Full-year capital and operating expense guided lower
- Organic capital expenditures funded by
Noble Energy totaled$618 million , below the low end of guidance.- U.S. onshore well costs have been reduced more than 15% in both the DJ and Delaware Basins as compared to the fourth quarter 2018.
- Offshore spend continues to trend below budget, primarily due to strong project execution at Leviathan.
- Unit production costs totaled
$8.19 per BOE, below guidance, driven by U.S. onshore cost reductions and onshore and offshore production outperformance. Total Company sales volumes of 349 MBoe/d and U.S. onshore volumes of 263 MBoe/d exceeded guidance. Total oil volumes of 130 MBbl/d and U.S. onshore oil of 117 MBbl/d were also above plan.- Quarterly production records were established for both the DJ and Delaware Basins.
- Mustang IDP production in the
DJ Basin reached more than 51 MBoe/d, net, following continued Row 2 development. Delaware Basin production increased nearly 9% from the first quarter 2019.
- Mustang IDP production in the
- Progressed Leviathan to 88% complete, including finalizing construction of the production decks.
Second Quarter 2019 Results
The Company reported a second quarter net loss attributable to
Second quarter 2019 organic capital investments attributable to
Revenues for the second quarter 2019 were benefited by strong production performance and realized oil pricing; while, along with the rest of the industry, natural gas pricing and natural gas liquids (NGL) realizations were lower than expected. The Company's U.S. onshore oil price averaged 98% of the West Texas Intermediate index (WTI) price for the quarter and U.S. onshore NGL pricing per barrel averaged 24% of WTI crude. The Company's natural gas price in the U.S. onshore averaged
Unit production expenses for the second quarter 2019 were
Income from equity method investees for the second quarter totaled
The Company’s effective tax rate, after excluding items impacting comparability of earnings to prior periods, was approximately 12%. On this basis, current tax expense was
The Company ended the second quarter 2019 with
U.S. Onshore Inflection Point Underway
Well cost reductions in the U.S. onshore business are exceeding the 2019 guidance targets of up to
As a result of these efficiency gains, the Company was able to bring online an additional 17 wells in the first half of the year. Across the U.S. onshore portfolio, the Company operated 6 rigs (2 DJ and 4 Delaware) and drilled 42 wells (26 DJ and 16 Delaware) in the quarter.
Total sales volumes across the Company’s U.S. onshore assets averaged a record 263 thousand barrels of oil equivalent per day (MBoe/d) in the second quarter 2019. The U.S. onshore assets produced total liquids volumes of 181 thousand barrels per day (MBbl/d) of which oil production was 117 MBbl/d, also a record.
Leviathan Sets Sail with Production on Track for YE 2019
Delivery of the Leviathan project remains on budget and on schedule for first production by the end of 2019. The production decks have left the
Second quarter 2019 sales volumes from the Company’s assets in
Updating Guidance to
The Company has lowered full-year capital and operating cost expectations due to year-to-date progress on cost initiatives. Full-year capital is now estimated
Unit production expenses continue to trend favorably with full-year guidance lowered
All three U.S. onshore basins are expected to deliver higher third quarter 2019 volumes sequentially as a result of the count and timing of wells that began production during the second quarter. At the mid-point of guidance, U.S. onshore oil volumes are expected to increase 10 MBbl/d.
Internationally, third quarter 2019 sales volumes are also anticipated to be higher, benefiting from the timing of liquids liftings in
Following outperformance in the first half of the year, the Company has raised its full-year 2019 sales volume guidance.
Additional details and updated guidance can be found in the Company’s supplemental presentation on the Company’s website, www.nblenergy.com.
(1) |
A Non-GAAP measure, please see the respective earnings release schedules included herein for reconciliations. |
Webcast and Conference Call Information
International Dial in: 412-902-6506
Conference ID: 0526055
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", “plans”, “estimates”, "believes", "expects", "intends", "will", "should", "may", and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect
This news release also contains certain historical non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating Noble Energy’s overall financial performance. These non-GAAP measures are broadly used to value and compare companies in the crude oil and natural gas industry. Please see Noble Energy’s earnings release schedules included herein for reconciliations of the differences between any historical non-GAAP measures used in this news release and the most directly comparable GAAP financial measures.
Schedule 1 |
||||||||||||||||
Noble Energy, Inc. |
||||||||||||||||
Summary Statement of Operations |
||||||||||||||||
(in millions, except per share amounts, unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Revenues |
|
|
|
|
|
|
|
|||||||||
Oil, NGL and Gas Sales |
$ |
954 |
|
|
$ |
1,100 |
|
|
$ |
1,891 |
|
|
$ |
2,273 |
|
|
Sales of Purchased Oil and Gas |
103 |
|
|
66 |
|
|
177 |
|
|
119 |
|
|||||
Income from Equity Method Investees |
16 |
|
|
49 |
|
|
33 |
|
|
96 |
|
|||||
Midstream Services Revenues – Third Party |
20 |
|
|
15 |
|
|
44 |
|
|
28 |
|
|||||
Total Revenues |
1,093 |
|
|
1,230 |
|
|
2,145 |
|
|
2,516 |
|
|||||
Operating Expenses |
|
|
|
|
|
|
|
|||||||||
Lease Operating Expense |
122 |
|
|
132 |
|
|
273 |
|
|
287 |
|
|||||
Production and Ad Valorem Taxes |
41 |
|
|
50 |
|
|
90 |
|
|
104 |
|
|||||
Gathering, Transportation and Processing Expense |
96 |
|
|
98 |
|
|
198 |
|
|
191 |
|
|||||
Other Royalty Expense |
1 |
|
|
10 |
|
|
4 |
|
|
27 |
|
|||||
Exploration Expense |
33 |
|
|
29 |
|
|
57 |
|
|
64 |
|
|||||
Depreciation, Depletion and Amortization |
528 |
|
|
465 |
|
|
1,036 |
|
|
933 |
|
|||||
General and Administrative |
105 |
|
|
105 |
|
|
207 |
|
|
209 |
|
|||||
Cost of Purchased Oil and Gas |
113 |
|
|
71 |
|
|
200 |
|
|
128 |
|
|||||
Marketing Expense |
14 |
|
|
9 |
|
|
19 |
|
|
16 |
|
|||||
Other Operating Expense, Net |
8 |
|
|
(4 |
) |
|
28 |
|
|
4 |
|
|||||
Gain on Divestitures, Net |
— |
|
|
(78 |
) |
|
— |
|
|
(666 |
) |
|||||
Asset Impairments |
— |
|
|
— |
|
|
— |
|
|
168 |
|
|||||
Firm Transportation Exit Cost |
— |
|
|
— |
|
|
92 |
|
|
— |
|
|||||
Total Operating Expenses |
1,061 |
|
|
887 |
|
|
2,204 |
|
|
1,465 |
|
|||||
Operating Income (Loss) |
32 |
|
|
343 |
|
|
(59 |
) |
|
1,051 |
|
|||||
Other Expense |
|
|
|
|
|
|
|
|||||||||
(Gain) Loss on Commodity Derivative Instruments |
(60 |
) |
|
249 |
|
|
152 |
|
|
328 |
|
|||||
Interest, Net of Amount Capitalized |
63 |
|
|
73 |
|
|
129 |
|
|
146 |
|
|||||
Other Non-Operating Expense, Net |
1 |
|
|
11 |
|
|
5 |
|
|
24 |
|
|||||
Total Other Expense |
4 |
|
|
333 |
|
|
286 |
|
|
498 |
|
|||||
Income (Loss) Before Income Taxes |
28 |
|
|
10 |
|
|
(345 |
) |
|
553 |
|
|||||
Income Tax Expense (Benefit) |
20 |
|
|
16 |
|
|
(64 |
) |
|
(15 |
) |
|||||
Net Income (Loss) and Comprehensive Income (Loss) Including Noncontrolling Interests |
8 |
|
|
(6 |
) |
|
(281 |
) |
|
568 |
|
|||||
Less: Net Income and Comprehensive Income Attributable to Noncontrolling Interests (1) |
18 |
|
|
17 |
|
|
42 |
|
|
37 |
|
|||||
Net (Loss) Income and Comprehensive (Loss) Income Attributable to Noble Energy |
$ |
(10 |
) |
|
$ |
(23 |
) |
|
$ |
(323 |
) |
|
$ |
531 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net (Loss) Income Attributable to Noble Energy Per Share of Common Stock |
|
|
|
|
|
|
|
|||||||||
(Loss) Income Per Share, Basic |
$ |
(0.02 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.68 |
) |
|
$ |
1.09 |
|
|
(Loss) Income Per Share, Diluted |
$ |
(0.02 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.68 |
) |
|
$ |
1.09 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted Average Number of Shares Outstanding |
|
|
|
|
|
|
|
|||||||||
Basic |
478 |
|
|
484 |
|
|
478 |
|
|
485 |
|
|||||
Diluted |
478 |
|
|
484 |
|
|
478 |
|
|
487 |
|
(1) |
The Company consolidates Noble Midstream Partners LP (NBLX), a publicly traded subsidiary of Noble Energy, as a variable interest entity for financial reporting purposes. The public's ownership interest in NBLX is reflected as a noncontrolling interest in the financial statements. |
|
|
|
|
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on August 2, 2019. |
Schedule 2 |
||||||||||||||||
Noble Energy, Inc. |
||||||||||||||||
Condensed Statement of Cash Flows |
||||||||||||||||
(in millions, unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Cash Flows From Operating Activities |
|
|
|
|
|
|
|
|||||||||
Net (Loss) Income Including Noncontrolling Interests (1) |
$ |
8 |
|
|
$ |
(6 |
) |
|
$ |
(281 |
) |
|
$ |
568 |
|
|
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities |
|
|
|
|
|
|
|
|||||||||
Depreciation, Depletion and Amortization |
528 |
|
|
465 |
|
|
1,036 |
|
|
933 |
|
|||||
Gain on Divestitures, Net |
— |
|
|
(78 |
) |
|
— |
|
|
(666 |
) |
|||||
Asset Impairments |
— |
|
|
— |
|
|
— |
|
|
168 |
|
|||||
Firm Transportation Exit Cost |
— |
|
|
— |
|
|
92 |
|
|
— |
|
|||||
Deferred Income Tax Benefit |
(1 |
) |
|
(7 |
) |
|
(101 |
) |
|
(164 |
) |
|||||
(Gain) Loss on Commodity Derivative Instruments |
(60 |
) |
|
249 |
|
|
152 |
|
|
328 |
|
|||||
Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments |
1 |
|
|
(65 |
) |
|
15 |
|
|
(93 |
) |
|||||
Other Adjustments for Noncash Items Included in Income |
31 |
|
|
59 |
|
|
59 |
|
|
57 |
|
|||||
Net Changes in Working Capital |
57 |
|
|
(121 |
) |
|
120 |
|
|
(52 |
) |
|||||
Net Cash Provided by Operating Activities |
564 |
|
|
496 |
|
|
1,092 |
|
|
1,079 |
|
|||||
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|||||||||
Additions to Property, Plant and Equipment |
(642 |
) |
|
(995 |
) |
|
(1,405 |
) |
|
(1,782 |
) |
|||||
Acquisitions, Net of Cash Received (2) |
— |
|
|
— |
|
|
— |
|
|
(650 |
) |
|||||
Additions to Equity Method Investments (3) |
(144 |
) |
|
— |
|
|
(415 |
) |
|
— |
|
|||||
Proceeds from Divestitures, Net (4) |
— |
|
|
517 |
|
|
123 |
|
|
1,382 |
|
|||||
Net Cash Used in Investing Activities |
(786 |
) |
|
(478 |
) |
|
(1,697 |
) |
|
(1,050 |
) |
|||||
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|||||||||
Dividends Paid, Common Stock |
(58 |
) |
|
(54 |
) |
|
(111 |
) |
|
(102 |
) |
|||||
Purchase and Retirement of Common Stock |
— |
|
|
(63 |
) |
|
— |
|
|
(130 |
) |
|||||
Noble Midstream Services Revolving Credit Facility, Net |
140 |
|
|
95 |
|
|
310 |
|
|
445 |
|
|||||
Revolving Credit Facility, Net |
— |
|
|
— |
|
|
— |
|
|
(230 |
) |
|||||
Commercial Paper Borrowings, Net |
240 |
|
|
— |
|
|
240 |
|
|
— |
|
|||||
Repayment of Senior Notes |
(9 |
) |
|
(384 |
) |
|
(9 |
) |
|
(384 |
) |
|||||
Contributions from Noncontrolling Interest Owners |
11 |
|
|
(2 |
) |
|
21 |
|
|
331 |
|
|||||
Proceeds from Issuance of Mezzanine Equity, Net of Offering Costs (5) |
— |
|
|
— |
|
|
99 |
|
|
— |
|
|||||
Other |
(30 |
) |
|
(11 |
) |
|
(62 |
) |
|
(51 |
) |
|||||
Net Cash Provided by (Used in) Financing Activities |
294 |
|
|
(419 |
) |
|
488 |
|
|
(121 |
) |
|||||
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash |
72 |
|
|
(401 |
) |
|
(117 |
) |
|
(92 |
) |
|||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period (6) |
530 |
|
|
1,022 |
|
|
719 |
|
|
713 |
|
|||||
Cash, Cash Equivalents, and Restricted Cash at End of Period (7) |
$ |
602 |
|
|
$ |
621 |
|
|
$ |
602 |
|
|
$ |
621 |
|
(1) |
The Company consolidates Noble Midstream Partners LP (NBLX), a publicly traded subsidiary of Noble Energy, as a variable interest entity for financial reporting purposes. For the three and six months ended June 30, 2019, net (loss) income includes net income attributable to noncontrolling interests in NBLX. |
|
(2) |
Acquisitions, net of cash received, related to 100 percent of the acquisition of Saddle Butte Rockies Midstream, LLC by NBLX. |
|
(3) |
Additions relate primarily to investments in EPIC Y-Grade, LP, EPIC Crude Holdings, LP and Delaware Crossing LLC by NBLX. |
|
(4) |
For the six months ended June 30, 2019, proceeds related to the SW Reeves County, Texas asset divestiture. For the six months ended June 30, 2018, proceeds include $484 million from the sale of our 7.5% interest in Tamar field, $443 million from the sale of CONE Gathering LLC and CNX Midstream Partners common units and $383 million from the Gulf of Mexico asset divestiture. |
|
(5) |
For the six months ended June 30, 2019, proceeds related to the issuance of preferred equity by NBLX. As the preferred equity is redeemable, it is presented within the mezzanine section of our consolidated balance sheet. In addition, as the preferred equity is held by a third party, it is considered a redeemable noncontrolling interest. |
|
(6) |
As of the beginning of the periods presented, amounts include $2 million, $30 million, $3 million, and $38 million of restricted cash, respectively. |
|
(7) |
As of June 30, 2019 and June 30, 2018, amounts include $132 million and $0 million of restricted cash, respectively. |
|
|
|
|
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on August 2, 2019. |
Schedule 3 |
||||||||
Noble Energy, Inc. |
||||||||
Condensed Balance Sheets |
||||||||
(in millions, unaudited) |
||||||||
|
June 30,
|
|
December 31,
|
|||||
Assets |
|
|
|
|||||
Current Assets |
|
|
|
|||||
Cash and Cash Equivalents |
$ |
470 |
|
|
$ |
716 |
|
|
Accounts Receivable, Net |
575 |
|
|
616 |
|
|||
Other Current Assets |
313 |
|
|
418 |
|
|||
Total Current Assets |
1,358 |
|
|
1,750 |
|
|||
Net Property, Plant and Equipment |
18,775 |
|
|
18,419 |
|
|||
Other Noncurrent Assets |
1,516 |
|
|
841 |
|
|||
Total Assets |
$ |
21,649 |
|
|
$ |
21,010 |
|
|
Liabilities, Mezzanine Equity and Shareholders' Equity |
|
|
|
|||||
Current Liabilities |
|
|
|
|||||
Accounts Payable - Trade |
$ |
1,313 |
|
|
$ |
1,207 |
|
|
Other Current Liabilities |
998 |
|
|
519 |
|
|||
Total Current Liabilities |
2,311 |
|
|
1,726 |
|
|||
Long-Term Debt |
6,866 |
|
|
6,574 |
|
|||
Deferred Income Taxes |
961 |
|
|
1,061 |
|
|||
Other Noncurrent Liabilities |
1,307 |
|
|
1,165 |
|
|||
Total Liabilities |
11,445 |
|
|
10,526 |
|
|||
Total Mezzanine Equity (1) |
100 |
|
|
— |
|
|||
Total Shareholders' Equity |
9,029 |
|
|
9,426 |
|
|||
Noncontrolling Interests (2) |
1,075 |
|
|
1,058 |
|
|||
Total Equity |
10,104 |
|
|
10,484 |
|
|||
Total Liabilities and Equity |
$ |
21,649 |
|
|
$ |
21,010 |
|
(1) |
Amount relates to preferred equity issued by Noble Midstream Partners LP (NBLX). As the preferred equity is redeemable, it is presented within the mezzanine section of our consolidated balance sheet. In addition, as the preferred equity is held by a third party, it is considered a redeemable noncontrolling interest. |
|
(2) |
The Company consolidates NBLX, a publicly traded subsidiary of Noble Energy, as a variable interest entity for financial reporting purposes. The public's ownership interest in NBLX is reflected as a noncontrolling interest in the financial statements. |
|
|
|
|
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on August 2, 2019. |
Schedule 4 |
||||||||||||||||
Noble Energy, Inc. |
||||||||||||||||
Volume and Price Statistics |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
Sales Volumes |
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Crude Oil and Condensate (MBbl/d) |
|
|
|
|
|
|
|
|||||||||
United States Onshore |
117 |
|
|
105 |
|
|
115 |
|
|
104 |
|
|||||
United States Gulf of Mexico |
— |
|
|
3 |
|
|
— |
|
|
11 |
|
|||||
Equatorial Guinea |
11 |
|
|
17 |
|
|
11 |
|
|
16 |
|
|||||
Equity Method Investee - Equatorial Guinea |
2 |
|
|
2 |
|
|
2 |
|
|
2 |
|
|||||
Total (1) |
130 |
|
|
127 |
|
|
128 |
|
|
133 |
|
|||||
Natural Gas Liquids (MBbl/d) |
|
|
|
|
|
|
|
|||||||||
United States Onshore |
64 |
|
|
61 |
|
|
62 |
|
|
62 |
|
|||||
United States Gulf of Mexico (2) |
— |
|
|
— |
|
|
— |
|
|
1 |
|
|||||
Equity Method Investee - Equatorial Guinea |
4 |
|
|
5 |
|
|
4 |
|
|
5 |
|
|||||
Total |
68 |
|
|
67 |
|
|
66 |
|
|
68 |
|
|||||
Natural Gas (MMcf/d) |
|
|
|
|
|
|
|
|||||||||
United States Onshore |
495 |
|
|
465 |
|
|
489 |
|
|
474 |
|
|||||
United States Gulf of Mexico |
— |
|
|
2 |
|
|
— |
|
|
12 |
|
|||||
Israel |
209 |
|
|
225 |
|
|
220 |
|
|
243 |
|
|||||
Equatorial Guinea |
199 |
|
|
225 |
|
|
184 |
|
|
215 |
|
|||||
Total |
903 |
|
|
917 |
|
|
893 |
|
|
944 |
|
|||||
Total Sales Volumes (MBoe/d) |
|
|
|
|
|
|
|
|||||||||
United States Onshore |
263 |
|
|
244 |
|
|
258 |
|
|
245 |
|
|||||
United States Gulf of Mexico |
— |
|
|
3 |
|
|
— |
|
|
14 |
|
|||||
Israel |
35 |
|
|
38 |
|
|
37 |
|
|
41 |
|
|||||
Equatorial Guinea |
45 |
|
|
54 |
|
|
42 |
|
|
51 |
|
|||||
Equity Method Investee - Equatorial Guinea |
6 |
|
|
7 |
|
|
6 |
|
|
7 |
|
|||||
Total Sales Volumes (MBoe/d) |
349 |
|
|
346 |
|
|
343 |
|
|
358 |
|
|||||
|
|
|
|
|
|
|
|
|||||||||
Total Sales Volumes (MBoe) |
31,733 |
|
|
31,527 |
|
|
62,108 |
|
|
64,799 |
|
|||||
|
|
|
|
|
|
|
|
|||||||||
Price Statistics - Realized Prices (3) |
|
|
|
|
|
|
|
|||||||||
Crude Oil and Condensate ($/Bbl) |
|
|
|
|
|
|
|
|||||||||
United States Onshore |
$ |
58.13 |
|
|
$ |
64.62 |
|
|
$ |
55.84 |
|
|
$ |
63.08 |
|
|
United States Gulf of Mexico |
— |
|
|
66.80 |
|
|
— |
|
|
64.87 |
|
|||||
Equatorial Guinea |
66.61 |
|
|
72.79 |
|
|
63.74 |
|
|
70.65 |
|
|||||
Natural Gas Liquids ($/Bbl) |
|
|
|
|
|
|
|
|||||||||
United States Onshore |
$ |
14.54 |
|
|
$ |
24.39 |
|
|
$ |
16.12 |
|
|
$ |
24.93 |
|
|
United States Gulf of Mexico |
— |
|
|
36.87 |
|
|
— |
|
|
30.00 |
|
|||||
Natural Gas ($/Mcf) |
|
|
|
|
|
|
|
|||||||||
United States Onshore |
$ |
1.61 |
|
|
$ |
2.29 |
|
|
$ |
2.04 |
|
|
$ |
2.45 |
|
|
United States Gulf of Mexico |
— |
|
|
3.19 |
|
|
— |
|
|
3.50 |
|
|||||
Israel |
5.53 |
|
|
5.46 |
|
|
5.55 |
|
|
5.47 |
|
|||||
Equatorial Guinea |
0.27 |
|
|
0.27 |
|
|
0.27 |
|
|
0.27 |
|
(1) |
Total includes a small amount of condensate from the Company’s offshore Israel assets. |
|
(2) |
For the three months ended June 30, 2018, U.S. Gulf of Mexico NGL sales volumes were less than 1 MBbl/d. |
|
(3) |
Average realized prices do not include gains or losses on commodity derivative instruments. For second quarter 2019 and 2018, including the impact of hedges settled in the period, the Company's U.S. onshore oil price was $58.13 and $59.17, E.G. oil price was $61.65 and $64.02, and U.S. onshore gas price was $1.77 and $2.31, respectively. For the six months ended 2019 and 2018, including the impact of hedges settled in the period, the Company's U.S. onshore oil price was $56.42 and $59.10, E.G. oil price was $59.97 and $63.69, and U.S. onshore gas price was $2.18 and $2.48, respectively. |
Schedule 5 |
Noble Energy, Inc. |
Reconciliation of Net (Loss) Income Attributable to Noble Energy and Per Share (GAAP) to |
Adjusted Net (Loss) Income Attributable to Noble Energy and Per Share (Non-GAAP) |
(in millions, except per share amounts, unaudited) |
Adjusted net (loss) income attributable to
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Net (Loss) Income Attributable to Noble Energy (GAAP) |
$ |
(10 |
) |
|
$ |
(23 |
) |
|
$ |
(323 |
) |
|
$ |
531 |
|
|
Adjustments to Net (Loss) Income |
|
|
|
|
|
|
|
|||||||||
Firm Transportation Exit Cost |
— |
|
|
— |
|
|
92 |
|
|
— |
|
|||||
Gain on Divestitures, Net |
— |
|
|
(78 |
) |
|
— |
|
|
(666 |
) |
|||||
Asset Impairments |
— |
|
|
— |
|
|
— |
|
|
168 |
|
|||||
Loss on Investment in Tamar Petroleum Ltd., Net |
— |
|
|
11 |
|
|
— |
|
|
40 |
|
|||||
(Gain) Loss on Commodity Derivative Instruments, Net of Cash Settlements |
(59 |
) |
|
184 |
|
|
167 |
|
|
235 |
|
|||||
Other Adjustments |
(4 |
) |
|
4 |
|
|
15 |
|
|
22 |
|
|||||
Total Adjustments Before Tax |
(63 |
) |
|
121 |
|
|
274 |
|
|
(201 |
) |
|||||
Current Income Tax Effect of Adjustments (1) |
4 |
|
|
(3 |
) |
|
1 |
|
|
94 |
|
|||||
Deferred Income Tax Effect of Adjustments (1) |
20 |
|
|
(14 |
) |
|
(45 |
) |
|
(26 |
) |
|||||
Tax Reform Impact (2) |
— |
|
|
— |
|
|
— |
|
|
(145 |
) |
|||||
Adjusted Net (Loss) Income Attributable to Noble Energy (Non-GAAP) |
$ |
(49 |
) |
|
$ |
81 |
|
|
$ |
(93 |
) |
|
$ |
253 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net (Loss) Income Attributable to Noble Energy Per Share, Basic and Diluted (GAAP) |
$ |
(0.02 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.68 |
) |
|
$ |
1.09 |
|
|
Firm Transportation Exit Cost |
— |
|
|
— |
|
|
0.20 |
|
|
— |
|
|||||
Gain on Divestitures, Net |
— |
|
|
(0.15 |
) |
|
— |
|
|
(1.36 |
) |
|||||
Asset Impairments |
— |
|
|
— |
|
|
— |
|
|
0.34 |
|
|||||
Loss on Investment in Tamar Petroleum Ltd., Net |
— |
|
|
0.02 |
|
|
— |
|
|
0.08 |
|
|||||
(Gain) Loss on Commodity Derivative Instruments, Net of Cash Settlements |
(0.12 |
) |
|
0.38 |
|
|
0.35 |
|
|
0.48 |
|
|||||
Other Adjustments |
(0.01 |
) |
|
0.01 |
|
|
0.03 |
|
|
0.05 |
|
|||||
Current Income Tax Effect of Adjustments (1) |
0.01 |
|
|
(0.01 |
) |
|
— |
|
|
0.19 |
|
|||||
Deferred Income Tax Effect of Adjustments (1) |
0.04 |
|
|
(0.03 |
) |
|
(0.09 |
) |
|
(0.05 |
) |
|||||
Tax Reform Impact (2) |
— |
|
|
— |
|
|
— |
|
|
(0.30 |
) |
|||||
Adjusted (Loss) Income Attributable to Noble Energy per Share, Diluted (Non-GAAP) |
$ |
(0.10 |
) |
|
$ |
0.17 |
|
|
$ |
(0.19 |
) |
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted Average Number of Shares Outstanding, Basic |
478 |
|
|
484 |
|
|
478 |
|
|
485 |
|
|||||
Weighted Average Number of Shares Outstanding, Diluted |
478 |
|
|
486 |
|
|
478 |
|
|
487 |
|
(1) |
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. |
|
(2) |
During first quarter 2018, we recorded a $145 million tax benefit as a result of the U.S. Department of the Treasury and the Internal Revenue Service intent to issue additional regulatory guidance associated with Tax Reform Legislation and the transition tax (toll tax). |
Schedule 6 |
Noble Energy, Inc. |
Reconciliation of Net (Loss) Income Including Noncontrolling Interests (GAAP) |
to Adjusted EBITDAX (Non-GAAP) |
(in millions, unaudited) |
Adjusted Earnings Before Interest Expense, Income Taxes, Depreciation, Depletion and Amortization, and Exploration Expenses (Adjusted EBITDAX) (Non-GAAP) should not be considered an alternative to, or more meaningful than, net (loss) income including noncontrolling interests (GAAP) or any other measure as reported in accordance with GAAP. Our management believes, and certain investors may find, that Adjusted EBITDAX (Non-GAAP) is beneficial in evaluating our operating and financial performance because it eliminates the impact of certain items affecting comparability (typically noncash and/or nonrecurring items) that management does not consider to be indicative of our performance from period to period. We believe these Non-GAAP measures are used by analysts and investors to evaluate and compare our operating and financial performance across periods. As a performance measure, Adjusted EBITDAX (Non-GAAP) may be useful for comparison to forecasts prepared by analysts and other third parties. However, our presentation of Adjusted EBITDAX (Non-GAAP) may not be comparable to similar measures of other companies in our industry.
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Net (Loss) Income Including Noncontrolling Interests (GAAP) |
$ |
8 |
|
|
$ |
(6 |
) |
|
$ |
(281 |
) |
|
$ |
568 |
|
|
Adjustments to Net (Loss) Income, After Tax (1) |
(39 |
) |
|
104 |
|
|
230 |
|
|
(278 |
) |
|||||
Depreciation, Depletion and Amortization |
528 |
|
|
465 |
|
|
1,036 |
|
|
933 |
|
|||||
Exploration Expense |
33 |
|
|
29 |
|
|
57 |
|
|
64 |
|
|||||
Interest, Net of Amount Capitalized |
63 |
|
|
73 |
|
|
129 |
|
|
146 |
|
|||||
Current Income Tax Expense (2) |
17 |
|
|
26 |
|
|
36 |
|
|
39 |
|
|||||
Deferred Income Tax (Benefit) Expense (2) |
(21 |
) |
|
7 |
|
|
(56 |
) |
|
23 |
|
|||||
Adjusted EBITDAX (Non-GAAP) |
$ |
589 |
|
|
$ |
698 |
|
|
$ |
1,151 |
|
|
$ |
1,495 |
|
(1) |
See Reconciliation of Net (Loss) Income Attributable to Noble Energy (GAAP) to Adjusted Net (Loss) Income Attributable to Noble Energy (Non-GAAP). |
|
(2) |
Represents remaining Income Tax Expense (Benefit) after reversal of Adjustments to Net (Loss) Income, After Tax, above. |
Schedule 7 |
||||||||||||||||
Noble Energy, Inc. |
||||||||||||||||
Capital Expenditures |
||||||||||||||||
(in millions, unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Organic Capital Expenditures, Attributable to Noble Energy (Accrual Based) (1) |
$ |
618 |
|
|
$ |
857 |
|
|
$ |
1,301 |
|
|
$ |
1,634 |
|
|
Acquisition Capital Attributable to Noble Energy |
4 |
|
|
9 |
|
|
43 |
|
|
13 |
|
|||||
Noble Midstream Partners Capital Expenditures (2) |
29 |
|
|
78 |
|
|
58 |
|
|
423 |
|
|||||
Investment in Equity Method Investees (3) |
144 |
|
|
— |
|
|
415 |
|
|
— |
|
|||||
Increase in Finance Lease Obligations |
1 |
|
|
— |
|
|
3 |
|
|
— |
|
|||||
Total Reported Capital Expenditures (Accrual Based) |
$ |
796 |
|
|
$ |
944 |
|
|
$ |
1,820 |
|
|
$ |
2,070 |
|
(1) |
Organic capital expenditures include $23 million, $79 million, $60 million, and $192 million for midstream capital not funded by Noble Midstream Partners LP (NBLX) for the periods presented. |
|
(2) |
NBLX capital expenditures for the six months ended June 30, 2018 include $206 million related to the 100 percent acquisition of Saddle Butte Rockies Midstream, LLC. |
|
(3) |
Investment in equity method investees for the six months ended June 30, 2019 include primarily NBLX investments of $369 million in EPIC Y-Grade, LP and EPIC Crude Holdings, LP and $39 million in Delaware Crossing LLC. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190802005031/en/
Source:
Investor Contacts
Brad Whitmarsh
(281) 943-1670
Brad.Whitmarsh@nblenergy.com
Park Carrere
(281) 872-3208
Park.Carrere@nblenergy.com
Kim Hendrix
(281) 943-2197
Kim.Hendrix@nblenergy.com
Media Contacts
Paula Beasley
(281) 876-6133
media@nblenergy.com