Noble Energy Announces Fourth Quarter and Full Year 2009 Results

Press Release

Feb 18, 2010
Noble Energy Announces Fourth Quarter and Full Year 2009 Results

HOUSTON, Feb 18, 2010 /PRNewswire via COMTEX News Network/ -- Noble Energy, Inc. (NYSE: NBL) reported today fourth quarter 2009 net income of $8 million, or $0.05 per share diluted, on revenues of $760 million. Net income for the quarter was lowered by items totaling $170 million after-tax, including unrealized commodity derivative losses and identified asset impairments, offset by the recording of recoverable deepwater Gulf of Mexico royalties. Excluding these items, which are typically not considered by analysts in published estimates, fourth quarter 2009 adjusted net income(1) was $178 million, or $1.01 per share diluted. For the fourth quarter of 2008, net income was $305 million, or $1.72 per share diluted, on revenues of $573 million. Adjusted net income(1) for the fourth quarter of 2008 was $163 million, or $0.91 per share diluted.

Discretionary cash flow(1) for the fourth quarter 2009 was $477 million, compared to $439 million for the similar quarter in 2008. Net cash provided by operating activities was $522 million and capital expenditures were $384 million(2).

Key highlights for the fourth quarter 2009 include:

 

  • Successful new completion at the Swordfish field in the deepwater Gulf of Mexico
  • Spud Deep Blue and Double Mountain exploration tests in the deepwater Gulf of Mexico
  • Announced DJ Basin asset acquisition which will expand the Company's largest onshore U.S. property at Wattenberg
  • Executed two Letters of Intent to sell natural gas from Tamar offshore Israel with expected gross revenues over $10 billion
  • Completed field optimization efforts at Dumbarton and brought online the first well at Lochranza in the North Sea

 

For the full year 2009, Noble Energy reported a net loss of ($131) million, or ($0.75) per share diluted. Adjusted net income(1) for 2009 was $590 million, or $3.37 per share diluted. Discretionary cash flow(1) for the year was $1.69 billion and net cash provided by operating activities was $1.51 billion. Capital expenditures for the year totaled $1.32 billion(2).

Charles D. Davidson, Noble Energy's Chairman and CEO, said, "Our results for the fourth quarter wrap up a strong year for Noble Energy. Despite reduced investment in U.S. onshore natural gas development, we were still able to grow our annual onshore volumes. We again generated free cash flow in 2009, largely attributable to our disciplined capital allocation process and diverse asset portfolio. It was perhaps the most successful exploration year in our Company's history, and we continued to build upon our large inventory of opportunities. Substantial progress was made for long-term growth, as we sanctioned the Galapagos and Aseng oil projects and signed LOIs for first sales from Tamar. As we look forward into a new decade, we are focused on maintaining our strong production base, executing on our major projects, and continuing an impactful exploration program."

Total sales volumes for the fourth quarter 2009 averaged 206 thousand barrels of oil equivalent per day. In the United States, natural gas volumes were lower than the fourth quarter of 2008 due primarily to declines in the Mid-Continent region. Crude oil and condensate volumes were higher mostly due to the impact of Ticonderoga in the deepwater Gulf of Mexico returning to full production earlier in 2009. Lower oil volumes in the North Sea resulted from the FPSO repairs and facilities enhancements at Dumbarton, which have been completed. Greater natural gas volumes in West Africa were largely related to pipeline maintenance impacting the 2008 period. Natural gas volumes in Israel were reduced significantly during the fourth quarter 2009 due to warmer than normal weather and increased natural gas imports.

Crude oil price realizations for the quarter were $68.43 per barrel, up 56 percent from the fourth quarter 2008. In the U.S. and West Africa, fourth quarter 2009 crude realizations were reduced $1.71 and $4.79 per barrel, respectively, as a result of previously deferred hedge losses. U.S. natural gas prices were down from the same period in 2008, averaging $4.37 per thousand cubic feet (Mcf). In Israel, natural gas prices averaged a record $4.13 per Mcf for the fourth quarter 2009. Natural gas liquid pricing in the U.S. strengthened to $38.98 per barrel for the quarter.

Cash costs, including lease operating, production and ad valorem taxes, transportation, and general and administrative expenses were $10.50 per barrel of oil equivalent (Boe) for the quarter. Lease operating expenses were down 11 percent from the fourth quarter of 2008 to $4.80 per Boe, more than offsetting higher production taxes and transportation expenses. General and administrative expenses were up from the fourth quarter of 2008 primarily related to increased staffing for the development of major projects. Depreciation, depletion, and amortization was $11.34 per Boe for the fourth quarter 2009.

During the fourth quarter of 2009, the Company recorded a receivable of $97 million related to the favorable resolution of royalty litigation on identified leases under the Deep Water Royalty Relief Act of 1995. Also included in the fourth quarter of 2009 were before-tax asset impairments of $67 million related to certain natural gas assets onshore in the U.S. and in the deepwater Gulf of Mexico, as well as $100 million related to the Company's operations in Ecuador.

PROVED RESERVES

Year-end 2009 estimated reserves were 820 million barrels of oil equivalent (MMBoe). Noble Energy added total proved reserves of 79 MMBoe, representing 103 percent of 2009 production, from discoveries, extensions, performance revisions and acquisitions. These reserve additions exclude negative revisions caused by lower prices and new SEC rules requiring the development of proved undeveloped reserves (PUDs) within five years.

The U.S. made up 55 percent and International the remaining 45 percent of total reserve additions. Initial bookings at the Aseng oil project in West Africa accounted for the majority of the International additions. In the U.S., additions were primarily driven by the execution of low-risk development projects onshore in the Rockies, as well as from the sanctioning of the Galapagos development in the deepwater Gulf of Mexico.

David L. Stover, President and COO of Noble Energy, said, "Our teams did a good job of organically replacing production, despite a very constrained capital program. We began converting to proved reserves the major-project resources that our exploration programs have delivered over the past few years. However, the majority of these identified resources are yet to be booked, including our discoveries at Tamar, Belinda, Gunflint and others. We anticipate substantial multi-year growth in reserves beginning in 2010."

Price revisions lowered proven reserves by 27 MMBoe driven primarily by natural gas and the use of average pricing which was lower than 2008's year-end pricing. Had the previous price methodology still been in effect, reserves would have been 61 MMBoe higher than the 2009 total.

Proved reserves were also reduced by 18 MMBoe as a result of the new SEC rules requiring development of PUDs within five years. These reserves are expected to be re-booked to proved as drilling occurs in future years.

(1)A Non-GAAP measure, see attached Reconciliation Schedules
(2)Capital expenditures for the fourth quarter and full year 2009 exclude a non-cash accrual of $29 million related to construction progress to-date on the Aseng FPSO

CONFERENCE CALL

Noble Energy's fourth quarter 2009 conference call will be available today via live audio webcast at 9:00 a.m. Central Time. To listen, log on to www.nobleenergyinc.com and click on the Investors tab and go to the Investors Events link. Dial in numbers are (888) 572-7025 or (719) 457-2552. A replay of the conference call will be available on the website.

Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The Company operates primarily in the Rocky Mountains, Mid-Continent, and deepwater Gulf of Mexico areas in the United States, with significant international operations offshore Israel and West Africa. Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL. Visit Noble Energy online at www.nobleenergyinc.com.

This news release may include projections and other "forward-looking statements" within the meaning of the federal securities laws. Any such projections or statements reflect Noble Energy's current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected, and actual results may differ materially from those projected. Risks, uncertainties and assumptions that could cause actual results to differ materially from those projected include, without limitation, the 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 action, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's business that are detailed in its Securities and Exchange Commission filings. Words such as "anticipates," "believes," "expects," "intends," "will," "should," "may," and similar expressions may be used to identify forward-looking statements. Noble Energy assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.

This news release may also contain certain forward-looking non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating the Company's overall financial performance. These non-GAAP measures are broadly used to value and compare companies in the crude oil and natural gas industry.

The Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Beginning with year-end reserves for 2009, the SEC permits the optional disclosure of probable and possible reserves. We have elected not to disclose the Company's probable and possible reserves in our filings with the SEC. We use certain terms in this news release, such as "resource potential," that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our Forms 10-K and 10-Q, File No. 1-07964, available from Noble Energy's offices or website, http://www.nobleenergyinc.com. These forms can also be obtained from the SEC by calling 1-800-SEC-0330.


                                 Schedule 1
                             Noble Energy, Inc.
          Reconciliation of Net Income (Loss) to Adjusted Earnings
             (in millions, except per share amounts, unaudited)


                                            Three Months
                                               Ended        Year Ended
                                            December 31,   December 31,
                                            ------------   ------------
                                             2009   2008   2009    2008
                                             ----   ----   ----    ----

    Net Income (Loss)                          $8   $305  $(131) $1,350

        Unrealized (gains) losses on
         commodity derivative instruments      99   (513)   606    (522)
        Asset impairments (1)                 167    256    604     294
        Gain on sale of Argentina assets        -      -    (24)      -
        Allowance for SemCrude receivable       -      -     12      38
        MMS Royalty Relief, Including
         interest                             (97)     -    (97)      -
        Other adjustments, net                 (6)     -     (5)      9
                                              ---    ---    ---     ---
        Total Adjustments before tax          163   (257) 1,096    (181)

        Income Tax Effect of
         Adjustments (2)                        7    115   (375)     89
                                              ---    ---   ----     ---

    Adjusted Earnings (3)                    $178   $163   $590  $1,258
                                             ----   ----   ----  ------

    Adjusted Earnings Per Share
      Basic                                 $1.03  $0.95  $3.41   $7.30
      Diluted                                1.01   0.91   3.37    7.05

    Weighted average number of shares
     outstanding
        Basic                                 173    173    173     173
        Diluted (4)                           176    175    175     176

    (1) The 2009 impairments were related to US properties sensitive to
        natural gas prices and our investments in Ecuador.
    (2) The net tax effects are determined by calculating the tax
        provision for GAAP Net Income (Loss), which includes the adjusting
        items, and comparing the results to the tax provision for Adjusted
        Earnings, which excludes the adjusting items. The difference in the
        tax provision calculations represents the tax impact of the
        adjusting items listed here. The calculation is performed at the
        end of each quarter and, as a result, the tax rates for each
        discrete period are different.
    (3) Adjusted earnings should not be considered a substitute for net
        income as reported in accordance with GAAP.  Adjusted earnings is
        provided for comparison to earnings forecasts prepared by analysts
        and other third parties. Our management believes, and certain
        investors may find, that adjusted earnings is beneficial in
        evaluating our financial performance.
    (4) The adjusted diluted earnings per share calculation for the
        year ended December 31, 2009 includes an increase to diluted shares
        of approximately 2 million shares representing the incremental
        dilutive shares that were anti-dilutive, for GAAP purposes, and
        therefore excluded from the calculation of GAAP net loss per share
        for the year ended December 31, 2009.



                                 Schedule 2
                             Noble Energy, Inc.
                      Summary Statement of Operations
             (in millions, except per share amounts, unaudited)


                                          Three Months
                                             Ended        Year Ended
                                          December 31,   December 31,
                                          ------------   ------------
                                           2009   2008    2009    2008
                                           ----   ----    ----    ----
    Revenues
      Crude oil and condensate             $385   $271  $1,261  $2,101
      Natural gas                           203    243     701   1,375
      NGLs                                   32     22      98     175
      Income from equity method investees    32     16      84     174
      Other revenues                        108     21     169      76
                                            ---    ---     ---     ---
        Total revenues                      760    573   2,313   3,901
                                            ---    ---   -----   -----
    Operating Expenses
      Lease Operating Expense                91    103     372     371
      Production and Ad Valorem Taxes        28     25      94     166
      Transportation Expense                 16     14      59      57
      Exploration expense                    42     36     144     217
      Depreciation, depletion and
       amortization                         215    198     816     791
      General and administrative             64     52     237     236
      Asset impairments                     167    256     604     294
      Other operating expense, net           23     26      45     124
                                            ---    ---     ---     ---
        Total operating expenses            646    710   2,371   2,256
                                            ---    ---   -----   -----
    Operating Income (Loss)                 114   (137)    (58)  1,645
    Other (Income) Expense
      (Gain) Loss on commodity derivative
       instruments                           16   (630)    110    (440)
      Interest, net of amount capitalized    20     17      84      69
      Other expense (income), net            (7)   (12)     12     (45)
                                            ---    ---     ---     ---
        Total other (income) expense         29   (625)    206    (416)
                                            ---   ----     ---    ----
    Income (Loss) Before Taxes               85    488    (264)  2,061
    Income Tax Provision (Benefit)           77    183    (133)    711
                                            ---    ---    ----     ---
    Net Income (Loss)                        $8   $305   $(131) $1,350
                                            ---   ----   -----  ------

    Earnings (Loss) Per Share
      Basic                               $0.05  $1.77  $(0.75)  $7.83
      Diluted                              0.05   1.72   (0.75)   7.58

    Weighted average number of shares
     outstanding
        Basic                               173    173     173     173
        Diluted                             176    176     173     176



                                 Schedule 3
                             Noble Energy, Inc.
                         Volume and Price Statistics
                                 (unaudited)

                                              Three Months
                                                 Ended       Year Ended
                                              December 31,  December 31,
                                              ------------  ------------
                                               2009   2008   2009   2008
                                               ----   ----   ----   ----
    Crude Oil and Condensate Sales
     Volumes (MBpd)
      United States                              38     36     37     40
      Equatorial Guinea                          14     15     14     15
      North Sea                                   5     12      7     10
      China                                       4      4      4      4
                                                ---    ---    ---    ---
        Total consolidated operations            61     67     62     69
      Equity method investee                      2      2      2      2
                                                ---    ---    ---    ---
        Total sales volumes                      63     69     64     71
                                                ---    ---    ---    ---
    Crude Oil and Condensate Realized
     Prices ($/Bbl)
      United States                          $68.74 $33.16 $55.19 $75.53
      Equatorial Guinea                       67.53  48.15  55.94  88.95
      North Sea                               67.79  67.89  59.51 100.56
      China                                   69.44  47.77  54.40  82.66
                                              -----  -----  -----  -----
        Consolidated average realized prices $68.43 $43.80 $55.76 $82.60
                                             ------ ------ ------ ------

    Natural Gas Sales Volumes (MMcfpd)
      United States                             386    404    397    395
      Equatorial Guinea                         244    187    239    206
      Israel                                    104    133    114    139
      North Sea                                   6      5      5      5
      Ecuador                                    30     21     26     22
                                                ---    ---    ---    ---
        Total sales volumes                     770    750    781    767
                                                ---    ---    ---    ---
    Natural Gas Realized Prices ($/Mcf)
      United States                           $4.37  $5.30  $3.61  $8.12
      Equatorial Guinea                        0.27   0.27   0.27   0.27
      Israel                                   4.13   2.96   3.47   3.10
      North Sea                                5.23  10.28   5.75  10.54
                                               ----  -----   ----  -----
        Average realized prices               $2.99  $3.62  $2.54  $5.04
                                              -----  -----  -----  -----

    Natural Gas Liquids (NGL) Sales
     Volumes (MBpd)
      United States                               8      9     10      9
      Equity method investee                      7      5      6      6
                                                ---    ---    ---    ---
        Total sales volumes                      15     14     16     15
                                                ---    ---    ---    ---
    Natural Gas Liquids Realized
     Prices ($/Bbl)
      United States                          $38.98 $26.64 $27.96 $50.15

    Barrels of Oil Equivalent Volumes
     (MBoepd)
      United States                             110    112    113    116
      Equatorial Guinea                          55     46     54     49
      Israel                                     17     22     19     23
      North Sea                                   6     13      8     11
      Ecuador                                     5      4      4      4
      China                                       4      4      4      4
                                                ---    ---    ---    ---
        Total consolidated operations           197    201    202    207
      Equity method investee                      9      7      8      8
                                                ---    ---    ---    ---
        Total barrels of oil equivalent
         (MBoepd)                               206    208    210    215
                                                ---    ---    ---    ---
        Barrels of oil equivalent volumes
         (MMBoe)                                 19     19     77     79
                                                ---    ---    ---    ---



                                Schedule 4
                            Noble Energy, Inc.
                         Condensed Balance Sheets
                              (in millions)

                                                         December 31,
                                                         ------------
                                                         2009    2008
                                                         ----    ----
    Assets
      Current Assets
        Cash and cash equivalents                      $1,014  $1,140
        Accounts receivable, net                          465     423
        Commodity derivative assets                        13     437
        Other current assets                              186     158
                                                          ---     ---
            Total current assets                        1,678   2,158
      Net property, plant and equipment                 8,916   9,004
      Goodwill                                            758     759
      Other noncurrent assets                             455     463
                                                          ---     ---
          Total Assets                                $11,807 $12,384
                                                      ------- -------

    Liabilities and Shareholders' Equity
      Current Liabilities
        Accounts payable - trade                         $548    $579
         Other current liabilities                        442     595
                                                          ---     ---
            Total current liabilities                     990   1,174
      Long-term debt                                    2,037   2,241
      Deferred income taxes                             2,076   2,174
      Other noncurrent liabilities                        547     486
                                                          ---     ---
          Total Liabilities                             5,650   6,075

        Total Shareholders' Equity                      6,157   6,309
                                                        -----   -----
          Total Liabilities and Shareholders' Equity  $11,807 $12,384
                                                      ------- -------



                                    Schedule 5
                                Noble Energy, Inc.
         Discretionary Cash Flow and Reconciliation to Operating Cash Flow
                             (in millions, unaudited)


                                                  Three Months
                                                     Ended       Year Ended
                                                  December 31,   December 31,
                                                  ------------   ------------
                                                   2009  2008    2009    2008
                                                   ----  ----    ----    ----

    Adjusted Earnings (1)                          $178  $163    $590  $1,258
    Adjustments to reconcile adjusted
     earnings to discretionary cash flow:
      Depreciation, depletion and amortization      215   198     816     791
      Exploration expense                            42    36     144     217
      Capitalized interest                          (15)  (10)    (45)    (33)
      (Income) / distributions from equity method
       investments, net                              23    13       8      47
      Deferred compensation adjustment                5    (7)     23     (32)
      Deferred income taxes                           4    71     100     270
      Stock-based compensation expense               12     9      49      39
      Settlement of previously recognized hedge
       losses (2)                                     -   (50)      -    (194)
      Other, net                                     13    16       5      35
                                                    ---   ---     ---     ---
    Discretionary Cash Flow (3)                     477   439   1,690   2,398
                                                    ---   ---   -----   -----

    Reconciliation to Operating Cash Flows
      Net changes in working capital               (158)    8    (147)     (1)
      Cash exploration costs                        (42)  (30)   (133)   (133)
      Capitalized interest                           15    10      45      33
      Current tax benefit (expense) of net income
       adjustments                                  232     -      96       -
      Net (gain) loss on disposal of assets           2     -     (22)     (5)
      Other adjustments                              (4)   (9)    (21)     (7)
                                                    ---   ---     ---     ---
    Net Cash Provided by Operating Activities      $522  $418  $1,508  $2,285
                                                   ----  ----  ------  ------

    Capital Expenditures, accrual based (4)        $384  $432  $1,317  $2,264
    Capital Lease Accrual                           $29    $-     $29      $-

    (1)  See Schedule 1, Reconciliation of Net Income (Loss) to Adjusted
         Earnings
    (2)  See Schedule 6, Effect of Derivative Instruments.
    (3)  The table above reconciles discretionary cash flow to net cash
         provided by operating activities. While discretionary cash flow is
         not a GAAP measure of financial performance, our management believes
         it is a useful tool for evaluating our overall financial performance.
         Among our management, research analysts, portfolio managers and
         investors, discretionary cash flow is broadly used as an indicator of
         a company's ability to fund exploration and production activities and
         meet financial obligations. Discretionary cash flow is also commonly
         used as a basis to value and compare companies in the oil and gas
         industry.
    (4)  Capital expenditures for 2009 excludes a non-cash accrual of $29
         million related to estimated construction progress to date on an FPSO
         to be used in the development of the Aseng field in Equatorial
         Guinea.



                                   Schedule 6
                               Noble Energy, Inc.
                   Effect of Commodity Derivative Instruments
                            (in millions, unaudited)


                                                  Three Months
                                                     Ended      Year Ended
                                                  December 31,  December 31,
                                                  ------------  ------------
                                                   2009  2008   2009   2008
                                                   ----  ----   ----   ----
    Reclassification from Accumulated Other
     Comprehensive Loss (AOCL) to Revenue (1)
      Crude oil                                    $(12) $(86)  $(58) $(365)
      Natural gas                                     -     3      -     34
                                                    ---   ---    ---    ---
    Total Revenue Decrease                         $(12) $(83)  $(58) $(331)
                                                   ----  ----   ----  -----

    Gain (Loss) on Derivative Instruments
      Crude oil
          Realized                                  $34   $68   $246   $(72)
          Unrealized                                (96)  456   (401)   335
                                                    ---   ---   ----    ---
            Total crude oil                        $(62) $524  $(155)  $263
                                                   ----  ----  -----   ----
      Natural gas
          Realized                                  $49   $49   $250   $(10)
          Unrealized                                 (3)   57   (205)   187
                                                    ---   ---   ----    ---
            Total natural gas                        46   106     45    177
                                                    ---   ---    ---    ---
    Total Gain (Loss) on Derivative Instruments    $(16) $630  $(110)  $440
                                                   ----  ----  -----   ----

    Summary of Cash Settlements
    Cash settlements (received) paid               $(71)  $16  $(438)  $607
    Realized gain (loss) on derivative
     instruments                                     83   117    496    (82)
    Amounts reclassified from AOCL                  (12)  (83)   (58)  (331)
                                                    ---   ---    ---   ----
    Settlement of previously recognized hedge
     losses                                          $-   $50     $-   $194
                                                    ---   ---    ---   ----

    (1) The amounts in AOCL represent deferred unrealized hedge gains and
        losses.  Upon settlement, these deferred gains and losses are
        reclassified from AOCL to net income as increases or decreases to
        crude oil and natural gas revenues, and impact reported realized
        commodity prices.



                              Schedule 7
                           Noble Energy, Inc.
                           Supplemental Data
                             (in millions)
                              (Unaudited)

    2009 Costs Incurred in Oil and Gas Activities
    ---------------------------------------------

                      United States    International (1)    Total
                     ---------------  -------------------  -------
    Property acquisition
     costs:
      Proved                     $(5)                  $-      $(5)
      Unproved                    89                    3       92
                                 ---                  ---      ---
        Total acquisition
          costs                   84                    3       87

    Exploration costs            189                  124      313
    Development costs            700                  223      923
    Capital lease
     accrual                       -                   29       29
    Asset retirement
     obligations                  11                   10       21
                                 ---                  ---      ---
      Total costs
       incurred                 $984                 $389   $1,373
                                ----                 ----   ------


    Reconciliation to Capital
     Spending

    Total costs incurred                                    $1,373
      Exploration overhead                                     (30)
      Lease rentals                                             (6)
      Asset retirement obligations                             (21)
                                                               ---
    Total oil and gas spending                               1,316
      Other capital                                              1
                                                               ---
    Total capital spending                                  $1,317
                                                            ------

    Proved Reserves (2)
    -------------------

    Total Barrel
     Oil Equivalents
     (MMBoe)          United States    International (1)    Total
                     ---------------  -------------------  -------
    Beginning
     reserves -
     December 31, 2008         508.3                355.3    863.6
      Revisions of
       previous estimates      (71.6)                 7.5    (64.1)
      Extensions, discoveries
       and other additions      67.4                 28.2     95.6
      Purchase of minerals
       in place                  1.6                    -      1.6
      Sale of minerals
       in place                    -                    -        -
      Production               (41.2)               (35.4)   (76.6)
                               -----                -----    -----
    Ending reserves
     - December 31, 2009       464.5                355.6    820.1
                               -----                -----    -----

    Proved Developed
     Reserves (MMBoe)
      December 31, 2008        332.7                263.8    596.5
      December 31, 2009        307.7                242.2    549.9

    (1)  International includes Equatorial Guinea, Israel, North
         Sea, Ecuador and China.
    (2)  Netherland, Sewell & Associates, Inc. performed an audit
         of over 86 percent of Noble Energy's year-end 2009 total
         proved reserves and concluded the Company's estimates of
         proved reserves, in the aggregate, are reasonable and have
         been prepared in accordance with generally accepted petroleum
         engineering and evaluation principles.


SOURCE Noble Energy, Inc.

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