Noble Energy Loss Widens
May 04 2016 - 8:33AM
Dow Jones News
By Anne Steele
Noble Energy Inc. widened its loss in the first quarter of the
year as expenses climbed and revenue continued to slide on depleted
energy prices.
On an adjusted basis, the oil-and-gas producer's loss was not as
deep as expected, and the company raised its volume guidance for
the year.
Investors have been watching energy companies to see if they can
reduce costs enough to match plummeting energy prices. For the
quarter, Noble's total lease operating costs averaged $4.25 per
barrel of oil equivalent, down about 22% from the previous
year.
The company said total sales volumes for the quarter jumped 31%
to 416,000 barrels of oil equivalent a day, helped by the merger
with Rosetta Resources Inc. in July. Excluding assets from Rosetta,
volumes climbed 12%.
Noble said its average realized price for crude oil dropped 32%,
while its realized price for natural gas fell 18%.
Chief Executive David Stover said results are "giving us the
confidence to lower our full year capital and cost outlook while
raising volumes substantially."
"Significant capital efficiency gains and outstanding operating
performance, combined with robust liquidity, position us well in
any price scenario," he said.
The company said it now anticipates full-year capital
expenditures to be less than the original estimate of $1.5 billion.
Noble also raised total sales volumes for 2016 by 4%.
Over all, Noble reported a loss of $287 million, or 67 cents a
share, wider than a loss of $22 million, or 6 cents a share, a year
earlier.
Excluding certain items the company's adjusted loss was 53 cents
a share from a profit of 3 cents in the year-ago quarter. Analysts
surveyed by Thomson Reuters had expected an adjusted loss of 57
cents a share.
Revenue fell 5.6% to $724 million, below the average analyst
estimate of $784 million.
Shares, inactive premarket, have added 12% over the past three
months but have declined by 31% over the past year.
Write to Anne Steele at anne.steele@wsj.com
(END) Dow Jones Newswires
May 04, 2016 08:18 ET (12:18 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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