- Achieved third quarter sales volumes of 425 MBoe/d, an increase of 12 percent over the third quarter of 2015, or an 8 percent increase pro-forma.
U.S. oil volumes were up 14 percent pro-forma andIsrael volumes set a new quarterly record. - Reported third quarter capital expenditures of
$297 million , substantially below expectation and reflecting continued operational efficiencies across the business. - Reduced LOE on a BOE basis to
$3.37 , a decrease of 14 percent from the third quarter of last year pro-forma. - Commenced production on 43 wells in the
DJ Basin during the third quarter, with average proppant per lateral foot increasing to approximately 1,600 pounds.Wells Ranch and East Pony combined production was up 11 percent from the third quarter of 2015. - Initiated production on the Company's fourth operated well within the
Delaware Basin , achieving an IP-30 rate of 1,560 Boe/d (333 Boe/d per thousand lateral feet) with 70 percent oil. On a normalized basis, the well is outperforming the historical type curve. - Realized significant progress towards sanctioning Leviathan, including the execution of a gas sales agreement for gross volumes of up to 350 MMcf/d (total volume of 1.6 Tcf) to the
National Electric Power Company of Jordan. The gross contract revenues are estimated to be approximately$10 billion . - Commenced the startup of two major offshore projects, the Gunflint
oil development in the
Gulf of Mexico and the non-operated B3 compression platform at the Alba field in West Africa. Production for both projects has exceeded expectations. - Increased liquidity at the end of the quarter to
$5.8 billion , comprised of$1.8 billion of cash and a$4.0 billion undrawn credit facility. Included in the cash balance was nearly$300 million resulting from a distribution fromNoble Midstream Partners LP following its successful initial public offering.
The Company sold quarterly volumes of 425 thousand barrels of oil equivalent per day (MBoe/d) during the third quarter of 2016. Total sales volumes were higher by 12 percent compared to the third quarter of 2015, or 8 percent pro-forma for the
Liquids comprised 43 percent of third quarter 2016 volumes, with 29 percent
being crude oil and condensate and 14 percent natural gas liquids (NGLs). Natural gas accounted for the remaining 57 percent. Total oil volumes of 123 thousand barrels per day were meaningfully above expectation and were primarily driven by outperformance in the
Nearly all cost items for the quarter were below the Company's expectations. Lease operating expenses (LOE) were significantly lower at
Exploration expense for the quarter was
The Company's overall reported income tax rate for the quarter was 49 percent. Following removal of the adjustment items to the Company's net loss, the
adjusted effective tax rate was 72 percent, reflecting current tax expense of
Third quarter capital expenditures were
OPERATIONS UPDATE
Sales volumes averaged 113 MBoe/d in the third quarter of 2016. Liquids represented 68 percent of
Highlights include:
- Drilled 23 wells at an average lateral length of over 9,000 feet,
with all of the wells drilled in the third quarter located in
Wells Ranch and East Pony. Set a new long lateral drilling record (9,853 lateral feet) with a spud to rig release of 4.75 days. - Commenced production on 43 wells, with an average lateral length of nearly 6,000 feet. Thirteen of the wells were located in East Pony, 22 wells in
Wells Ranch , and 8 wells in the Mustang IDP area. Each utilized slickwater completion fluid with an average proppant concentration of over 1,600 pounds per lateral foot. - A major contributor to the Company's oil volume growth for the quarter were the East Pony wells which commenced production. For those wells that reached cumulative production of at least 30 days, the East Pony wells averaged 147 Boe/d per 1,000 lateral foot, with over 70 percent of the volumes being crude oil.
- Closed on
the acreage exchange transaction with PDC Energy in September. The Company received approximately 11,700 net acres in
Wells Ranch (a 20 percent increase) in exchange for approximately 13,500 net acres primarily in the Bronco area, located southwest ofWells Ranch . - The Company exited the quarter with 28 wells drilled but uncompleted and two rigs operating.
Sales volumes of 61 MBoe/d were achieved in the third quarter of 2016, an increase of 11 percent from the third quarter of 2015 on a pro-forma basis. Liquids represented 64 percent of the total (26 percent crude oil and condensate and 38 percent NGLs), while natural gas accounted for the remaining 36 percent.
In the fourth quarter 2016,
Highlights include:
- Drilled and commenced production on 6 wells (5 in the Eagle Ford and 1 in the
Delaware ). The Permian well drilled in the quarter was the Company's first long lateral in theDelaware Basin , which was 7,750 feet in lateral length. - The
Johnny Ringo 9 3H well, a Wolfcamp A well in theDelaware Basin , with a lateral length of 4,691 feet, was completed using slickwater and 2,500 pounds of proppant per lateral foot. The well has achieved an IP-30 rate of 1,560 Boe/d (or 333 Boe/d per thousand lateral feet) with 70 percent oil. On a normalized basis, the well is outperforming the historical type curve. - Commenced production on 5 Lower Eagle Ford wells in the
Gates Ranch area. The wells had a lateral spacing of approximately 500 feet, an average lateral length of 5,860 feet, and an average IP-30 of 3,128 Boe/d (or 534 Boe/d per thousand lateral feet). The wells had proppant concentrations of approximately 2,000 pounds per lateral foot and cluster spacing of 40 feet. On a normalized basis, these wells are also outperforming the historical type curve. - Closed on the sale of approximately 11,000 non-core acres in the Eagle Ford for
$68 million at the end of the quarter. The acreage sold included small positions inLa Salle ,Atascosa ,Live Oak andDimmit counties where we had not engaged in drilling activity since the merger withRosetta Resources Inc. - There were 39 wells drilled but uncompleted (25 in the Eagle Ford and 14 in the
Delaware ) at the end of the quarter.
Sales volumes in the
Highlights include:
- No wells were drilled or commenced production in the third quarter.
- Completed 6 wells during the quarter and exited the quarter with 73 wells drilled but uncompleted in the Joint Venture (
Noble Energy with 50 percent working interest). After separation of the Joint Venture as announced onOctober 31, 2016 ,Noble Energy held a 100 percent working interest in 20 drilled but uncompleted wells. - CONE Midstream Partners gathered gross volumes averaging approximately 1.2 billion cubic feet per day during the quarter, an increase of approximately 19 percent from the same quarter in the previous year.
EASTERN MEDITERRANEAN
Highlights include:
- Continued strong operations and reservoir performance at Tamar, as the asset reached a cumulative 1 Tcf of gas sold since first production in 2013.
- Executed agreement to sell 3 percent working interest in Tamar in early July for
$369 million pre-tax (implied$12.3 billion gross valuation). Closing of the transaction is expected in the middle part of the fourth quarter. - Continued progress in marketing gas from the Leviathan field. Executed gas sales contract to supply gross volumes of up to 350 MMcf/d of natural gas (a total volume of 1.6 Tcf) from Leviathan to NEPCO of
Jordan for consumption in power production facilities over a 15-year term. The gross contract revenues are estimated to be approximately$10 billion . - Continued front-end engineering and design for the Leviathan production platform.
Sales volumes in the
Highlights include:
- The Gunflint oil development commenced production in mid-July. The field contributed 6 MBoe/d, net to
Noble Energy in the quarter, higher than expected as a result of strong field ramp-up and additional open capacity on the Gulfstar One host facility. - The Company was named the operator of the Thunder Hawk production facility in September. Thunder Hawk hosts production from Big Bend and
Dantzler .
Sales volumes in
Highlights include:
- Commenced production in July from the non-operated B3 compression platform at the Alba field. A peak gross gas production rate of 950 MMcf/d was the highest daily rate achieved in the last 4 years.
GUIDANCE
Driven primarily by accelerated onshore drilling programs,
- The Marcellus JV separation (7 MBoe/d lower, assuming a
November 2016 closing) - A non-core asset sale in the Eagle Ford (2 MBoe/d lower)
- Timing of the Tamar transaction (2 MBoe/d higher).
The Company lowered LOE and G&A guidance for the fourth quarter, as reflected in the supplemental slides for the quarterly webcast which are available on the Company's website.
(1) A Non-GAAP measure,see attached Reconciliation Schedules
WEBCAST INFORMATION
This news release contains certain "forward-looking statements" within the meaning of federal securities law. Words such as "anticipates", "believes", "expects", "intends", "will", "should", "may", "estimates", 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. They may include estimates of oil and natural gas reserves, 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 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 actions, the ability of management to
execute its plans to meet its goals and other risks inherent in Noble Energy's business that are discussed in its most recent annual report on Form 10-K and in other reports on file with the
This news release also contains certain 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 the attached schedules for reconciliations of the differences between any historical non-GAAP measures used in this news release and the most directly comparable GAAP financial measures.
Summary Statement of Operations
(in millions, except per share amounts, unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | |||||||||||||||
Crude Oil and Condensate | $ | 461 | $ | 438 | $ | 1,291 | $ | 1,352 | |||||||
Natural Gas | 347 | 293 | 916 | 785 | |||||||||||
Natural Gas Liquids (1) | 74 | 52 | 204 | 127 | |||||||||||
Income from Equity Method Investees | 28 | 36 | 70 | 60 | |||||||||||
Total Revenues | 910 | 819 | 2,481 | 2,324 | |||||||||||
Operating Expenses | |||||||||||||||
Lease Operating Expense | 131 | 133 | 412 | 419 | |||||||||||
Production and Ad Valorem Taxes | 30 | 28 | 73 | 89 | |||||||||||
Transportation and Gathering Expense (1) | 113 | 86 | 335 | 207 | |||||||||||
Marketing and Processing Expense, Net | 20 | 10 | 58 | 25 | |||||||||||
Exploration Expense | 125 | 203 | 376 | 308 | |||||||||||
Depreciation, Depletion and Amortization | 621 | 539 | 1,859 | 1,444 | |||||||||||
General and Administrative | 95 | 109 | 293 | 308 | |||||||||||
Other Operating Expense, Net | 25 | 178 | 8 | 285 | |||||||||||
Total Operating Expenses | 1,160 | 1,286 | 3,414 | 3,085 | |||||||||||
Operating Loss | (250 | ) | (467 | ) | (933 | ) | (761 | ) | |||||||
Other Expense (Income) | |||||||||||||||
(Gain) Loss on Commodity Derivative Instruments | (55 | ) | (267 | ) | 53 | (331 | ) | ||||||||
Interest, Net of Amount Capitalized | 86 | 71 | 242 | 183 | |||||||||||
Other Non-Operating (Income) Expense, Net | (1 | ) | (12 | ) | 3 | (20 | ) | ||||||||
Total Other Expense (Income) | 30 | (208 | ) | 298 | (168 | ) | |||||||||
Loss Before Income Taxes | (280 | ) | (259 | ) | (1,231 | ) | (593 | ) | |||||||
Income Tax (Benefit) Provision | (137 | ) | 24 | (486 | ) | (180 | ) | ||||||||
Net Loss Including Noncontrolling Interests | $ | (143 | ) | $ | (283 | ) | $ | (745 | ) | $ | (413 | ) | |||
Less: Net Income Attributable to Noncontrolling Interests (2) | 1 | — | 1 | — | |||||||||||
Net Loss Attributable to | $ | (144 | ) | $ | (283 | ) | $ | (746 | ) | $ | (413 | ) | |||
Net Loss Attributable to Noble Energy Per Share of Common Stock | |||||||||||||||
Loss Per Share, Basic | $ | (0.33 | ) | $ | (0.67 | ) | $ | (1.73 | ) | $ | (1.05 | ) | |||
Loss Per Share, Diluted | $ | (0.33 | ) | $ | (0.67 | ) | $ | (1.73 | ) | $ | (1.05 | ) | |||
Weighted Average Number of Shares Outstanding | |||||||||||||||
Basic | 430 | 420 | 430 | 392 | |||||||||||
Diluted | 430 | 420 | 430 | 392 | |||||||||||
(1) Certain of our revenue received from purchasers was historically presented with deductions for transportation, gathering, fractionation or processing costs. Beginning in 2016, we have changed our presentation to no longer include these expenses as deductions from revenue. These costs are now included within transportation and gathering expense and prior year amounts have been reclassified to conform to the current presentation. | |||||||||||||||
(2) The Company consolidates 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 | |||||||||||||||
On to Rosetta are included in our consolidated statement of operations beginning on Rosetta will affect the comparability of our financial results to prior periods. |
Schedule 2
Condensed Balance Sheets
(in millions, unaudited)
2016 | 2015 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and Cash Equivalents | $ | 1,819 | $ | 1,028 | |||
Accounts Receivable, Net | 486 | 450 | |||||
Commodity Derivative Assets | 120 | 582 | |||||
Other Current Assets | 352 | 216 | |||||
Total Current Assets | 2,777 | 2,276 | |||||
Net Property, Plant and Equipment | 19,105 | 21,300 | |||||
Other Noncurrent Assets | 587 | 620 | |||||
Total Assets | $ | 22,469 | $ | 24,196 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts Payable - Trade | $ | 786 | $ | 1,128 | |||
Other Current Liabilities | 742 | 677 | |||||
Total Current Liabilities | 1,528 | 1,805 | |||||
Long-Term Debt | 7,854 | 7,976 | |||||
Deferred Income Taxes | 2,103 | 2,826 | |||||
Other Noncurrent Liabilities | 1,139 | 1,219 | |||||
Total Liabilities | 12,624 | 13,826 | |||||
Total Shareholders' Equity | 9,545 | 10,370 | |||||
Noncontrolling Interests (1) | 300 | — | |||||
Total Equity | 9,845 | 10,370 | |||||
Total Liabilities and Equity | $ | 22,469 | $ | 24,196 | |||
(1) The Company consolidates 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 |
Schedule 3
Condensed Statement of Cash Flows
(in millions, unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Cash Flows From Operating Activities | |||||||||||||||
Net Loss(1) | $ | (143 | ) | $ | (283 | ) | $ | (745 | ) | $ | (413 | ) | |||
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities | |||||||||||||||
Depreciation, Depletion and Amortization | 621 | 539 | 1,859 | 1,444 | |||||||||||
Asset Impairments | — | — | — | 43 | |||||||||||
Dry Hole Cost | (9 | ) | 135 | 105 | 154 | ||||||||||
Undeveloped Leasehold Impairment | 81 | — | 81 | — | |||||||||||
Gain on Extinguishment of Debt | — | — | (80 | ) | — | ||||||||||
Loss on Asset Due to Terminated Contract | (3 | ) | — | 44 | — | ||||||||||
Deferred Income Tax (Benefit) Provision | (285 | ) | 68 | (699 | ) | (244 | ) | ||||||||
Loss (Gain) on Commodity Derivative Instruments | (55 | ) | (267 | ) | 53 | (331 | ) | ||||||||
Net Cash Received in Settlement of Commodity Derivative Instruments | 132 | 284 | 454 | 683 | |||||||||||
Stock Based Compensation | 21 | 31 | 61 | 69 | |||||||||||
Non-cash Pension Termination Expense | — | 60 | — | 81 | |||||||||||
Other Adjustments for Noncash Items Included in Income | 44 | 63 | 92 | 74 | |||||||||||
Net Changes in Working Capital | 210 | (110 | ) | (171 | ) | (74 | ) | ||||||||
Net Cash Provided by Operating Activities | 614 | 520 | 1,054 | 1,486 | |||||||||||
Cash Flows From Investing Activities | |||||||||||||||
Additions to Property, Plant and Equipment | (352 | ) | (621 | ) | (1,164 | ) | (2,519 | ) | |||||||
Cash Acquired in | — | 61 | — | 61 | |||||||||||
Additions to Equity Method Investments | (2 | ) | (21 | ) | (8 | ) | (86 | ) | |||||||
Proceeds from Divestitures and Other | 19 | — | 786 | 151 | |||||||||||
(335 | ) | (581 | ) | (386 | ) | (2,393 | ) | ||||||||
Cash Flows From Financing Activities | |||||||||||||||
Dividends Paid, Common Stock | (43 | ) | (80 | ) | (129 | ) | (214 | ) | |||||||
Proceeds from Issuance of Noble Energy Common Stock, Net of Offering Costs | — | — | — | 1,112 | |||||||||||
Proceeds from Issuance of Noble Midstream Common Units, Net of Offering Costs | 299 | — | 299 | — | |||||||||||
Repayment of Credit Facility | — | (74 | ) | — | (74 | ) | |||||||||
(Repayment) Proceeds from Long Term Debt, Net | — | (12 | ) | 17 | (12 | ) | |||||||||
Repayment of Capital Lease Obligation | (12 | ) | (20 | ) | (39 | ) | (49 | ) | |||||||
Other | (4 | ) | (3 | ) | (25 | ) | (11 | ) | |||||||
Net Cash Provided by (Used In) Financing Activities | 240 | (189 | ) | 123 | 752 | ||||||||||
Increase (Decrease) in Cash and Cash Equivalents | 519 | (250 | ) | 791 | (155 | ) | |||||||||
Cash and Cash Equivalents at Beginning of Period | 1,300 | 1,278 | 1,028 | 1,183 | |||||||||||
Cash and Cash Equivalents at End of Period | $ | 1,819 | $ | 1,028 | $ | 1,819 | $ | 1,028 | |||||||
(1) The Company consolidates entity for financial reporting purposes. For the three and nine months ended to Noncontrolling Interests in NBLX. | |||||||||||||||
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in | |||||||||||||||
On 2015. The results of these cash flows attributable to Rosetta will affect the comparability of our results to prior periods. |
Schedule 4
Volume and Price Statistics
(unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
Sales Volumes | 2016 | 2015 | 2016 | 2015 | |||||||||||
Crude Oil and Condensate (MBbl/d) | |||||||||||||||
99 | 83 | 99 | 73 | ||||||||||||
22 | 27 | 25 | 29 | ||||||||||||
Other International | — | — | — | 1 | |||||||||||
Total consolidated operations | 121 | 110 | 124 | 103 | |||||||||||
Equity method investee - | 2 | 2 | 2 | 2 | |||||||||||
Total | 123 | 112 | 126 | 105 | |||||||||||
Natural Gas Liquids (MBbl/d) | |||||||||||||||
55 | 49 | 56 | 34 | ||||||||||||
Equity method investee - | 7 | 6 | 5 | 5 | |||||||||||
Total | 62 | 55 | 61 | 39 | |||||||||||
Natural Gas (MMcf/d) | |||||||||||||||
874 | 741 | 902 | 658 | ||||||||||||
310 | 303 | 284 | 254 | ||||||||||||
261 | 231 | 230 | 221 | ||||||||||||
Total | 1,445 | 1,275 | 1,416 | 1,133 | |||||||||||
Total Sales Volumes (MBoe/d) | |||||||||||||||
299 | 255 | 304 | 217 | ||||||||||||
52 | 51 | 48 | 43 | ||||||||||||
65 | 65 | 64 | 66 | ||||||||||||
Other International | — | — | — | 1 | |||||||||||
Total consolidated operations | 416 | 371 | 416 | 327 | |||||||||||
Equity method investee - | 9 | 8 | 7 | 6 | |||||||||||
Total sales volumes (MBoe/d) | 425 | 379 | 423 | 333 | |||||||||||
Total sales volumes (MBoe) | 39,095 | 34,907 | 115,816 | 90,804 | |||||||||||
Price Statistics - Realized Prices | |||||||||||||||
Crude Oil and Condensate ($/Bbl)(1) | |||||||||||||||
$ | 41.23 | $ | 42.42 | $ | 37.23 | $ | 46.02 | ||||||||
43.73 | 45.99 | 40.74 | 52.15 | ||||||||||||
Other International | — | — | — | 55.52 | |||||||||||
Total | $ | 41.67 | $ | 43.30 | $ | 37.94 | $ | 47.79 | |||||||
Natural Gas Liquids ($/Bbl)(1) | |||||||||||||||
$ | 14.70 | $ | 11.37 | $ | 13.38 | $ | 13.77 | ||||||||
Natural Gas ($/Mcf)(1) | |||||||||||||||
$ | 2.38 | $ | 2.01 | $ | 2.00 | $ | 2.20 | ||||||||
5.22 | 5.39 | 5.19 | 5.39 | ||||||||||||
| 0.27 | 0.27 | 0.27 | 0.27 | |||||||||||
Total | $ | 2.61 | $ | 2.50 | $ | 2.36 | $ | 2.54 | |||||||
(1) Average realized prices do not include gains or losses on commodity derivative instruments. | |||||||||||||||
On beginning on periods. |
Schedule 5
Reconciliation of Net Loss Attributable to
Adjusted (Loss) Income Attributable to
(in millions, except per share amounts, unaudited)
Adjusted (loss) income attributable to
Three Months Ended | Nine Months Ended | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Loss Attributable to | $ | (144 | ) | $ | (283 | ) | $ | (746 | ) | $ | (413 | ) | |||
Adjustments to Net Loss | |||||||||||||||
Loss on Commodity Derivative Instruments, Net of Cash Settlements | 77 | 17 | 507 | 352 | |||||||||||
Loss on Asset Due to Terminated Contract | (3 | ) | — | 44 | — | ||||||||||
Purchase Price Allocation Adjustment [1] | — | — | (25 | ) | — | ||||||||||
Gain on Debt Extinguishment [2] | — | — | (80 | ) | — | ||||||||||
Well Cost Related to Expiration of Exploration License [3] | — | — | 26 | — | |||||||||||
Loss on Divestitures | — | — | 23 | — | |||||||||||
Undeveloped Leasehold Impairment [4] | 81 | — | 81 | — | |||||||||||
Other Adjustments [5] | 20 | 160 | 43 | 251 | |||||||||||
Total Adjustments Before Tax | 175 | 177 | 619 | 603 | |||||||||||
Current Income Tax Effect of Adjustments [6] | 111 | (11 | ) | 111 | (20 | ) | |||||||||
Deferred Income Tax Effect of Adjustments [6] | (172 | ) | 27 | (345 | ) | (149 | ) | ||||||||
Adjustments to Net Loss, After Tax | $ | 114 | $ | 193 | $ | 385 | $ | 434 | |||||||
Adjusted (Loss) Income Attributable to | $ | (30 | ) | $ | (90 | ) | $ | (361 | ) | $ | 21 | ||||
Net Loss Attributable to Noble Energy Per Share, Diluted (GAAP) | $ | (0.33 | ) | $ | (0.67 | ) | $ | (1.73 | ) | $ | (1.05 | ) | |||
Adjusted (Loss) Income Attributable to Noble Energy Per Share, Diluted (Non-GAAP) | $ | (0.07 | ) | $ | (0.21 | ) | $ | (0.84 | ) | $ | 0.05 | ||||
Weighted Average Number of Shares Outstanding, Diluted | 430 | 420 | 430 | 395 | |||||||||||
NOTE: On | |||||||||||||||
[1] Amount relates to a tax adjustment recorded to the purchase price allocation related to the Rosetta Merger. | |||||||||||||||
[2] Amount relates to the early tendering of senior notes assumed in the Rosetta Merger. | |||||||||||||||
[3] Amount relates to the license from our 2011 Dolphin discovery in Eastern Mediterranean. | |||||||||||||||
[4] Amount relates to the write-off of several leases in deepwater | |||||||||||||||
[5] Amount for 2016
primarily relates to loss on sale of other assets, stacked drilling rig charges, and deferred compensation plan. Amount for the three months ended | |||||||||||||||
[6] 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 (such as the recognition of a gain on our 3% Tamar divestiture in Eastern Mediterranean) and the change in the indefinite reinvestment assertion related to accumulated undistributed earnings of foreign subsidiaries. |
Schedule 6
Reconciliation of Net Loss Attributable to
(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 attributable to
Three Months Ended | Nine Months Ended | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Loss Attributable to | $ | (144 | ) | $ | (283 | ) | $ | (746 | ) | $ | (413 | ) | |||
Adjustments to Net Loss, After Tax [1] | 114 | 193 | 385 | 434 | |||||||||||
Adjusted (Loss) Income Attributable to | (30 | ) | (90 | ) | (361 | ) | 21 | ||||||||
Adjustments to Adjusted Net Loss (Income) Attributable to | |||||||||||||||
Depreciation, Depletion, and Amortization | 621 | 539 | 1,859 | 1,444 | |||||||||||
Exploration Expense [2] | 44 | 203 | 269 | 308 | |||||||||||
Interest, Net of Amount Capitalized | 86 | 71 | 242 | 183 | |||||||||||
Current Income Tax Expense [3] | 37 | (34 | ) | 102 | 84 | ||||||||||
Deferred Income Tax Benefit [3] | (113 | ) | 42 | (354 | ) | (95 | ) | ||||||||
Adjusted EBITDAX (Non-GAAP) | $ | 645 | $ | 731 | $ | 1,757 | $ | 1,945 | |||||||
NOTE: On | |||||||||||||||
[1] See Schedule 5: Reconciliation of Net Loss Attributable to | |||||||||||||||
[2] Represents remaining Exploration Expense after reversal of Adjustments to Net Loss, After Tax, above. | |||||||||||||||
[3] Represents remaining Income Taxes after reversal of Adjustments to Net Loss, After Tax, above. |
Capital
Expenditures
(in millions, unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
Capital Expenditures (Accrual Based) | $ | 297 | $ | 664 | $ | 935 | $ | 2,325 | ||||||||||
Increase in Capital Lease Obligations [4] | 5 | 29 | 5 | 60 | ||||||||||||||
Total Capital Expenditures (Accrual Based) [5] | $ | 302 | $ | 693 | $ | 940 | $ | 2,385 |
[4] | Represents estimated construction in progress to date on US operating assets and corporate buildings. |
[5] | Includes capital expenditures from our publicly traded subsidiary, |
Investor ContactsSource:Brad Whitmarsh (281) 943-1670 Brad.Whitmarsh@nblenergy.comMegan Repine (832) 639-7380 Megan.Repine@nblenergy.com Media Contacts:Reba Reid (713) 412-8441 media@nblenergy.comPaula Beasley (281) 876-6133 media@nblenergy.com
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