HOUSTON, April 24, 2014 /PRNewswire/ -- Noble Energy,
Inc. (NYSE: NBL) announced today first quarter 2014 net income of
$200 million, or $0.55 per diluted share on total revenues of
$1.4 billion. Excluding the impact of
certain items which would typically not be considered by analysts
in published earnings estimates, first quarter 2014 adjusted
income(1) was $298
million, or $0.82 per diluted
share. Discretionary cash flow was $870
million and net cash provided by operating activities was
$929 million. Capital expenditures
for the first quarter 2014 totaled $951
million.
Key highlights for the first quarter of 2014 include:
- Total sales volumes of 286 thousand barrels of oil
equivalent per day (MBoe/d), an increase of 20 percent from the
first quarter of 2013, after adjusting for divested
assets
- Delivered record horizontal production of 100 MBoe/d on
average from the DJ Basin and Marcellus Shale plays, up over 60
percent versus the first quarter of last year
- Performed completion operations on initial vertical well
in the Wilson play of NE Nevada,
successfully recovering oil from multiple intervals
- Apparent high bidder on 12 deepwater lease blocks in the
Central Gulf of Mexico Lease Sale 231
- Signed the first two regional export sales agreements for
natural gas sales from Tamar and Leviathan to customers in
Jordan and the Palestinian
Authority
- Finalized agreement with the Israel Anti-Trust
Authority
- Executed sales agreements to divest the Company's E.
Texas, N. Louisiana and Powder River Basin assets
Charles D. Davidson, Noble
Energy's Chairman and CEO, commented, "Following on our strong
2013, Noble Energy continues to deliver on its growth objectives,
with the first quarter laying a good foundation from which to build
on for the remainder of the year. In our U.S. unconventional areas,
we are creating substantial value in the DJ Basin and Marcellus
development programs, through material production growth, facility
and well efficiencies, and an increased application of extended
reach laterals. Although early, I am quite pleased with initial
drilling and completion results in our Nevada exploration play. Offshore, we are
moving forward our next round of developments, including projects
in the deepwater Gulf of Mexico,
West Africa and Israel. The progress we have made recently
regarding the Leviathan project offshore Israel has been remarkable, and we are close
to executing a number of domestic and regional export sales
agreements to support the field's development. We are also excited
about our exploration prospects this year, with Katmai currently
drilling in the deepwater Gulf of
Mexico."
VOLUMES AND PRICES
First quarter 2014 sales volumes averaged 286 MBoe/d, an
increase of 20 percent compared to the first quarter of 2013, after
adjusting for divested assets. United
States sales volumes comprised 57 percent of the total and
the remaining 43 percent came from International operations. U.S.
volumes increased 16 percent compared to the same quarter of last
year, after adjusting for divested assets, driven by the continued
development of the unconventional DJ Basin and Marcellus Shale
plays. Internationally, volumes increased 23 percent compared to
the first quarter of last year due to the Tamar natural gas field
in Israel and the Alen condensate
field in Equatorial Guinea, both
of which commenced operations in 2013. Total sales volumes for the
quarter were less than production volumes by 2 MBoe/d due to the
timing of liftings in Equatorial
Guinea.
Global crude oil and condensate prices averaged $100.23 per barrel for the first quarter of 2014.
Natural gas realizations averaged $4.81 per thousand cubic feet (Mcf) in the U.S.
and $5.60 per Mcf in Israel. Natural gas liquid pricing in the U.S.
averaged 45 percent of the average West Texas Intermediate crude
oil price for the quarter.
EXPENSES
First quarter 2014 total production costs, including lease
operating expense (LOE), production and ad valorem taxes, and
transportation and gathering averaged $9.01 per barrel of oil equivalent (Boe). Total
company LOE was $5.64 per Boe, up
slightly from the same period in 2013 as a result of the impact of
major offshore project startups in 2013. Depreciation, depletion
and amortization (DD&A) per Boe was $16.50, down slightly from the first quarter 2013
unit rate. Exploration expense for the quarter was $74 million, which had no substantial dry hole
costs and included seismic expenditures associated with a 3D survey
acquisition completed offshore the Falkland Islands.
Included in the adjustments to net income for the first quarter
of 2014 was an impairment recorded to the Company's North Sea
assets to reflect the updated estimate of abandonment cost and
timing. Also adjusted from earnings was a non-cash commodity
derivative loss. The effective tax rate on adjusted earnings for
the quarter was 29 percent and the deferred tax rate on adjusted
earnings was 50 percent.
OPERATIONS UPDATE
In the DJ Basin, sales volumes averaged 95 MBoe/d for the first
quarter of 2014, of which 64 percent were liquids. Production
volumes for the quarter were impacted by severe winter weather and
facility upgrades. Fifty-four standard length laterals and 13
extended reach laterals were drilled during the quarter. Due to
continued strong performance in the extended reach lateral program,
the Company is now targeting over 90 extended reach lateral wells
in 2014, up 65 percent from its original plans. In addition, the
Company continues to pursue downspacing activity in 2014, which
represents over 40 percent of the wells planned for the year. Five
standard length wells on the Loeffler pad within the Core
Integrated Development Plan (IDP) have been producing more than 100
days and are tracking a 600 thousand barrel oil equivalent type
curve. Two of these wells, testing a 24-well per section equivalent
density, are performing consistent with the remaining Loeffler
wells. In the Mustang IDP, three standard length horizontal wells
were drilled during the quarter on a 16-well per section equivalent
amongst densely drilled verticals with performance above the type
curve. Across the Basin, 10 rigs are currently developing Wells
Ranch and East Pony as well as progressing the other IDPs. In the
third quarter, one rig will move back to the Wilson play in
NE Nevada to continue drilling in
this new venture opportunity.
In the Marcellus Shale, volumes averaged a record 227 million
cubic feet of natural gas equivalent per day (MMcfe/d) for the
first quarter. In the quarter, 19 operated wells were drilled
averaging over 7,500 lateral feet. The WFN3 pad in the Majorsville
IDP came online during the quarter at a peak rate of 35 MMcfe/d
from four wells averaging 7,500 lateral feet. One of the wells was
completed using reduced stage and cluster spacing and experienced
rates over 25 percent higher than similar wells on the same pad.
Also during the quarter, two 8,000 foot lateral sections were
drilled in less than 48 hours each, which is a 50 percent reduction
in drilling time versus last year. Joint Venture partner, CONSOL
Energy, drilled 17 wells during the quarter. The Joint Venture is
currently operating nine rigs split between the wet and dry gas
portions of the acreage.
In the deepwater Gulf of
Mexico, production for the first quarter averaged 18 MBoe/d,
which was comprised of nearly 90 percent liquids. During the
quarter, the Company completed its Big Bend discovery well in the
Rio Grande area, with first production on target by the end of next
year. The Dantzler and Gunflint developments continue to progress
with first production expected in 2016. Katmai, a middle and lower
Miocene oil exploration prospect with a 50 percent working interest
was spud towards the end of the quarter. Additional exploration in
this core area is planned through the end of this year. Also during
the quarter, the Company was the apparent high bidder on 12 blocks
in the OCS Lease Sale 231, providing further opportunities to
expand the already deep exploration portfolio.
In the Eastern Mediterranean, total Israel sales volumes for the first quarter of
2014 averaged 219 MMcfe/d. The onshore compression project at
Ashdod is over 50 percent complete and on track to expand the
deliverability of Tamar volumes in mid-2015. The first regional
export sales agreements for
Tamar and Leviathan were signed during the quarter, with larger
contracts expected to follow over the next several quarters.
Significant progress has been made towards sanctioning the first
phase of Leviathan with an agreement reached with the Israeli
Anti-trust Authority and the receipt of a Development and
Production Lease.
UPDATED GUIDANCE
To date in 2014, the Company has executed sales agreements for
certain non-core U.S. onshore assets, including its positions in
the E. Texas, N. Louisiana, Tri-State and the Powder River Basin.
In addition, the Company is finalizing an agreement to divest its
offshore China assets in the Bohai
Bay. Combined, these assets were producing in excess of 10 MBoe/d
at the beginning of 2014. The onshore U.S. asset sales either have
closed or are planned to close by the end of April, and the
China asset sale is anticipated to
close in mid-2014. These assets are expected to impact volumes by
approximately 6 MBoe/d on average for 2014.
As a result of these transactions, Noble Energy has adjusted its
full year 2014 volume guidance to a range of 302 to 310 MBoe/d,
with the midpoint of the range reflecting the 6 MBoe/d from these
divestments. Second quarter 2014 volumes are anticipated to be
between 290 and 296 MBoe/d, taking into account the U.S. onshore
asset sales.
Detailed guidance is available in the supplemental information
for the conference call.
|
|
(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 800-327-5138 or 719-325-2239 with the passcode 2585857. A
replay will be available on the website.
Noble Energy is a leading independent energy company engaged in
worldwide oil and gas exploration and production. The Company has
core operations onshore in the U.S., primarily in the DJ Basin and
Marcellus Shale, in the deepwater Gulf of
Mexico, offshore Eastern Mediterranean, and offshore
West Africa. Noble Energy is
listed on the New York Stock Exchange and is traded under the
ticker symbol NBL. Further information is available at
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", 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
include 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
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.
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 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 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 "thousand barrel oil equivalent type
curve". These estimates 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.
Reconciliation of
Net Income to Adjusted Income
(in millions,
except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2014
|
|
Per Diluted
Share
|
|
2013
|
|
Per Diluted
Share
|
Net
Income
|
|
$
|
200
|
|
|
$
|
0.55
|
|
|
$
|
261
|
|
|
$
|
0.72
|
|
(Gain) loss on
commodity derivatives, net of cash settlements
[1]
|
|
42
|
|
|
0.12
|
|
|
79
|
|
|
0.22
|
|
Asset impairments
[2]
|
|
97
|
|
|
0.27
|
|
|
—
|
|
|
—
|
|
(Gain) loss on
divestitures [3]
|
|
1
|
|
|
—
|
|
|
(52)
|
|
|
(0.14)
|
|
Other
adjustments
|
|
1
|
|
|
—
|
|
|
(10)
|
|
|
(0.03)
|
|
Total adjustments
before tax
|
|
141
|
|
|
0.39
|
|
|
17
|
|
|
0.05
|
|
Income tax effect of
adjustments [4]
|
|
(43)
|
|
|
(0.12)
|
|
|
(17)
|
|
|
(0.05)
|
|
Adjusted
Income
|
|
$
|
298
|
|
|
$
|
0.82
|
|
|
$
|
261
|
|
|
$
|
0.72
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
|
Diluted
|
|
365
|
|
|
|
|
362
|
|
|
|
|
|
|
NOTE:
|
Adjusted income
should not be considered a substitute for net income as reported in
accordance with GAAP. Adjusted income is provided for comparison to
earnings forecasts prepared by analysts and other third parties.
Our management believes, and certain investors may find, that
adjusted income is beneficial in evaluating our financial
performance. We believe such measures can facilitate comparisons of
operating performance between periods and with our peers. See
Schedule 2: Summary Statement of Operations
|
|
|
|
All per share and
shares outstanding amounts have been retroactively adjusted for the
two-for-one stock split, which was distributed on May 28, 2013 to
shareholders of record as of May 14, 2013.
|
|
|
[1]
|
Many factors impact
our gain or loss on commodity derivatives, net of cash settlements,
including: increases and decreases in the commodity forward curves
compared to our executed hedging arrangements; increases in hedged
future volumes; and the mix of hedge arrangements between NYMEX
WTI, Dated Brent and NYMEX HH commodities. These gains or losses on
commodity derivatives, net of cash settlements recognized in the
current period will be realized in the future when cash settlement
occurs.
|
|
|
[2]
|
Amount for 2014
primarily represents impairment related to the North
Sea.
|
|
|
[3]
|
During 2014 and 2013
we sold certain non-core onshore U.S. properties.
|
|
|
[4]
|
The income tax effect
of adjustments are determined for each major tax jurisdiction for
each adjusting item.
|
Schedule
2
Noble Energy,
Inc.
Summary Statement
of Operations
(in millions,
except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2014
|
|
2013
|
Revenues
|
|
|
|
|
Crude oil and
condensate
|
|
$
|
928
|
|
|
$
|
849
|
|
Natural
gas
|
|
325
|
|
|
179
|
|
Natural gas
liquids
|
|
74
|
|
|
55
|
|
Income from equity
method investees
|
|
52
|
|
|
60
|
|
Total
revenues
|
|
1,379
|
|
|
1,143
|
|
Operating
Expenses
|
|
|
|
|
Lease operating
expense
|
|
145
|
|
|
117
|
|
Production and ad
valorem taxes
|
|
49
|
|
|
43
|
|
Transportation and
gathering expense
|
|
38
|
|
|
27
|
|
Exploration
expense
|
|
74
|
|
|
61
|
|
Depreciation,
depletion and amortization
|
|
425
|
|
|
366
|
|
General and
administrative
|
|
140
|
|
|
112
|
|
Asset
impairments
|
|
97
|
|
|
—
|
|
Other operating
expense, net
|
|
7
|
|
|
(8)
|
|
Total operating
expenses
|
|
975
|
|
|
718
|
|
Operating
Income
|
|
404
|
|
|
425
|
|
Other (Income)
Expense
|
|
|
|
|
(Gain) loss on
commodity derivative instruments
|
|
75
|
|
|
72
|
|
Interest, net of
amount capitalized
|
|
47
|
|
|
25
|
|
Other non-operating
(income) expense, net
|
|
5
|
|
|
10
|
|
Total other (income)
expense
|
|
127
|
|
|
107
|
|
Income from
Continuing Operations Before Income Taxes
|
|
277
|
|
|
318
|
|
Income Tax
Provision
|
|
77
|
|
|
86
|
|
Income from
Continuing Operations
|
|
200
|
|
|
232
|
|
Discontinued
Operations, Net of Tax
|
|
—
|
|
|
29
|
|
Net
Income
|
|
$
|
200
|
|
|
$
|
261
|
|
Earnings Per Share
[1]
|
|
|
|
|
Basic
|
|
|
|
|
Income from
continuing operations
|
|
$
|
0.56
|
|
|
$
|
0.65
|
|
Discontinued
operations, net of tax
|
|
—
|
|
|
0.08
|
|
Net Income
|
|
$
|
0.56
|
|
|
$
|
0.73
|
|
Diluted
|
|
|
|
|
Income from
continuing operations
|
|
$
|
0.55
|
|
|
$
|
0.64
|
|
Discontinued
operations, net of tax
|
|
—
|
|
|
0.08
|
|
Net Income
|
|
$
|
0.55
|
|
|
$
|
0.72
|
|
Weighted average
number of shares outstanding [1]
|
|
|
|
|
Basic
|
|
360
|
|
|
358
|
|
Diluted
|
|
365
|
|
|
362
|
|
|
|
|
[1]
|
All per share and
shares outstanding amounts have been retroactively adjusted for the
two-for-one stock split, which was distributed on May 28, 2013 to
shareholders of record as of May 14, 2013.
|
Schedule
3
Noble Energy,
Inc.
Volume and Price
Statistics
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
2014
|
|
2013
|
Crude Oil and
Condensate Sales Volumes (MBbl/d)
|
|
|
|
United
States
|
64
|
|
|
63
|
|
Equatorial
Guinea
|
34
|
|
|
27
|
|
Other
International
|
5
|
|
|
4
|
|
Total consolidated
operations
|
103
|
|
|
94
|
|
Equity method
investee
|
2
|
|
|
2
|
|
Total sales
volumes
|
105
|
|
|
96
|
|
Crude Oil and
Condensate Realized Prices ($/Bbl)
|
|
|
|
United
States
|
$
|
97.02
|
|
|
$
|
95.70
|
|
Equatorial
Guinea
|
105.73
|
|
|
111.79
|
|
Other
International
|
104.28
|
|
|
109.22
|
|
Consolidated average
realized prices
|
$
|
100.23
|
|
|
$
|
100.90
|
|
Natural Gas Sales
Volumes (MMcf/d)
|
|
|
|
United
States
|
483
|
|
|
409
|
|
Equatorial
Guinea
|
242
|
|
|
246
|
|
Israel
|
218
|
|
|
111
|
|
Total sales
volumes
|
943
|
|
|
766
|
|
Natural Gas
Realized Prices ($/Mcf)
|
|
|
|
United
States
|
$
|
4.81
|
|
|
$
|
3.31
|
|
Equatorial
Guinea
|
0.27
|
|
|
0.27
|
|
Israel
|
5.60
|
|
|
5.15
|
|
Consolidated average
realized prices
|
$
|
3.83
|
|
|
$
|
2.60
|
|
Natural Gas
Liquids Sales Volumes (MBbl/d)
|
|
|
|
United
States
|
18
|
|
|
16
|
|
Equity method
investee
|
5
|
|
|
6
|
|
Total sales
volumes
|
23
|
|
|
22
|
|
Natural Gas
Liquids Realized Prices ($/Bbl)
|
|
|
|
United
States
|
$
|
44.50
|
|
|
$
|
39.19
|
|
Barrels of Oil
Equivalent Volumes (MBoe/d)
|
|
|
|
United
States
|
163
|
|
|
146
|
|
Equatorial
Guinea
|
74
|
|
|
68
|
|
Israel
|
37
|
|
|
19
|
|
Other
International
|
5
|
|
|
4
|
|
Total consolidated
operations
|
279
|
|
|
237
|
|
Equity method
investee
|
7
|
|
|
8
|
|
Total barrels of oil
equivalent from continuing operations
|
286
|
|
|
245
|
|
Total barrels of oil
equivalent from discontinued operations
|
—
|
|
|
1
|
|
Total barrels of oil
equivalent
|
286
|
|
|
246
|
|
Schedule
4
Noble Energy,
Inc.
Condensed Balance
Sheets
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,354
|
|
|
$
|
1,117
|
|
Accounts receivable,
net
|
|
865
|
|
|
947
|
|
Other current
assets
|
|
545
|
|
|
547
|
|
Total current
assets
|
|
2,764
|
|
|
2,611
|
|
Net property, plant
and equipment
|
|
16,117
|
|
|
15,725
|
|
Goodwill
|
|
621
|
|
|
627
|
|
Other noncurrent
assets
|
|
690
|
|
|
679
|
|
Total
Assets
|
|
$
|
20,192
|
|
|
$
|
19,642
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts payable -
trade
|
|
$
|
1,178
|
|
|
$
|
1,354
|
|
Other current
liabilities
|
|
1,021
|
|
|
988
|
|
Total current
liabilities
|
|
2,199
|
|
|
2,342
|
|
Long-term
debt
|
|
5,011
|
|
|
4,566
|
|
Deferred income
taxes
|
|
2,449
|
|
|
2,441
|
|
Other noncurrent
liabilities
|
|
1,172
|
|
|
1,109
|
|
Total
Liabilities
|
|
10,831
|
|
|
10,458
|
|
Total Shareholders'
Equity
|
|
9,361
|
|
|
9,184
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
20,192
|
|
|
$
|
19,642
|
|
Schedule
5
Noble Energy,
Inc.
Discretionary Cash
Flow and Reconciliation to Net Cash Provided by Operating
Activities
(in millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2014
|
|
2013
|
Adjusted Income
[1]
|
|
$
|
298
|
|
|
$
|
261
|
|
Adjustments to
reconcile adjusted income to discretionary cash flow:
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
425
|
|
|
367
|
|
Exploration
expense
|
|
74
|
|
|
61
|
|
(Income)/Dividends
from equity method investments, net
|
|
(13)
|
|
|
(35)
|
|
Deferred compensation
expense
|
|
4
|
|
|
10
|
|
Deferred income
taxes
|
|
59
|
|
|
74
|
|
Stock-based
compensation expense
|
|
23
|
|
|
18
|
|
Other
|
|
—
|
|
|
1
|
|
Discretionary Cash
Flow
|
|
$
|
870
|
|
|
$
|
757
|
|
Reconciliation to
Operating Cash Flows
|
|
|
|
|
Net changes in
working capital
|
|
117
|
|
|
(9)
|
|
Cash exploration
costs
|
|
(60)
|
|
|
(54)
|
|
Current tax benefit
of earnings adjustments
|
|
—
|
|
|
(5)
|
|
Other
adjustments
|
|
2
|
|
|
16
|
|
Net Cash Provided
by Operating Activities
|
|
$
|
929
|
|
|
$
|
705
|
|
|
|
|
|
|
Capital expenditures
(accrual based)
|
|
$
|
951
|
|
|
$
|
910
|
|
Increase in capital
lease obligations [2]
|
|
5
|
|
|
—
|
|
Total Capital
Expenditures (Accrual Based)
|
|
$
|
956
|
|
|
$
|
910
|
|
|
|
|
NOTE:
|
The table above
reconciles discretionary cash flow to net cash provided by
operating activities. While discretionary cash flow is not a GAAP
measure of financial performance, our management believes it is a
useful tool for evaluating our overall financial performance. Among
our management, research analysts, portfolio managers and
investors, discretionary cash flow is broadly used as an indicator
of a company's ability to fund exploration and production
activities and meet financial obligations. Discretionary cash flow
is also commonly used as a basis to value and compare companies in
the oil and gas industry.
|
|
|
[1]
|
See Schedule 1:
Reconciliation of Net Income to Adjusted Income.
|
|
|
[2]
|
Increase in capital
lease obligations represents estimated construction in progress to
date on US operating assets and corporate buildings.
|
SOURCE Noble Energy