Noble Energy Increases Third Quarter Volume Expectations, Driven Primarily by DJ Basin Performance and Infrastructure
22 September 2015 - 10:46AM
Noble Energy, Inc. ("Noble Energy") (NYSE:
NBL)
today provided new third quarter 2015 sales volume guidance, with
the midpoint of the Company's new expectation representing a 10
thousand barrel of oil equivalent per day (MBoe/d) increase over
the midpoint of its prior estimate. Following strong volume
performance in July and August, the Company has raised its
anticipated third quarter 2015 sales volume range to between 360
and 370 MBoe/d. The increase was driven primarily by enhanced
well performance and infrastructure expansion in the DJ Basin. In
addition, strong production is resulting from the Company's assets
in Texas (Eagle Ford and Delaware), Marcellus Shale, Israel, and
Equatorial Guinea. Natural gas sales in Israel set a record in
August as the Company's Tamar asset averaged more than one billion
cubic feet of natural gas per day, gross, for the month.
Gary W. Willingham, the Company's Executive Vice
President of Operations, commented, "The expansion of natural gas
processing systems in Greater Wattenberg has continued to unlock
the productive capacity of our DJ Basin operations.
Production from our legacy vertical wells and older horizontal
wells are benefitting from substantially reduced line pressures and
improved third-party plant uptime. We have also continued to
materially grow production from the East Pony Integrated
Development Plan, which is primarily crude oil and is entirely
handled by Noble Energy owned midstream assets. Strong
production performance in our business is resulting from execution
momentum and the benefits of operating a high-quality and
diversified portfolio, despite reducing capital investment
materially quarter over quarter throughout the year."
The third-party Lucerne-2 plant has been tested
to a nameplate capacity of 200 million cubic feet of natural gas
per day (MMcf/d). Addition of the Lucerne-2 plant has
expanded total system natural gas processing capacity to 840
MMcf/d, resulting in line pressures being reduced by between 50 and
100 psi in various parts of Greater Wattenberg while also providing
additional capacity for future growth. Noble Energy's net DJ
Basin production has averaged approximately 115 MBoe/d through the
first two months of the third quarter of 2015.
Update on Israel Regulatory
Framework
On Monday, September 7, 2015, the Knesset voted
in favor of the government's approved regulatory framework for oil
and natural gas development.
David L. Stover, Noble Energy's Chairman,
President and CEO, stated, "We are encouraged by the Knesset's vote
expressing broad support for the framework, marking another step
forward toward gas development. It is imperative that the
government of Israel now act upon this support and follow through
on this approved framework without further delay. Noble
Energy remains prepared to conclude the negotiation of gas sales
contracts, both in Israel and the regional market, and reengage
project teams to advance the expansion of Tamar and initial
development of Leviathan toward sanction. Development of
these major projects will allow Israel to bring a second source of
natural gas to the country and realize significant additional
revenues, while meeting substantial underserved regional gas
needs."
Noble Energy (NYSE: NBL) is a global independent oil and natural
gas exploration and production company with total proved reserves
of 1.7 billion barrels of oil equivalent at year-end 2014 (pro
forma for the Rosetta acquisition). The company's diverse resource
base includes positions in four premier unconventional U.S. onshore
plays - the DJ Basin, Eagle Ford Shale, Delaware Basin, and
Marcellus Shale - and offshore in the U.S. Gulf of Mexico, Eastern
Mediterranean and West Africa. Driven by its purpose, Energizing
the World, Bettering People's LivesĀ®, the company is committed to
safely and responsibly providing energy to the world while
positively impacting the lives of our stakeholders. For more
information, visit www.nobleenergyinc.com.
Forward Looking Statements
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, 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.
CONTACT: Brad Whitmarsh
(281) 943-1670
brad.whitmarsh@nblenergy.com
John Nicholson
(281) 876-6186
john.nicholson@nblenergy.com
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Paula Beasley
(281) 876-6133
media@nblenergy.com
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