC (Broker): Yes. Thank you. And good morning. David W. Williams - Chairman, President & Chief Executive Officer: Good morning, Greg. Gregory Lewis - Credit Suisse Securities (USA) LLC (Broker): Simon or David, you mentioned clearly you guys are a little bit bullish on Guyana and Suriname. I mean there's already one rig down there and you guys are sending the Bob Douglas down. I think we mentioned we called it a hot spot in the prepared remarks. Just as we think about that opportunity set, is that a two rig, three rig basin? Or I mean, what type of potential, without painting you guys in a corner, I mean how do we think that in sort of a maybe a little bit of a blue sky case there? How does that market evolve? David W. Williams - Chairman, President & Chief Executive Officer: Well let me mention just a brief comment, and then I'll let Simon clean it up. I would say that any bright spot as it develops is incremental and adds potential. So I think you're correct in your assessment of this as an emerging opportunity and one where there's growth opportunities, likewise we agree with that, obviously. And we're delighted to be able to have the opportunity to position this rig in direct continuation down there. I'm not disappointed in the rate, although we haven't disclosed it. So we don't want to paint a picture that it's just an ugly deal. Our costs are coming down. Rates are coming down. So I'm delighted with this opportunity to be able to position a rig there. We expect there will be further opportunities.…

Our next question comes from the line of Jeffrey Campbell from Tuohy Brothers. Your line is now open.

Good morning. Just to pick up on what you were just discussing, can we take the thought process about what's going on in current marketing and turn it around the other way, meaning you mentioned that the Apache process was a very competitive process. Do you get a sense that right now all the operators care about is a good enough rig at a low enough price? Does kind of superior technology or age or even being in the basin already versus having to be mobilized from someplace else? Do any of those variables give you any kind of an advantage? David W. Williams - Chairman, President & Chief Executive Officer: I would say all of those variables give us an advantage under the right circumstances. What the operator is looking for, safety is a given, I mean an operator wants to use a contractor he has confidence in, not only from a personal perspective, I'm not only talking about personal safety but also risking his project. So I would say that operational reputation is a key element and I think that we have an advantage in that regard. I'm sure other contractors will say they have an advantage. But with our, what we've done at our training capability center and what we've done to simulate wells on paper I think that gives Noble a little bit of a leg up. But other things – what the operator primarily is looking for is a highly competent contractor that can execute the work most efficiently. So a larger rig that has a higher carrying capacity has an advantage over a smaller unit say. A rig that's closer to the location or can move there efficiently and quickly has an advantage over a rig that's going to move more slowly and has…

Okay. Great. Thanks, I appreciate that comprehensive answer. I have just two quick follow-ups on things you mentioned during the call. One, I think there was an allusion to 2017 and 2018 CapEx run-rate, maybe around $250 million a year. I hope I got that number right. Does this mean keeping the current fleet whether it's working or stack-and-tacked or does it anticipate any kind of rig retirements over that period of time? David W. Williams - Chairman, President & Chief Executive Officer: Well we're not – we're trying to give notional, not live guidance so much as kind of a notional implication. We've not budgeted next year yet or the following year, obviously. What we're trying to indicate is that our capital requirements where we spent over $1 billion, up till last year we had no renewals, with a couple billion dollars per year for the previous three years before that. And we've projected $800 million now, brought that down to under $700 million. The $250 million is kind of a notional number and I think what I said is $250 million or less. That's we're looking at maintenance CapEx and project capital, and that contemplates the fleet that we think we're going to be able to operate next year. So we'll give you more precise guidance later in the year. Hopefully, we'll be able to give you something on the October call, some more precise guidance of what our capital – but the point is that our capital requirements are going to come down dramatically over what they've been over the last few years. Last year we spent about $500 million. This year we're going to spend under $700 million. Next year I'd expect to be $200 million, $250 million or less. And so that's the idea. Not so much to give you precise guidance but to tell you it's coming down dramatically and quickly.

Okay. Thank you. Well, that's helpful. And my last question is, of the 158 of cold-stacked rigs that were identified earlier, how many of those do you think need to stay offline to help balance the eventual recovery based on your current market view? Simon W. Johnson - Senior Vice President-Marketing & Contracts: I think every one helps, frankly. I mean the attrition side is important but it's not overwhelmingly important. I've been more focused on demand and the early signs of that supply inventory will be there for some time. But really it's customer demand coming back to the fore. That's what is most important and will provide the greatest opportunity for rebalancing the supply.

Okay. Thank you very much. David W. Williams - Chairman, President & Chief Executive Officer: Thank you.

Our next question comes from the line of Haithum Nokta with Clarksons Platou. Your line is now open.

Hi, good morning. David W. Williams - Chairman, President & Chief Executive Officer: Good morning.

Simon, congrats on the Bob Douglas contract. Seeing you guys have talked a bit about the parameters that helped you win that opportunity. I just wanted to ask one question. Do you think the fact that that rig's coming off of a hot contract, did that help the situation at all? Compared to other rigs that have been idle for a period of time? Simon W. Johnson - Senior Vice President-Marketing & Contracts: Yeah, I think that's definitely the case. Warm-stacked units are somewhat disadvantaged relative to the rigs that are hot with full crews on board. What I would say though is that in the current environment the rig that is least attractive to a customer is a newbuild that's been lurking in a shipyard for a period of time with unproven crews and unproven equipment. So, I mean yeah, this is clearly a continuum or a spectrum of preference to the operators in terms of down time, operational and execution risks. And at one end you have the hot rig rolling off of a contract. And at the other end, you have a newbuild that hasn't drilled a well yet. And with the Bob Douglas, clearly Apache showing their preference for a rig that's working.

And can you give us some like (46:50) level of, what kind of terms should we expect for that well? Is that kind of like a 90-day type well? Or can you help us out figure that part out. Simon W. Johnson - Senior Vice President-Marketing & Contracts: Look I'm reluctant to discussing too much detail exactly what we're doing for Apache. The term is a single firm well for now. There are options to extend. I don't know if I can provide much more clarity than that. But we expect that the rig's going to be down there for a couple of months.

Okay. All right. And then just to shift gears a little bit on the jackup side. Do you sense at all that we're nearing a bottoming in jackup demand by the end of the year, especially since shallow water investments tend to be shorter cycle nature compared to deepwater? Simon W. Johnson - Senior Vice President-Marketing & Contracts: It's an interesting question. I think there's certainly still a downward momentum in the jackup segment. I don't know when that will bottom. The jackup market, of course, is a much shorter term market relative to the deepwater market. So I think it's going to move around as expectations change and as the oil price oscillates. For the time being, we think it's going to continue to move downwards. But the improving oil price outlook and customer confidence generally at some point that'll arrest and reverse.

Okay. Thank you. Appreciate it. I'll turn it back. Simon W. Johnson - Senior Vice President-Marketing & Contracts: Thank you.

Our next question comes from the line of Ed Beshnuv (48:16) with Cowen. Your line is now open.

Hey. Good morning. And thank you for taking my question. David W. Williams - Chairman, President & Chief Executive Officer: Good morning.

Good morning. Thinking about M&A, how does the high debt gap or high debt EBITDA based on consensus expectations play into either asset acquisition or M&A, despite having solid liquidity? David W. Williams - Chairman, President & Chief Executive Officer: Well let's take M&A, just take acquisitions. Acquisitions take cash. And every rig you buy, to the extent it's unemployed, burns more cash. So I would say that our position on that is I think it's going to be different for each contractor. Our position is we're watching it. We're not uncomfortable with our position. We've got big revolver capacity. We've got good contracts that are going to provide a base of about $1.2 billion of revenue and about $1 billion in the year after that for 2017 and 2018 respectively. So as our operating costs come down, our capital costs come down, our costs to run the company continue to come down, we're not uncomfortable with having a base level of revenue like that. Whether or not we get into continuing to eat our cash and have to go on a revolver over the coming years remains to be seen. Nobody knows exactly how it's going to last. So I would say that on an individual asset basis we would want to see more clarity in the market before we get interested in that. On a larger M&A scale, I'm not sure the cash makes as big a difference. I don't think anybody really wants to sell their company when they're trading below books. So I would say those deals are going to be, would theoretically have to be targeted between customers of like position. We wouldn't be interested at all in a combination of somebody that had a caustic debt position that would undermine our own strength and…

I guess I was thinking maybe the industry would look – take time to look for assets that may be available for cheap before actually engaging in M&A. But it doesn't sound like it is as simple as that. It could be before, M&A could be before (51:50). David W. Williams - Chairman, President & Chief Executive Officer: I'd say I think you look at both. Cheap is relative, and so there have been some second hand sales of some late generation equipment, but the holding cost to put that equipment back in service and the time, the holding time and the cost of a particular rig that sells, as we say cheap, could be significant. And so it's a little more challenging than just buying cheap. There's holding cost, you're buying an asset that may be in some cases competing with assets you've got in case and you've got limited cash. Again nobody knows how long this is really going to last. We believe that we're headed out of the fray instead of still into the fray, but how long it takes us to emerge into something that's more profitable, we don't really know, so cheap is relative. There are some assets out there for sale, there will be a lot more. I would say that the real benefits of the second hand market have not even begun to show up. I think that's still to come. There's going to be a lot more retirements of older assets and there's going to be a lot more distressed assets to hit the market, so I would say that opportunity is still emerging.

Okay. And one last question if I may? David W. Williams - Chairman, President & Chief Executive Officer: Sure.

Did you guys talk about what are the options on Noble Bob Douglas? David W. Williams - Chairman, President & Chief Executive Officer: We did not, only to say that there are a number of different possible scenarios there. We'll move the rig down there and drill this well and there are different option scenarios. I think what Simon said is there are options and I think what he said is we expect to be in the country at least a couple months. So beyond that we didn't really say anything more. And we'll give you more clarity on the fleet status when we can.

Great, thanks for taking my question. David W. Williams - Chairman, President & Chief Executive Officer: Thank you very much. Jeffrey L. Chastain - Vice President-Investor Relations & Corporate Communications: Okay. With that, I think we'll go ahead and close today's call, knowing that it's a busy day of earnings and each of you are going to move onto the next report. So I'd like to thank everyone for your participation today and your interest in the company. Thinking ahead to the third quarter, make note that we do plan to announce third quarter results on November 2nd, with a call on November 3rd, and we'll confirm those dates as we get closer. Lindsay, we appreciate your time in coordinating today's call and good day, everyone.

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