2019 Capital Expenditures Now Approximately
$200 Million Below Plan
Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or the
"Company”) today announced third quarter 2019 financial and
operating results. Highlights include:
- Capital expenditures funded by Noble Energy were more than 12%
below the midpoint of guidance at $556 million.
- DJ Basin and Delaware Basin well costs have been reduced a
further $500 thousand per well; now more than $2 million per well
below year-end 2018 costs.
- Leviathan project spend was more than $30 million under
guidance in the third quarter.
- Total Company sales volumes of 385 MBoe/d were at the high end
of Company expectations.
- U.S. onshore volumes increased 30 MBoe/d (10 MBbl/d oil) from
the second quarter 2019.
- DJ and Delaware Basin total volumes and oil volumes represented
quarterly records.
- Gross natural gas sales from Israel totaled over 1 Bcfe/d.
- Unit production costs were below guidance at $8.39 per BOE,
driven by workover reductions, compression optimization and lower
fuel costs.
- The Leviathan project is 96% complete, and the production decks
were installed on the jacket in the third quarter. First production
from Leviathan is now expected in December 2019, and total gross
capital for the project has been reduced $150 million to $3.6
billion.
- An infield development well was drilled and completed under
budget at the Aseng field in Equatorial Guinea. First oil
production occurred in October 2019.
David L. Stover, Noble Energy’s Chairman and CEO, commented,
“Noble Energy continued its strong execution momentum in the third
quarter, with further capital efficiency gains onshore and the
accomplishment of major project milestones offshore. In 2019, we’ve
significantly lowered the capital and cost intensity of our
business through continuous improvement initiatives. This is
reflected in a $200 million reduction in our 2019 capital
expenditures from original plan, which we are prioritizing for the
balance sheet rather than additional growth. We have also delivered
more than a five percent reduction in our operating and G&A
costs versus plan this year. As we head into 2020, we are
differentially positioned with a lower corporate decline profile,
reduced maintenance capital needs, and materially higher cash
flows. We are on track to deliver sustainable long-term free cash
flow and increasing returns to investors.”
Third Quarter 2019 Financial
Results
The Company reported third quarter net income attributable to
Noble Energy of $17 million, or $0.04 per diluted share. Net income
including noncontrolling interest was $36 million. Excluding items
impacting comparability, the Company generated an adjusted net loss
and adjusted net loss per share(1) attributable to Noble Energy for
the quarter of $47 million and $0.10 per diluted share. Adjusted
EBITDAX(1) was $641 million, and cash provided by operating
activities was $437 million. Prior to working capital changes,
operating cash flow was $550 million for the third quarter.
Third quarter 2019 organic capital investments attributable to
Noble Energy included $355 million related to U.S. onshore upstream
activities and $17 million for midstream activities funded by the
Company. Noble Energy also invested $129 million in the Eastern
Mediterranean, primarily for continued development of the Leviathan
project, and $47 million in West Africa, primarily for the drilling
and completion of the Aseng 6P well. Included in Additions to
Equity Method Investments is the Company's $185 million investment
to purchase interest in the EMG Pipeline.
Unit production expenses for the third quarter 2019 were $8.39
per barrel of oil equivalent (BOE), including lease operating
expenses, production taxes, gathering, transportation, and
processing expenses, and other royalty costs. These costs were
below guidance primarily as a result of workover reductions,
compression optimization, and lower fuel costs.
Marketing and other expenses, including sales and costs of
purchased oil and gas, netted to $16 million in the third quarter,
primarily reflecting mitigation of firm transportation costs.
Depreciation, depletion and amortization was $16.46 per BOE,
benefitting from strong production performance. General and
administrative expenses totaled $91 million for the quarter, 15%
below the third quarter of last year as a result of multiple cost
and continuous improvement initiatives.
Income from equity method investments for the third quarter of
$10 million was impacted by lower than anticipated methanol and LPG
pricing, as well as operating losses on Noble Midstream Partners
LP's pipeline investments (EPIC and Delaware Crossing) incurred
prior to full service commencement. Midstream Services Revenue of
$19 million for the quarter was primarily composed of Noble
Midstream Partner LP's gathering revenue from unaffiliated third
parties.
The Company’s effective tax rate on adjusted earnings was
approximately 17%. On this basis, current tax expense was $25
million, resulting from the income generated in West Africa and
Israel. Deferred taxes were a benefit of $31 million on this same
basis.
During the quarter, the Company initiated an offering of $500
million of 3.25% notes due 2029 and $500 million of 4.20% notes due
2049. Closing of the offering occurred in October 2019 and proceeds
were used to fund the redemption of $1.0 billion of 4.15% notes due
2021. The debt transaction removed all near-term maturities of term
debt and lowered the Company’s annual interest cost by more than $4
million.
The Company ended the third quarter 2019 with $4.0 billion in
financial liquidity, including cash and available credit
facility.
Third Quarter 2019 Production and
Operational Results
Total sales volumes for the quarter averaged 385 thousand
barrels of oil equivalent per day (MBoe/d), an increase of 12% from
the third quarter 2018. The Company’s U.S. onshore assets averaged
a record 293 MBoe/d in the third quarter 2019, with total liquids
volumes of 203 thousand barrels per day (MBbl/d). U.S. onshore oil
was a record 127 MBbl/d. The Company’s international portfolio
contributed 92 MBoe/d in the quarter with 21 MBbl/d of liquids
volume.
Benchmark Index prices for crude oil, natural gas and NGLs
weakened in the U.S. as compared to the second quarter 2019. The
Company’s realized U.S. onshore oil price reflected an average
differential consistent with prior periods, while natural gas
differentials in the DJ and Delaware Basins improved compared to
the benchmark. Noble Energy's U.S. onshore NGL realizations reflect
consistent transportation and fractionation costs as compared to
prior periods.
Across the U.S. onshore portfolio, the Company operated 5 rigs
(2 DJ and 3 Delaware) and drilled 49 wells (30 DJ and 19 Delaware)
in the quarter. Noble Energy completed 48 wells (28 DJ and 20
Delaware) and commenced production on 55 new wells (38 DJ and 17
Delaware). Internationally, the Company drilled and completed an
oil development well in the Aseng field in Equatorial Guinea.
Denver-Julesburg Basin
The DJ Basin averaged 158 MBoe/d, up 25% from the third quarter
2018, while continuing to generate operating cash flow in excess of
capital expenditures. Total oil volumes of 73 MBbl/d were a
quarterly record for the Company. Production from the Wells Ranch
and Mustang areas each grew to over 60 MBoe/d, net, with 23 and 15
wells, respectively, turned-in-line. Well costs decreased an
additional $500 thousand per well from the first half 2019, led by
continued capital efficiencies and cycle time reductions in
drilling and completion.
Included in the Company's wells drilled in the third quarter was
a world record 10,308 foot lateral drilled in under 24 hours. The
Company utilized its first electric-powered drilling rig in the
Mustang area during the quarter. The use of an electric drilling
rig is anticipated to reduce emissions by 130 tons per year, while
also significantly reducing noise and fuel costs.
Following on the success of the Mustang Comprehensive Drilling
Plan (CDP), the Company submitted for approval of the North Wells
Ranch CDP. The North Wells Ranch CDP covers approximately 38,000
net acres and will provide up to 250 additional permits.
Delaware Basin
Sales volumes from the Company's Delaware Basin assets totaled
70 MBoe/d, up 21% from the third quarter 2018. During the quarter,
the Company brought online its second full section row development
project, a 9-well development in the central portion of the
Company’s acreage. Initial results highlight strong well
performance and continued capital efficiency gains from row
development. Drilling days for the quarter were reduced to an
average of 17 days and pressure pump hours per day continued to
trend upward, averaging 13 hours per day in the quarter. Well costs
have continued to trend favorably with an incremental $500 thousand
per well savings from the first half 2019.
During the third quarter, the Company began transporting crude
oil volumes to the Gulf Coast on the EPIC Y-Grade Pipeline
temporary oil service.
Eagle Ford
Sales volumes from the Eagle Ford totaled 65 MBoe/d for the
third quarter 2019, benefitting from late second quarter 2019 wells
commencing production. Base production for the third and fourth
quarter 2019 has been impacted by unplanned facility repairs, which
began in September and were completed in late October. The impact
to production for each quarter is approximately 5 MBoe/d.
Eastern Mediterranean
Third quarter 2019 sales volumes from the Company’s Israel
assets totaled 234 million cubic feet of natural gas equivalent per
day. During the quarter, the Tamar field reached a milestone of 2
trillion cubic feet (Tcf) of natural gas produced with runtime of
over 99% since startup.
Delivery of the Leviathan project is ahead of schedule and below
budget. During the quarter, the production decks were successfully
installed on the jacket, setting the offshore world record for the
largest crane vessel lift in history (15,300 metric tons). Full
hookup of the platform and living quarters, as well as platform
commissioning, continues to progress towards first production in
December. Acquisition of interest in the EMG pipeline closed in
early November 2019.
During the quarter, Noble Energy and its partners amended sales
agreements for the delivery of natural gas from the Leviathan and
Tamar fields to Dolphinus Holdings Limited in Egypt. The amended
agreements now provide for total combined firm contract quantities
of 3 Tcf of natural gas, an increase of 1.85 Tcf from the prior
agreements.
West Africa
Sales volumes for West Africa averaged 53 MBoe/d, including 16
MBbl/d of crude oil. During the quarter, the Aseng field surpassed
100 million barrels of oil produced. The Company concluded drilling
and completion operations at the Aseng 6P development well, under
budget. First production commenced in October. The Alen gas
monetization project continues to progress, with anticipated
start-up in the first half of 2021.
Guidance
The Company has lowered full-year capital expenditures an
incremental $100 million for a total reduction of $200 million
versus original guidance, bringing the 2019 capital estimate to
$2.3 billion. For the fourth quarter, Noble Energy expects organic
capital expenditures between $425 million and $475 million. As
compared to the third quarter, U.S. onshore spend reflects planned
lower activity and offshore spend reflects completion activities on
the Leviathan project. In addition to the capital expenditure
reductions, the Company has lowered operating cash costs and
G&A for the full year 2019 by more than $100 million versus
original guidance.
Full-year sales volumes continue to trend above original
guidance. Fourth quarter sales volumes are expected to total 364 to
376 MBoe/d, with U.S. onshore volumes anticipated to range between
276 and 288 MBoe/d. Volumes from the DJ Basin are anticipated to
increase slightly from the third quarter, while the Delaware Basin
is expected to remain relatively level to the third quarter. Eagle
Ford production is anticipated to be lower primarily as a result of
base production decline. Fourth quarter average production in the
Eagle Ford is also negatively impacted approximately 5 MBoe/d by
unplanned facility maintenance that was recently completed.
Internationally, West Africa gas volumes are anticipated to be
lower than third quarter primarily as a result of continued decline
at the Alba field. Israel natural gas volumes are expected to be
lower sequentially due to seasonal demand. Noble Energy has not
included sales volumes from the Leviathan project in its fourth
quarter guidance, however, the project is anticipated to have first
gas production in December.
Additional details and updated guidance can be found in the
Company’s supplemental presentation on the Company’s website,
www.nblenergy.com.
(1)
A Non-GAAP measure, please see the
respective earnings release schedules included herein for
reconciliations.
Webcast and Conference Call
Information
Noble Energy, Inc. will host a live audio webcast and conference
call at 10:00 a.m. Central Daylight Time on November 7, 2019. The
webcast link is accessible on the 'Investors' page at
www.nblenergy.com. A replay will be available on the website.
Conference call numbers for participation during the question and
answer session are:
Toll Free Dial in: 877-883-0383
International Dial in: 412-902-6506
Conference ID: 5691351
Noble Energy (NYSE: NBL) is an independent oil and
natural gas exploration and production company committed to meeting
the world’s growing energy needs and delivering leading returns to
shareholders. The Company operates a high-quality portfolio of
assets onshore in the United States and offshore in the Eastern
Mediterranean and off the west coast of Africa. Founded more than
85 years ago, Noble Energy is guided by its values, its commitment
to safety, and respect for stakeholders, communities and the
environment. For more information on how the Company fulfills its
purpose: Energizing the World, Bettering People’s Lives®, visit
https://www.nblenergy.com.
This news release contains certain "forward-looking statements"
within the meaning of federal securities laws. Words such as
"anticipates", “plans”, “estimates”, "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, 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, 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 report on Form 10-K, quarterly report
on Form 10-Q, and in other Noble Energy reports on file with the
Securities and Exchange Commission. 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.
This news release also contains certain historical non-GAAP
measures of financial performance that management believes are good
tools for internal use and the investment community in evaluating
Noble Energy’s overall financial performance. These non-GAAP
measures are broadly used to value and compare companies in the
crude oil and natural gas industry. Please see Noble Energy’s
earnings release schedules included herein for reconciliations of
the differences between any historical non-GAAP measures used in
this news release and the most directly comparable GAAP financial
measures.
Schedule 1
Noble Energy, Inc.
Summary Statement of
Operations
(in millions, except per share
amounts, unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Revenues
Oil, NGL and Gas Sales
$
1,003
$
1,136
$
2,894
$
3,409
Sales of Purchased Oil and Gas
87
72
264
191
Income from Equity Method Investments and
Other
10
44
43
140
Midstream Services Revenues – Third
Party
19
21
63
49
Total Revenues
1,119
1,273
3,264
3,789
Operating Expenses
Lease Operating Expense
132
124
405
411
Production and Ad Valorem Taxes
52
47
142
151
Gathering, Transportation and Processing
Expense
108
97
306
292
Other Royalty Expense
5
5
9
32
Exploration Expense
25
25
82
89
Depreciation, Depletion and
Amortization
583
485
1,619
1,418
General and Administrative
91
107
298
316
Cost of Purchased Oil and Gas
96
76
296
204
Marketing Expense
7
11
26
21
Other Operating (Income) Expense, Net
29
(9
)
57
(3
)
Gain on Divestitures, Net
—
(193
)
—
(859
)
Asset Impairments
—
—
—
168
Firm Transportation Exit Cost
—
—
92
—
Total Operating Expenses
1,128
775
3,332
2,240
Operating (Loss) Income
(9
)
498
(68
)
1,549
Other (Income) Expense
(Gain) Loss on Commodity Derivative
Instruments
(129
)
155
23
483
Interest, Net of Amount Capitalized
67
70
196
216
Other Non-Operating (Income) Expense,
Net
2
(34
)
7
(10
)
Total Other (Income) Expense
(60
)
191
226
689
Income (Loss) Before Income
Taxes
51
307
(294
)
860
Income Tax Expense (Benefit)
15
59
(49
)
44
Net Income (Loss) and Comprehensive
Income (Loss) Including Noncontrolling Interests
36
248
(245
)
816
Less: Net Income and Comprehensive
Income Attributable to Noncontrolling Interests (1)
19
21
61
58
Net Income (Loss) and Comprehensive
Income (Loss) Attributable to Noble Energy
$
17
$
227
$
(306
)
$
758
Net Income (Loss) Attributable to Noble
Energy Per Share of Common Stock
Income (Loss) Per Share, Basic
$
0.04
$
0.47
$
(0.64
)
$
1.57
Income (Loss) Per Share, Diluted
$
0.04
$
0.47
$
(0.64
)
$
1.56
Weighted Average Number of Shares
Outstanding
Basic
478
482
478
484
Diluted
480
484
478
486
(1)
The Company consolidates Noble Midstream
Partners LP (NBLX), a publicly traded subsidiary of Noble Energy,
as a variable interest entity for financial reporting purposes. The
public's ownership interest in NBLX is reflected as a
noncontrolling interest in the financial statements.
These financial statements should be read
in conjunction with the financial statements and the accompanying
notes and other information included in Noble Energy's Quarterly
Report on Form 10-Q to be filed with the Securities and Exchange
Commission on November 7, 2019.
Schedule 2
Noble Energy, Inc.
Condensed Statement of Cash
Flows
(in millions,
unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Cash Flows From Operating
Activities
Net Income (Loss) Including Noncontrolling
Interests (1)
$
36
$
248
$
(245
)
$
816
Adjustments to Reconcile Net Income (Loss)
to Net Cash Provided by Operating Activities
Depreciation, Depletion and
Amortization
583
485
1,619
1,418
Gain on Divestitures, Net
—
(193
)
—
(859
)
Asset Impairments
—
—
—
168
Firm Transportation Exit Cost
—
—
92
—
Deferred Income Tax (Benefit) Expense
(9
)
14
(110
)
(150
)
(Gain) Loss on Commodity Derivative
Instruments
(129
)
155
23
483
Net Cash Received (Paid) in Settlement of
Commodity Derivative Instruments
13
(67
)
28
(160
)
Other Adjustments for Noncash Items
Included in Income
56
(12
)
115
45
Net Changes in Working Capital
(113
)
67
7
15
Net Cash Provided by Operating
Activities
437
697
1,529
1,776
Cash Flows From Investing
Activities
Additions to Property, Plant and
Equipment
(593
)
(807
)
(1,998
)
(2,589
)
Acquisitions, Net of Cash Received (2)
—
(3
)
—
(653
)
Additions to Equity Method Investments
(3)
(271
)
—
(686
)
—
Proceeds from Divestitures, Net (4)
8
358
131
1,740
Other
25
—
25
—
Net Cash Used in Investing
Activities
(831
)
(452
)
(2,528
)
(1,502
)
Cash Flows From Financing
Activities
Dividends Paid, Common Stock
(57
)
(54
)
(168
)
(156
)
Purchase and Retirement of Common
Stock
—
(93
)
—
(223
)
Noble Midstream Services Revolving Credit
Facility, Net
(320
)
(480
)
(10
)
(35
)
Revolving Credit Facility, Net
—
—
—
(230
)
Proceeds from Noble Midstream Services
Term Loan Credit Facilities
400
500
400
500
Commercial Paper Borrowings, Net
271
—
511
—
Repayment of Senior Notes
—
—
(9
)
(384
)
Contributions from Noncontrolling Interest
Owners
6
17
27
348
Proceeds from Issuance of Mezzanine
Equity, Net of Offering Costs (5)
(2
)
—
97
—
Other
(33
)
(35
)
(95
)
(86
)
Net Cash Provided by (Used in)
Financing Activities
265
(145
)
753
(266
)
(Decrease) Increase in Cash, Cash
Equivalents, and Restricted Cash
(129
)
100
(246
)
8
Cash, Cash Equivalents, and Restricted
Cash at Beginning of Period (6)
602
621
719
713
Cash, Cash Equivalents, and Restricted
Cash at End of Period (7)
$
473
$
721
$
473
$
721
(1)
The Company consolidates Noble Midstream
Partners LP (NBLX), a publicly traded subsidiary of Noble Energy,
as a variable interest entity for financial reporting purposes. For
the periods presented, net income (loss) includes net income
attributable to noncontrolling interests in NBLX.
(2)
Acquisitions, net of cash received,
related to the acquisition of Saddle Butte Rockies Midstream, LLC
by NBLX.
(3)
Additions relate primarily to investments
in Eastern Mediterranean Pipeline B.V. by Noble Energy and in EPIC
Y-Grade, LP, EPIC Crude Holdings, LP and Delaware Crossing LLC by
NBLX.
(4)
For the nine months ended September 30,
2019, proceeds related to the SW Reeves County, Texas asset
divestiture. For the nine months ended September 30, 2018, proceeds
include $484 million from the sale of our 7.5% interest in Tamar
field, $691 million from the sale of CONE Gathering LLC and CNX
Midstream Partners common units and $383 million from the Gulf of
Mexico asset divestiture.
(5)
For the nine months ended September 30,
2019, proceeds related to the issuance of preferred equity by NBLX.
As the preferred equity is redeemable, it is presented within the
mezzanine section of our consolidated balance sheet. In addition,
as the preferred equity is held by a third party, it is considered
a redeemable noncontrolling interest.
(6)
As of the beginning of the periods
presented, amounts include $132 million, $0 million, $3 million,
and $38 million of restricted cash, respectively.
(7)
As of September 30, 2019 and September 30,
2018, amounts include $0 million and $1 million of restricted cash,
respectively.
These financial statements should be read
in conjunction with the financial statements and the accompanying
notes and other information included in Noble Energy's Quarterly
Report on Form 10-Q to be filed with the Securities and Exchange
Commission on November 7, 2019.
Schedule 3
Noble Energy, Inc.
Condensed Balance
Sheets
(in millions,
unaudited)
September 30, 2019
December 31, 2018
Assets
Current Assets
Cash and Cash Equivalents
$
473
$
716
Accounts Receivable, Net
677
616
Other Current Assets
277
418
Total Current Assets
1,427
1,750
Property, Plant and Equipment, Net
18,797
18,419
Other Noncurrent Assets
1,780
841
Total Assets
$
22,004
$
21,010
Liabilities, Mezzanine Equity and
Shareholders' Equity
Current Liabilities
Accounts Payable - Trade
$
1,395
$
1,207
Other Current Liabilities
1,190
519
Total Current Liabilities
2,585
1,726
Long-Term Debt
6,941
6,574
Deferred Income Taxes
954
1,061
Other Noncurrent Liabilities
1,338
1,165
Total Liabilities
11,818
10,526
Total Mezzanine Equity (1)
103
—
Total Shareholders' Equity
9,004
9,426
Noncontrolling Interests (2)
1,079
1,058
Total Equity
10,083
10,484
Total Liabilities and Equity
$
22,004
$
21,010
(1)
Amount relates to preferred equity issued
by Noble Midstream Partners LP (NBLX). As the preferred equity is
redeemable, it is presented within the mezzanine section of our
consolidated balance sheet. In addition, as the preferred equity is
held by a third party, it is considered a redeemable noncontrolling
interest.
(2)
The Company consolidates NBLX, a publicly
traded subsidiary of Noble Energy, as a variable interest entity
for financial reporting purposes. The public's ownership interest
in NBLX is reflected as a noncontrolling interest in the financial
statements.
These financial statements should be read
in conjunction with the financial statements and the accompanying
notes and other information included in Noble Energy's Quarterly
Report on Form 10-Q to be filed with the Securities and Exchange
Commission on November 7, 2019.
Schedule 4
Noble Energy, Inc.
Volume and Price
Statistics
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
Sales Volumes
2019
2018
2019
2018
Crude Oil and Condensate
(MBbl/d)
United States Onshore
127
109
119
106
United States Gulf of Mexico
—
—
—
7
Equatorial Guinea
15
13
13
15
Equity Method Investments - Equatorial
Guinea
1
1
1
2
Total (1)
143
123
133
130
Natural Gas Liquids (MBbl/d)
United States Onshore
76
63
67
62
United States Gulf of Mexico
—
—
—
1
Equity Method Investments - Equatorial
Guinea
5
5
4
5
Total
81
68
71
68
Natural Gas (MMcf/d)
United States Onshore
542
464
507
471
United States Gulf of Mexico
—
—
—
8
Israel
231
241
224
242
Equatorial Guinea
190
217
186
216
Total
963
922
917
937
Total Sales Volumes (MBoe/d)
United States Onshore
293
249
270
246
United States Gulf of Mexico
—
—
—
9
Israel
39
41
38
41
Equatorial Guinea
47
49
44
51
Equity Method Investments - Equatorial
Guinea
6
6
5
7
Total Sales Volumes (MBoe/d)
385
345
357
354
Total Sales Volumes (MBoe)
35,380
31,714
97,488
96,493
Price Statistics - Realized Prices
(2)
Crude Oil and Condensate
($/Bbl)
United States Onshore
$
55.13
$
65.54
$
55.59
$
63.93
United States Gulf of Mexico
—
—
—
64.87
Equatorial Guinea
58.62
73.70
61.75
71.55
Natural Gas Liquids ($/Bbl)
United States Onshore
$
11.18
$
28.58
$
14.22
$
26.18
United States Gulf of Mexico
—
—
—
30.00
Natural Gas ($/Mcf)
United States Onshore
$
1.57
$
2.31
$
1.87
$
2.40
United States Gulf of Mexico
—
—
—
3.50
Israel
5.55
5.49
5.55
5.48
Equatorial Guinea
0.27
0.27
0.27
0.27
(1)
Total includes a small amount of
condensate from the Company’s offshore Israel assets.
(2)
Average realized prices do not include
gains or losses on commodity derivative instruments. For third
quarter 2019 and 2018, including the impact of hedges settled in
the period, the Company's U.S. onshore oil price was $55.82 and
$60.34 per Bbl, E.G. oil price was $57.27 and $61.45 per Bbl, and
U.S. onshore gas price was $1.71 and $2.33 per Mcf, respectively.
For the nine months ended 2019 and 2018, including the impact of
hedges settled in the period, the Company's U.S. onshore oil price
was $56.21 and $59.53 per Bbl, E.G. oil price was $58.91 and $63.04
per Bbl, and U.S. onshore gas price was $2.01 and $2.43 per Mcf,
respectively.
Schedule 5
Noble Energy, Inc.
Reconciliation of Net Income
(Loss) Attributable to Noble Energy and Per Share (GAAP) to
Adjusted Net (Loss) Income
Attributable to Noble Energy and Per Share (Non-GAAP)
(in millions, except per share
amounts, unaudited)
Adjusted net (loss) income attributable to Noble Energy and per
share (Non-GAAP) should not be considered an alternative to, or
more meaningful than, net income (loss) attributable to Noble
Energy and per share (GAAP) or any other measure as reported in
accordance with GAAP. Our management believes, and certain
investors may find, that adjusted net (loss) income attributable to
Noble Energy and per share (Non-GAAP) is beneficial in evaluating
our operating and financial performance because it eliminates the
impact of certain items affecting comparability (typically noncash
and/or nonrecurring items) that management does not consider to be
indicative of our performance from period to period. We believe
this Non-GAAP measure is used by analysts and investors to evaluate
and compare our operating and financial performance across periods.
As a performance measure, adjusted net (loss) income attributable
to Noble Energy and per share (Non-GAAP) may be useful for
comparison of earnings and per share to forecasts prepared by
analysts and other third parties. However, our presentation of
adjusted net (loss) income attributable to Noble Energy and per
share (Non-GAAP), may not be comparable to similar measures of
other companies in our industry.
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Net Income (Loss) Attributable to Noble
Energy (GAAP)
$
17
$
227
$
(306
)
$
758
Adjustments to Net Income (Loss)
Firm Transportation Exit Cost
—
—
92
—
Gain on Divestitures, Net
—
(193
)
—
(859
)
Asset Impairments
—
—
—
168
(Gain) Loss on Investment in Tamar
Petroleum Ltd., Net
—
(15
)
—
25
(Gain) Loss on Commodity Derivative
Instruments, Net of Cash Settlements
(116
)
88
51
323
Other Adjustments (1)
31
(1
)
46
21
Total Adjustments Before Tax
(85
)
(121
)
189
(322
)
Current Income Tax Effect of Adjustments
(2)
(1
)
(1
)
—
93
Deferred Income Tax Effect of Adjustments
(2)
22
24
(23
)
(2
)
Tax Reform Impact (3)
—
—
—
(145
)
Adjusted Net (Loss) Income Attributable
to Noble Energy (Non-GAAP)
$
(47
)
$
129
$
(140
)
$
382
Net Income (Loss) Attributable to Noble
Energy Per Share, Basic and Diluted (GAAP)
$
0.04
$
0.47
$
(0.64
)
$
1.57
Firm Transportation Exit Cost
—
—
0.19
—
Gain on Divestitures, Net
—
(0.40
)
—
(1.77
)
Asset Impairments
—
—
—
0.35
(Gain) Loss on Investment in Tamar
Petroleum Ltd., Net
—
(0.03
)
—
0.05
(Gain) Loss on Commodity Derivative
Instruments, Net of Cash Settlements
(0.24
)
0.18
0.11
0.66
Other Adjustments (1)
0.06
—
0.10
0.04
Current Income Tax Effect of Adjustments
(2)
—
—
—
0.19
Deferred Income Tax Effect of Adjustments
(2)
0.04
0.05
(0.05
)
—
Tax Reform Impact (3)
—
—
—
(0.30
)
Adjusted (Loss) Income Attributable to
Noble Energy per Share, Diluted (Non-GAAP)
$
(0.10
)
$
0.27
$
(0.29
)
$
0.79
Weighted Average Number of Shares
Outstanding, Basic
478
482
478
484
Weighted Average Number of Shares
Outstanding, Diluted
478
484
478
486
(1)
For the three and nine months ended
September 30, 2019, includes loss on sale of a corporate aircraft
and a non-cash charge associated with acceleration of retirement
obligations for the Mari-B field offshore Israel.
(2)
Amount represents the income tax effect of
adjustments, determined for each major tax jurisdiction for each
adjusting item, including the impact of timing and magnitude of
divestiture activities.
(3)
During first quarter 2018, we recorded a
$145 million tax benefit as a result of the U.S. Department of the
Treasury and the Internal Revenue Service intent to issue
additional regulatory guidance associated with Tax Reform
Legislation and the transition tax (toll tax).
Schedule 6
Noble Energy, Inc.
Reconciliation of Net Income
(Loss) Including Noncontrolling Interests (GAAP)
to Adjusted EBITDAX
(Non-GAAP)
(in millions,
unaudited)
Adjusted Earnings Before Interest Expense, Income Taxes,
Depreciation, Depletion and Amortization, and Exploration Expenses
(Adjusted EBITDAX) (Non-GAAP) should not be considered an
alternative to, or more meaningful than, net income (loss)
including noncontrolling interests (GAAP) or any other measure as
reported in accordance with GAAP. Our management believes, and
certain investors may find, that Adjusted EBITDAX (Non-GAAP) is
beneficial in evaluating our operating and financial performance
because it eliminates the impact of certain items affecting
comparability (typically noncash and/or nonrecurring items) that
management does not consider to be indicative of our performance
from period to period. We believe these Non-GAAP measures are used
by analysts and investors to evaluate and compare our operating and
financial performance across periods. As a performance measure,
Adjusted EBITDAX (Non-GAAP) may be useful for comparison to
forecasts prepared by analysts and other third parties. However,
our presentation of Adjusted EBITDAX (Non-GAAP) may not be
comparable to similar measures of other companies in our
industry.
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Net Income (Loss) Including
Noncontrolling Interests (GAAP)
$
36
$
248
$
(245
)
$
816
Adjustments to Net Income (Loss), After
Tax (1)
(64
)
(98
)
166
(376
)
Depreciation, Depletion and
Amortization
583
485
1,619
1,418
Exploration Expense
25
25
82
89
Interest, Net of Amount Capitalized
67
70
196
216
Current Income Tax Expense (2)
25
46
61
85
Deferred Income Tax (Benefit) Expense
(2)
(31
)
(10
)
(87
)
13
Adjusted EBITDAX (Non-GAAP)
$
641
$
766
$
1,792
$
2,261
(1)
See Reconciliation of Net Income (Loss)
Attributable to Noble Energy (GAAP) to Adjusted Net (Loss) Income
Attributable to Noble Energy (Non-GAAP).
(2)
Represents remaining Income Tax Expense
(Benefit) after reversal of Adjustments to Net (Loss) Income, After
Tax, above.
Schedule 7
Noble Energy, Inc.
Capital Expenditures
(in millions,
unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Organic Capital Expenditures, Attributable
to Noble Energy (Accrual Based) (1)
$
556
$
716
$
1,857
$
2,350
Acquisition Capital Attributable to Noble
Energy
(4
)
8
39
21
Noble Midstream Partners Capital
Expenditures (2)
39
40
97
463
Additions to Equity Method Investments
(3)
271
—
686
—
Increase in Finance Lease Obligations
1
9
4
9
Total Reported Capital Expenditures
(Accrual Based)
$
863
$
773
$
2,683
$
2,843
(1)
Organic capital expenditures include $17
million, $29 million, $77 million, and $222 million for midstream
capital not funded by Noble Midstream Partners LP (NBLX) for the
periods presented.
(2)
NBLX capital expenditures for the nine
months ended September 30, 2018 include $206 million related to the
acquisition of Saddle Butte Rockies Midstream, LLC.
(3)
Additions to equity method investments for
the nine months ended September 30, 2019 include primarily the
Company's investment of $185 million in Eastern Mediterranean
Pipeline B.V. and NBLX investments of $442 million in EPIC Y-Grade,
LP and EPIC Crude Holdings, LP and $53 million in Delaware Crossing
LLC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191107005158/en/
Investor Contacts Brad Whitmarsh
(281) 943-1670 Brad.Whitmarsh@nblenergy.com
Kim Hendrix (281) 943-2197 Kim.Hendrix@nblenergy.com
Media Contacts Trudi Boyd (281)
569-8009 media@nblenergy.com
Paula Beasley (281) 876-6133 media@nblenergy.com
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