Noble Energy, Inc. Announces Full Year and Fourth Quarter 2002 Results

Press Release

Jan 29, 2003
Noble Energy, Inc. Announces Full Year and Fourth Quarter 2002 Results

Noble Energy, Inc. Announces Full Year and Fourth Quarter 2002 ResultsHOUSTON, Jan. 29 /PRNewswire-FirstCall/ -- Noble Energy, Inc. (NYSE: NBL) today reported full year and fourth quarter 2002 results. For the full year 2002 net income was $17.7 million, or 31 cents per basic share. Discretionary cash flow (net income plus depreciation, depletion and amortization; exploration expense; distribution from unconsolidated subsidiaries; and deferred income tax; less income from unconsolidated subsidiaries and capitalized interest) for the year was $476.8 million. For the fourth quarter 2002, net income was $16.8 million, or 29 cents per basic share, and discretionary cash flow was $149.3 million.

Charles Davidson, Noble Energy's Chairman, President and CEO, said, "In 2002, Noble Energy made significant progress in developing our strategy of international growth while maintaining our domestic business. International operations contributed significant production, earnings and cash flow. Our natural gas-fired power plant in Ecuador began operations and contributed to cash flow and earnings. With increased production from the Hanze field, our North Sea operations also made an important contribution. We made substantial progress in Israel, where we are on track to begin production in the fourth quarter of 2003. In addition, two new phases of development were approved for Equatorial Guinea, paving the way for growth in future years.

"Domestic operations remain core to Noble Energy, as they contributed significant cash flow and earnings despite lower natural gas prices earlier in 2002 and reduced production volumes. Domestic production has now stabilized and will significantly benefit from the current rebound in natural gas prices."

Full Year 2002

Full year 2002 net income was $17.7 million, or 31 cents per share, compared to net income of $133.6 million, or $2.36 per share, for the same period last year. Discretionary cash flow for 2002 was $476.8 million compared to last year's record high of $617.8 million.

The year-on-year decline in net income and discretionary cash flow resulted primarily from lower production volumes and realized natural gas prices. Full year 2002 net income includes an effective tax rate of 59 percent, generally resulting from foreign tax rates that exceeded the U.S. tax benefit. Deferred taxes were 69 percent of the total income tax provision.

Noble Energy benefited from higher realized prices for liquids during the year, which increased three percent, compared to the full year 2001. The company's average realized liquids price was $23.98 per barrel (Bbl) compared to $23.30 per Bbl last year. Earnings and cash flow were negatively impacted by lower natural gas prices, which declined nearly 27 percent year-on-year. The company's average realized natural gas price was $2.92 per thousand cubic feet (Mcf) compared to $3.98 per Mcf last year.

Compared to 2001, overall production volumes for the year decreased two percent to 98,641 barrels of oil equivalent per day (Boepd) from 101,068 Boepd. International volumes increased 34 percent compared to last year, primarily because of increased natural gas volumes in Equatorial Guinea and the mid-September start up of Noble Energy's power plant in Ecuador. The increase in international volumes was offset by lower domestic volumes, which declined 11 percent compared to last year. The decline in domestic production was caused by reduced domestic drilling levels, natural decline rates for natural gas properties in the Gulf of Mexico and the onshore Gulf Coast region, as well as shut-ins of over 1,000 Boepd related to Hurricanes Isidore and Lili.

Oil and gas operating costs for the year ended December 31, 2002 were $3.72 per barrel of oil equivalent (BOE) compared to $3.62 per BOE last year. Aggregate oil and gas operating costs were flat; however, the lower production volumes caused the year-on-year increase in oil and gas operating costs per BOE.

Selling, general and administrative expenses for the year were $1.32 per BOE compared to $1.20 per BOE in 2001. The increase in selling, general and administrative expense per BOE primarily reflects lower production volumes. Higher aggregate selling, general and administrative expenses are due to increased salary and legal expenses, as well as increased costs associated with the company's international expansion prior to receiving significant production from these operations.

Noble Energy's methanol project in Equatorial Guinea generated operating income of $9.5 million compared to an operating loss of $5.1 million last year. The improved operating results were primarily due to increased sales volumes, higher realized methanol prices and lower interest expense. Methanol sales volumes nearly doubled to 105.1 million gallons (MMGal) from 54.1 MMGal during 2001. Realized methanol prices increased ten percent to 43 cents per gallon (Gal) compared to 39 cents per Gal last year. Interest expense on the methanol project was reduced by $7.5 million as a result of Noble Energy's consolidation of all associated debt beginning with the first quarter 2002. Noble Energy consolidated the methanol project debt after its partner sold their interest in the project and paid off their share of the debt, leaving Noble Energy with a 100 percent interest in the financing entity. Such interest has been recognized in Noble Energy's interest expense for 2002.

Fourth Quarter 2002

Fourth quarter net income of $16.8 million, or 29 cents per share, compared favorably to a net loss of $27.5 million, or 48 cents per share, for the same period in 2001. Discretionary cash flow for the fourth quarter 2002 of $149.3 million compared to $102.9 million last year.

The increase in net income and discretionary cash flow versus the fourth quarter last year primarily reflected higher commodity prices, lower operating expense and increased income from international projects.

Noble Energy benefited from higher realized prices for liquids and natural gas during the quarter, which increased 39 percent and 49 percent, respectively, compared to the fourth quarter of 2001. The company's average realized liquids price was $25.94 per Bbl compared to $18.60 per Bbl during the fourth quarter of 2001. The company's average realized natural gas price was $3.55 per Mcf compared to $2.38 per Mcf last year. Higher realized methanol prices also contributed to the improved operating results, increasing 93 percent compared to the fourth quarter 2001.

Compared to the third quarter 2002, overall production volumes for the fourth quarter decreased one percent to 96,898 Boepd from 98,186 Boepd. Domestic operations had a production decline of seven percent compared to the third quarter, of which nearly five percent was caused by shut-ins of approximately 3,300 Boepd related to Hurricane Lili. The remaining decline was caused by delays in starting up two major deepwater projects and natural decline rates for natural gas in the Gulf of Mexico and the onshore Gulf Coast region.

Two large deepwater Gulf of Mexico projects that were expected to start production during the fourth quarter were delayed. Green Canyon 136 #8 (Shasta) had a planned start-up in November with volumes of over 1,000 Boepd, net to Noble Energy. Shasta began production in January 2003. At Green Canyon 282 (Boris), Boris #1 was expected to commence production in December at 2,000 Boepd, net to Noble Energy. Boris #2 was expected to commence production later in the first quarter 2003 at another 2,000 Boepd, net to Noble Energy. Boris #1 is now scheduled to start-up in February, and Boris #2 is expected to begin production mid-year 2003.

International volumes increased 15 percent compared to the third quarter, primarily because of increased natural gas volumes in Equatorial Guinea and the mid-September start-up of Noble Energy's natural gas-fired power plant in Ecuador.

Fourth quarter 2002 production volumes declined to 96,898 Boepd from 101,376 Boepd for the same period last year. The decline in volumes was primarily attributable to Hurricane Lili, as well as natural decline rates for domestic natural gas in the Gulf of Mexico and the onshore Gulf Coast region, partially offset by increased international volumes.

Oil and gas operating costs for the three months ending December 31, 2002 were $3.82 per BOE compared to $3.75 per BOE for the same period last year. Aggregate oil and gas operating costs declined nearly $0.9 million. The quarter-on-quarter increase in oil and gas operating costs per BOE reflects lower production volumes.

Selling, general and administrative expenses for the fourth quarter were $1.06 per BOE compared to $1.28 per BOE for the fourth quarter of 2001. The decline in selling, general and administrative expense reflects reduced compensation expenses, primarily from reduced bonuses in the 2002 period.

Depreciation, depletion and amortization also declined to $7.41 per BOE compared to $7.97 per BOE for the fourth quarter 2001.

DOMESTIC OPERATIONS - FOURTH QUARTER 2002

Domestic operations reported operating income for the fourth quarter of $31.6 million compared to an operating loss of $13.7 million for the fourth quarter last year. Fourth quarter 2002 results reflected increased realized prices for liquids and natural gas and lower overall expenses.

Domestic operations benefited from higher realized prices for liquids and natural gas during the quarter, which increased 43 percent and 63 percent, respectively, compared to the fourth quarter of 2001. The average domestic realized liquids price was $25.14 per Bbl compared to $17.62 per Bbl during the fourth quarter of 2001. The average domestic realized natural gas price was $4.01 per Mcf compared to $2.46 per Mcf last year.

Overall domestic costs and expenses for the fourth quarter declined $7.4 million compared to the fourth quarter of 2001. Lease operating expenses declined $2.7 million, depreciation, depletion and amortization expense declined $12.0 million and selling, general and administrative expenses declined $3.6 million. These lower costs were partially offset by higher exploration expense, which increased $11.0 million.

During 2002, Noble Energy participated in 135 gross domestic exploration and development wells, of which 91, or 67 percent, were successful.

INTERNATIONAL OPERATIONS - FOURTH QUARTER 2002

International operations reported operating income for the fourth quarter of $23.6 million compared to an operating loss of $3.6 million in the fourth quarter last year. Fourth quarter 2002 results reflected a year-on-year increase in production volumes and realized prices for liquids, operating income from the Machala power plant in Ecuador and strong methanol results in Equatorial Guinea.

International operations benefited from higher realized prices for liquids during the quarter, which increased 34 percent compared to the fourth quarter of 2001. The average international realized liquids price was $26.81 per Bbl compared to $19.95 per Bbl during the fourth quarter of 2001. The average international realized natural gas price, excluding Ecuador volumes, was $1.15 per Mcf, compared to $1.55 per Mcf last year.

Fourth quarter 2002 international production volumes increased to 29,520 Boepd from 25,734 Boepd compared to the third quarter 2002. The increase in production volumes was primarily due to increased natural gas production in Ecuador and Equatorial Guinea. Similarly, fourth quarter 2002 international production volumes increased 37 percent from 21,483 Boepd last year.

Equatorial Guinea

Total operating income in Equatorial Guinea, which includes results from field operations and methanol, for the fourth quarter of 2002 was $16.5 million compared to virtually breakeven last year.

Liquid petroleum gas (LPG), natural gas and condensate sales accounted for $8.2 million, or 50 percent, of operating income from Equatorial Guinea. Fourth quarter 2002 production volumes averaged 12,946 Boepd, a 49 percent increase over last year. The average realized price for liquids during the fourth quarter was $25.63 per Bbl compared to $19.60 per Bbl for the same period last year. Natural gas was sold to the Atlantic Methanol Production Company (AMPCO) at a price of 24 cents per Mcf.

AMPCO, an unconsolidated subsidiary in which the company owns a 45 percent interest, produced $8.3 million of operating income, net to Noble Energy's interest, during the fourth quarter 2002. AMPCO results are reported as income from unconsolidated subsidiaries. Fourth quarter realized methanol prices were 56 cents per Gal compared to 29 cents per Gal last year. The company's share of AMPCO methanol sales volumes was 29.0 million Gal, more than double last year's 14.1 million Gal.

North Sea

In the North Sea, operating income for the fourth quarter of 2002 was $9.3 million compared to $5.1 million last year. The quarter-on-quarter improvement reflects higher commodity prices and crude oil production.

North Sea crude oil production for the fourth quarter of 2002 was 7,567 barrels of oil per day (Bopd) compared to 6,665 Bopd last year, reflecting production from the Hanze field, which began producing in 2001. North Sea natural gas production declined to 16.1 million cubic feet per day (MMcfpd) compared to 18.1 MMcfpd for the fourth quarter of 2001 because of natural field decline.

Other International

Other international, which includes operating results from Argentina, China, Vietnam and Israel, recorded a fourth quarter 2002 operating loss of $2.2 million compared to an operating loss of $8.7 million for fourth quarter last year. The increase in operating income resulted from the start-up of Noble Energy's power plant in Ecuador and lower exploration expense.

Noble Energy's Machala power plant contributed $1.5 million of operating income during the fourth quarter 2002. For the quarter, 217,037 megawatts (MW) were produced at an average sales price of 6.6 cents per kilowatt hour (Kwh). For the fourth quarter 2002, Noble Energy produced 24.1 MMcfpd of natural gas from the Amistad field at an average price of $3.08 per Mcf.

In south Bohai Bay offshore China, production commenced from the Cheng Dao Xi (CDX) field on January 13, 2003. The production platform is designed to produce approximately 10,000 Bopd. Initial production was 6,000 Bopd from three wells. Production is expected to reach capacity during the first quarter 2003. Noble Energy has a 57 percent working interest in this 10,000 Bopd project.

Noble Energy is one of the nation's leading independent energy companies and operates throughout major basins in the United States including the Gulf of Mexico, as well as internationally, in Argentina, China, Ecuador, Equatorial Guinea, the Mediterranean Sea, the North Sea and Vietnam. Noble Energy markets natural gas and crude oil through its subsidiary, Noble Energy Marketing, Inc.

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. Important factors that could cause the actual results to differ materially from those projected include, without limitation, the volatility in commodity prices for oil and 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.

                     NOBLE ENERGY, INC. AND SUBSIDIARIES
                       CONSOLIDATED SUMMARY OF RESULTS
                 (Unaudited) (In thousands, except per share)

                                   Three Months Ended   Twelve Months Ended
                                   12-31-02  12-31-01   12-31-02   12-31-01

    REVENUES
    Oil and Gas Sales and
     Royalties                     $195,180  $145,872   $700,602   $871,812
    Gathering, Marketing and
     Processing                     238,086   158,613    714,091    721,000
    Electricity Sales                14,326               18,257
    Income (Loss) From Unconsol.
     Subs. [A]                        8,254    (5,557)     9,532     (5,075)
    Other Income (Loss)                 274    (1,375)     1,246        538

                                    456,120   297,553  1,443,728  1,588,275

    COST AND EXPENSES
    Oil and Gas Operations           34,084    34,976    133,826    133,549
    Transportation                    3,214     4,609     16,441     16,012
    Oil and Gas Exploration          43,435    37,528    150,701    151,681
    Gathering, Marketing and
     Processing                     234,997   155,835    703,556    708,292
    Electricity Generation           12,829               15,946
    Depreciation, Depletion and
     Amortization                    66,098    74,369    285,286    284,016
    Selling, General and
     Administrative                   9,423    11,957     47,664     44,164
    Interest Expense [A]             16,948    11,200     64,040     41,904
    Interest Capitalized             (2,599)   (5,581)   (16,331)   (15,953)

                                    418,429   324,893  1,401,129  1,363,665

    INCOME (LOSS) BEFORE INCOME
     TAXES                           37,691   (27,340)    42,599    224,610

    INCOME TAX PROVISION (BENEFIT)
    Current                           6,331   (18,323)     7,625     31,594
    Deferred                         14,539    18,459     17,322     59,440

                                     20,870       136     24,947     91,034

    NET INCOME (LOSS)               $16,821  $(27,476)   $17,652   $133,576

    NET INCOME (LOSS) PER SHARE -
     BASIC                            $0.29    $(0.48)     $0.31      $2.36
    AVERAGE SHARES OUTSTANDING       57,306    56,686     57,196     56,549

    [A]  Income from Unconsolidated Subsidiaries includes interest expense of
         $2.8 million and $7.5 million for the three-month and twelve-month
         periods ended December 31, 2001, respectively.  This interest expense
         is related to the A-2 AMCCO notes that were consolidated into Noble
         Energy's balance sheet in January 2002 as a result of our partner's
         disposition of their ownership in the methanol plant and our
         resulting 100 percent interest in AMCCO.  Included in Interest
         Expense, and not included in Income from Unconsolidated Subsidiaries,
         during the three-month and twelve-month periods ended
         December 31, 2002 was $3.7 million and $11.2 million, respectively,
         of interest expense.


                     NOBLE ENERGY, INC. AND SUBSIDIARIES
         DETERMINATION OF DISCRETIONARY CASH FLOW AND RECONCILIATION
                                (In thousands)

                                       Three Months Ended  Twelve Months Ended
                                       12-31-02  12-31-01  12-31-02  12-31-01

    Net Income (Loss)                   $16,821  $(27,476)  $17,652  $133,576
    Depreciation, Depletion and
     Amortization (DD&A)                 66,098    74,369   285,286   284,016
    Power Project DD&A                    6,892               8,459
    Oil and Gas Exploration              43,435    37,528   150,701   151,681
    Interest Capitalized                 (2,599)   (5,581)  (16,331)  (15,953)
    Undistributed (Earnings) Loss
     From Unconsol. Subs.                (8,254)    5,557    (9,532)    5,075
    Distribution From Unconsol. Subs.    12,334              23,196
    Deferred Income Tax Provision
     (Benefit)                           14,539    18,459    17,322    59,440

    DISCRETIONARY CASH FLOW            $149,266  $102,856  $476,753  $617,835

    Adjustments to Reconcile
       Working Capital                  $59,695   $60,448   $58,863   $27,329
       Cash Exploration Costs           (18,421)  (12,589)  (48,051)  (34,784)
       Capitalized Interest               2,599     5,581    16,331    15,953
       Deferred Tax, Misc. Credits and
        Other                             6,009    17,514     5,895     9,439
       Return of Capital - Unconsol.
        Subs.                                                (5,500)
    Net Cash Provided by Operating
     Activities                        $199,148  $173,810  $504,291  $635,772


                       CONSOLIDATED CONDENSED CASH FLOW
                                (In thousands)

                                    Three Months Ended    Twelve Months Ended
                                    12-31-02   12-31-01   12-31-02   12-31-01

    Net Cash Provided by Operating
     Activities                     $199,148   $173,810   $504,291   $635,772
    Net Cash (Used in) Investing
     Activities                    $(167,966) $(296,853) $(577,528) $(883,715)
    Net Cash Provided by (Used In)
     Financing Activities           $(22,147)  $178,272    $15,442   $298,028


                     CONSOLIDATED CONDENSED BALANCE SHEET
                                (In thousands)

                                                 12-31-02           12-31-01
    ASSETS
       Current Assets                             $310,374           $351,571
       Property, Plant and Equipment             4,334,015          3,974,754
       Less:  Accumulated Depreciation          (2,194,230)        (2,021,543)
                                                 2,139,785          1,953,211
       Investment In Unconsol. Subs.               234,668            117,735
       Other                                        45,188             57,331

                                                $2,730,015         $2,479,848

    LIABILITIES AND SHAREHOLDERS' EQUITY
       Current Liabilities                        $471,754           $380,584
       Long-term Debt                              977,116            837,177
       Deferred Income Taxes,
        Other Deferred Credits and
        Noncurrent Liabilities                     271,759            251,889
       Shareholders' Equity                      1,009,386          1,010,198

                                                $2,730,015         $2,479,848


                              Noble Energy, Inc.
                          Income Before Income Taxes
                            (Dollars in Thousands)

                        Three Months Ended 12/31/2002

                                       Consolidated   Domestic    North Sea
    REVENUES
              Oil Sales                    $78,345     $39,507     $19,532
              Gas Sales [C]                116,835     111,556       5,244
              Gathering, Marketing and
               Processing Revenue          238,086
              Electricity Sales             14,326
              Income from Unconsolidated
               Subsidiaries                  8,254
              Other                            274         511         565
                Total Revenues             456,120     151,574      25,341

    COSTS AND EXPENSES
              Oil and Gas Operations        34,084      26,376       3,117
              Transportation                 3,214                   2,452
              Oil and Gas Exploration       43,435      36,755       1,742
              Gathering, Marketing and
               Processing Costs            234,997
              Electricity Generation        12,829
              DD&A                          66,098      53,686       8,452
              SG&A                           9,423       3,191         253
              Interest Expense (net)        14,349
                Total Costs and Expenses   418,429     120,008      16,016

    OPERATING INCOME (LOSS)                $37,691     $31,566      $9,325

         Key Statistics:
              Daily Production
                   Liquids (Bbl)            32,802      17,080       7,567
                   Natural Gas (Mcf)       384,575     301,785      16,096

              Average Realized Price
                   Liquids                  $25.94      $25.14      $28.06
                   Natural Gas               $3.55       $4.01       $3.54


                              Noble Energy, Inc.
                          Income Before Income Taxes
                            (Dollars in Thousands)

                  Three Months Ended 12/31/2002 (Continued)

                                       Equatorial   Other [A]    Corporate [B]
                                         Guinea   International    and Other
    REVENUES
            Oil Sales                    $14,291      $4,954           $61
            Gas Sales [C]                    908          35          (908)
            Gathering, Marketing and
             Processing Revenue                                    238,086
            Electricity Sales                         14,326
            Income from Unconsolidated
             Subsidiaries                  8,254
            Other                                     (1,055)          253
              Total Revenues              23,453      18,260       237,492

    COSTS AND EXPENSES
            Oil and Gas Operations         2,876       1,168           547
            Transportation                               762
            Oil and Gas Exploration        1,339       3,673           (74)
            Gathering, Marketing and
             Processing Costs                                      234,997
            Electricity Generation                    12,829
            DD&A                           1,997       1,609           354
            SG&A                             752         410         4,817
            Interest Expense (net)                                  14,349
              Total Costs and Expenses     6,964      20,451       254,990

    OPERATING INCOME (LOSS)              $16,489     $(2,191)     $(17,498)

        Key Statistics:
            Daily Production
                Liquids (Bbl)              6,060       2,095
                Natural Gas (Mcf)         41,314      25,380 [C]

            Average Realized Price
                Liquids                   $25.63      $25.70
                Natural Gas                $0.24       $0.31


                              Noble Energy, Inc.
                          Income Before Income Taxes
                            (Dollars in Thousands)

                        Three Months Ended 12/31/2001

                                        Consolidated   Domestic   North Sea
    REVENUES
             Oil Sales                     $57,019     $30,907    $12,149
             Gas Sales                      88,853      83,223      5,515
             Gathering, Marketing and
              Processing Revenue           158,613
             Electricity Sales
             Income from Unconsolidated
              Subsidiaries                  (5,557)
             Other                          (1,375)       (425)       863
               Total Revenues              297,553     113,705     18,527

    COSTS AND EXPENSES
             Oil and Gas Operations         34,976      29,123      2,087
             Transportation                  4,609                  2,775
             Oil and Gas Exploration        37,528      25,712      2,654
             Gathering, Marketing and
              Processing Costs             155,835
             Electricity Generation
             DD&A                           74,369      65,733      5,114
             SG&A                           11,957       6,826        759
             Interest Expense (net)          5,619
               Total Costs and Expenses    324,893     127,394     13,389

    OPERATING INCOME (LOSS)               $(27,340)   $(13,689)    $5,138

         Key Statistics:
             Daily Production
                  Liquids (Bbl)             33,297      19,087      6,665
                  Natural Gas (Mcf)        408,476     364,836     18,100

             Average Realized Price
                  Liquids                   $18.60      $17.62     $19.81
                  Natural Gas                $2.38       $2.46      $3.31


                              Noble Energy, Inc.
                          Income Before Income Taxes
                            (Dollars in Thousands)

                  Three Months Ended 12/31/2001 (Continued)

                                         Equatorial   Other [A]  Corporate [B]
                                           Guinea   International  and Other
    REVENUES
              Oil Sales                     $8,342      $5,589           32
              Gas Sales                        572         116         (573)
              Gathering, Marketing and
               Processing Revenue                                   158,613
              Electricity Sales
              Income from Unconsolidated
               Subsidiaries                 (5,557)
              Other                            181         183       (2,177)
                Total Revenues               3,538       5,888      155,895

    COSTS AND EXPENSES
              Oil and Gas Operations         2,198       1,579          (11)
              Transportation                             1,834
              Oil and Gas Exploration                    8,628          534
              Gathering, Marketing and
               Processing Costs                                     155,835
              Electricity Generation
              DD&A                           1,012       2,042          468
              SG&A                             295         531        3,546
              Interest Expense (net)                                  5,619
                Total Costs and Expenses     3,505      14,614      165,991

    OPERATING INCOME (LOSS)                    $33     $(8,726)    $(10,096)

         Key Statistics:
              Daily Production
                   Liquids (Bbl)             4,625       2,920
                   Natural Gas (Mcf)        24,235       1,305

              Average Realized Price
                   Liquids                  $19.60      $20.81
                   Natural Gas               $0.26       $0.96


                               Noble Energy, Inc.
                           Income Before Income Taxes
                             (Dollars in Thousands)

                         Twelve Months Ended 12/31/2002

                                         Consolidated   Domestic   North Sea
    REVENUES
            Oil Sales                       $298,000    $152,575    $72,041
            Gas Sales [C]                    402,602     382,946     19,497
            Gathering, Marketing and
             Processing Revenue              714,091
            Electricity Sales                 18,257
            Income from Unconsolidated
             Subsidiaries                      9,532
            Other                              1,246         100        389
              Total Revenues               1,443,728     535,621     91,927

    COSTS AND EXPENSES
            Oil and Gas Operations           133,826     110,849     10,812
            Transportation                    16,441                  9,618
            Oil and Gas Exploration          150,701     120,695      5,210
            Gathering, Marketing and
             Processing Costs                703,556
            Electricity Generation            15,946
            DD&A                             285,286     241,113     28,279
            SG&A                              47,664      27,768        630
            Interest Expense (net)            47,709
              Total Costs and Expenses     1,401,129     500,425     54,549

    OPERATING INCOME (LOSS)                  $42,599     $35,196    $37,378

        Key Statistics:
            Daily Production
                Liquids (Bbl)                 34,037      18,110      7,847
                Natural Gas (Mcf)            387,623     327,451     16,991

            Average Realized Price
                Liquids                       $23.98      $23.08     $25.15
                Natural Gas                    $2.92       $3.20      $3.14


                              Noble Energy, Inc.
                          Income Before Income Taxes
                            (Dollars in Thousands)

                  Twelve Months Ended 12/31/2002 (Continued)

                                         Equatorial   Other [A]  Corporate [B]
                                           Guinea   International  and Other
    REVENUES
            Oil Sales                      $45,830     $27,377         $177
            Gas Sales [C]                    3,052         160       (3,053)
            Gathering, Marketing and
             Processing Revenue                                     714,091
            Electricity Sales                           18,257
            Income from Unconsolidated
             Subsidiaries                    9,532
            Other                                       (1,254)       2,011
              Total Revenues                58,414      44,540      713,226

    COSTS AND EXPENSES
            Oil and Gas Operations           9,848       5,191       (2,874)
            Transportation                               6,823
            Oil and Gas Exploration          1,341      23,454            1
            Gathering, Marketing and
             Processing Costs                                       703,556
            Electricity Generation                      15,946
            DD&A                             5,849       8,962        1,083
            SG&A                             2,045       1,100       16,121
            Interest Expense (net)                                   47,709
              Total Costs and Expenses      19,083      61,476      765,596

    OPERATING INCOME (LOSS)                $39,331    $(16,936)    $(52,370)

        Key Statistics:
            Daily Production
                Liquids (Bbl)                5,259       2,821
                Natural Gas (Mcf)           34,382       8,799 [C]

            Average Realized Price
                Liquids                     $23.88      $26.58
                Natural Gas                  $0.25       $0.38


                              Noble Energy, Inc.
                          Income Before Income Taxes
                            (Dollars in Thousands)

                        Twelve Months Ended 12/31/2001

                                         Consolidated   Domestic   North Sea
    REVENUES
            Oil Sales                       $260,908    $155,289    $39,972
            Gas Sales                        610,904     587,483     22,850
            Gathering, Marketing and
             Processing Revenue              721,000
            Electricity Sales
            Income from Unconsolidated
             Subsidiaries                     (5,075)
            Other                                538        (682)     1,299
              Total Revenues               1,588,275     742,090     64,121

    COSTS AND EXPENSES
            Oil and Gas Operations           133,549     116,842      6,075
            Transportation                    16,012                  8,772
            Oil and Gas Exploration          151,681     100,077     34,950
            Gathering, Marketing and
             Processing Costs                708,292
            Electricity Generation
            DD&A                             284,016     253,232     16,537
            SG&A                              44,164      26,554      2,699
            Interest Expense (net)            25,951
              Total Costs and Expenses     1,363,665     496,705     69,033

    OPERATING INCOME (LOSS)                 $224,610    $245,385    $(4,912)

        Key Statistics:
            Daily Production
                Liquids (Bbl)                 30,661      18,614      4,688
                Natural Gas (Mcf)            422,444     378,475     17,830

            Average Realized Price
                Liquids                       $23.30      $22.88     $23.36
                Natural Gas                    $3.98       $4.23      $3.51


                              Noble Energy, Inc.
                          Income Before Income Taxes
                            (Dollars in Thousands)

                  Twelve Months Ended 12/31/2001 (Continued)

                                          Equatorial  Other [A]  Corporate [B]
                                            Guinea  International  and Other
    REVENUES
             Oil Sales                       $38,841     $26,668        $138
             Gas Sales                         2,201         571      (2,201)
             Gathering, Marketing and
              Processing Revenue                                     721,000
             Electricity Sales
             Income from Unconsolidated
              Subsidiaries                    (5,075)
             Other                               183         266        (528)
               Total Revenues                 36,150      27,505     718,409

    COSTS AND EXPENSES
             Oil and Gas Operations            6,775       6,664      (2,807)
             Transportation                                7,240
             Oil and Gas Exploration              39      16,615           0
             Gathering, Marketing and
              Processing Costs                                       708,292
             Electricity Generation
             DD&A                              3,889       8,806       1,552
             SG&A                                917         993      13,001
             Interest Expense (net)                                   25,951
               Total Costs and Expenses       11,620      40,318     745,989

    OPERATING INCOME (LOSS)                  $24,530    $(12,813)   $(27,580)

         Key Statistics:
             Daily Production
                  Liquids (Bbl)                4,620       2,739
                  Natural Gas (Mcf)           24,488       1,651

             Average Realized Price
                  Liquids                     $23.03      $26.67
                  Natural Gas                  $0.25       $0.95


                          AMPCO Methanol Operations
                            (thousands of dollars)

                                  Three Months Ended         Year-To-Date
                                12/31/2002  12/31/2001  12/31/2002  12/31/2001
    REVENUES
      Methanol Sales              $16,304     $4,142      $45,604     $21,199
      Sales of Purchased Methanol     391                   5,122
      Other                         1,555        813        3,589       2,744
        Total Revenues             18,250      4,955       54,315      23,943

    COSTS AND EXPENSES
      Cost of Goods Manufactured    6,814      3,516       26,457      11,098
      Cost of Purchased Sales         334                   6,891
      DD&A                          2,357      2,531        9,707       6,112
      SG&A                            491        527        1,728       1,817
      Interest                                 2,796                    7,457
      Other                                    1,142                    2,534
        Total Costs and Expenses    9,996     10,512       44,783      29,018

    INCOME (LOSS) UNCONS. SUBS.    $8,254    $(5,557)      $9,532     $(5,075)

      Methanol Sales (MGal)        28,970     14,070      105,126      54,118
      Average Realized
       Price ($/Gal)                $0.56      $0.29        $0.43       $0.39


                           Ecuador Power Operations
                            (thousands of dollars)

                                  Three Months Ended         Year-To-Date
                                12/31/2002  12/31/2001  12/31/2002  12/31/2001
    REVENUES
        Power Sales               $12,166                 $16,097
        Capacity Charge             2,160                   2,160
          Total Revenues           14,326                  18,257

    COSTS AND EXPENSES
      Field
        Lease Operating               967                   1,451
        DD&A                        6,203                   7,307
        SG&A                          480                     998
      Plant
        Fuel                        3,699                   4,085
        Non-Fuel                      791                     953
        Depreciation                  689                   1,152
          Total Costs and
           Expenses                12,829                  15,946

    OPERATING INCOME               $1,497                  $2,311

      Natural Gas Production
       (Mcfpd)                     24,133 [C]               7,638
      Average Natural Gas Price     $3.08                   $3.15

      Power Generation -
       Total MW                   217,037                 269,229
      Average Power Price ($/Kwh)  $0.066                  $0.068

    [A]  Other international includes operations in Argentina, China, Ecuador,
         Israel and Vietnam.

    [B]  Corporate and Other includes financing costs, corporate overhead,
         intercompany eliminations and marketing.

    [C]  Ecuador natural gas volumes are included in Other International
         production, but are not included in natural gas sales revenue for
         either.  Because the gas-to-power project in Ecuador is 100 percent
         owned by Noble Energy, intercompany natural gas sales are eliminated
         for accounting purposes.



SOURCE Noble Energy, Inc.
Web Site: http://www.nobleenergyinc.com
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