Noble Energy, Inc. (NASDAQ: NBL) (“Noble Energy” or the
“Company”) today provided second quarter financial and operating
results.
“Noble Energy's second quarter results reflect strong
operational execution against the backdrop of the challenging
global economic environment that impacted financial outcomes across
our industry. Through the recent pandemic, our teams have stayed
focused on safety, returns, and cost control, and I am pleased with
our accomplishments in the first half of the year,” stated David L.
Stover, Noble Energy’s Chairman and CEO. “On July 20th, we
announced our intention to combine with Chevron. We look forward to
closing the transaction in the fourth quarter.”
Second Quarter 2020 Results
The Company reported second quarter net loss attributable to
Noble Energy of $408 million, or $0.85 per diluted share. Excluding
items impacting comparability, the Company generated adjusted net
loss and adjusted net loss per share(1) attributable to Noble
Energy for the quarter of $114 million or $0.24 per diluted
share.
Net cash provided by operating activities was ($82) million and
was impacted by a working capital change in the quarter of ($303)
million, reflecting the slowdown of capital activity from first
quarter levels. Adjusted EBITDAX(1) was $307 million. Second
quarter capital expenditures funded by Noble Energy were $102
million, with $62 million related to U.S. onshore activities and
$32 million invested in the offshore business between Israel and
West Africa. Noble Midstream Partner's (NASDAQ: NBLX) capital
expenditures totaled $8 million for the quarter.
During the second quarter, the Company repaid $675 million of
the $1 billion revolver draw which occurred in the first quarter of
2020. Financial liquidity at the end of the second quarter 2020
totaled $4 billion, comprising $324 million of cash on hand and
revolver borrowing capacity of $3.7 billion.
Sales volumes for the quarter averaged 350 thousand barrels of
oil equivalent per day (MBoe/d), with the U.S. onshore assets
averaging 248 MBoe/d, West Africa sales of 50 MBoe/d and Israel
averaging 311 million cubic feet equivalent per day (MMcfe/d). Oil
sales volumes totaled 130 thousand barrels per day (MBbl/d).
Revenues for the second quarter 2020 were impacted by weak
commodity pricing as a result of the COVID-19 pandemic and global
supply/demand factors. The Company's U.S. onshore oil price
realizations (before hedges) averaged $22.30 per barrel and NGL
pricing averaged $7.51 per barrel. The Company's realized natural
gas price in the U.S. onshore averaged $1.16 per thousand cubic
feet (Mcf). In Equatorial Guinea, approximately three-fourths of
the Company's oil sales occurred in the month of May, driving the
quarterly average realization of $23.87 per barrel. Natural gas
realizations in Israel averaged $5.00 per Mcf. During the second
quarter, Noble Energy’s hedge portfolio delivered $106 million in
cash proceeds, primarily from oil positions.
Unit production expenses for the quarter were $6.72 per barrel
of oil equivalent (BOE), including lease operating expenses,
production taxes, gathering, transportation and processing
expenses, and other royalty costs. Cost initiatives and continuous
improvement efforts focused on reducing contract labor, workover
expenses, chemicals and all other variable costs. Production
curtailments during the second quarter were focused on higher cost
wells, also benefitting second quarter absolute and unit costs.
Marketing and Other, including sales and costs of purchased oil
and gas, netted to $24 million of expense for the quarter,
primarily reflecting mitigation of firm transportation costs.
Depreciation, depletion and amortization was $10.05 per BOE, down
meaningfully from prior periods reflecting a lower Delaware Basin
depletion rate going forward. General and administrative (G&A)
expenses totaled $63 million for the quarter. G&A declined as
compared to the prior periods, as a result of workforce alignment
efforts within the organization, reduced contractor costs and
travel expenditures.
Adjustments from the Company's second quarter net loss included
a $264 million loss on commodity derivative instruments, net of
cash settlements. In addition, the Company recorded a $51 million
asset impairment related to the Felicita project in Equatorial
Guinea and $30 million in corporate restructuring costs that were
included in other operating expense.
Income from equity method investment and other totaled $3
million for the second quarter, with income generated from the
Company’s interest in Alba Plant and AMPCO Methanol in Equatorial
Guinea, offset by a net loss from Noble Midstream’s pipeline
investments.
The Company’s effective tax rate on adjusted earnings was
approximately 17%. On this basis, current tax expense was $19
million, resulting from the income generated in West Africa and
Israel. Deferred taxes were a benefit of $38 million on this same
basis.
U.S. Onshore
Sales volumes from the Company’s U.S. onshore assets totaled 248
MBoe/d in the second quarter, with the DJ Basin contributing 144
MBoe/d, the Delaware averaging 63 MBoe/d, and Eagle Ford of 41
MBoe/d. During the quarter, the Company operated 1.5 rigs (1.0 DJ
and 0.5 Delaware) and drilled 19 wells (16 DJ and 3 Delaware)
onshore. Early in the quarter, Noble Energy completed 6 wells (4 DJ
and 2 Delaware) and commenced production on 22 new wells (16 DJ and
6 Delaware).
The Company curtailed on average approximately 11 MBbl/d (30
MBoe/d) on a net basis for the second quarter 2020. Approximately
80 percent of these curtailments were in the DJ Basin, with the
remainder in the Delaware, and minimal impact to the Eagle Ford.
With significant improvements to operating costs and netback
pricing, the majority of curtailed volumes were brought back on
production by the end of July 2020.
Safety performance during the second quarter was exceptional
with all activities completed without a recordable incident.
Eastern Mediterranean
Second quarter 2020 sales volumes from Tamar and Leviathan
totaled 1.09 billion cubic feet of natural gas equivalent per day,
gross, combined. As compared to the first quarter of the year,
volumes were lower by approximately 23%, driven by the demand
impacts from the COVID-19 pandemic as well as the normal seasonal
weather-based decline experienced in the second quarter. Net sales
volumes to Noble Energy for the quarter were 311 MMcfe/d.
Following startup on December 31, 2019, the Leviathan field has
performed in the top-tier of all offshore major projects. During
the second quarter 2020, field and facility uptime averaged in
excess of 99%. Noble Energy finalized the commissioning of
additional compression onshore at the Ashkelon metering station in
Israel during the month of July, to increase the capacity
throughput for higher sales volumes into Egypt via the EMG
Pipeline.
West Africa
Sales volumes for Equatorial Guinea averaged 50 MBoe/d,
including 16 MBbl/d of crude oil. Strong base field performance
continues at the Company’s operated Aseng and Alen fields, as well
as the non-operated Alba field and onshore facilities. The
Equatorial Guinea assets continue to operate at the highest safety
standards with the Alen platform reaching six years without a
recordable incident during the quarter.
Despite impacts from the COVID-19 pandemic, the Alen Gas
Monetization project continues to progress towards an early 2021
start-up. During July, the shore crossing site preparation for
connecting the Alen natural gas pipeline to the onshore facilities
continued. Offshore pipeline installation remains on schedule for
the third quarter. During the second quarter, the Company initiated
hedge positions to secure global LNG revenues for a portion of
expected 2021 and 2022 gas revenues.
Investor Conference Call
Due to the pending merger with Chevron, the Company will not
host a conference call/webcast to review its second quarter 2020
results.
(1)
A Non-GAAP measure, please see the
respective earnings release schedules included herein for
reconciliations.
Noble Energy (NASDAQ: 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.
Access Noble Energy’s 2019 Sustainability Report for
more information about how the Company is continuously improving
its social, environmental and governance performance around the
world.
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, the potential
adverse impact of the COVID-19 pandemic on the Company's business,
financial condition and results of operations, and the markets and
communities in which the Company operates, 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,
2020
2019
2020
2019
Revenues
Oil, NGL and Gas Sales
$
493
$
954
$
1,387
$
1,891
Sales of Purchased Oil and Gas
49
103
174
177
Income (Loss) from Equity Method
Investments and Other
3
16
(21
)
33
Midstream Services Revenues – Third
Party
26
20
51
44
Total Revenues
571
1,093
1,591
2,145
Operating Expenses
Lease Operating Expense
98
122
236
273
Production and Ad Valorem Taxes
24
41
63
90
Gathering, Transportation and Processing
Expense
89
96
184
198
Other Royalty Expense
3
1
7
4
Exploration Expense (1)
15
33
1,519
57
Depreciation, Depletion and
Amortization
320
528
812
1,036
General and Administrative
63
105
148
207
Cost of Purchased Oil and Gas
63
113
202
200
Marketing Expense
10
14
19
19
Asset Impairments
51
—
2,754
—
Goodwill Impairment
—
—
110
—
Other Operating Expense, Net
63
8
98
120
Total Operating Expenses
799
1,061
6,152
2,204
Operating (Loss) Income
(228
)
32
(4,561
)
(59
)
Other Expense (Income)
Loss (Gain) on Commodity Derivative
Instruments
158
(60
)
(231
)
152
Interest, Net of Amount Capitalized
87
63
168
129
Other Non-Operating Expense (Income),
Net
3
1
(4
)
5
Total Other Expense (Income)
248
4
(67
)
286
(Loss) Income Before Income
Taxes
(476
)
28
(4,494
)
(345
)
Income Tax (Benefit) Expense
(89
)
20
(100
)
(64
)
Net (Loss) Income and Comprehensive
(Loss) Income Including Noncontrolling Interests
(387
)
8
(4,394
)
(281
)
Less: Net Income (Loss) and
Comprehensive Income Attributable to Noncontrolling Interests
(2)
21
18
(23
)
42
Net Loss and Comprehensive Loss
Attributable to Noble Energy
$
(408
)
$
(10
)
$
(4,371
)
$
(323
)
Net Loss Attributable to Noble Energy
Per Share of Common Stock
Loss Per Share, Basic and Diluted
$
(0.85
)
$
(0.02
)
$
(9.11
)
$
(0.68
)
Weighted Average Number of Shares
Outstanding - Basic and Diluted
479
478
480
478
(1)
$1,488 million of exploration expense for
the six months ended June 30, 2020 relates to leasehold asset
impairments.
(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 August 3, 2020.
Schedule 2 Noble Energy, Inc.
Condensed Statement of Cash Flows (in millions, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Cash Flows From Operating
Activities
Net (Loss) Income Including Noncontrolling
Interests (1)
$
(387
)
$
8
$
(4,394
)
$
(281
)
Adjustments to Reconcile Net (Loss) Income
to Net Cash Provided by Operating Activities
Depreciation, Depletion and
Amortization
320
528
812
1,036
Leasehold Impairment
3
—
1,488
—
Asset Impairments
51
—
2,754
—
Goodwill Impairment
—
—
110
—
Finance Lease Impairment
—
—
40
—
Firm Transportation Exit Cost
—
—
—
92
Deferred Income Tax Benefit
(96
)
(1
)
(144
)
(101
)
Loss (Gain) on Commodity Derivative
Instruments
158
(60
)
(231
)
152
Net Cash Received in Settlement of
Commodity Derivative Instruments
106
1
314
15
Other Adjustments for Noncash Items
Included in Income
66
31
108
59
Net Changes in Working Capital
(303
)
57
(457
)
120
Net Cash (Used in) Provided by
Operating Activities
(82
)
564
400
1,092
Cash Flows From Investing
Activities
Additions to Property, Plant and
Equipment
(245
)
(642
)
(724
)
(1,405
)
Additions to Equity Method Investments
(2)
(2
)
(144
)
(228
)
(415
)
Net Proceeds from Divestitures (3)
1
—
18
123
Other
(23
)
—
(31
)
—
Net Cash Used in Investing
Activities
(269
)
(786
)
(965
)
(1,697
)
Cash Flows From Financing
Activities
Dividends Paid, Common Stock
(10
)
(58
)
(68
)
(111
)
Noble Midstream Services Revolving Credit
Facility, Net
(15
)
140
140
310
Revolving Credit Facility, Net
(675
)
—
325
—
Commercial Paper Borrowings, Net
—
240
—
240
Repayment of Senior Notes
—
(9
)
—
(9
)
Contributions from Noncontrolling Interest
Owners (4)
3
11
81
21
Proceeds from Issuance of Mezzanine
Equity, Net of Offering Costs
—
—
—
99
Other
(25
)
(30
)
(73
)
(62
)
Net Cash (Used in) Provided by
Financing Activities
(722
)
294
405
488
(Decrease) Increase in Cash, Cash
Equivalents, and Restricted Cash
(1,073
)
72
(160
)
(117
)
Cash, Cash Equivalents, and Restricted
Cash at Beginning of Period (5)
1,397
530
484
719
Cash, Cash Equivalents, and Restricted
Cash at End of Period (6)
$
324
$
602
$
324
$
602
(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 periods presented, net loss includes net (loss) income
attributable to noncontrolling interests in NBLX.
(2)
Additions include NBLX's investments in
EPIC Y-Grade, LP, EPIC Crude Holdings, LP, EPIC Propane and
Delaware Crossing LLC. Additionally, $160 million of the
investments in 2020 relates to NBLX's first quarter 2020 investment
in Saddlehorn Pipeline, which includes $73 million of externally
funded capital. NBLX's investment in Saddlehorn Pipeline, net of
externally funded capital, was $87 million.
(3)
For the six months ended June 30, 2019,
proceeds related to the SW Reeves County, Texas asset
divestiture.
(4)
$73 million of the amount for the six
months ended June 30, 2020 represents externally funded capital for
NBLX's first quarter 2020 investment in Saddlehorn Pipeline.
(5)
As of the beginning of the periods
presented, amounts include $0 million, $2 million, $0 million and
$3 million of restricted cash, respectively.
(6)
As of June 30, 2020 and June 30, 2019,
amounts include $0 million and $132 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 3, 2020.
Schedule 3 Noble Energy, Inc.
Condensed Balance Sheets (in millions, unaudited)
June 30, 2020
December 31, 2019
Assets
Current Assets
Cash and Cash Equivalents
$
324
$
484
Accounts Receivable, Net
465
730
Other Current Assets
214
148
Total Current Assets
1,003
1,362
Property, Plant and Equipment, Net
12,986
17,451
Other Noncurrent Assets
1,910
1,834
Total Assets
$
15,899
$
20,647
Liabilities, Mezzanine Equity and
Shareholders' Equity
Current Liabilities
Accounts Payable - Trade
$
676
$
1,250
Other Current Liabilities
706
719
Total Current Liabilities
1,382
1,969
Long-Term Debt
Long-Term Debt - Noble Energy
6,301
5,982
Long-Term Debt - NBLX
1,635
1,495
Total Debt
7,936
7,477
Deferred Income Taxes
518
662
Other Noncurrent Liabilities
1,288
1,378
Total Liabilities
11,124
11,486
Total Mezzanine Equity
113
106
Total Shareholders' Equity
4,003
8,410
Noncontrolling Interests (1)
659
645
Total Equity
4,662
9,055
Total Liabilities and Equity
$
15,899
$
20,647
(1)
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 3, 2020.
Schedule 4 Noble Energy, Inc.
Volume and Price Statistics (unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
Sales Volumes
2020
2019
2020
2019
Crude Oil and Condensate
(MBbl/d)
United States
113
117
115
115
Equatorial Guinea
14
11
16
11
Equity Method Investments - Equatorial
Guinea
2
2
2
2
Total (1)
130
130
134
128
Natural Gas Liquids (MBbl/d)
United States
59
64
63
62
Equity Method Investments - Equatorial
Guinea
4
4
4
4
Total
63
68
67
66
Natural Gas (MMcf/d)
United States
457
495
487
489
Israel
307
209
348
220
Equatorial Guinea
178
199
178
184
Total
942
903
1,013
893
Total Sales Volumes (MBoe/d)
United States
248
263
259
258
Israel
52
35
59
37
Equatorial Guinea
44
45
46
42
Total Consolidated Operations
344
343
364
337
Equity Method Investments - Equatorial
Guinea
6
6
6
6
Total Sales Volumes (MBoe/d)
350
349
370
343
Total Sales Volumes (MBoe)
31,855
31,733
67,317
62,108
Price Statistics - Realized Prices
(Excluding Derivatives)
Crude Oil and Condensate
($/Bbl)
United States
$
22.30
$
58.13
$
34.40
$
55.84
Equatorial Guinea
23.87
66.61
37.42
63.74
Natural Gas Liquids ($/Bbl)
United States
$
7.51
$
14.54
$
8.99
$
16.12
Natural Gas ($/Mcf)
United States
$
1.16
$
1.61
$
1.22
$
2.04
Israel
5.00
5.53
5.20
5.55
Equatorial Guinea
0.27
0.27
0.27
0.27
Price Statistics - Realized Prices
(Including Derivatives)
Crude Oil and Condensate
($/Bbl)
United States (2)
$
32.28
$
58.13
$
41.69
$
56.42
Equatorial Guinea
23.87
61.65
37.42
59.97
Natural Gas Liquids ($/Bbl)
United States
$
8.07
$
14.54
$
9.25
$
16.12
Natural Gas ($/Mcf)
United States
$
1.16
$
1.77
$
1.20
$
2.18
Israel
5.00
5.53
5.20
5.55
Equatorial Guinea
0.27
0.27
0.27
0.27
(1)
Amounts include a small amount of
condensate from the Company’s offshore Israel assets.
(2)
Six months ended June 30, 2020 amounts
exclude the impact of $160 million of hedges early terminated in
first quarter 2020.
Schedule 5
Noble Energy, Inc.
Reconciliation of Net Loss
Attributable to Noble Energy and Per Share (GAAP) to
Adjusted Net Loss Attributable
to Noble Energy and Per Share (Non-GAAP)
(in millions, except per share
amounts, unaudited)
Adjusted net loss attributable to Noble
Energy and per share (Non-GAAP) should not be considered an
alternative to, or more meaningful than, net loss 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 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 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
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,
2020
2019
2020
2019
Net Loss Attributable to Noble Energy
(GAAP)
$
(408
)
$
(10
)
$
(4,371
)
$
(323
)
Adjustments to Net Loss
Firm Transportation Exit Cost
—
—
—
92
Leasehold Impairment
3
—
1,488
—
Asset Impairments
51
—
2,754
—
Goodwill Impairment (1)
—
—
38
—
Finance Lease Impairment
—
—
40
—
Corporate Restructuring
30
1
30
1
Loss (Gain) on Commodity Derivative
Instruments, Net of Cash Settlements
264
(59
)
83
167
Other Adjustments
16
(5
)
—
14
Total Adjustments Before Tax
364
(63
)
4,433
274
Current Income Tax Effect of Adjustments
(2)
(12
)
4
(10
)
1
Deferred Income Tax Effect of Adjustments
(2)
(58
)
20
(81
)
(45
)
Adjusted Net Loss Attributable to Noble
Energy (Non-GAAP)
$
(114
)
$
(49
)
$
(29
)
$
(93
)
Net Loss Attributable to Noble Energy
Per Share, Basic and Diluted (GAAP)
$
(0.85
)
$
(0.02
)
$
(9.11
)
$
(0.68
)
Firm Transportation Exit Cost
—
—
—
0.20
Leasehold Impairment
0.01
—
3.10
—
Asset Impairments
0.11
—
5.74
—
Goodwill Impairment
—
—
0.08
—
Finance Lease Impairment
—
—
0.08
—
Corporate Restructuring
0.06
—
0.06
—
Loss (Gain) on Commodity Derivative
Instruments, Net of Cash Settlements
0.55
(0.12
)
0.18
0.35
Other Adjustments
0.03
(0.01
)
—
0.03
Total Adjustments Before Tax
0.76
(0.13
)
9.24
0.58
Current Income Tax Effect of Adjustments
(2)
(0.03
)
0.01
(0.02
)
—
Deferred Income Tax Effect of Adjustments
(2)
(0.12
)
0.04
(0.17
)
(0.09
)
Adjusted Net Loss Attributable to Noble
Energy per Share, Diluted (Non-GAAP)
$
(0.24
)
$
(0.10
)
$
(0.06
)
$
(0.19
)
Weighted Average Number of Shares
Outstanding, Basic and Diluted
479
478
480
478
(1)
Noble Midstream Partners, LP (NBLX)
recorded goodwill impairment expense of $110 million during first
quarter 2020. Goodwill impairment expense attributable to Noble
Energy of $38 million represents Noble Energy's portion of the
impairment relating to our ownership interests in Black Diamond and
is reflected as an adjustment to net loss attributable to Noble
Energy (Non-GAAP). The portion of impairment expense attributable
to noncontrolling interests of $72 million is appropriately
excluded from the above schedule.
(2)
Amounts represent the income tax effect of
adjustments, determined for each major tax jurisdiction for each
adjusting item.
Schedule 6
Noble Energy, Inc.
Reconciliation of Net Loss
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
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,
2020
2019
2020
2019
Net (Loss) Income Including
Noncontrolling Interests (GAAP)
$
(387
)
$
8
$
(4,394
)
$
(281
)
Adjustments to Net Loss, After Tax (1)
294
(39
)
4,342
230
Goodwill Impairment (2)
—
—
72
—
Depreciation, Depletion and
Amortization
320
528
812
1,036
Exploration Expense (3)
12
33
31
57
Interest, Net of Amount Capitalized
87
63
168
129
Current Income Tax Expense (4)
19
17
54
36
Deferred Income Tax Benefit (4)
(38
)
(21
)
(63
)
(56
)
Adjusted EBITDAX (Non-GAAP)
$
307
$
589
$
1,022
$
1,151
(1)
See Reconciliation of Net Loss
Attributable to Noble Energy (GAAP) to Adjusted Net Loss
Attributable to Noble Energy (Non-GAAP).
(2)
2020 amount represents remaining goodwill
impairment expense attributable to noncontrolling interest after
reversal of "Adjustments to Net Loss, After Tax", above.
(3)
2020 amounts represent remaining
exploration expense after reversal of Leasehold Impairment expense
"Adjustments to Net Loss, After Tax", above.
(4)
Represents remaining Income Tax Benefit
after reversal of "Adjustments to Net Loss, After Tax", above.
Schedule 7 Noble Energy, Inc.
Capital Expenditures (in millions, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Noble Energy Capital Expenditures
Organic Capital Expenditures Attributable
to Noble Energy (1)
$
101
$
618
$
500
$
1,301
Acquisition Capital Attributable to Noble
Energy
1
4
7
43
Total Capital Expenditures Attributable
to Noble Energy (Accrual Based)
$
102
$
622
$
507
$
1,344
Noble Midstream Partners Capital
Expenditures
Organic Capital Expenditures Attributable
to Noble Midstream Partners
$
5
$
29
$
48
$
58
Additions to Equity Method Investments
Attributable to Noble Midstream Partners (2)
3
144
155
415
Total Capital Expenditures Attributable
to Noble Midstream Partners (Accrual Based)
$
8
$
173
$
203
$
473
Increase in Finance Lease Obligations
2
1
10
3
(1)
Three months ended June 30, 2019 and six
months ended June 30, 2019 include organic capital expenditures of
$23 million and $60 million, respectively, for midstream capital
not funded by Noble Midstream Partners LP (NBLX).
(2)
Additions to equity method investments for
2019 and 2020 primarily include NBLX's investments in EPIC Y-Grade,
LP, EPIC Crude Holdings, LP, EPIC Propane, and Delaware Crossing
LLC. Additionally, investments in 2020 includes NBLX's investment
in Saddlehorn of $87 million, which excludes $73 million of
externally funded capital.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200803005171/en/
Investor Contacts Brad Whitmarsh (281) 943-1670
Brad.Whitmarsh@nblenergy.com
Media Contacts Trudi Boyd (281) 569-8009 media@nblenergy.com
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