Noble Energy Updates Third Quarter 2017 Guidance, Raising Sales Volumes While Maintaining Capital Expenditure Estimates
September 25 2017 - 7:15AM
Noble Energy, Inc. (NYSE:
NBL) (“Noble Energy” or
“the Company”) today provided an updated outlook for the third
quarter of 2017.
- Sales volumes for the third quarter have been raised to range
between 352 and 358 thousand barrels of oil equivalent per day
(MBoe/d), representing a 3 percent uplift or 10 MBoe/d increase at
the midpoint of expectations.
- Total Company oil volumes are increased to 126 - 130 thousand
barrels per day (MBbl/d), up more than 4 percent from prior
expectation.
- Natural gas volumes are anticipated higher at 965 - 990 million
cubic feet of natural gas per day, while natural gas liquids (NGLs)
are expected between 63 and 65 MBbl/d.
- Capital expenditures for the third quarter have been maintained
within the original range of $625 to $725 million.
Total U.S. onshore equivalent volumes are
trending slightly above the high end of the Company’s original
guidance range, with both oil and natural gas volumes above the
high end and NGLs slightly below the original range of
expectation. The revised onshore outlook primarily reflects
better than expected DJ Basin volumes as a result of continued
strong new well performance in Wells Ranch and East Pony and an
increasing oil contribution. Combined Wells Ranch and East Pony
volumes are anticipated higher by more than 10 percent from the
second quarter to the third quarter of 2017. Higher natural
gas volumes in the basin more than offset lower expected NGLs.
Better than anticipated pipeline pressures throughout the DJ Basin
are also benefitting overall production.
In Texas, sales volumes for the third quarter
are consistent with expectations, reflecting the planned number of
wells drilled, completed, and turned into production. The
impact to production and operations, as a result of third quarter
hurricanes, was limited and primarily related to third-party
downstream issues. Strong sequential volume increases in the
Eagle Ford for the third quarter as compared to the second quarter
reflect continued robust well performance from South Gates Ranch
activity. In the Delaware Basin, volumes are growing as
expected. The Company’s first central gathering facility,
capturing produced oil, natural gas and water, commenced operation
late in July and has recently been connected to the Advantage
Pipeline taking crude volumes to Crane County, Texas.
Gulf of Mexico sales volumes are expected at the
high end of the Company’s original guidance range, reflecting
strong field and facility performance and limited hurricane
impacts. Offshore West Africa, oil and NGL liftings are
occurring as planned, while natural gas volumes are above
expectation at the Alba field.
Third quarter volumes in Israel are trending
within the expected original range. Tamar field production
during the months of July and August averaged more than 1 billion
cubic feet of natural gas per day, gross. While undergoing
planned maintenance procedures to the Tamar platform in late
September, the Company identified minor modifications necessary to
the venting system which resulted in a controlled full-field
shut-down. All facility maintenance is anticipated to be
completed within the next few days, and there is no substantial
impact to planned production volumes.
Fourth quarter 2017 guidance is unchanged from
prior expectations. The increase in third quarter expected
volumes raises full year 2017 sales volumes to range between 342
and 352 MBoe/d, proforma for asset divestments executed earlier in
the year. The Company is reaffirming its prior outlook of 40
percent U.S. onshore oil growth from the first quarter to the
fourth quarter of 2017.
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 https://www.nblenergy.com.
Forward Looking StatementsThis 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, 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
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Deena McMullen
(281) 943-1732
media@nblenergy.com
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