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Noble Energy Announces Fourth-Quarter And Year-End 2014 Results
Last update: 19/02/2015 7:30:11 am
Noble Energy Announces Fourth Quarter And Year-End 2014 Results
PR Newswire
HOUSTON, Feb. 19, 2015
HOUSTON, Feb. 19, 2015 /PRNewswire/ -- Noble Energy, Inc. (NYSE:NBL) announced today fourth quarter 2014 net income of $402 million, or $1.05 per diluted share. Excluding the impact of certain items, which would typically not be considered by analysts in published earnings estimates, fourth quarter 2014 adjusted income(1) was $156 million, or $0.38 per diluted share. Discretionary cash flow(1) was $754 million and net cash provided by operating activities was $803 million. Capital expenditures for the final quarter of 2014 totaled $1.35 billion.
Total sales volumes for the quarter averaged a record 315 thousand barrels of oil equivalent per day (MBoe/d). This represents an increase of eight percent compared to the fourth quarter of 2013, or 14 percent after adjusting for divested assets. Versus the final quarter of last year, total sales volumes were up primarily as a result of the Company's continued horizontal development of the DJ Basin and Marcellus Shale resource plays. Noble Energy's onshore horizontal production was 50 percent higher in the fourth quarter of 2014 versus the same period in 2013.
Liquids comprised 44 percent (35 percent crude oil and condensate and 9 percent natural gas liquids) of total Company fourth quarter 2014 volumes, with natural gas the remaining 56 percent. U.S. volumes for the quarter totaled 192 MBoe/d, while International sales volumes were 123 MBoe/d. Total sales volumes were higher than produced volumes by more than three thousand barrels per day (MBbl/d) due to the timing of liftings in Equatorial Guinea, primarily at the Alba field.
Noble Energy reported full year 2014 net income of $1.21 billion, or $3.27 per diluted share, and adjusted income(1) was $881 million, or $2.36 per diluted share. Discretionary cash flow(1) for 2014 was $3.32 billion and net cash provided by operating activities was $3.51 billion. Total capital expenditures for the year were $4.88 billion. The Company sold average volumes for the year of 298 MBoe/d, an increase of 16 percent over 2013 volumes after adjusting for divested assets.
David L. Stover, Noble Energy's President and CEO, commented, "Despite the dramatic commodity price volatility over the last several months, Noble Energy exited 2014 with a substantially increased operational capacity and a solid liquidity position. Our operational momentum was highlighted by the DJ Basin and Marcellus Shale programs, where each asset ended the year at record production levels and above our fourth quarter averages. As we move into 2015, we are responding swiftly and materially to the current environment, focused on maintaining our financial and operational flexibility, while also preserving the long-term value of our business."
Fourth quarter 2014 total production costs, including lease operating expense, production and ad valorem taxes, and transportation and gathering averaged $9.01 per barrel of oil equivalent (Boe), and depreciation, depletion, and amortization totaled $15.94 per Boe. Exploration expense was $147 million, including $63 million related to unsuccessful exploration drilling and $28 million for the write-off of certain non-core U.S. undeveloped leasehold costs. General and administrative costs were lower than anticipated due primarily to reduced personnel costs. Included in other non-operating income for the fourth quarter 2014 was a $26 million gain related to the value change of Noble Energy stock held in a deferred compensation program.
Adjustments to net income for the final quarter of 2014 included non-cash commodity derivative gains of approximately $778 million, as a result of the value change of the Company's existing crude oil and natural gas hedge positions as of the end of the year. In addition, the Company adjusted from net income certain proved property asset impairment charges of $336 million, which primarily related to properties in the Gulf of Mexico. The effective tax rate on adjusted income for the quarter was 15 percent, with 57 percent of the adjusted tax provision being deferred.
OPERATIONS UPDATE
DJ BASIN
In the DJ Basin, sales volumes averaged a record 108 MBoe/d in the fourth quarter of 2014, up five percent from the third quarter of 2014. Versus the same quarter of last year, after excluding the impact of volumes associated with an acreage exchange executed late in 2013, volumes were up 10 percent. Fourth quarter 2014 volumes were reduced approximately 5 MBoe/d due to winter weather and third-party facility downtime. Liquids made up 65 percent of DJ Basin volumes (50 percent crude oil and condensate and 15 percent natural gas liquids) and 35 percent was natural gas. Highlights for the quarter included:
-- Record quarterly horizontal volumes, which totaled 82 MBoe/d, up 11
percent from the third quarter of 2014 and more than 30 percent from the
same quarter of last year, after excluding the impact of volumes
associated with the exchange executed in late 2013.
-- Drilled 80 wells in the quarter, including 28 extended reach laterals,
with an average lateral length of more than 6,000 feet. The average
lateral length per operated well in 2014 of 5,555 feet is more than 1,000
feet longer than the previous year average.
-- Included in the wells drilled for the quarter was a record spud to rig
release time of under five days for a 4,520 foot horizontal well drilled
in the East Pony area.
-- Commenced production on 90 operated wells, including 36 extended reach
lateral wells (total of 119 standard length equivalent wells).
-- Included in the wells brought online in the quarter were the Company's
initial downspacing results in the Greeley-Crescent area, with 29 wells
testing 24 and 32-well per section spacing. After more than 90 days of
production, 20 of the wells are performing at or above expectations for
the area. The downspaced wells include wells in each of the Niobrara
zones, as well as the Codell. In East Pony, five downspacing wells have
been on production for more than 50 days, testing up to 32 wells per
section spacing. All five wells are performing consistent with
expectations.
-- 20 additional Plug-n-Perf completions commenced production in the fourth
quarter of 2014. The wells, which have been on production between 40 and
100 days, are located primarily in the Wells Ranch and East Pony areas.
Performance on average is consistent to slightly above the comparable
sliding sleeve completion wells.
-- Third-party compression capacity is being expanded with the 70 Ranch
Compressor Station commencing operation in early February 2015, adding 45
million cubic feet of natural gas per day (MMcf/d) of compression in the
Wells Ranch area. An additional 100 MMcf/d of compression in Wells Ranch
is anticipated to be operational with the Rocky Compressor Station in the
second quarter of 2015. Gas processing is also expanding within Greater
Wattenberg with the Lucerne-2 gas processing plant, designed to add 200
MMcf/d of natural gas processing capacity, progressing for start-up in
the second quarter of 2015.
-- Oil pipeline capacity out of the DJ Basin is being expanded with the
first quarter 2015 connection of the Northern Colorado Pipeline to the
Wattenberg Oil Trunkline, which delivers oil volume to both the White
Cliffs pipeline and the Tampa rail system. In addition, the Tallgrass
lateral, connecting East Pony production to the Pony Express pipeline, is
planned to commence operation in the second quarter of 2015 with a
capacity of 90 MBbl/d.
MARCELLUS SHALE
Production volumes in the Marcellus Shale averaged a record 378 million cubic feet of natural gas equivalent per day (MMcfe/d), a 16 percent increase versus the third quarter of 2014 and 93 percent versus the same quarter of last year. Natural gas represented 86 percent of fourth quarter 2014 volumes, with the remaining 14 percent primarily composed of natural gas liquids (NGLs). Highlights for the quarter included:
-- Operated wet gas production increased to approximately 47 percent of
total Joint Venture volume, versus 28 percent in the fourth quarter of
2013. Total wet gas production is up approximately 220 percent from the
fourth quarter of last year.
-- Drilled 24 operated wells at an average lateral length of more than 9,000
feet. The average lateral length per operated well in 2014 of 8,000 feet
is more than 1,000 feet longer than the previous year average and 3,000
feet longer than the 2012 average.
-- Noble Energy commenced drilling on the Joint Venture's first Utica well,
the Moundsville-6H, located in Marshall County, West Virginia. The well
was drilled to a total depth of 20,309 feet, with a lateral length of
9,483 feet. First production from the well is anticipated in the second
half of 2015.
-- Commenced production on 32 operated wells, including 8 wells completed
with Reduced Stage and Cluster Spacing (RSCS). Results from all operated
RSCS wells in 2014 continue to support a 20 to 40 percent improvement in
production rate versus wells with standard completion designs.
-- Included in the wells brought online during the quarter were the
Company's first pads in the Pennsboro and Moundsville areas of West
Virginia (Ritchie and Marshall counties, respectively). Initial
production from these areas is performing in line with expectations.
-- The WFN-4 pad in Majorsville, the Company's most recent operated pad on
production, consisting of 6 wells at an average lateral length of nearly
7,000 feet, came online during the fourth quarter and was producing more
than 55 MMcfe/d, gross, after 30 days online. Performance is tracking
(MORE TO FOLLOW) Dow Jones Newswires
February 19, 2015 07:30 ET (12:30 GMT)
Captain Black Bob Blanco
12 years ago
Release Date: 10/17/12
Contacts: Lesli Ellis , 775-753-0386 , lellis@blm.gov
News Release No. ELDO 2013-003
Elko District BLM signs decision on seismic surveys on public land
ELKO, Nev. โ The Bureau of Land Management, Elko District, Wells Field Office has signed a Finding of No Significant Impact (FONSI) and Decision Record (DR) on the proposal by Noble Energy (Noble) to conduct 3D seismic surveys in the Tabor Flats area, west of Wells, as part of its oil and gas exploration lease.
A 3D seismic survey accurately images reflected waves by utilizing multiple points of observation in an effort to discover oil and gas deposits. A grid of geophones will record the vibrations caused by vibration trucks at seismic source impact points. Noble proposes to have 16 to 20 receiver lines at one time. The result is a volume, or cube, of seismic data sampled from a range of different angles and distances. The geophones and impact points will be placed by foot, all-terrain vehicles and/or trucks.
If oil and gas deposits are discovered, an Application for a Permit to Drill (APD) will need to be submitted to the Elko District BLM prior to any drilling activity taking place. The APD will follow all applicable National Environmental Policy Act guidelines, to include a public review.
Operations are set to take place this fall and will take approximately 60 working days to complete once operations begin.
To review the project and map, please visit our website at www.blm.gov/rv5c.
--BLM--
Elko District Office 3900 E. Idaho St. Elko, NV 89801