Noble Energy, Inc. (NYSE:NBL) (“Noble Energy” or the "Company”)
today announced first quarter 2018 financial and operating
results. Highlights include:
- Delivered quarterly sales volumes of 361 MBoe/d(1) up 18
percent(2) from first quarter 2017 on organic capital expenditures
of $781 million.
- Increased U.S. onshore oil production over 30 percent(2)
compared to the first quarter of 2017 driven by Delaware Basin
growth.
- Completed the Company’s third central gathering facility in the
Delaware Basin.
- Established a record for first quarter gross sales volumes
in Israel of 959 MMcfe/d.
- Secured contracts totaling up to an additional 740 MMcf/d of
natural gas sales to customers in Egypt and Israel from Tamar and
Leviathan.
- Closed the divestments of the General Partner of CONE Gathering
and a 7.5 percent working interest in the Tamar field, and
announced the sale of the Gulf of Mexico business.
- Reduced Noble Energy debt by $230 million and increased total
financial liquidity to more than $5 billion at the end of the first
quarter.
- Announced $750 million share repurchase program and repurchased
approximately $67.5 million of Noble Energy stock during late
February and March.
David L. Stover, Noble Energy’s Chairman,
President and CEO, commented, “Noble Energy is off to a fast start
in 2018, building on our successes in 2017. In the first
quarter, we accomplished numerous strategic objectives. Our
portfolio transformation and superior execution capabilities have
positioned us to continue driving improved capital efficiency and
corporate returns. Our core positions in the U.S. onshore
business provide a great foundation for high-return, high-margin
growth. Offshore, we are maximizing cash flow from our
assets, while progressing our world-class Leviathan
development. Growing our cash flows enables us to accelerate
direct return to shareholders through our buyback program and our
recent dividend increase."
Accounting Standard
Implementation
Beginning January 1, 2018, the Company modified
the presentation of revenue and certain gathering and
transportation expenses based on the timing of transfer of
ownership of produced commodities in accordance with the
implementation of FASB Accounting Standards Codification Standard
606 ("ASC 606"). In addition, the new standard impacted the
presentation of natural gas and natural gas liquids (NGL) volumes
sold under certain contracts, primarily in the DJ Basin.
There was no impact on the Company's operating cash flows or net
income.
First Quarter 2018 Results
First quarter net income attributable to Noble
Energy totaled $554 million, or $1.14 per diluted share. The
Company reported adjusted net income(3) and adjusted net income per
share(3) attributable to Noble Energy for the quarter of $172
million, or $0.35 per diluted share, which excludes the impact of
certain items typically not considered by analysts in formulating
estimates. Adjusted EBITDAX(3) was $797 million.
During the first quarter, the Company invested
$671 million in its upstream operations, with approximately 75
percent deployed to the Company's U.S. onshore plays and 22 percent
spent in Israel primarily for Leviathan development. The
Company also funded $110 million for U.S. onshore midstream
assets. Consolidated capital included $139 million organic
expenditures and $206 million for a pipeline acquisition, related
to Noble Midstream Partners LP ("Noble Midstream").
Prior to the implementation of ASC 606, total
company sales volumes for the first quarter 2018 were 361 thousand
barrels of oil equivalent per day(1) (MBoe/d). Compared to
the first quarter of 2017, sales volume increased by approximately
18 percent(2) driven by growth from the Company's U.S. onshore
assets. Reflecting the implementation of ASC 606, first
quarter 2018 sales volumes totaled 370 MBoe/d.
Unit operating expenses for the first quarter
2018 totaled $10.06 per barrel of oil equivalent (BOE)(1),
including lease operating expenses (LOE), production and ad valorem
taxes, gathering and transportation expenses, other royalty expense
and marketing costs. In the U.S. onshore, slightly higher LOE
was more than offset by lower gathering and transportation
expenses.
Income from equity method investees for the
quarter of $47 million was greater than expected, primarily due to
the strength of liquids prices at the methanol and LPG plants in
Equatorial Guinea. Midstream services revenue totaled $13
million for the quarter, primarily comprised of consolidated Noble
Midstream third-party gathering revenue.
Further Strengthened the Balance
Sheet
As part of the Company's long-term strategic
plan and multi-year outlook, Noble Energy has prioritized the
direct return of capital to shareholders. During the first
quarter, Noble Energy repurchased nine percent of its announced
$750 million share repurchase program. On April 23,
2018, Noble Energy increased its quarterly dividend 10 percent to
$0.11 per share.
During the first quarter, the Company completed
an amendment to its $4 billion revolving credit facility which
extended the maturity date by two years to March 2023. Noble
Midstream also completed a credit facility amendment, extending the
maturity date of its revolver to March 2023 and increasing the
facility size to $800 million.
The Company paid down $230 million of Noble
Energy debt during the first quarter. Total financial
liquidity increased to more than $5 billion, comprised of cash and
Noble Energy's undrawn credit facility borrowing capacity.
Subsequent to quarter-end, the Company issued an early call for
$379 million of legacy Rosetta Resources Inc. notes, set to mature
in May 2021 with a settlement date of May 1, 2018. Noble
Midstream's outstanding debt at the end of the first quarter
increased by $350 million, primarily as a result of the acquisition
of the Saddle Butte pipeline.
Noble Energy's Investment Grade credit rating
was reaffirmed during the first quarter. In addition, S&P
revised its outlook for Noble Energy to stable from negative, while
Fitch revised its outlook to positive from stable.
Solid U.S. Onshore
Operations
Total sales volumes across the Company’s U.S.
onshore assets averaged 237 MBoe/d(1) in the first quarter 2018, up
approximately 40 percent(2) from the first quarter 2017. U.S.
onshore oil volumes totaled 103 thousand barrels per day (MBbl/d),
up over 30 percent(2) from the first quarter of 2017, with the
increase primarily driven by the Company’s Delaware Basin
assets. Reflecting the implementation of ASC 606, first
quarter 2018 U.S. onshore sales volumes totaled 246 MBoe/d.
The DJ Basin averaged 111 MBoe/d(1), up seven
percent(2) from the first quarter of last year, with the oil mix
increased to a record of 56 percent(1). Reflecting the
implementation of ASC 606, first quarter 2018 DJ Basin sales
volumes totaled 120 MBoe/d, with an oil mix of 52 percent. DJ
Basin sales volumes were driven by continued strong well
performance in the Company’s Wells Ranch and East Pony areas.
The Company brought online 31 wells within the first quarter,
consisting of 15 wells in Wells Ranch and 16 wells in East
Pony. Late in the quarter, completion activity moved to the
Mustang IDP area.
Sales volumes from the Company's Delaware Basin
assets totaled 45 MBoe/d, with an oil mix of 69 percent.
Compared to the first quarter of last year, sales volumes increased
by over 85 percent(2). The Company brought online 13 wells in
the first quarter, all of which were located on multi-well
pads. The majority were landed within the Wolfcamp A Upper
and Lower zones as well as one well in the Third Bone Spring and
one well in the Wolfcamp C. Within the quarter, the Company
expanded its produced water management program, with nearly 10
percent of water used in completions being recycled produced
water.
In late March, the Company completed its third
central gathering facility ("CGF") in the Delaware Basin operated
by Noble Midstream. The facility represents the Company's first CGF
in the southern portion of the Company's acreage. The Company
commenced operations from its fourth CGF in late April, and expects
one additional CGF online by the end of the second quarter.
Sales volumes from the Eagle Ford totaled 81
MBoe/d, and were impacted approximately 3 MBoe/d in the first
quarter due to facility downtime impacts. Activity in the
Eagle Ford focused on completions for wells expected online in the
second quarter of 2018.
During the first quarter, Noble Energy averaged
nine operated drilling rigs (one DJ, six Delaware and two Eagle
Ford). The Company improved drilled footage per day in the
first quarter compared to the 2017 average by three percent, 10
percent and seven percent in the DJ, Delaware and Eagle Ford,
respectively.
Significant Milestones in the Eastern
Mediterranean
March 2018 marked the five-year anniversary of
first production from Tamar, offshore Israel. During the
quarter, the field reached cumulative production of 1.5 Tcf since
start-up. A record was established for first quarter gross
sales volumes of 959 million cubic feet of natural gas equivalent
per day (MMcfe/d). Net sales volumes totaled 263 MMcfe/d
during the first quarter of 2018. On March 14, 2018, the
Company closed the divestment of a 7.5 percent working interest in
the Tamar field. Also during the first quarter, the Company
exceeded more than three million man hours and one year of
performance without a recordable safety incident.
Currently, development of the Leviathan project
is approximately 45 percent complete and construction of the
production platform continues to progress. A drilling rig
arrived in March and commenced operations of the Leviathan-3 well
in early April. The pipe lay vessel is on-site, installing
infield flowlines and gas gathering pipelines which will connect to
the platform. The project remains on budget and on schedule
with first gas sales anticipated by the end of 2019.
Since year-end 2017, the Company has executed
several natural gas contracts with customers in Egypt and Israel
bringing total volumes under contract for Leviathan to over 900
MMcf/d. Included in this amount is a new agreement with an
existing customer to provide approximately 40 MMcf/d beginning in
the second quarter 2018 from Tamar, which will then transfer to
Leviathan upon field start-up.
Continued Reliable Offshore
Performance
Sales volumes for West Africa in the first
quarter 2018 were 56 MBoe/d (30 percent oil), which were less than
produced volumes by 2 MBoe/d. The difference in sales and
produced volumes was due to the lifting schedule for the Aseng
and Alen fields. Also during the first quarter, the Company
achieved more than two years without a recordable safety incident
at Aseng and almost four years without a recordable safety incident
at Alen.
Quarterly sales volumes in the Gulf of Mexico
averaged 24 MBoe/d. The Company closed the sale of the U.S.
Gulf of Mexico business on April 12, 2018.
Updated Guidance for ASC 606 and Timing
of Portfolio Transactions
The Company's guidance has been updated to
reflect the adoption of ASC 606 and the timing of the closing of
the Gulf of Mexico transaction. The close of the Gulf of
Mexico transaction, which occurred one month earlier than
anticipated, impacted prior second quarter expectations by an
estimated 7 MBoe/d and full year expectations by nearly 2
MBoe/d. The implementation of ASC 606 resulted in an uplift
to second quarter and full year volumes of approximately 9 MBoe/d
compared to prior estimates. Accounting for only these
specific items, full year 2018 sales volumes have been increased to
range between 350 and 360 MBoe/d.
The Company's unit operating expense guidance
has been updated to reflect the increase in sales volumes.
Compared to the Company's previously issued guidance, LOE per BOE
and gathering and transportation expenses per BOE have each been
reduced by ten cents.
Sales volumes for the second quarter of 2018 are
expected to range between 340 and 350 MBoe/d (post ASC 606).
The divestitures of the Gulf of Mexico and the 7.5 percent Tamar
interest in Israel account for nearly 30 MBoe/d reduction (20
MBoe/d Gulf of Mexico and 10 MBoe/d Israel) from the first quarter
2018 to the second quarter. Gulf of Mexico sales volumes are
included through the April 12, 2018 closing date. West Africa
sales volumes are expected to be slightly higher than the first
quarter as a result of lifting schedules. U.S. onshore oil
volumes are expected to be higher than the first quarter, driven by
the Delaware Basin.
The Company's full year capital expenditure
range of $2.7 to $2.9 billion remains unchanged. For the
second quarter, Noble Energy expects organic capital expenditures
between $750 million and $850 million, with the majority to be
spent in the DJ and Delaware basins and to progress Leviathan
development. Second half of 2018 capital expenditures are
expected to be lower than the first half reflecting front-end
loaded infrastructure spend in the Mustang IDP and the Delaware
Basin.
Additional details for first quarter results and
guidance can be found in the quarterly supplement on the Company’s
website, www.nblenergy.com.
(1) Reflects historical presentation of sales volume,
pre-implementation of ASC 606 accounting standard.(2) Pro forma for
asset acquisitions and divestitures.(3) 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 8:00 a.m. Central Time on May 1,
2018. 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: 888-882-4478International Dial
in: 323-794-2149Conference ID: 4898384
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.
Founded more than 85 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.nblenergy.com.
This 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 report on Form 10-K, 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.
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 respective earnings release 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 MonthsEnded March 31, |
|
2018 (1) |
|
2017 |
Revenues |
|
|
|
Oil, NGL
and Gas Sales |
$ |
1,173 |
|
|
$ |
994 |
|
Sale of
Purchased Oil and Gas |
53 |
|
|
— |
|
Income
from Equity Method Investees |
47 |
|
|
42 |
|
Midstream
Services Revenues – Third Party |
13 |
|
|
— |
|
Total
Revenues |
1,286 |
|
|
1,036 |
|
Operating
Expenses |
|
|
|
Lease
Operating Expense |
155 |
|
|
139 |
|
Production and Ad Valorem Taxes |
54 |
|
|
41 |
|
Gathering, Transportation and Processing Expense |
95 |
|
|
119 |
|
Other
Royalty Expense |
17 |
|
|
4 |
|
Marketing
Expense |
5 |
|
|
19 |
|
Exploration Expense |
35 |
|
|
42 |
|
Depreciation, Depletion and Amortization |
468 |
|
|
528 |
|
Purchased
Oil and Gas |
57 |
|
|
— |
|
General
and Administrative |
104 |
|
|
99 |
|
(Gain) on
Divestitures |
(588 |
) |
|
— |
|
Asset
Impairments |
168 |
|
|
— |
|
Other
Operating Expense, Net |
8 |
|
|
10 |
|
Total
Operating Expenses |
578 |
|
|
1,001 |
|
Operating
Income |
708 |
|
|
35 |
|
Other
Income |
|
|
|
Loss
(Gain) on Commodity Derivative Instruments |
79 |
|
|
(110 |
) |
Interest,
Net of Amount Capitalized |
73 |
|
|
87 |
|
Other
Non-Operating Expense (Income), Net |
13 |
|
|
(1 |
) |
Total
Other Expense (Income) |
165 |
|
|
(24 |
) |
Income Before
Income Taxes |
543 |
|
|
59 |
|
Income Tax (Benefit)
Expense |
(31 |
) |
|
12 |
|
Net Income and
Comprehensive Income Including Noncontrolling
Interests |
574 |
|
|
47 |
|
Less: Net
Income & Comprehensive Income Attributable to Noncontrolling
Interests (2) |
20 |
|
|
11 |
|
Net Income
& Comprehensive Income Attributable to Noble
Energy |
$ |
554 |
|
|
$ |
36 |
|
|
|
|
|
Net Income
Attributable to Noble Energy Per Share of Common
Stock |
|
|
|
Income Per Share, Basic |
$ |
1.14 |
|
|
$ |
0.08 |
|
Income Per Share, Diluted |
$ |
1.14 |
|
|
$ |
0.08 |
|
|
|
|
|
Weighted Average Number
of Shares Outstanding |
|
|
|
Basic |
487 |
|
|
431 |
|
Diluted |
488 |
|
|
434 |
|
(1) On January 1, 2018, we adopted ASC
606, Revenue from Contracts with Customers, using the modified
retrospective method. As a result of adoption, we have changed the
2018 presentation of certain sales volumes, revenues and expenses
related to sales of natural gas and NGLs based on the control model
under ASC 606. 2017 information has not been recast to reflect this
impact. See Schedule 4.(2) 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 May 1, 2018.
|
Schedule 2 |
Noble Energy, Inc. |
Condensed Balance Sheets |
(in millions, unaudited) |
|
|
March 31, 2018 |
|
December 31, 2017 |
Assets |
|
|
|
Current
Assets |
|
|
|
Cash and
Cash Equivalents |
$ |
992 |
|
|
$ |
675 |
|
Accounts
Receivable, Net |
707 |
|
|
748 |
|
Other
Current Assets |
895 |
|
|
780 |
|
Total
Current Assets |
2,594 |
|
|
2,203 |
|
Net
Property, Plant and Equipment |
17,431 |
|
|
17,502 |
|
Other
Noncurrent Assets |
1,021 |
|
|
461 |
|
Goodwill |
1,402 |
|
|
1,310 |
|
Total
Assets |
$ |
22,448 |
|
|
$ |
21,476 |
|
Liabilities and
Shareholders' Equity |
|
|
|
Current
Liabilities |
|
|
|
Accounts
Payable - Trade |
$ |
1,423 |
|
|
$ |
1,161 |
|
Other
Current Liabilities |
791 |
|
|
578 |
|
Total
Current Liabilities |
2,214 |
|
|
1,739 |
|
Long-Term
Debt |
6,858 |
|
|
6,746 |
|
Deferred
Income Taxes |
976 |
|
|
1,127 |
|
Other
Noncurrent Liabilities |
1,013 |
|
|
1,245 |
|
Total
Liabilities |
11,061 |
|
|
10,857 |
|
Total
Shareholders' Equity |
10,362 |
|
|
9,936 |
|
Noncontrolling Interests (1) |
1,025 |
|
|
683 |
|
Total
Equity |
11,387 |
|
|
10,619 |
|
Total
Liabilities and Equity |
$ |
22,448 |
|
|
$ |
21,476 |
|
(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 May 1, 2018.
|
Schedule 3 |
Noble Energy, Inc. |
Condensed Statement of Cash Flows |
(in millions, unaudited) |
|
|
Three Months EndedMarch 31, |
|
2018 |
|
2017 |
Cash Flows From Operating Activities |
|
|
|
Net
Income Including Noncontrolling Interests (1) |
$ |
574 |
|
|
$ |
47 |
|
Adjustments to Reconcile Net Income to Net Cash Provided by
Operating Activities |
|
|
|
Depreciation, Depletion and Amortization |
468 |
|
|
528 |
|
Asset
Impairments |
168 |
|
|
— |
|
Deferred
Income Tax Benefit |
(157 |
) |
|
— |
|
Loss
(Gain) on Commodity Derivative Instruments |
79 |
|
|
(110 |
) |
Net Cash
Received in Settlement of Commodity Derivative Instruments |
(28 |
) |
|
3 |
|
Gain on
Divestitures |
(588 |
) |
|
— |
|
Other
Adjustments for Noncash Items Included in Income |
(2 |
) |
|
20 |
|
Net
Changes in Working Capital |
69 |
|
|
48 |
|
Net Cash
Provided by Operating Activities |
583 |
|
|
536 |
|
Cash Flows From
Investing Activities |
|
|
|
Additions
to Property, Plant and Equipment |
(787 |
) |
|
(587 |
) |
Acquisitions, Net of Cash Acquired(2) |
(650 |
) |
|
(346 |
) |
Proceeds
from Sale of 7.5% Interest in Tamar and Dalit Fields |
487 |
|
|
— |
|
Proceeds
from Sale of CONE Gathering LLC |
308 |
|
|
— |
|
Proceeds
from Divestitures and Other |
70 |
|
|
40 |
|
Net Cash Used
in Investing Activities |
(572 |
) |
|
(893 |
) |
Cash Flows From
Financing Activities |
|
|
|
Dividends
Paid, Common Stock |
(48 |
) |
|
(44 |
) |
Purchase
and Retirement of Common Stock |
(67 |
) |
|
— |
|
Proceeds
from Noble Midstream Services Revolving Credit Facility |
405 |
|
|
— |
|
Contributions from Noncontrolling Interest and Other |
333 |
|
|
— |
|
Repayment
of Revolving Credit Facility |
(475 |
) |
|
— |
|
Other |
(40 |
) |
|
(22 |
) |
Net Cash
Provided by (Used in) Financing Activities |
298 |
|
|
(66 |
) |
Increase
(Decrease) in Cash, Cash Equivalents, and Restricted
Cash |
309 |
|
|
(423 |
) |
Cash, Cash
Equivalents, and Restricted Cash at Beginning of
Period(3) |
713 |
|
|
1,210 |
|
Cash, Cash
Equivalents, and Restricted Cash at End of Period(4) |
$ |
1,022 |
|
|
$ |
787 |
|
(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 three months ended March 31, 2018 and 2017, Net
Income includes Net Income Attributable to Noncontrolling Interests
in NBLX.(2) For the three months ended March 31, 2018,
acquisitions, net of cash acquired relates to 100 percent of the
acquisition of Saddle Butte Rockies Midstream, LLC.(3) As of the
beginning of the periods presented, includes $38 million and $30
million of restricted cash, respectively.(4) Includes $30 million
of restricted cash as of March 31, 2018.
These financial statements should be read in
conjunction with the financial statements and the accompanying
notes and other information included in Noble Energy's Quarterly
Report on Form 10-Q to be filed with the Securities and Exchange
Commission on May 1, 2018.
|
Schedule 4 |
Noble Energy, Inc. |
Volume and Price Statistics |
(unaudited) |
|
|
|
Three Months Ended |
|
|
March 31, |
Sales
Volumes |
|
2018 (1)PostASC 606Adoption |
|
2018 (1)Pre ASC606Adoption |
|
2017AsReported |
Crude Oil and
Condensate (MBbl/d) |
|
|
|
|
|
|
United
States Onshore |
|
103 |
|
|
103 |
|
|
75 |
|
United
States Gulf of Mexico |
|
19 |
|
|
19 |
|
|
24 |
|
Equatorial Guinea |
|
15 |
|
|
15 |
|
|
18 |
|
Equity
Method Investee - Equatorial Guinea |
|
2 |
|
|
2 |
|
|
2 |
|
Total |
|
139 |
|
|
139 |
|
|
119 |
|
Natural Gas
Liquids (MBbl/d) |
|
|
|
|
|
|
United
States Onshore(1) |
|
63 |
|
|
59 |
|
|
47 |
|
United
States Gulf of Mexico |
|
1 |
|
|
1 |
|
|
2 |
|
Equity
Method Investee - Equatorial Guinea |
|
5 |
|
|
5 |
|
|
6 |
|
Total |
|
69 |
|
|
65 |
|
|
55 |
|
Natural Gas
(MMcf/d) |
|
|
|
|
|
|
United
States Onshore(1) |
|
482 |
|
|
451 |
|
|
707 |
|
United
States Gulf of Mexico |
|
22 |
|
|
22 |
|
|
23 |
|
Israel |
|
261 |
|
|
261 |
|
|
271 |
|
Equatorial Guinea |
|
206 |
|
|
206 |
|
|
244 |
|
Total |
|
971 |
|
|
940 |
|
|
1,245 |
|
Total Sales
Volumes (MBoe/d) |
|
|
|
|
|
|
United
States Onshore |
|
246 |
|
|
237 |
|
|
240 |
|
United
States Gulf of Mexico |
|
24 |
|
|
24 |
|
|
30 |
|
Israel |
|
44 |
|
|
44 |
|
|
46 |
|
Equatorial Guinea |
|
49 |
|
|
49 |
|
|
58 |
|
Equity
Method Investee - Equatorial Guinea |
|
7 |
|
|
7 |
|
|
8 |
|
Total
Sales Volumes (MBoe/d) |
|
370 |
|
|
361 |
|
|
382 |
|
|
|
|
|
|
|
|
Total
Sales Volumes (MBoe) |
|
33,252 |
|
|
32,413 |
|
|
34,334 |
|
|
|
|
|
|
|
|
Price
Statistics - Realized Prices (2) |
|
|
|
|
|
|
Crude Oil and
Condensate ($/Bbl) |
|
|
|
|
|
|
United
States Onshore |
|
$ |
61.50 |
|
|
$ |
61.50 |
|
|
$ |
48.88 |
|
United
States Gulf of Mexico |
|
64.55 |
|
|
64.55 |
|
|
49.49 |
|
Equatorial Guinea |
|
68.14 |
|
|
68.14 |
|
|
53.42 |
|
Natural Gas
Liquids ($/Bbl) |
|
|
|
|
|
|
United
States Onshore(1) |
|
$ |
25.47 |
|
|
$ |
26.33 |
|
|
$ |
23.85 |
|
United
States Gulf of Mexico |
|
28.41 |
|
|
29.51 |
|
|
27.05 |
|
Natural Gas
($/Mcf) |
|
|
|
|
|
|
United
States Onshore(1) |
|
$ |
2.60 |
|
|
$ |
2.77 |
|
|
$ |
3.45 |
|
United
States Gulf of Mexico |
|
3.54 |
|
|
3.54 |
|
|
3.14 |
|
Israel |
|
5.48 |
|
|
5.48 |
|
|
5.32 |
|
Equatorial Guinea |
|
0.27 |
|
|
0.27 |
|
|
0.27 |
|
(1) On January 1, 2018, we adopted ASC
606, Revenue from Contracts with Customers, using the modified
retrospective method. As a result of adoption, and effective first
quarter 2018, we have changed the presentation of certain sales
volumes, revenues and expenses related to sales of natural gas and
NGLs based on the control model under ASC 606. For comparability
purposes, we have presented revenues, expenses and volumes under
the new guidance per ASC 606 as well as under the pre ASC 606 for
first quarter 2018. 2017 information has not been recast to reflect
this impact.(2) Average realized prices do not include gains or
losses on commodity derivative instruments.
Schedule 5Noble Energy,
Inc.Reconciliation of Net Income Attributable to
Noble Energy and Per Share (GAAP) toAdjusted
Income (Loss) Attributable to Noble Energy and Per Share
(Non-GAAP)(in millions, except per share amounts,
unaudited)
Adjusted income (loss) attributable to Noble
Energy and per share (Non-GAAP) should not be considered an
alternative to, or more meaningful than, net income 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 income (loss) 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 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
income (loss) 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 income (loss) attributable to Noble Energy
and per share (Non-GAAP), may not be comparable to similar measures
of other companies in our industry.
|
Three Months EndedMarch 31, |
|
2018 |
|
2017 |
Net Income
Attributable to Noble Energy (GAAP) |
$ |
554 |
|
|
$ |
36 |
|
Adjustments to Net
Income |
|
|
|
Gain on
Divestitures |
(588 |
) |
|
— |
|
Loss
(Gain) on Commodity Derivative Instruments, Net of Cash
Settlements |
51 |
|
|
(107 |
) |
Undeveloped Leasehold Impairment |
— |
|
|
18 |
|
Loss on
Investment in Tamar Petroleum Ltd., Net |
29 |
|
|
— |
|
Asset
Impairments |
168 |
|
|
— |
|
Other
Adjustments |
18 |
|
|
2 |
|
Total
Adjustments Before Tax |
(322 |
) |
|
(87 |
) |
Current
Income Tax Effect of Adjustments (1) |
113 |
|
|
(2 |
) |
Deferred
Income Tax Effect of Adjustments (1) |
(173 |
) |
|
30 |
|
Adjustments to
Net Income, After Tax |
$ |
(382 |
) |
|
$ |
(59 |
) |
Adjusted Net
Income (Loss) Attributable to Noble Energy (Non-GAAP) |
$ |
172 |
|
|
$ |
(23 |
) |
|
|
|
|
Net Income
Attributable to Noble Energy Per Share, Basic and Diluted
(GAAP) |
$ |
1.14 |
|
|
$ |
0.08 |
|
Gain on
Divestitures |
(1.21 |
) |
|
— |
|
Loss
(Gain) on Commodity Derivative Instruments, Net of Cash
Settlements |
0.10 |
|
|
(0.25 |
) |
Undeveloped Leasehold Impairment |
— |
|
|
0.04 |
|
Loss on
Investment in Tamar Petroleum Ltd., Net |
0.06 |
|
|
— |
|
Asset
Impairments |
0.34 |
|
|
— |
|
Other
Adjustments |
0.05 |
|
|
0.01 |
|
Current
Income Tax Effect of Adjustments (1) |
0.23 |
|
|
— |
|
Deferred
Income Tax Effect of Adjustments (1) |
(0.36 |
) |
|
0.07 |
|
Adjusted Net
Income (Loss) Attributable to Noble Energy Per Share, Diluted
(Non-GAAP) |
$ |
0.35 |
|
|
$ |
(0.05 |
) |
|
|
|
|
Weighted Average Number
of Shares Outstanding, Basic |
487 |
|
|
|
431 |
|
Weighted Average Number
of Shares Outstanding, Diluted |
488 |
|
|
434 |
|
|
|
|
|
|
|
(1) 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.
Schedule 6Noble Energy,
Inc.Reconciliation of Net Income Including
Noncontrolling Interest (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
including noncontrolling interest (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 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 EndedMarch 31, |
|
2018 |
|
2017 |
Net Income
Including Noncontrolling Interest (GAAP) |
$ |
574 |
|
|
$ |
47 |
|
Adjustments to Net Income, After Tax(1) |
(382 |
) |
|
(59 |
) |
Depreciation, Depletion, and Amortization |
468 |
|
|
528 |
|
Exploration Expense(2) |
35 |
|
|
24 |
|
Interest,
Net of Amount Capitalized |
73 |
|
|
87 |
|
Current
Income Tax Expense(3) |
13 |
|
|
14 |
|
Deferred
Income Tax Expense (Benefit)(3) |
16 |
|
|
(30 |
) |
Adjusted
EBITDAX (Non-GAAP) |
$ |
797 |
|
|
$ |
611 |
|
(1) See Schedule 5: Reconciliation of Net
Income (Loss) Attributable to Noble Energy (GAAP) to Adjusted
Income (Loss) Attributable to Noble Energy (Non-GAAP).(2)
Represents remaining Exploration Expense after reversal of
Adjustments to Net Income, After Tax, above.(3) Represents
remaining Income Tax Expense (Benefit) after reversal of
Adjustments to Net Income, After Tax, above.
Capital Expenditures(in
millions, unaudited)
|
Three Months EndedMarch 31, |
|
2018 |
|
2017 |
Organic Capital
Expenditures, Attributable to Noble Energy (Accrual Based) |
$ |
781 |
|
|
$ |
616 |
|
Acquisition Capital
Attributable to Noble Energy |
— |
|
|
323 |
|
NBLX Capital
Expenditures (4) |
345 |
|
|
60 |
|
Total Reported
Capital Expenditures (Accrual Based) |
$ |
1,126 |
|
|
$ |
999 |
|
(4) NBLX Capital Expenditures for the
three months ended March 31, 2018 includes $206 million related to
the acquisition of Saddle Butte Rockies Midstream, LLC.
Investor Contacts
Brad Whitmarsh
(281) 943-1670
Brad.Whitmarsh@nblenergy.com
Megan Dolezal
(281) 943-1861
Megan.Dolezal@nblenergy.com
Lauren Brown
(281) 872-3208
Lauren.Brown@nblenergy.com
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Paula Beasley
(281) 876-6133
media@nblenergy.com
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