Noble Energy, Inc. (NYSE:NBL) (“Noble Energy” or “the Company”)
today announced results for the first quarter of 2016, including an
adjusted net loss
(1) of $228 million, or $0.53 per
diluted share, excluding the impact of certain items not typically
considered by analysts in published estimates. The reported
net loss for the quarter was $287 million or $0.67 per diluted
share. EBITDAX
(1) (earnings before interest
expense, income taxes, depreciation, depletion, and amortization,
and exploration expenses) and Adjusted EBITDAX
(1)
were $406 million and $518 million, respectively. Capital
expenditures for the quarter were $374 million.
Total Company volumes for the first quarter of 2016 increased to
416 thousand barrels of oil equivalent per day (MBoe/d), up 31
percent from the first quarter of 2015. Liquids comprised 45
percent (31 percent crude oil and condensate and 14 percent natural
gas liquids) of first quarter 2016 volumes, with natural gas
accounting for 55 percent. Compared to the first quarter of
2015, total liquids volumes were higher by 50 thousand barrels per
day (MBbl/d), split evenly between crude oil and natural gas
liquids. U.S. sales volumes for the quarter totaled 306
MBoe/d, while International sales volumes were 110 MBoe/d.
Total sales volumes were lower than produced volumes by
approximately two thousand barrels per day (MBbl/d) due to the
timing of liquids liftings in Equatorial Guinea.
A portion of the increase in total Company volumes for the first
quarter of 2016 over 2015 was a result of the merger with Rosetta
Resources Inc. (“Rosetta”) in July of 2015. The associated
assets, including Eagle Ford and Permian Basin properties,
contributed volumes totaling more than 60 MBoe/d in the first
quarter of 2016. Excluding these assets, total Company sales
volumes were up 12 percent compared to the initial quarter of
2015. This increase was driven by onshore U.S. horizontal
completions and production optimization, as well as the startup of
the Big Bend and Dantzler oil fields in the deepwater Gulf of
Mexico. Higher Israel natural gas sales to satisfy growing
demand for power generation also contributed to the increase.
Sales volumes in West Africa, while lower than the first
quarter of last year, were better than anticipated as a result of
reduced downtime at Alba in Equatorial Guinea for the B-3
compression platform installation and turnaround activities.
David L. Stover, Noble Energy’s Chairman, President and CEO,
commented, “We are off to a solid start this year and have made
substantial progress on our goals for 2016. Our high-quality
and diverse portfolio is delivering strong results, giving us the
confidence to lower our full year capital and cost outlook while
raising volumes substantially. We have aligned our business
within cash flows and are continuing to protect our
investment-grade balance sheet. Significant capital
efficiency gains and outstanding operating performance, combined
with robust liquidity, position us well in any price scenario.”
Total lease operating expense (LOE) and general and
administrative (G&A) costs were essentially flat to first
quarter 2015 levels, even with an approximate 100 MBoe/d increase
in volume period over period. On a barrel of oil equivalent
(BOE) basis, first quarter 2016 LOE averaged $4.25, down 22 percent
from the same period in 2015, despite the impact of the Isabela
workover in the Gulf of Mexico during the first quarter of
2016. Excluding this item, LOE per BOE was $3.63, down 34
percent period over period. G&A cost synergies from the
Rosetta transaction are already exceeding the $40 million annual
expectation.
Production taxes for the first quarter of 2016 included a $28
million accrual for the future refund of prior year severance taxes
related to U.S. onshore assets. Transportation and gathering
expense totaled $2.83 per BOE and reflected a change in accounting
classification as all gas-processing costs are now reflected in
transportation and gathering expense. Depreciation, depletion
and amortization expenses for the quarter reflected higher Israel
and West Africa volumes versus expectation. Exploration
expense for the 2016 quarter included the majority of costs
associated with the Silvergate well and various seismic and other
geoscience costs. The Company’s income tax rate for the first
quarter of 2016 was 37 percent, with essentially all of the total
income tax provision being deferred.
Adjustments to the Company’s net loss for the first quarter of
2016 included unrealized commodity derivative losses, primarily
related to existing crude oil hedging positions, as well as a gain
on the extinguishment of debt resulting from the successful tender
offer for prior Rosetta notes. Also included in adjustments
for the quarter was the write-off of certain capitalized costs
associated with a rig contract termination offshore the Falkland
Islands.
OPERATIONS UPDATEDJ BASINSales
volumes averaged 118 MBoe/d in the first quarter of 2016, up two
percent from the first quarter of 2015. Liquids represented
66 percent of DJ Basin volumes (49 percent crude oil and condensate
and 17 percent natural gas liquids) and 34 percent was natural
gas. In the Company’s primary areas of activity, Wells Ranch
and East Pony, combined volumes averaged nearly 65 MBoe/d during
the quarter, up 34 percent compared to the first quarter of
2015. Production volumes for the first quarter of 2016 were
impacted by certain third-party facility downtime as a result of
winter storms in late March.
Highlights include:
- Reduced well costs for normalized extended-reach laterals,
including allocated facilities, to $2.7 million in Wells
Ranch. Total well costs are down more than 35 percent
compared to early 2015. The Company continues to shift its
well designs to focus on extended-reach laterals with monobore
drilling, slickwater completion fluid, and enhanced proppant
loading. Normalized extended-reach lateral well costs for
historical completion designs have been reduced to $2.4
million.
- Drilled 24 wells at an average lateral length of over 7,300
feet. Approximately 60 percent of wells spud were
extended-reach lateral wells.
- Average drilling time for a standard lateral length well (4,500
feet) remained under six days, while medium (6,000 feet) and long
(9,000 feet) lateral wells are being drilled in seven and eight
days on average, respectively. A long lateral well was
drilled in a record time of under six days (spud to rig
release).
- Commenced production on 36 wells (equivalent to 43 standard
lateral length wells). Initial production rates from enhanced
completion designs (slickwater with higher proppant concentrations)
continue to materially exceed legacy completions. The initial
production rate for wells that achieved 30 days of production
(IP-30) in the quarter (22 wells) was an average of 836
Boe/d. These wells had an average lateral length of 5,860
feet, and more than half utilized proppant loading of 1,000 pounds
or more per lateral foot. On a per lateral foot basis, well
productivity is up more than 30 percent versus first quarter 2015
wells.
- The Company exited the quarter with 46 wells drilled but
uncompleted.
TEXAS (EAGLE FORD AND PERMIAN)Production
volumes for the Eagle Ford and Permian assets averaged more than 60
MBoe/d in the first quarter of 2016. Liquids represented 64
percent of the total (28 percent crude oil and condensate and 36
percent NGLs), while natural gas accounted for the remainder.
Eagle Ford production comprised 84 percent of the volumes and the
Permian 16 percent.
Highlights include:
- Drilled four operated wells to total depth, including two Lower
Eagle Ford wells in South Texas and two Wolfcamp A wells in the
Permian’s Delaware Basin.
- Initiated production on the Company’s first two Delaware
completions in Reeves County. The Calamity Jane 2001H, with a
lateral length of 4,190 feet, was completed with nearly 1,700
pounds of proppant per lateral foot. The well’s IP-30 rate
was 1,599 Boe/d (or 382 Boe/d per thousand lateral feet), which is
substantially above the 700 thousand barrel of oil equivalent
(MBoe) type curve. The Soapy Smith 36 1H, a western extension
test, was completed with 1,800 pounds of proppant per lateral foot,
utilized slickwater as completion fluid, and had a lateral length
of 2,790 feet. The well’s IP-30 rate was 728 Boe/d (or 261
Boe/d per thousand lateral feet), slightly exceeding the 700 MBoe
type curve.
- Commenced production on eight Lower Eagle Ford wells, including
six wells in Gates Ranch (northern Webb County), which came on late
in the quarter, and two wells located in Briscoe Ranch (southern
Dimmitt County). The Briscoe Ranch 36 and 32 wells were the
Company’s first Eagle Ford wells outside of Gates Ranch. Both
wells, which had lateral lengths averaging 4,912 feet, were
completed with nearly 2,000 pounds of proppant per lateral foot and
were testing different cluster spacing patterns. The IP-30
rates of these wells were 3,525 Boe/d (20-foot clusters) and 2,236
Boe/d (40-foot clusters), respectively, which are substantially
above historic results and type curve for the acreage.
- There were 48 wells drilled but uncompleted (including 33 in
the Eagle Ford and 15 in the Delaware) at the end of the
quarter.
MARCELLUS SHALEProduction volumes in the
Marcellus Shale averaged 573 million cubic feet of natural gas
equivalent per day (MMcfe/d) in the first quarter of 2016, a 46
percent increase over the same quarter of last year. Natural
gas represented 88 percent of first quarter 2016 volumes, with the
remaining 12 percent primarily composed of natural gas liquids
(NGLs).
Highlights include:
- Commenced production on 25 new wells, including eight wells
operated by Noble Energy and 17 wells operated by Joint Venture
partner CONSOL Energy. The eight operated wells, on the Rich
Hill 23 pad in Greene County, Pennsylvania, had an average lateral
length of approximately 10,800 feet and held a combined production
of approximately 100 MMcf/d, gross, for over 60 days.
- Exited the quarter with 79 wells drilled but uncompleted in the
Joint Venture.
- CONE Midstream Partners gathered gross throughput volumes
averaging 1.3 billion cubic feet per day during the quarter, an
increase of 52 percent from the same quarter in the previous
year.
GULF OF MEXICOIn the Gulf of Mexico, sales
volumes averaged 29 MBoe/d, a 91 percent increase versus the first
quarter of last year. Crude oil and condensate represented 84
percent of first quarter 2016 volumes, six percent were NGLs and 10
percent natural gas.
Highlights include:
- Combined production from the Big Bend and Dantzler development,
which commenced production late in 2015, contributed 19 MBoe/d, net
to Noble Energy.
- Workover operations at the Isabela well were completed
successfully and ahead of schedule. The well returned to
production late in the first quarter.
- Topsides modifications at the third-party Gulfstar 1 facility
host for the Company’s Gunflint field continue and physical project
readiness was advanced to 75 percent. The Gunflint project
remains within budget and is targeting a mid-2016 startup for first
production.
- Captured two additional deepwater blocks and multiple
exploration prospect opportunities through the March lease
sale.
WEST AFRICASales volumes in West Africa
averaged 65 MBoe/d, which were 43 percent crude oil and condensate,
seven percent NGLs, and 50 percent natural gas. Production
volumes for the quarter exceeded sales by approximately two MBbl/d
primarily as a result of the timing of liquids liftings from
Alba.
Highlights include:
- Offshore operations at the Alba field, including installation
of the new B3 compression platform and planned maintenance events,
were carried out with less downtime than previously expected.
Commissioning and start-up of the compression platform, which will
enhance full field recovery, remains on schedule for mid-year.
- Production optimization at the Company’s operated Aseng and
Alen fields delivered sales volumes of over 21 MBbl/d for the
quarter, net to Noble Energy.
- Commenced an additional 3D seismic acquisition offshore Gabon
at the Company’s operated Block F15.
EASTERN MEDITERRANEANIn the Eastern
Mediterranean, Israel natural gas sales volumes averaged 266
MMcf/d, an increase of ten percent versus the first quarter of last
year. Despite milder weather versus the 2015 period, higher
volumes resulted from an increased dispatch of natural gas versus
coal in the power generation sector and growth from industrial
customers.
Highlights include:
- Continued strong operations and reservoir performance at Tamar,
combined with zero facility downtime.
- Received approximately $200 million in total proceeds from the
sale of the undeveloped Tanin and Karish fields in Israel as well
as the farm-down of interest in Block 12 offshore Cyprus.
- Commenced marketing of natural gas from the Leviathan field to
Israel domestic customers, with one gas sales contract executed and
multiple under negotiation. Discussions toward final
agreements with regional export customers continue to
progress.
- Resubmitted Leviathan initial field development plan to the
Government, which includes a fixed and expanded platform
design. The National Planning Committee recently approved the
locations of the Leviathan platform and pipeline connection in
northern Israel. Current development plans provide for an
initial deliverability of between 1.2 Bcf/d and 2.1 Bcf/d,
dependent upon natural gas sales contracts.
- Received notification of Israel’s Supreme Court affirmation of
the Government’s natural gas regulatory framework, including the
application of Section 52 anti-trust exemptions, with the exception
of the framework’s stability language. Noble Energy continues
to engage with the Government as it works to address the Supreme
Court’s concern.
OTHERHighlights include:
- Maintained approximately $5 billion in liquidity, comprised of
$953 million of cash and a $4 billion undrawn credit facility.
The Company’s investment grade credit ratings were affirmed
by all three credit rating agencies. Fitch launched coverage
with rating of ‘BBB-’ with outlook stable.
- Reduced annual interest expense by approximately $50 million as
the result of a successful debt extinguishment (tender offer of
previous Rosetta notes and new term loan issued).
UPDATED GUIDANCEWhile remaining flexible to
commodity environment changes through the remainder of the year,
Noble Energy anticipates full-year capital expenditures to be less
than the original estimate of $1.5 billion. The reduction is
driven primarily by capital efficiencies in the U.S. onshore
business. Total sales volumes for full-year 2016 have been
raised four percent to an expected average of 405 MBoe/d,
reflecting actuals from the first quarter and improved expectations
for the rest of 2016. In the U.S., volumes have been
increased as a result of improved productivity primarily in the DJ
Basin, even with slightly fewer completions expected to commence
production. Higher volumes internationally are driven by
reduced Alba field downtime in West Africa and increased natural
gas demand in Israel.
For the second quarter, Noble Energy expects capital
expenditures between $350 million and $400 million with total
volumes anticipated to range between 405 MBoe/d and 415 MBoe/d.
Compared to the first quarter of the year, higher volumes are
expected in the Company’s Texas assets, driven by the timing of
well completions in the Eagle Ford, and in West Africa as a result
of Alba field volumes. Natural gas sales in Israel are
anticipated lower sequentially based on seasonal power generation
demand, and volumes in the DJ Basin are impacted by a
previously-scheduled facility turnaround maintenance at the Wells
Ranch central processing facility.
Additional detailed guidance for the second quarter is provided
in the Company’s supplemental slides for the quarterly conference
call. The slides are available on the Company’s website.
(1) A Non-GAAP measure, see attached Reconciliation
Schedules
WEBCAST AND CONFERENCE CALL
INFORMATION
Noble Energy, Inc. will host a webcast and
conference call at 9:00 a.m. Central time today. The webcast
is accessible on the ‘Investors’ page at www.nobleenergyinc.com.
Conference call numbers for participation are 888-466-4582 and
719-325-2480. The pass code number is 5463485. A replay will
be available on the website.
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 spanning three
continents. Founded more than 80 years ago, the company is
committed to safely and responsibly delivering our purpose:
Energizing the World, Bettering People’s Lives®. For more
information, visit www.nobleenergyinc.com.
This news release contains certain “forward-looking statements”
within the meaning of federal securities law. Words such as
“anticipates”, “believes”, “expects”, “intends”, “will”, “should”,
“may”, “estimates”, 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. They may include estimates
of oil and natural gas reserves, 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
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, 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 business that are discussed
in its most recent annual report on Form 10-K and in other reports
on file with the Securities and Exchange Commission (“SEC”). These
reports are also available from Noble Energy’s offices or website,
http://www.nobleenergyinc.com. 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 forward-looking statements should
circumstances, management’s estimates, or opinions change.
This news release also contains certain 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 the attached
schedules for reconciliations of the differences between any
historical non-GAAP measures used in this news release and the most
directly comparable GAAP financial measures.
The Securities and Exchange Commission requires oil and gas
companies, in their filings with the SEC, to disclose proved
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. The
SEC permits the optional disclosure of probable and possible
reserves, however, we have not disclosed the Company's probable and
possible reserves in our filings with the SEC. We use certain terms
in this news release, such as "type curve”, which are by their
nature more speculative than estimates of proved, probable and
possible reserves and accordingly are subject to substantially
greater risk of being actually realized. The SEC guidelines
strictly prohibit us from including these estimates in filings with
the SEC. Investors are urged to consider closely the disclosures
and risk factors in our most recent annual report on Form 10-K and
in other reports on file with the SEC, available from Noble
Energy's offices or website, http://www.nobleenergyinc.com.
Schedule 1 |
Noble Energy, Inc. |
Summary Statement of Operations |
(in millions, except per share amounts,
unaudited) |
|
|
Three Months Ended March 31, |
|
2016 |
|
2015 |
Revenues |
|
|
|
Crude Oil
and Condensate |
$ |
365 |
|
|
$ |
431 |
|
Natural
Gas |
287 |
|
|
276 |
|
Natural Gas
Liquids (1) |
53 |
|
|
42 |
|
Income from
Equity Method Investees |
19 |
|
|
18 |
|
Total
Revenues |
724 |
|
|
767 |
|
Operating
Expenses |
|
|
|
Lease
Operating Expense |
161 |
|
|
157 |
|
Production
and Ad Valorem Taxes |
4 |
|
|
32 |
|
Transportation and Gathering Expense (1) |
107 |
|
|
65 |
|
Marketing
and Processing Expense, Net |
22 |
|
|
6 |
|
Exploration
Expense |
163 |
|
|
65 |
|
Depreciation, Depletion and Amortization |
617 |
|
|
454 |
|
General and
Administrative |
91 |
|
|
94 |
|
Other
Operating (Income) Expense, Net |
(19 |
) |
|
28 |
|
Total
Operating Expenses |
1,146 |
|
|
901 |
|
Operating
Loss |
(422 |
) |
|
(134 |
) |
Other Expense
(Income) |
|
|
|
Gain on
Commodity Derivative Instruments |
(44 |
) |
|
(150 |
) |
Interest,
Net of Amount Capitalized |
79 |
|
|
57 |
|
Other
Non-Operating (Income) Expense, Net |
(4 |
) |
|
1 |
|
Total Other
Expense (Income) |
31 |
|
|
(92 |
) |
Loss Before Income
Taxes |
(453 |
) |
|
(42 |
) |
Income Tax Benefit |
(166 |
) |
|
(20 |
) |
Net
Loss |
$ |
(287 |
) |
|
$ |
(22 |
) |
Loss Per
Share |
|
|
|
Loss Per Share, Basic |
$ |
(0.67 |
) |
|
$ |
(0.06 |
) |
Loss Per Share,
Diluted |
$ |
(0.67 |
) |
|
$ |
(0.06 |
) |
|
|
|
|
Weighted Average Number of
Shares Outstanding |
|
|
|
Basic |
429 |
|
|
370 |
|
Diluted |
429 |
|
|
370 |
|
|
(1) Certain of
our revenue received from purchasers was historically presented
with deductions for transportation, gathering, fractionation or
processing costs. Beginning in 2016, we have changed our
presentation to no longer include these expenses as deductions from
revenue. These costs are now included within transportation and
gathering expense and prior year amounts have been reclassified to
conform to the current presentation. |
|
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 May
4, 2016. |
|
On July 20,
2015, we completed the merger with Rosetta Resources Inc. (Rosetta
or Rosetta Merger) and the results of operations attributable to
Rosetta are included in our consolidated statement of operations
beginning on July 21, 2015. The results of these operations
attributable to Rosetta will affect the comparability of our
financial results to prior periods. |
Schedule 2 |
Noble Energy, Inc. |
Condensed Balance Sheets |
(in millions, unaudited) |
|
|
March 31, 2016 |
|
December 31, 2015 |
ASSETS |
|
|
|
Current
Assets |
|
|
|
Cash and
Cash Equivalents |
$ |
953 |
|
|
$ |
1,028 |
|
Accounts
Receivable, Net |
531 |
|
|
450 |
|
Commodity
Derivative Assets |
454 |
|
|
582 |
|
Other
Current Assets |
154 |
|
|
216 |
|
Total
Current Assets |
2,092 |
|
|
2,276 |
|
Net
Property, Plant and Equipment |
20,707 |
|
|
21,300 |
|
Other
Noncurrent Assets |
614 |
|
|
620 |
|
Total
Assets |
$ |
23,413 |
|
|
$ |
24,196 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
Current
Liabilities |
|
|
|
Accounts
Payable - Trade |
$ |
1,005 |
|
|
$ |
1,128 |
|
Other
Current Liabilities |
601 |
|
|
677 |
|
Total
Current Liabilities |
1,606 |
|
|
1,805 |
|
Long-Term
Debt |
7,882 |
|
|
7,976 |
|
Deferred
Income Taxes, Noncurrent |
2,640 |
|
|
2,826 |
|
Other
Noncurrent Liabilities |
1,233 |
|
|
1,219 |
|
Total
Liabilities |
13,361 |
|
|
13,826 |
|
Total
Shareholders’ Equity |
10,052 |
|
|
10,370 |
|
Total
Liabilities and Shareholders’ Equity |
$ |
23,413 |
|
|
$ |
24,196 |
|
|
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 May
4, 2016. |
Schedule 3 |
Noble Energy, Inc. |
Condensed Statement of Cash Flows |
(in millions, unaudited) |
|
|
Three Months Ended March 31, |
|
2016 |
|
2015 |
Cash Flows From
Operating Activities |
|
|
|
Net
Loss |
$ |
(287 |
) |
|
$ |
(22 |
) |
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating
Activities |
|
|
|
Depreciation, Depletion and Amortization |
617 |
|
|
454 |
|
Asset
Impairments |
— |
|
|
27 |
|
Dry Hole
Cost |
93 |
|
|
20 |
|
Gain on
Extinguishment of Debt |
(80 |
) |
|
— |
|
Loss on
Assets Due to Terminated Contract |
42 |
|
|
— |
|
Deferred
Income Tax Benefit |
(186 |
) |
|
(30 |
) |
Loss from
Equity Method Investees, Net of Dividends |
(3 |
) |
|
(18 |
) |
Gain on
Commodity Derivative Instruments |
(44 |
) |
|
(150 |
) |
Net Cash
Received in Settlement of Commodity Derivative Instruments |
178 |
|
|
210 |
|
Stock
Based Compensation |
20 |
|
|
21 |
|
Other
Adjustments for Noncash Items Included in Net Loss |
37 |
|
|
11 |
|
Net
Changes in Working Capital |
(136 |
) |
|
18 |
|
Net Cash
Provided by Operating Activities |
251 |
|
|
541 |
|
Cash Flows From
Investing Activities |
|
|
|
Additions
to Property, Plant and Equipment |
(496 |
) |
|
(1,111 |
) |
Additions
to Equity Method Investments |
(6 |
) |
|
(44 |
) |
Proceeds
from Divestitures and Other |
238 |
|
|
119 |
|
Net Cash Used
in Investing Activities |
(264 |
) |
|
(1,036 |
) |
Cash Flows From
Financing Activities |
|
|
|
Dividends
Paid, Common Stock |
(41 |
) |
|
(64 |
) |
Proceeds
from Issuance of Shares of Common Stock to Public, Net of Offering
Costs |
— |
|
|
1,112 |
|
Net
(Proceeds) Repayments of Long-Term Debt |
17 |
|
|
— |
|
Repayment
of Capital Lease Obligation |
(13 |
) |
|
(19 |
) |
Other |
(25 |
) |
|
(8 |
) |
Net Cash (Used
in) Provided by Financing Activities |
(62 |
) |
|
1,021 |
|
(Decrease)
Increase in Cash and Cash Equivalents |
(75 |
) |
|
526 |
|
Cash and Cash
Equivalents at Beginning of Period |
1,028 |
|
|
1,183 |
|
Cash and Cash
Equivalents at End of Period |
$ |
953 |
|
|
$ |
1,709 |
|
|
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 May
4, 2016. |
|
On July 20,
2015, we completed the merger with Rosetta and the associated
volumes and price statistics are included in our operations
beginning on July 21, 2015. The results of these volumes and
prices attributable to Rosetta will affect the comparability of our
results to prior periods. |
Schedule 4 |
Noble Energy, Inc. |
Volume and Price Statistics |
(unaudited) |
|
|
Three Months Ended March 31, |
Sales
Volumes |
2016 |
|
2015 |
Crude Oil and
Condensate (MBbl/d) |
|
|
|
United
States |
102 |
|
|
73 |
|
Equatorial
Guinea |
27 |
|
|
30 |
|
Other
International |
— |
|
|
1 |
|
Total
consolidated operations |
129 |
|
|
104 |
|
Equity
method investee - Equatorial Guinea |
1 |
|
|
2 |
|
Total |
130 |
|
|
106 |
|
Natural Gas
Liquids (MBbl/d) |
|
|
|
United
States |
53 |
|
|
25 |
|
Equity
method investee - Equatorial Guinea |
4 |
|
|
6 |
|
Total |
57 |
|
|
31 |
|
Natural Gas
(MMcf/d) |
|
|
|
United
States |
910 |
|
|
619 |
|
Israel |
266 |
|
|
242 |
|
Equatorial
Guinea |
195 |
|
|
231 |
|
Total |
1,371 |
|
|
1,092 |
|
Total Sales
Volumes (MBoe/d) |
|
|
|
United
States |
306 |
|
|
201 |
|
Israel |
45 |
|
|
40 |
|
Equatorial
Guinea |
60 |
|
|
68 |
|
Other
International |
— |
|
|
1 |
|
Total
consolidated operations |
411 |
|
|
310 |
|
Equity
method investee - Equatorial Guinea |
5 |
|
|
8 |
|
Total
sales volumes (MBoe/d) |
416 |
|
|
318 |
|
|
|
|
|
Total
sales volumes (MBoe) |
37,853 |
|
|
28,663 |
|
|
|
|
|
Price Statistics -
Realized Prices |
|
|
|
Crude Oil and
Condensate ($/Bbl)(1) |
|
|
|
United
States |
$ |
30.14 |
|
|
$ |
44.39 |
|
Equatorial
Guinea |
34.49 |
|
|
49.65 |
|
Other
International |
— |
|
|
52.89 |
|
Total |
$ |
31.04 |
|
|
$ |
45.96 |
|
Natural Gas
Liquids ($/Bbl)(1) |
|
|
|
United
States |
$ |
11.18 |
|
|
$ |
18.80 |
|
Natural Gas
($/Mcf)(1) |
|
|
|
United
States |
$ |
1.90 |
|
|
$ |
2.72 |
|
Israel |
5.19 |
|
|
5.45 |
|
Equatorial
Guinea |
0.27 |
|
|
0.27 |
|
Total |
$ |
2.30 |
|
|
$ |
2.81 |
|
|
(1) Average
realized prices do not include gains or losses on commodity
derivative instruments. |
|
On July 20,
2015, we completed the merger with Rosetta and the associated
volumes and price statistics are included in our operations
beginning on July 21, 2015. The results of these volumes and
prices attributable to Rosetta will affect the comparability of our
results to prior periods. |
Schedule 5 |
Noble Energy, Inc. |
Reconciliation of Net Loss (GAAP) to Adjusted
(Loss) Income (Non-GAAP) |
(in millions, except per share amounts,
unaudited) |
|
Adjusted
(loss) income should not be considered an alternative to, or more
meaningful than, net loss or any other measure as reported in
accordance with GAAP. Our management believes, and certain
investors may find, that Adjusted (loss) income is beneficial in
evaluating our operating and financial performance because it
eliminates the impact of certain 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 (loss) income may be useful for
comparison of earnings to forecasts prepared by analysts and other
third parties. However, our presentation of Adjusted (loss) income
may not be comparable to similar measures of other companies in our
industry. |
|
|
Three Months Ended March 31, |
|
2016 |
|
2015 |
Net Loss |
$ |
(287 |
) |
|
$ |
(22 |
) |
Adjustments to Net Loss |
|
|
|
Loss on
Commodity Derivative Instruments, Net of Cash Settlements
[1] |
134 |
|
|
60 |
|
Loss on
Assets Due to Terminated Contract [2] |
42 |
|
|
— |
|
Gain on Debt
Extinguishment [3] |
(80 |
) |
|
— |
|
Asset
Impairments [4] |
— |
|
|
27 |
|
Other
Adjustments [5] |
16 |
|
|
6 |
|
Total Adjustments Before Tax |
112 |
|
|
93 |
|
Income Tax Effect of Adjustments
[6] |
(53 |
) |
|
(61 |
) |
Adjusted (Loss) Income |
$ |
(228 |
) |
|
$ |
10 |
|
Net Loss Per Diluted Share |
$ |
(0.67 |
) |
|
$ |
(0.06 |
) |
Adjusted (Loss) Income Per Diluted Share |
$ |
(0.53 |
) |
|
$ |
0.03 |
|
|
|
|
|
Weighted Average Number of Shares
Outstanding |
|
|
|
Diluted |
429 |
|
|
373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE: |
On July 20, 2015, we
completed the merger with Rosetta and the results of operations
attributable to Rosetta are included in our consolidated statement
of operations beginning on July 21, 2015. The results of these
operations attributable to Rosetta will affect the comparability of
our financial results to prior periods. |
|
|
[1] |
Many factors impact our
gain or loss on commodity derivative instruments, net of cash
settlements, including: increases and decreases in the commodity
forward price curves compared to our executed hedging arrangements;
increases in hedged future revenues; and the mix of hedge
arrangements between NYMEX WTI, Dated Brent and NYMEX HH
commodities. These gains or losses on commodity derivative
instruments, net of cash settlements, recognized in the current
period, will be realized in the future when cash settlement
occurs. |
|
|
[2] |
Amount relates to the
termination of a rig contract offshore Falkland Islands. |
|
|
[3] |
Amount relates to the
early tendering of senior notes assumed in the Rosetta Merger. |
|
|
[4] |
Amount for 2015 relates to
Eastern Mediterranean and Gulf of Mexico properties. |
|
|
[5] |
Includes loss on sale of
other assets, building exit cost, and stacked drilling rig
expense. |
|
|
[6] |
Amount represents the
income tax effect of adjustments, determined for each major tax
jurisdiction for each adjusting item, as well as the change in the
indefinite reinvestment assertion related to accumulated
undistributed earnings of foreign subsidiaries. |
Schedule 6 |
Noble Energy, Inc. |
Reconciliation of Net Loss (GAAP) to EBITDAX
(Non-GAAP) and Adjusted EBITDAX (Non-GAAP) |
(in millions, unaudited) |
|
Earnings
Before Interest Expense, Income Taxes, Depreciation, Depletion and
Amortization, and Exploration Expenses (EBITDAX) and Adjusted
EBITDAX should not be considered an alternative to, or more
meaningful than, net loss or any other measure as reported in
accordance with GAAP. Our management believes, and certain
investors may find, that EBITDAX and Adjusted EBITDAX is beneficial
in evaluating our operating and financial performance because it
eliminates the impact of certain 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, EBITDAX and Adjusted EBITDAX may be useful for
comparison of earnings to forecasts prepared by analysts and other
third parties. However, our presentation of EBITDAX and Adjusted
EBITDAX may not be comparable to similar measures of other
companies in our industry. |
|
|
Three Months Ended March 31, |
|
2016 |
|
2015 |
Net Loss |
$ |
(287 |
) |
|
$ |
(22 |
) |
Adjustments to Net Loss |
|
|
|
Depreciation, Depletion, and Amortization |
617 |
|
|
454 |
|
Exploration
Expense |
163 |
|
|
65 |
|
Interest,
Net of Amount Capitalized |
79 |
|
|
57 |
|
Income Tax
Benefit |
(166 |
) |
|
(20 |
) |
EBITDAX |
$ |
406 |
|
|
$ |
534 |
|
|
|
|
|
Earnings
Adjustments, Before Tax [1] |
112 |
|
|
93 |
|
Adjusted EBITDAX |
$ |
518 |
|
|
$ |
627 |
|
NOTE: |
On July 20, 2015, we
completed the merger with Rosetta and the results of operations
attributable to Rosetta are included in our consolidated income
statement of operations beginning on July 21, 2015. The results of
these operations attributable to Rosetta will affect the
comparability of our financial results to prior periods. |
|
|
[1] |
See Schedule 5:
Reconciliation of Net Loss (GAAP) to Adjusted (Loss) Income
(Non-GAAP). |
|
Capital Expenditures |
(in millions, unaudited) |
|
|
Three Months Ended March 31, |
|
2016 |
|
2015 |
Capital Expenditures (Accrual Based) |
$ |
374 |
|
|
$ |
919 |
|
Increase in Capital Lease Obligations
[2] |
— |
|
|
20 |
|
Total Capital Expenditures (Accrual
Based) |
$ |
374 |
|
|
$ |
939 |
|
|
[2] Represents estimated construction in
progress to date on US operating assets and corporate
buildings. |
Investor Contacts
Brad Whitmarsh
(281) 943-1670
Brad.Whitmarsh@nblenergy.com
Megan Repine
(832) 639-7380
Megan.Repine@nblenergy.com
Media Contacts:
Reba Reid
(713) 412-8441
media@nblenergy.com
Paula Beasley
(281) 876-6133
media@nblenergy.com
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