Noble Energy Announces $750 Million Share Repurchase Program
February 15 2018 - 8:30AM
Noble Energy, Inc. (NYSE: NBL) (“Noble
Energy” or “the Company”) today announced that its Board of
Directors has authorized a $750 million share repurchase
program. In addition, the Company has executed an agreement
to sell its deepwater Gulf of Mexico assets to Fieldwood Energy LLC
(“Fieldwood”) for a total value of $710 million.
David L. Stover, Noble Energy’s Chairman,
President and CEO, commented, “While continuing to deliver
outstanding performance and execution across the business, we have
strategically repositioned our portfolio over the last couple of
years. The sale of our Gulf of Mexico business represents the
last major step in our portfolio transformation. This
has been done to focus our go-forward efforts on those assets that
will rapidly grow our cash flows and margins, primarily the U.S.
onshore business and the Eastern Mediterranean. I appreciate
the efforts of the many employees who have contributed to our
strong legacy of exploration discovery and successful resource
development in the Gulf of Mexico. Going forward, we are
concentrating the Company’s exploration capabilities on
higher-impact opportunities that can drive substantial long-term
value creation.”
Mr. Stover continued, “Supported by the proceeds
from this transaction, along with strong projected cash flow
growth, the Board of Directors has authorized a $750 million share
repurchase program to enhance and accelerate value return to our
shareholders. We view the opportunity to repurchase Noble
Energy stock to be an attractive return, as the current stock price
does not yet fully reflect the long-term value of our assets.”
U.S. GOM Divestment
Cash proceeds included in the transaction total
$480 million, and Fieldwood will assume all abandonment obligations
associated with the properties, which the Company recorded at a
book value of approximately $230 million as of December 31,
2017. In addition, a cumulative contingent payment of up
to $100 million is payable to Noble Energy from closing of the
transaction through the end of 2022, determined quarterly at a rate
of $2 per barrel produced when the average Light Louisiana Sweet
oil price exceeds $63 per barrel.
The effective date of the transaction is January
1, 2018, with closing anticipated during the second quarter 2018,
contingent upon Fieldwood successfully implementing its
contemplated restructuring process. Included in the
transaction is the Company’s interest in six producing fields and
all undeveloped leases. Noble Energy estimates net production
from these assets for 2018 to average slightly more than 20
thousand barrels of oil equivalent per day for the year.
Total proved reserves in the Gulf of Mexico as of year-end 2017 for
the Company were 23 million barrels of oil equivalent.
Share Repurchase Program
The Board of Directors has authorized a $750
million share repurchase program during the period of 2018 through
2020. All purchases will be made in accordance with
applicable securities laws from time to time in open market or
private transactions, depending on market conditions, and may be
discontinued at any time. At today’s share price, the program
covers approximately six percent of the Company’s outstanding
shares.
Upcoming Conference Call
The Company will host a conference call and
webcast for investors and analysts on Tuesday, February 20,
beginning at 8:00 a.m. Central Time. Senior management will
review year-end 2017 results as well as provide 2018 guidance and
an updated multi-year outlook. Supporting materials will be
made available prior to market open on the date of the conference
call. Date: Tuesday, February 20, 2018 Time: 8:00
a.m. C.T. Toll Free Dial in: 800-289-0438 International
Dial in: 323-994-2083 Conference ID: 4328087
Noble Energy (NYSE: NBL) is an
independent oil and natural gas exploration and production company
with a diversified high-quality portfolio of both U.S.
unconventional and global offshore conventional assets. Founded
more than 85 years ago, the company is committed to safely and
responsibly delivering our purpose: Energizing the World, Bettering
People’s Lives®. For more information, visit
http://www.nblenergy.com.
Forward Looking Statements
This news release contains certain
"forward-looking statements" within the meaning of federal
securities laws. Words such as "anticipates", "believes",
"expects", "intends", "will", "should", "may", and similar
expressions may be used to identify forward-looking statements.
Forward-looking statements are not statements of historical fact
and reflect Noble Energy's current views about future events. Such
forward-looking statements may include, but are not limited to,
future financial and operating results, and other statements that
are not historical facts, including estimates of oil and natural
gas reserves and resources, estimates of future production,
assumptions regarding future oil and natural gas pricing, planned
drilling activity, future results of operations, projected cash
flow and liquidity, business strategy and other plans and
objectives for future operations. No assurances can be given
that the forward-looking statements contained in this news release
will occur as projected and actual results may differ materially
from those projected. Forward-looking statements are based on
current expectations, estimates and assumptions that involve a
number of risks and uncertainties that could cause actual results
to differ materially from those projected. These risks and
uncertainties include, without limitation, the volatility in
commodity prices for crude oil and natural gas, the presence or
recoverability of estimated reserves, the ability to replace
reserves, environmental risks, drilling and operating risks,
exploration and development risks, competition, third party
judicial proceedings, government regulation or other actions, the
ability of management to execute its plans to meet its goals and
other risks inherent in Noble Energy's businesses that are
discussed in Noble Energy's most recent annual reports on Form
10-K, respectively, and in other Noble Energy reports on file with
the Securities and Exchange Commission (the "SEC"). These reports
are also available from the sources described above.
Forward-looking statements are based on the estimates and opinions
of management at the time the statements are made. Noble Energy
does not assume any obligation to update any forward-looking
statements should circumstances or management’s estimates or
opinions change.
Investor Contacts
Brad Whitmarsh
(281) 943-1670
Brad.Whitmarsh@nblenergy.com
Megan Dolezal
(281) 943-1861
Megan.Dolezal@nblenergy.com
Lauren Brown
(281) 872-3208
Lauren.Brown@nblenergy.com
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Paula Beasley
(281) 876-6133
media@nblenergy.com
Noble Energy (NYSE:NBL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Noble Energy (NYSE:NBL)
Historical Stock Chart
From Apr 2023 to Apr 2024