Full-year capital and operating expense
guided lower
Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or the
"Company”) today announced second quarter 2019 financial and
operating results. Highlights include:
- Organic capital expenditures funded by Noble Energy totaled
$618 million, below the low end of guidance.
- U.S. onshore well costs have been reduced more than 15% in both
the DJ and Delaware Basins as compared to the fourth quarter
2018.
- Offshore spend continues to trend below budget, primarily due
to strong project execution at Leviathan.
- Unit production costs totaled $8.19 per BOE, below guidance,
driven by U.S. onshore cost reductions and onshore and offshore
production outperformance.
- Total Company sales volumes of 349 MBoe/d and U.S. onshore
volumes of 263 MBoe/d exceeded guidance. Total oil volumes of 130
MBbl/d and U.S. onshore oil of 117 MBbl/d were also above
plan.
- Quarterly production records were established for both the DJ
and Delaware Basins.
- Mustang IDP production in the DJ Basin reached more than 51
MBoe/d, net, following continued Row 2 development.
- Delaware Basin production increased nearly 9% from the first
quarter 2019.
- Progressed Leviathan to 88% complete, including finalizing
construction of the production decks.
David L. Stover, Noble Energy’s Chairman and CEO, commented,
“Noble Energy continues to execute well on its strategy to deliver
free cash flow through capital discipline and moderate growth. In
the second quarter, capital and operating costs were again below
plan, and production was above expectations. I’ve been very pleased
with the capital efficiency gains in our U.S. onshore business, and
we are delivering on a meaningful production ramp in the third
quarter. This onshore momentum, combined with startup of the
world-class Leviathan project by the end of the year, will result
in a substantial transformation for the Company. Our competitively
advantaged portfolio and leading execution capability position
Noble Energy to deliver sustainable long-term free cash flow,
improve corporate returns and return significant amounts of capital
to investors.”
Second Quarter 2019
Results
The Company reported a second quarter net loss attributable to
Noble Energy of $10 million, or $0.02 per diluted share. Net income
including noncontrolling interest was $8 million. Excluding items
impacting comparability, the Company generated an adjusted net loss
and adjusted net loss per share(1) attributable to Noble Energy for
the quarter of $49 million, or $0.10 per diluted share. Adjusted
EBITDAX(1) was $589 million, and cash provided by operating
activities was $564 million.
Second quarter 2019 organic capital investments attributable to
Noble Energy included $453 million related to U.S. onshore upstream
activities and $23 million for midstream activities funded by the
Company. Noble Energy also invested $119 million in the Eastern
Mediterranean, primarily for the development of the Leviathan
project, and $12 million in West Africa.
Revenues for the second quarter 2019 were benefited by strong
production performance and realized oil pricing; while, along with
the rest of the industry, natural gas pricing and natural gas
liquids (NGL) realizations were lower than expected. The Company's
U.S. onshore oil price averaged 98% of the West Texas Intermediate
index (WTI) price for the quarter and U.S. onshore NGL pricing per
barrel averaged 24% of WTI crude. The Company's natural gas price
in the U.S. onshore averaged $1.61 per thousand cubic feet (Mcf)
before hedge impacts, reflecting increased differentials in the DJ
and Delaware Basins. In the second quarter, Noble Energy’s basis
hedges for Delaware Basin gas production generated nearly $5
million in additional cash flow or approximately $0.80 per Mcf.
Unit production expenses for the second quarter 2019 were $8.19
per barrel of oil equivalent (BOE), including lease operating
expenses, production taxes, gathering and transportation expenses,
and other royalty costs. Noble Energy continues to drive U.S.
onshore production costs lower through workover and chemical cost
optimization and fuel cost savings. Per barrel operating costs also
benefited from higher production during the quarter. Depreciation,
depletion and amortization was $16.64 per BOE and general and
administrative expenses totaled $105 million for the quarter.
Marketing and other expenses, including sales and costs of
purchased oil and gas, netted to $24 million in the second quarter,
primarily reflecting mitigation of firm transportation costs.
Income from equity method investees for the second quarter
totaled $16 million, below guidance due to lower than anticipated
methanol and LPG pricing. Midstream Services Revenue of $20 million
for the quarter was primarily composed of Noble Midstream Partners
L.P. gathering revenue from unaffiliated third parties.
The Company’s effective tax rate, after excluding items
impacting comparability of earnings to prior periods, was
approximately 12%. On this basis, current tax expense was $17
million, resulting from the income generated in West Africa and
Israel. Deferred taxes were a benefit of $21 million on this same
basis.
The Company ended the second quarter 2019 with $4.4 billion in
financial liquidity, including cash and available credit
facility.
U.S. Onshore Inflection Point
Underway
Well cost reductions in the U.S. onshore business are exceeding
the 2019 guidance targets of up to $1 million per well in the DJ
Basin and $1.5 million per well in the Delaware Basin. Completion
stages performed per day are on average 50 percent higher than in
late 2018, contributing to reduced well costs and accelerated first
production for new wells. Spud to rig release drilling days
continue to improve with the DJ Basin long laterals now below 5
drilling days per well, and in the Delaware Basin, the Company has
recently drilled a 10-thousand-foot lateral well in under 17
days.
As a result of these efficiency gains, the Company was able to
bring online an additional 17 wells in the first half of the year.
Across the U.S. onshore portfolio, the Company operated 6 rigs (2
DJ and 4 Delaware) and drilled 42 wells (26 DJ and 16 Delaware) in
the quarter. Noble Energy completed 59 wells (33 DJ, 17 Delaware, 9
Eagle Ford) and commenced production on 77 wells (36 DJ, 25
Delaware, 16 Eagle Ford).
Total sales volumes across the Company’s U.S. onshore assets
averaged a record 263 thousand barrels of oil equivalent per day
(MBoe/d) in the second quarter 2019. The U.S. onshore assets
produced total liquids volumes of 181 thousand barrels per day
(MBbl/d) of which oil production was 117 MBbl/d, also a record.
The DJ Basin averaged 145 MBoe/d, up 20% from the second quarter
2018, while continuing to generate operating cash flows in excess
of capital expenditures. More than half of the Company’s second
quarter 2019 DJ Basin activity was focused in Mustang (55% of wells
commencing production), with certain Wells Ranch and East Pony
wells also commencing production. Sales volumes from the Company's
Delaware Basin assets totaled 64 MBoe/d, up more than 35% from the
second quarter 2018. During the quarter, the Company brought online
a full section row development (10 wells) in the Calamity Jane
lease in late June. Sales volumes from the Eagle Ford totaled 54
MBoe/d for the second quarter 2019, benefiting from accelerated
production as the Company delivered 16 wells to first production.
These Eagle Ford wells commenced production in June from the
Company’s North Gates Ranch area.
July 2019 production for the Company's U.S. onshore assets was
approximately 285 MBoe/d, reflecting robust base and new well
performance. U.S. onshore oil volumes for July 2019 were estimated
to be 125 MBbl/d.
Leviathan Sets Sail with Production on
Track for YE 2019
Delivery of the Leviathan project remains on budget and on
schedule for first production by the end of 2019. The production
decks have left the Gulf Coast fabrication yard for Israel. Due
diligence on the EMG Pipeline was completed in the second quarter
confirming pipeline integrity and flow capacity. Closing the
acquisition of an interest in the EMG Pipeline, which supports
sales into Egypt, is targeted in the third quarter 2019.
Second quarter 2019 sales volumes from the Company’s assets in
Israel totaled 210 million cubic feet of natural gas equivalent per
day. Production was above plan due to high seasonal natural gas
demand and lower than planned maintenance. Sales volumes for West
Africa averaged 51 MBoe/d, including 13 MBbl/d of crude oil.
Production volumes in Equatorial Guinea exceeded sales volumes in
the second quarter by 4 MBbl/d and consequently, cargo liftings are
expected to increase in the back half of the year. Drilling is
ongoing at the Aseng oil field, where an additional development
well will come online in the fourth quarter.
Updating Guidance to Reflect Lower
Capital and Operating Costs, Higher Volumes
The Company has lowered full-year capital and operating cost
expectations due to year-to-date progress on cost initiatives.
Full-year capital is now estimated $100 million less than original
plan, primarily due to U.S. onshore capital reductions. For the
third quarter, Noble Energy expects organic capital expenditures
between $600 million and $675 million. As compared to the second
quarter, U.S. onshore capital is estimated to be about $75 million
lower, with offshore spend planned higher as a result of Leviathan
installation and the Aseng development drilling and completion
activity.
Unit production expenses continue to trend favorably with
full-year guidance lowered $0.15 per BOE.
All three U.S. onshore basins are expected to deliver higher
third quarter 2019 volumes sequentially as a result of the count
and timing of wells that began production during the second
quarter. At the mid-point of guidance, U.S. onshore oil volumes are
expected to increase 10 MBbl/d.
Internationally, third quarter 2019 sales volumes are also
anticipated to be higher, benefiting from the timing of liquids
liftings in West Africa and seasonal demand in Israel. The Company
anticipates third quarter volumes to average in the range of 370 to
385 MBoe/d.
Following outperformance in the first half of the year, the
Company has raised its full-year 2019 sales volume guidance.
Additional details and updated guidance can be found in the
Company’s supplemental presentation on the Company’s website,
www.nblenergy.com.
(1)
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 Daylight Time on August 2, 2019. 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: 877-883-0383
International Dial in: 412-902-6506
Conference ID: 0526055
Noble Energy (NYSE: NBL) is an independent oil and
natural gas exploration and production company committed to meeting
the world’s growing energy needs and delivering leading returns to
shareholders. The Company operates a high-quality portfolio of
assets onshore in the United States and offshore in the Eastern
Mediterranean and off the west coast of Africa. Founded more than
85 years ago, Noble Energy is guided by its values, its commitment
to safety, and respect for stakeholders, communities and the
environment. For more information on how the Company fulfills its
purpose: Energizing the World, Bettering People’s Lives®, visit
https://www.nblenergy.com.
This news release contains certain "forward-looking statements"
within the meaning of federal securities laws. Words such as
"anticipates", “plans”, “estimates”, "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, 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, quarterly report
on Form 10-Q, and in other Noble Energy reports on file with the
Securities and Exchange Commission. 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
earnings release schedules included herein 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 Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Revenues
Oil, NGL and Gas Sales
$
954
$
1,100
$
1,891
$
2,273
Sales of Purchased Oil and Gas
103
66
177
119
Income from Equity Method Investees
16
49
33
96
Midstream Services Revenues – Third
Party
20
15
44
28
Total Revenues
1,093
1,230
2,145
2,516
Operating Expenses
Lease Operating Expense
122
132
273
287
Production and Ad Valorem Taxes
41
50
90
104
Gathering, Transportation and Processing
Expense
96
98
198
191
Other Royalty Expense
1
10
4
27
Exploration Expense
33
29
57
64
Depreciation, Depletion and
Amortization
528
465
1,036
933
General and Administrative
105
105
207
209
Cost of Purchased Oil and Gas
113
71
200
128
Marketing Expense
14
9
19
16
Other Operating Expense, Net
8
(4
)
28
4
Gain on Divestitures, Net
—
(78
)
—
(666
)
Asset Impairments
—
—
—
168
Firm Transportation Exit Cost
—
—
92
—
Total Operating Expenses
1,061
887
2,204
1,465
Operating Income (Loss)
32
343
(59
)
1,051
Other Expense
(Gain) Loss on Commodity Derivative
Instruments
(60
)
249
152
328
Interest, Net of Amount Capitalized
63
73
129
146
Other Non-Operating Expense, Net
1
11
5
24
Total Other Expense
4
333
286
498
Income (Loss) Before Income
Taxes
28
10
(345
)
553
Income Tax Expense (Benefit)
20
16
(64
)
(15
)
Net Income (Loss) and Comprehensive
Income (Loss) Including Noncontrolling Interests
8
(6
)
(281
)
568
Less: Net Income and Comprehensive
Income Attributable to Noncontrolling Interests (1)
18
17
42
37
Net (Loss) Income and Comprehensive
(Loss) Income Attributable to Noble Energy
$
(10
)
$
(23
)
$
(323
)
$
531
Net (Loss) Income Attributable to Noble
Energy Per Share of Common Stock
(Loss) Income Per Share, Basic
$
(0.02
)
$
(0.05
)
$
(0.68
)
$
1.09
(Loss) Income Per Share, Diluted
$
(0.02
)
$
(0.05
)
$
(0.68
)
$
1.09
Weighted Average Number of Shares
Outstanding
Basic
478
484
478
485
Diluted
478
484
478
487
(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 August 2, 2019.
Schedule 2
Noble Energy, Inc.
Condensed Statement of Cash
Flows
(in millions,
unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Cash Flows From Operating
Activities
Net (Loss) Income Including Noncontrolling
Interests (1)
$
8
$
(6
)
$
(281
)
$
568
Adjustments to Reconcile Net (Loss) Income
to Net Cash Provided by Operating Activities
Depreciation, Depletion and
Amortization
528
465
1,036
933
Gain on Divestitures, Net
—
(78
)
—
(666
)
Asset Impairments
—
—
—
168
Firm Transportation Exit Cost
—
—
92
—
Deferred Income Tax Benefit
(1
)
(7
)
(101
)
(164
)
(Gain) Loss on Commodity Derivative
Instruments
(60
)
249
152
328
Net Cash Received (Paid) in Settlement of
Commodity Derivative Instruments
1
(65
)
15
(93
)
Other Adjustments for Noncash Items
Included in Income
31
59
59
57
Net Changes in Working Capital
57
(121
)
120
(52
)
Net Cash Provided by Operating
Activities
564
496
1,092
1,079
Cash Flows From Investing
Activities
Additions to Property, Plant and
Equipment
(642
)
(995
)
(1,405
)
(1,782
)
Acquisitions, Net of Cash Received (2)
—
—
—
(650
)
Additions to Equity Method Investments
(3)
(144
)
—
(415
)
—
Proceeds from Divestitures, Net (4)
—
517
123
1,382
Net Cash Used in Investing
Activities
(786
)
(478
)
(1,697
)
(1,050
)
Cash Flows From Financing
Activities
Dividends Paid, Common Stock
(58
)
(54
)
(111
)
(102
)
Purchase and Retirement of Common
Stock
—
(63
)
—
(130
)
Noble Midstream Services Revolving Credit
Facility, Net
140
95
310
445
Revolving Credit Facility, Net
—
—
—
(230
)
Commercial Paper Borrowings, Net
240
—
240
—
Repayment of Senior Notes
(9
)
(384
)
(9
)
(384
)
Contributions from Noncontrolling Interest
Owners
11
(2
)
21
331
Proceeds from Issuance of Mezzanine
Equity, Net of Offering Costs (5)
—
—
99
—
Other
(30
)
(11
)
(62
)
(51
)
Net Cash Provided by (Used in)
Financing Activities
294
(419
)
488
(121
)
Increase (Decrease) in Cash, Cash
Equivalents, and Restricted Cash
72
(401
)
(117
)
(92
)
Cash, Cash Equivalents, and Restricted
Cash at Beginning of Period (6)
530
1,022
719
713
Cash, Cash Equivalents, and Restricted
Cash at End of Period (7)
$
602
$
621
$
602
$
621
(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 and six months ended June 30, 2019, net (loss) income
includes net income attributable to noncontrolling interests in
NBLX.
(2)
Acquisitions, net of cash received,
related to 100 percent of the acquisition of Saddle Butte Rockies
Midstream, LLC by NBLX.
(3)
Additions relate primarily to investments
in EPIC Y-Grade, LP, EPIC Crude Holdings, LP and Delaware Crossing
LLC by NBLX.
(4)
For the six months ended June 30, 2019,
proceeds related to the SW Reeves County, Texas asset divestiture.
For the six months ended June 30, 2018, proceeds include $484
million from the sale of our 7.5% interest in Tamar field, $443
million from the sale of CONE Gathering LLC and CNX Midstream
Partners common units and $383 million from the Gulf of Mexico
asset divestiture.
(5)
For the six months ended June 30, 2019,
proceeds related to the issuance of preferred equity by NBLX. As
the preferred equity is redeemable, it is presented within the
mezzanine section of our consolidated balance sheet. In addition,
as the preferred equity is held by a third party, it is considered
a redeemable noncontrolling interest.
(6)
As of the beginning of the periods
presented, amounts include $2 million, $30 million, $3 million, and
$38 million of restricted cash, respectively.
(7)
As of June 30, 2019 and June 30, 2018,
amounts include $132 million and $0 million of restricted cash,
respectively.
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 August 2, 2019.
Schedule 3
Noble Energy, Inc.
Condensed Balance
Sheets
(in millions,
unaudited)
June 30, 2019
December 31, 2018
Assets
Current Assets
Cash and Cash Equivalents
$
470
$
716
Accounts Receivable, Net
575
616
Other Current Assets
313
418
Total Current Assets
1,358
1,750
Net Property, Plant and Equipment
18,775
18,419
Other Noncurrent Assets
1,516
841
Total Assets
$
21,649
$
21,010
Liabilities, Mezzanine Equity and
Shareholders' Equity
Current Liabilities
Accounts Payable - Trade
$
1,313
$
1,207
Other Current Liabilities
998
519
Total Current Liabilities
2,311
1,726
Long-Term Debt
6,866
6,574
Deferred Income Taxes
961
1,061
Other Noncurrent Liabilities
1,307
1,165
Total Liabilities
11,445
10,526
Total Mezzanine Equity (1)
100
—
Total Shareholders' Equity
9,029
9,426
Noncontrolling Interests (2)
1,075
1,058
Total Equity
10,104
10,484
Total Liabilities and Equity
$
21,649
$
21,010
(1)
Amount relates to preferred equity issued
by Noble Midstream Partners LP (NBLX). As the preferred equity is
redeemable, it is presented within the mezzanine section of our
consolidated balance sheet. In addition, as the preferred equity is
held by a third party, it is considered a redeemable noncontrolling
interest.
(2)
The Company consolidates 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 August 2, 2019.
Schedule 4
Noble Energy, Inc.
Volume and Price
Statistics
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
Sales Volumes
2019
2018
2019
2018
Crude Oil and Condensate
(MBbl/d)
United States Onshore
117
105
115
104
United States Gulf of Mexico
—
3
—
11
Equatorial Guinea
11
17
11
16
Equity Method Investee - Equatorial
Guinea
2
2
2
2
Total (1)
130
127
128
133
Natural Gas Liquids (MBbl/d)
United States Onshore
64
61
62
62
United States Gulf of Mexico (2)
—
—
—
1
Equity Method Investee - Equatorial
Guinea
4
5
4
5
Total
68
67
66
68
Natural Gas (MMcf/d)
United States Onshore
495
465
489
474
United States Gulf of Mexico
—
2
—
12
Israel
209
225
220
243
Equatorial Guinea
199
225
184
215
Total
903
917
893
944
Total Sales Volumes (MBoe/d)
United States Onshore
263
244
258
245
United States Gulf of Mexico
—
3
—
14
Israel
35
38
37
41
Equatorial Guinea
45
54
42
51
Equity Method Investee - Equatorial
Guinea
6
7
6
7
Total Sales Volumes (MBoe/d)
349
346
343
358
Total Sales Volumes (MBoe)
31,733
31,527
62,108
64,799
Price Statistics - Realized Prices
(3)
Crude Oil and Condensate
($/Bbl)
United States Onshore
$
58.13
$
64.62
$
55.84
$
63.08
United States Gulf of Mexico
—
66.80
—
64.87
Equatorial Guinea
66.61
72.79
63.74
70.65
Natural Gas Liquids ($/Bbl)
United States Onshore
$
14.54
$
24.39
$
16.12
$
24.93
United States Gulf of Mexico
—
36.87
—
30.00
Natural Gas ($/Mcf)
United States Onshore
$
1.61
$
2.29
$
2.04
$
2.45
United States Gulf of Mexico
—
3.19
—
3.50
Israel
5.53
5.46
5.55
5.47
Equatorial Guinea
0.27
0.27
0.27
0.27
(1)
Total includes a small amount of
condensate from the Company’s offshore Israel assets.
(2)
For the three months ended June 30, 2018,
U.S. Gulf of Mexico NGL sales volumes were less than 1 MBbl/d.
(3)
Average realized prices do not include
gains or losses on commodity derivative instruments. For second
quarter 2019 and 2018, including the impact of hedges settled in
the period, the Company's U.S. onshore oil price was $58.13 and
$59.17, E.G. oil price was $61.65 and $64.02, and U.S. onshore gas
price was $1.77 and $2.31, respectively. For the six months ended
2019 and 2018, including the impact of hedges settled in the
period, the Company's U.S. onshore oil price was $56.42 and $59.10,
E.G. oil price was $59.97 and $63.69, and U.S. onshore gas price
was $2.18 and $2.48, respectively.
Schedule 5
Noble Energy, Inc.
Reconciliation of Net (Loss)
Income Attributable to Noble Energy and Per Share (GAAP) to
Adjusted Net (Loss) Income
Attributable to Noble Energy and Per Share (Non-GAAP)
(in millions, except per share
amounts, unaudited)
Adjusted net (loss) income attributable to
Noble Energy and per share (Non-GAAP) should not be considered an
alternative to, or more meaningful than, net (loss) 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 net (loss)
income 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 items affecting
comparability (typically 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 net (loss) income 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 net (loss) income
attributable to Noble Energy and per share (Non-GAAP), may not be
comparable to similar measures of other companies in our
industry.
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Net (Loss) Income Attributable to Noble
Energy (GAAP)
$
(10
)
$
(23
)
$
(323
)
$
531
Adjustments to Net (Loss) Income
Firm Transportation Exit Cost
—
—
92
—
Gain on Divestitures, Net
—
(78
)
—
(666
)
Asset Impairments
—
—
—
168
Loss on Investment in Tamar Petroleum
Ltd., Net
—
11
—
40
(Gain) Loss on Commodity Derivative
Instruments, Net of Cash Settlements
(59
)
184
167
235
Other Adjustments
(4
)
4
15
22
Total Adjustments Before Tax
(63
)
121
274
(201
)
Current Income Tax Effect of Adjustments
(1)
4
(3
)
1
94
Deferred Income Tax Effect of Adjustments
(1)
20
(14
)
(45
)
(26
)
Tax Reform Impact (2)
—
—
—
(145
)
Adjusted Net (Loss) Income Attributable
to Noble Energy (Non-GAAP)
$
(49
)
$
81
$
(93
)
$
253
Net (Loss) Income Attributable to Noble
Energy Per Share, Basic and Diluted (GAAP)
$
(0.02
)
$
(0.05
)
$
(0.68
)
$
1.09
Firm Transportation Exit Cost
—
—
0.20
—
Gain on Divestitures, Net
—
(0.15
)
—
(1.36
)
Asset Impairments
—
—
—
0.34
Loss on Investment in Tamar Petroleum
Ltd., Net
—
0.02
—
0.08
(Gain) Loss on Commodity Derivative
Instruments, Net of Cash Settlements
(0.12
)
0.38
0.35
0.48
Other Adjustments
(0.01
)
0.01
0.03
0.05
Current Income Tax Effect of Adjustments
(1)
0.01
(0.01
)
—
0.19
Deferred Income Tax Effect of Adjustments
(1)
0.04
(0.03
)
(0.09
)
(0.05
)
Tax Reform Impact (2)
—
—
—
(0.30
)
Adjusted (Loss) Income Attributable to
Noble Energy per Share, Diluted (Non-GAAP)
$
(0.10
)
$
0.17
$
(0.19
)
$
0.52
Weighted Average Number of Shares
Outstanding, Basic
478
484
478
485
Weighted Average Number of Shares
Outstanding, Diluted
478
486
478
487
(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.
(2)
During first quarter 2018, we recorded a
$145 million tax benefit as a result of the U.S. Department of the
Treasury and the Internal Revenue Service intent to issue
additional regulatory guidance associated with Tax Reform
Legislation and the transition tax (toll tax).
Schedule 6
Noble Energy, Inc.
Reconciliation of Net (Loss)
Income Including Noncontrolling Interests (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 (loss) income
including noncontrolling interests (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 items affecting
comparability (typically 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 Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Net (Loss) Income Including
Noncontrolling Interests (GAAP)
$
8
$
(6
)
$
(281
)
$
568
Adjustments to Net (Loss) Income, After
Tax (1)
(39
)
104
230
(278
)
Depreciation, Depletion and
Amortization
528
465
1,036
933
Exploration Expense
33
29
57
64
Interest, Net of Amount Capitalized
63
73
129
146
Current Income Tax Expense (2)
17
26
36
39
Deferred Income Tax (Benefit) Expense
(2)
(21
)
7
(56
)
23
Adjusted EBITDAX (Non-GAAP)
$
589
$
698
$
1,151
$
1,495
(1)
See Reconciliation of Net (Loss) Income
Attributable to Noble Energy (GAAP) to Adjusted Net (Loss) Income
Attributable to Noble Energy (Non-GAAP).
(2)
Represents remaining Income Tax Expense
(Benefit) after reversal of Adjustments to Net (Loss) Income, After
Tax, above.
Schedule 7
Noble Energy, Inc.
Capital Expenditures
(in millions,
unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Organic Capital Expenditures, Attributable
to Noble Energy (Accrual Based) (1)
$
618
$
857
$
1,301
$
1,634
Acquisition Capital Attributable to Noble
Energy
4
9
43
13
Noble Midstream Partners Capital
Expenditures (2)
29
78
58
423
Investment in Equity Method Investees
(3)
144
—
415
—
Increase in Finance Lease Obligations
1
—
3
—
Total Reported Capital Expenditures
(Accrual Based)
$
796
$
944
$
1,820
$
2,070
(1)
Organic capital expenditures include $23
million, $79 million, $60 million, and $192 million for midstream
capital not funded by Noble Midstream Partners LP (NBLX) for the
periods presented.
(2)
NBLX capital expenditures for the six
months ended June 30, 2018 include $206 million related to the 100
percent acquisition of Saddle Butte Rockies Midstream, LLC.
(3)
Investment in equity method investees for
the six months ended June 30, 2019 include primarily NBLX
investments of $369 million in EPIC Y-Grade, LP and EPIC Crude
Holdings, LP and $39 million in Delaware Crossing LLC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190802005031/en/
Investor Contacts Brad Whitmarsh
(281) 943-1670 Brad.Whitmarsh@nblenergy.com
Park Carrere (281) 872-3208 Park.Carrere@nblenergy.com
Kim Hendrix (281) 943-2197 Kim.Hendrix@nblenergy.com
Media Contacts Paula Beasley (281)
876-6133 media@nblenergy.com
Noble Energy (NYSE:NBL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Noble Energy (NYSE:NBL)
Historical Stock Chart
From Jul 2023 to Jul 2024