Noble Energy Increases Proved Reserves 37 Percent to Total Nearly 2 BBoe
February 20 2018 - 7:00AM
Noble Energy, Inc. (NYSE:
NBL) (“Noble Energy” or
the “Company”) today announced total proved reserves of 1.965
billion barrels of oil equivalent as of December 31, 2017, a net
increase of 528 million barrels of oil equivalent (MMBoe) versus
year-end 2016. Organic reserve additions, comprised of
extensions, discoveries and performance and price revisions,
totaled 871 MMBoe and were added at a cost of approximately $2.90
per barrel of oil equivalent (BOE). These additions represent
approximately 6.3 times 2017 production. The value of future
after-tax net cash flows from the Company’s proved reserves,
according to U.S. Securities and Exchange Commission price
guidelines and discounted at 10 percent, increased to more than $11
billion, up nearly 100 percent from 2016.
Gary W. Willingham, Noble Energy’s Executive
Vice President, Operations, commented, “We had an exceptionally
strong year for reserves growth in 2017 with an organic replacement
ratio(1) of approximately 625 percent and extremely low finding and
development costs. Sanctioning and commencing development of
the Leviathan project was a major accomplishment in 2017. Our
reserve bookings reflect positive performance improvements in all
three U.S. onshore business units. Our reserve life has
increased to more than 10 years in the onshore business and to over
14 years for the total company, providing a strong visibility of
long-term value growth.”
Changes in the Company’s proved reserves are
summarized below:
Proved Reserves (MMBoe) |
United States |
Israel |
West Africa |
Total |
Beginning as of
December 31, 2016 |
976 |
334 |
127 |
1,437 |
Revisions of previous
estimates |
56 |
49 |
- |
105 |
Price-related
revisions |
26 |
- |
4 |
30 |
Extensions, discoveries
and other additions |
185 |
551 |
- |
736 |
Acquisitions |
57 |
- |
- |
57 |
Divestitures |
(261) |
- |
- |
(261) |
Production |
(99) |
(17) |
(23) |
(139) |
Proved reserves as
of December 31, 2017 |
940 |
917 |
108 |
1,965 |
The composition of reserves was approximately 35
percent liquids, 50 percent international natural gas and 15
percent U.S. natural gas. Proved developed reserves
totaled 868 MMBoe, an increase of nearly 15 percent from the end of
2016, excluding Marcellus Shale reserves which were divested in
2017.
In the Company’s U.S. onshore business, organic
reserve additions and revisions excluding acquisitions, totaled 265
MMBoe. U.S. onshore reserve replacement(1) was approximately
300 percent at a cost of approximately $7.00 per BOE. The
composition of U.S. onshore reserves was approximately two-thirds
liquids in 2017, up from 50 percent at the end of 2016.
The Company’s onshore reserve additions were
primarily driven by activity and performance in the DJ Basin and
Delaware Basin. Reserve replacement(1) in the DJ Basin and
Delaware Basin was approximately 285 percent and 1,135 percent,
respectively. Improved well performance drove DJ Basin
reserve additions and revisions of 146 MMBoe, before the removal of
31 MMBoe associated with legacy vertical wells. Excluding
acquisitions, reserve additions and revisions totaled 108 MMBoe in
the Delaware Basin driven by the pace of development and enhanced
completion results.
The Company also added 57 MMBoe to its Delaware
Basin reserves primarily through the acquisition of Clayton
Williams Energy in 2017. Several non-core asset sales were
completed in 2017, including the divestment of the Marcellus
upstream assets, non-core acreage in the DJ Basin and various
mineral interests, resulting in a total reduction of 261
MMBoe.
In the Company’s Israel business, 3.3 trillion
cubic feet of natural gas reserves were added as a result of the
sanction of the Company’s world-class Leviathan project. An
additional 292 billion cubic feet of natural gas reserves was added
from performance revisions at the Tamar field.
The 2017 price deck for calculating proved
reserves, before adjusting for differentials, was $51.34 per barrel
of WTI crude oil and $2.98 per million British thermal unit of
Henry Hub natural gas. Total development and exploration
costs incurred for upstream oil and gas activities, excluding
acquisitions, was approximately $2.5 billion for full-year
2017.
(1) Calculated as
extensions, discoveries, and performance and price revisions
divided by production.
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.
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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