Noble Energy Announce Results for the Fourth Quarter 2015

Noble Energy, Inc. (NYSE:NBL) (“Noble Energy” or “the Company”) announced today results for the fourth quarter of 2015, including adjusted net income(1) of $191 million, or $0.44 per diluted share.
A reported net loss for the quarter of $2.0 billion was negatively impacted by $2.2 billion of primarily non-cash items, which are not considered by analysts in published estimates. Net cash provided by operating activities of $576 million and discretionary cash flow(1) of $609 million were in excess of capital expenditures of $527 million.
Total Company volumes for the fourth quarter of 2015 increased to 422 thousand barrels of oil equivalent per day (MBoe/d), up more than eight percent versus the third quarter of 2015 and the fourth quarter of 2014 (pro-forma for the Rosetta Resources Inc. merger). Liquids comprised 47 percent (33 percent crude oil and condensate and 14 percent natural gas liquids) of fourth quarter 2015 volumes, with natural gas the remaining 53 percent. U.S. sales volumes for the quarter totaled 295 MBoe/d, while International sales volumes were 127 MBoe/d.
Total sales volumes were higher than produced volumes by more than five thousand barrels per day (MBbl/d) due to the timing of liquids lifting in Equatorial Guinea.
Excluding the Company’s Texas properties, which were acquired in July of 2015, sales volumes were 362 MBoe/d for the fourth quarter of 2015, up 15 percent compared to the fourth quarter of the previous year. This increase was primarily a result of the Company’s continued horizontal completions and production optimization within the U.S. unconventional assets, the startup of Big Bend and Dantzler in the deepwater Gulf of Mexico, and higher Israel natural gas demand.
noble logo David L. Stover, Noble Energy’s Chairman, President and CEO, commented,

“Noble Energy ended 2015 by delivering another outstanding operational quarter. We have substantially improved capital efficiency across our business, evidenced by a continued reduction in well costs as well as completion enhancements in each of our core onshore assets.
At the same time, our unit operating costs have been reduced to the lowest level in the last eight years. We also successfully integrated our new Texas assets and have quickly delivered a step-change in performance. Our offshore major project proficiency was demonstrated once again with new project startups in the Gulf of Mexico, and we have established strong forward momentum for our projects in the Eastern Mediterranean.
With a high-quality, low-cost, and diverse portfolio, bolstered by strong liquidity and a sound balance sheet, we enter 2016 well positioned to manage within cash flow and sustain our strong operating performance.”

Fourth quarter 2015 total operating costs, including lease operating expense, production taxes and transportation, averaged $6.93 per barrel of oil equivalent (BOE), down 22 percent from the fourth quarter of 2014. Depreciation, depletion, and amortization totaled $17.67 per BOE during the fourth quarter of 2015, which reflects the impact of commodity price-driven reserve revisions recorded at year-end. General and administrative costs were lower than anticipated due primarily to a reduction of personnel costs.
Fourth quarter adjustments to net loss included approximately $1.3 billion of non-cash impairments, including $490 million related to assets in the Gulf of Mexico and Equatorial Guinea and $779 million related to goodwill. The Company had unrealized commodity derivative losses of $156 million, resulting from the value change of existing crude oil and natural gas hedge positions as of the end of the year. Noble Energy also adjusted $95 million from exploration expense, following the Company’s decision to exit its Nevada exploration program.
During the quarter, Noble Energy implemented a change in tax policy and outlook regarding the indefinite reinvestment of international earnings. This item, which was also adjusted from earnings, enhances the Company’s financial flexibility with regards to global cash management. For the fourth quarter, the remaining adjusted tax benefit reflects the balance of U.S. versus international earnings, as well as the transition from interim reporting to full-year tax position.


Total 2016 capital estimated at $1.5 billion, approximately 50 percent lower than 2015
Focus on managing within total cash flows and maintaining financial strength in the current commodity environment
Targeting two-thirds of capital program to onshore U.S. unconventional assets and one-third to offshore development and exploration
Expect full-year sales volumes up 10 percent over 2015 reported totals (consistent with full-year 2015 pro-forma for the Rosetta Resources Inc. merger)
Anticipate liquids volumes will increase by approximately 20 MBbl/d over 2015 reported total

Source: Noble Energy
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