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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM 10-Q
 
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

OR
 
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____to_____

Commission file number: 001-07964

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12219780&doc=12

NOBLE ENERGY, INC.
(Exact name of registrant as specified in its charter)
Delaware
 
73-0785597
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. employer identification number)
1001 Noble Energy Way
 
 
Houston, Texas
 
77070
(Address of principal executive offices)
 
(Zip Code)
(281) 872-3100
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý    No o 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes ý    No o
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller
reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer x
Accelerated filer o
Non-accelerated filer o
Smaller reporting company o
Emerging growth company o
 
 
(Do not check if a smaller reporting company)
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes o    No ý
 
As of March 31, 2018, there were 484,440,673 shares of the registrant’s common stock, par value $0.01 per share, outstanding.




TABLE OF CONTENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Part II. Other Information  
 
 
Item 1.  Legal Proceedings 
 
 
Item 1A.  Risk Factors 
 
 
 
 
 
 
 
 
 
 
Item 6.  Exhibits 
 
 


2

Table of Contents

Part I. Financial Information
Item 1. Financial Statements
Noble Energy, Inc.
Consolidated Statements of Operations and Comprehensive Income
(millions, except per share amounts)
(unaudited)
 
Three Months Ended March 31,
 
2018
 
2017
Revenues
 
 
 
Oil, NGL and Gas Sales
$
1,173

 
$
994

Income from Equity Method Investees and Other
113

 
42

Total
1,286

 
1,036

Costs and Expenses
 
 
 
Production Expense
321

 
303

Exploration Expense
35

 
42

Depreciation, Depletion and Amortization
468

 
528

Asset Impairments
168

 

Gain on Divestitures
(588
)
 

General and Administrative
104

 
99

Other Operating Expense, Net
70

 
29

Total
578

 
1,001

Operating Income
708

 
35

Other (Income) Expense
 
 
 
Loss (Gain) on Commodity Derivative Instruments
79

 
(110
)
Interest, Net of Amount Capitalized
73

 
87

Other Non-Operating Expense (Income), Net
13

 
(1
)
Total
165

 
(24
)
Income Before Income Taxes
543

 
59

Income Tax (Benefit) Expense
(31
)
 
12

Net Income and Comprehensive Income Including Noncontrolling Interests
574

 
47

Less: Net Income and Comprehensive Income Attributable to Noncontrolling Interests
20

 
11

Net Income and Comprehensive Income Attributable to Noble Energy
$
554

 
$
36

 
 
 
 
Net Income Attributable to Noble Energy per Common Share
 
 
 
   Basic
$
1.14

 
$
0.08

   Diluted
$
1.14

 
$
0.08

 
 
 
 
Weighted Average Number of Common Shares Outstanding
 
 
 
   Basic
487

 
431

   Diluted
488

 
434



The accompanying notes are an integral part of these financial statements.

3

Table of Contents

Noble Energy, Inc.
Consolidated Balance Sheets
(millions)
(unaudited)

 
March 31,
2018
 
December 31,
2017
ASSETS
 
 
 
Current Assets
 
 
 
Cash and Cash Equivalents
$
992

 
$
675

Accounts Receivable, Net
707

 
748

Other Current Assets
895

 
780

Total Current Assets
2,594

 
2,203

Property, Plant and Equipment
 

 
 

Oil and Gas Properties (Successful Efforts Method of Accounting)
27,426

 
29,678

Property, Plant and Equipment, Other
887

 
879

Total Property, Plant and Equipment, Gross
28,313

 
30,557

Accumulated Depreciation, Depletion and Amortization
(10,882
)
 
(13,055
)
Total Property, Plant and Equipment, Net
17,431

 
17,502

Other Noncurrent Assets
1,021

 
461

Goodwill
1,402

 
1,310

Total Assets
$
22,448

 
$
21,476

LIABILITIES AND EQUITY
 
 
 
Current Liabilities
 
 
 

Accounts Payable – Trade
$
1,423

 
$
1,161

Other Current Liabilities
791

 
578

Total Current Liabilities
2,214

 
1,739

Long-Term Debt
6,858

 
6,746

Deferred Income Taxes
976

 
1,127

Other Noncurrent Liabilities
1,013

 
1,245

Total Liabilities
11,061

 
10,857

Commitments and Contingencies

 


Shareholders’ Equity
 

 
 

Preferred Stock - Par Value $1.00 per share; 4 Million Shares Authorized; None Issued

 

Common Stock - Par Value $0.01 per share; 1 Billion Shares Authorized; 528 Million and 529 Million Shares Issued, respectively
5

 
5

Additional Paid in Capital
8,363

 
8,438

Accumulated Other Comprehensive Loss
(29
)
 
(30
)
Treasury Stock, at Cost; 39 Million Shares
(731
)
 
(725
)
Retained Earnings
2,754

 
2,248

Noble Energy Share of Equity
10,362

 
9,936

Noncontrolling Interests
1,025

 
683

Total Equity
11,387

 
10,619

Total Liabilities and Equity
$
22,448

 
$
21,476


The accompanying notes are an integral part of these financial statements.


4

Table of Contents

Noble Energy, Inc.
Consolidated Statements of Cash Flows
(millions)
(unaudited)
 
Three Months Ended March 31,
 
2018
 
2017
Cash Flows From Operating Activities
 
 
 
Net Income Including Noncontrolling Interests
$
574

 
$
47

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
 
 
 
Depreciation, Depletion and Amortization
468

 
528

Asset Impairments
168

 

Deferred Income Tax Benefit
(157
)
 

Loss (Gain) on Commodity Derivative Instruments
79

 
(110
)
Net Cash (Paid) Received in Settlement of Commodity Derivative Instruments
(28
)
 
3

Gain on Divestitures
(588
)
 

Other Adjustments for Noncash Items Included in Income
(2
)
 
20

Changes in Operating Assets and Liabilities
 
 
 
Decrease in Accounts Receivable
89

 
59

(Decrease) Increase in Accounts Payable
(33
)
 
45

Increase (Decrease) in Current Income Taxes Payable
14

 
(23
)
Other Current Assets and Liabilities, Net
(18
)
 
(35
)
Other Operating Assets and Liabilities, Net
17

 
2

Net Cash Provided by Operating Activities
583


536

Cash Flows From Investing Activities
 
 
 
Additions to Property, Plant and Equipment
(787
)
 
(587
)
Acquisitions, Net of Cash Acquired
(650
)
 
(346
)
Proceeds from Sale of 7.5% Interest in Tamar Field
487

 

Proceeds from Sale of CONE Gathering LLC
308

 

Proceeds from Divestitures
70

 
40

Net Cash Used in Investing Activities
(572
)

(893
)
Cash Flows From Financing Activities
 
 
 
Dividends Paid, Common Stock
(48
)
 
(44
)
Purchase and Retirement of Common Stock
(67
)
 

Proceeds from Noble Midstream Services Revolving Credit Facility
405

 

Repayment of Noble Midstream Services Revolving Credit Facility
(55
)
 

Contributions from Noncontrolling Interest and Other
333

 

Proceeds from Revolving Credit Facility
245

 

Repayment of Revolving Credit Facility
(475
)
 

Other
(40
)
 
(22
)
Net Cash Provided by (Used in) by Financing Activities
298


(66
)
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
309


(423
)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period
713

 
1,210

Cash, Cash Equivalents, and Restricted Cash at End of Period
$
1,022

 
$
787

The accompanying notes are an integral part of these financial statements.

5

Table of Contents


Noble Energy, Inc.
Consolidated Statements of Equity
(millions)
(unaudited)

 
Attributable to Noble Energy
 
 
 
 
 
Common
Stock
 
Additional
Paid in
Capital
 
Accumulated Other
Comprehensive
Loss
 
Treasury
Stock at
Cost
 
Retained
Earnings
 
Non-
controlling Interests
 
Total Equity
December 31, 2017
$
5

 
$
8,438

 
$
(30
)
 
$
(725
)
 
$
2,248

 
$
683

 
$
10,619

Net Income

 

 

 

 
554

 
20

 
574

Stock-based Compensation

 
17

 

 

 

 

 
17

Dividends (10 cents per share)

 

 

 

 
(48
)
 

 
(48
)
Purchase and Retirement of Common Stock

 
(67
)
 

 

 

 

 
(67
)
Clayton Williams Energy Acquisition

 
(25
)
 

 

 

 

 
(25
)
Distributions to Noncontrolling Interest Owners

 

 

 

 

 
(11
)
 
(11
)
Contributions from Noncontrolling Interest Owners

 

 

 

 

 
331

 
331

Other

 

 
1

 
(6
)
 

 
2

 
(3
)
March 31, 2018
$
5

 
$
8,363

 
$
(29
)
 
$
(731
)
 
$
2,754

 
$
1,025

 
$
11,387

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
$
5

 
$
6,450

 
$
(31
)
 
$
(692
)
 
$
3,556

 
$
312

 
$
9,600

Net Income

 

 

 

 
36

 
11

 
47

Stock-based Compensation

 
13

 

 

 

 

 
13

Dividends (10 cents per share)

 

 

 

 
(44
)
 

 
(44
)
Distributions to Noncontrolling Interest Owners

 

 

 

 

 
(6
)
 
(6
)
Other

 
9

 

 
(11
)
 
1

 

 
(1
)
March 31, 2017
$
5

 
$
6,472

 
$
(31
)
 
$
(703
)
 
$
3,549

 
$
317

 
$
9,609



The accompanying notes are an integral part of these financial statements.

6

Table of Contents
Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)




Note 1. Organization and Nature of Operations
Noble Energy, Inc. (Noble Energy, we or us) is a leading independent energy company engaged in worldwide crude oil and natural gas exploration and production. Our historical operating areas include: US onshore, primarily the DJ Basin, Delaware Basin, Eagle Ford Shale and Marcellus Shale (until June 2017); US offshore Gulf of Mexico (until April 2018); Eastern Mediterranean; and West Africa. Our Midstream segment owns, operates, develops and acquires domestic midstream infrastructure assets with current focus areas being the DJ and Delaware Basins.

Note 2. Basis of Presentation
Presentation   The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the US (US GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. The accompanying consolidated financial statements at March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 contain all normally recurring adjustments considered necessary for a fair presentation of our financial position, results of operations, cash flows and equity for such periods. For the periods presented, activity within other comprehensive income or loss was de minimis; therefore, net income is materially consistent with comprehensive income.
In Note 11. Segment Information, we report a new Midstream segment, established second quarter 2017, and present prior period amounts on a comparable basis. The Midstream segment, which includes the consolidated accounts of Noble Midstream Partners LP (Noble Midstream Partners), a publicly traded consolidated subsidiary and limited partnership, US onshore equity method investments and other US onshore midstream assets, was previously reported within the United States reportable segment. Certain other prior-period amounts have been reclassified to conform to the current period presentation.
Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018.
These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2017.
Consolidation   Our consolidated financial statements include our accounts, the accounts of subsidiaries which Noble Energy wholly owns, and the accounts of Noble Midstream Partners, which is considered a variable interest entity (VIE) for which Noble Energy is the primary beneficiary. In addition, we use the equity method of accounting for investments in entities that we do not control, but over which we exert significant influence. All significant intercompany balances and transactions have been eliminated upon consolidation.
Investment in Shares of Tamar Petroleum We account for our investment in shares of Tamar Petroleum Ltd. at fair value and record changes in fair value in other non-operating expense (income), net in our consolidated statements of operations. See Note 3. Acquisitions and Divestitures and Note 6. Fair Value Measurements and Disclosures.
Intangible Assets Intangible assets consist of customer contracts and relationships acquired by Noble Midstream Partners in its acquisition of Saddle Butte Rockies Midstream, LLC and affiliates (collectively, Saddle Butte). We recorded the intangible assets at their estimated fair values at the date of acquisition. Amortization is calculated using the straight-line method, which reflects the pattern in which the estimated economic benefit is expected to be received over the estimated useful life of the intangible asset, which is currently over periods of 7 to 13 years. Amortization expense of $5 million is included in depreciation, depletion and amortization expense in our consolidated statements of operations. Intangible assets with finite useful lives are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. See Note 3. Acquisitions and Divestitures.
Stock Repurchase Program On February 15, 2018, we announced that the Company's Board of Directors had authorized a $750 million share repurchase program which expires December 31, 2020. All purchases will be made from time to time in open market or private transactions, depending on market conditions, and may be discontinued at any time. During first quarter 2018, we repurchased and retired 2.2 million shares of common stock at an average purchase price of $30.21 per share.
Estimates   The preparation of consolidated financial statements in conformity with US GAAP requires us to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment.

7

Table of Contents
Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



ASC 606, Revenue from Contracts with Customers Our revenue is derived from the sale of crude oil, NGL and natural gas production primarily to crude oil refining companies, midstream marketing companies, marketers, industrial companies, electric utility companies, independent power producers and cogeneration facilities, among others. We account for revenue in accordance with ASC 606, Revenue from Contracts with Customers (ASC 606), which we adopted on January 1, 2018 using the modified retrospective method. Under ASC 606, performance obligations are the unit of account and generally represent distinct goods or services that are promised to customers. For sales of crude oil, NGLs and natural gas, each unit sold is generally considered a distinct good and the related performance obligation is generally satisfied at a point in time (i.e., at the time control of the commodity is transferred to the customer at the delivery location specified in the contract).
We recognize our sales revenues at a point in time and upon delivery to a customer at the contractually stated price and for the quantity of product delivered. In Israel, because our contracts are long-term arrangements, we recognize revenues for the sale of natural gas over the life of the contract based on the quantity of natural gas delivered.
ASC 606 provides additional clarification related to principal versus agent considerations. Under this guidance, we record revenue on a gross basis if we control a promised good or service before transferring it to a customer. For example, gathering, processing, transportation and fractionation costs incurred before transfer of control to the customer at the tailgate of a plant are accounted for as fulfillment costs and are presented as a component of gathering, transportation and processing expense in our consolidated statements of operations. On the other hand, we record revenue on a net basis if our role is to arrange for another entity to provide the goods or services. For example, costs incurred after control over the product has transferred to the customer, such as at the wellhead or inlet of a plant, are recorded as a reduction of the transaction price received within revenue.
Certain of our contracts for the sale of commodities contain embedded derivatives. We have elected the normal purchases and normal sales scope exception as provided by ASC 815, Derivatives and Hedging, and will account for such contracts in accordance with ASC 606.
In the US, we enter into marketing agreements with our non-operating partners to market and sell their share of production to third parties. We have determined that we act as an agent in such arrangements and account for such arrangements on a net basis.
ASC 606 adoption did not have an impact on the opening balance of retained earnings. The adoption resulted in a de minimis increase of $5 million to our first quarter 2018 revenues and expenses, but did not affect operating or net income or operating cash flows. The comparative information for the prior period has not been recast and continues to be reported under the accounting standards in effect for the period. Adoption of the new standard did not impact our financial position and we do not expect that it will do so going forward.
Changes to the presentation of commodity sales revenue and production expense resulted from our assessment of certain contractual arrangements under principal versus agent guidance and assessment of control under ASC 606. In particular, we have determined that the processor is our customer with regard to the sale of natural gas at the wellhead or the sale of NGLs at the tailgate. This is a change from previous conclusions reached under principal versus agent guidance per ASC 605, Revenue Recognition, where we previously retained control over our production until the sale to the end customer in the downstream markets. As such, effective January 1, 2018, revenues and expenses are presented on a net basis within revenues in our consolidated statements of operations at the time control over production is transferred to the processor under these arrangements.
Following the control model in ASC 606, we determined that we remain the principal in arrangements with the end customers, such as when we take product in-kind at the tailgate and when we are directly responsible for the transportation and marketing of our production in the downstream markets. In such arrangements, we record NGL and natural gas sales and production expense on a gross basis.
Our commodity sale contracts in the US are index-based and, thus, include variable consideration. In accordance with ASC 606, we allocate variable consideration (market price) to the distinct commodities transferred in the period, but not to the future obligations to deliver production. Such allocation represents the amount of consideration to which we are entitled for deliveries of our commodities to-date and represents the value of product delivered to the customer. Therefore, our revenue is recognized at the time of delivery and is the product of the volume delivered and the index-based price for the period.
The following is a summary of our types of revenue arrangements by commodity and geographic location.
EXPLORATION AND PRODUCTION (E&P) REVENUE ARRANGEMENTS
Crude Oil Sale Arrangements – US We sell crude oil produced in the US under short-term contracts at market-based prices, adjusted for location, quality and transportation charges. Market-based pricing is based on the price index applicable for the location of the sale.

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Table of Contents
Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



We sell our crude oil production either at the lease location or in downstream markets. Crude oil production at the lease location is sold through netback arrangements, under which we sell crude oil net of transportation costs incurred by the purchaser. We record revenue, net, at the lease location when the customer obtains delivery of the product.
When we move our crude oil production from the lease location to the downstream markets in the US, we incur gathering and transportation costs, which we consider contract fulfillment activities. Such costs are reported as expense within gathering, transportation and processing expense in the consolidated statements of operations. Revenue from the sale of crude oil in downstream markets is recognized upon delivery, as specified in the contract, when control of the product has transferred to the customer.
Crude Oil Buy/Sell Transactions – US We enter into buy/sell arrangements that effect a change in location and/or grade with required repurchase of crude oil at a delivery point. The sale and repurchase of crude oil is settled at the same contractually fixed price (before application of transportation and grade deductions) on a net basis. We account for these transactions on a net basis, in accordance with ASC 845, Nonmonetary Transactions. We record the residual transportation fee as transportation expense within gathering, transportation and processing expense in the consolidated statements of operations.
Crude Oil Sale Arrangements – West Africa Our share of crude oil and condensate from the Aseng, Alen and Alba fields is sold at market-based prices to Glencore Energy UK Ltd (Glencore Energy). Crude oil is priced at a Dated Brent FOB net realized price achieved by Glencore Energy and is adjusted by applicable fees, including transportation, insurance, and marketing. We recognize revenue on the sale of crude oil to Glencore Energy at the time crude oil cargo is loaded onto the tanker and control transfers to Glencore Energy. We record revenue at the realized price received from Glencore Energy, net of applicable fees.
Natural Gas and NGLs Sale Arrangements– US Certain of our commodity contracts in the US are for the sale of natural gas to processors at prevailing market prices. We evaluate the contract terms of these arrangements to determine whether the processor is a service provider or a customer on a contract by contract basis. In arrangements where we determine that we sold our product to the processor, we record revenue when the processor takes physical possession of the natural gas and NGLs and in the amount of proceeds expected to be received, net of any fees or deductions charged by the processor.
In other natural gas processing arrangements, we receive natural gas and NGL products "in-kind" after processing at the tailgate of the plant. In these arrangements, we are responsible for the transportation, fractionation and marketing costs of our production. In such cases, we record the sale of natural gas and NGLs and applicable gathering, processing, transportation and fractionation fees on a gross basis at the time the product is delivered to the end customer.
Natural Gas Purchase and Sale Arrangements – US We enter into purchase transactions and separate sale transactions with third parties at prevailing market prices to mitigate unutilized pipeline transportation commitments, primarily related to retained Marcellus Shale firm transportation agreements. Revenues and expenses from the sales and purchases are recorded on a gross basis, as we act as a principal in these transactions by assuming control of the purchased commodity before it is transferred to the customer.
Natural Gas Sale Arrangements – West Africa We sell our share of natural gas production from the Alba field under a long-term contract for $0.25 per MMBtu to a methanol plant, an LPG plant, an LNG plant and a power generation plant. We recognize revenue upon transfer of control to these processors.
Natural Gas Sale Arrangements – Israel Our natural gas sales in Israel are primarily based on long-term contracts with fixed volume commitments over the life of the arrangements. Our performance obligations for the sale of natural gas are satisfied over time using production output to measure progress. The nature of these contracts gives rise to several types of variable consideration, including index-based annual price escalations, commodity-based index pricing, tiered pricing and sales price discounts in periods of volume deficiencies. Additionally, the majority of our sales contracts contain take-or-pay provisions where the customers are required to purchase a contractual minimum over varying time periods. Where the variable consideration is related to market-based pricing or index-based escalations of a fixed base price, we have elected the variable consideration allocation exception pursuant to ASC 606. We record revenue related to the volumes delivered at the contract price at the time of delivery. To date, there have been no impacts of variability in consideration due to tiered pricing, take-or-pay provisions and/or volume deficiency discounts. We believe that any variability due to future sales price adjustments associated with potential volume deficiencies will not have a significant impact on our financial position or results of operations.
Transaction Price Allocated to Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm sales arrangements for which volumes have not been delivered. Pursuant to ASC 606, short and long-term interruptible contracts, and long-term dedicated production agreements, are excluded from the disclosure due to uncertainty associated with estimating future production volumes and future market prices. However, certain of our natural gas sales contracts in Israel have fixed annual sales volumes and fixed base pricing with annual index escalations. The following table includes estimated revenues based upon those certain agreements with fixed minimum take-or-pay sales volumes. Our

9

Table of Contents
Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



actual future sales volumes under these agreements may exceed future minimum volume commitments.
(millions)
April - Dec 2018
2019
2020
Total
Natural Gas Revenues (1)
$
215

$
137

$
169

$
521

(1) The remaining performance obligations are estimated utilizing the contractual base or floor price provision in effect. Our future revenues from the sale of natural gas under these associated contracts will vary from the amounts presented above due to components of variable consideration above the contractual base or floor provision, such as index-based escalations and market price changes.
MIDSTREAM REVENUE ARRANGEMENTS
Our Midstream segment revenues are derived from fixed fee contract arrangements for gathering, transportation and storage services. We have determined that our performance obligations for the provision of such services are satisfied over time using volumes delivered as the measure of progress. ASC 606 adoption did not have an impact on the recognition, measurement and presentation of our midstream revenues and expenses.
Crude Oil Purchase and Sale Arrangements – US As part of the Saddle Butte acquisition in first quarter 2018, we acquired a pipeline and associated third party contracts which include transactions for the purchase and sale of crude oil with varying counterparties. Revenues and expenses from the sales and purchases are recorded on a gross basis as we act as a principal in these transactions by assuming control of the purchased commodity before it is transferred to the customer. The purchases and sales of crude oil are at the prevailing market prices.
Recently Issued Accounting Standards
Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 (ASU 2016-02): Leases. The standard requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases with terms of more than 12 months. ASU 2016-02 also requires disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. In January 2018, the FASB issued Accounting Standards Update No. 2018-01 (ASU 2018-01): Land Easement Practical Expedient for Transition to Topic 842, to provide an optional practical expedient to not evaluate existing or expired land easements that were not previously accounted for as leases under Topic 840. The standard will be effective for annual and interim periods beginning after December 15, 2018, with earlier application permitted.
In the normal course of business, we enter into capital and operating lease agreements to support our exploration and development operations and lease assets such as drilling rigs, platforms, storage facilities, field services and well equipment, pipeline capacity, office space and other assets. We will adopt the new standard on the effective date of January 1, 2019. At this time, we cannot reasonably estimate the impact the standard will have on our consolidated financial statements; however, we believe adoption and implementation will result in: (i) an increase in assets and liabilities, (ii) an increase in depreciation, depletion and amortization expense, (iii) an increase in interest expense, and (iv) additional disclosures. As part of our assessment to date, we have formed an implementation work team and are continuing contract review and documentation.
Accumulated Other Comprehensive Income In February 2018, the FASB issued Accounting Standards Update No. 2018-02 (ASU 2018-02): Income Statement – Reporting Comprehensive Income, to allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 will be effective for annual and interim periods beginning after December 15, 2018, with earlier application permitted. As of March 31, 2018, we have a disproportionate tax effect of approximately $7 million stranded in accumulated other comprehensive income. We are currently evaluating the provisions of this standard.
Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued Accounting Standards Update No. 2017-04 (ASU 2017-04): Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment, to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the new standard, we will perform our goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, with an impairment charge being recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 will be effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the provisions of ASU 2017-04.
Financial Instruments: Credit Losses In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13): Financial Instruments – Credit Losses, which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more useful information about expected credit losses. The amended standard is effective for fiscal years beginning after December 15, 2019,

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Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



with early adoption permitted. We are currently evaluating the effect, if any, that the standard will have on our consolidated financial statements and related disclosures.
Statements of Operations Information   Other statements of operations information is as follows:
 
Three Months Ended March 31,
(millions)
2018
 
2017
Income From Equity Method Investees and Other
 
 
 
Income from Equity Method Investees
$
47

 
$
42

Sales of Purchased Oil and Gas (1)
53

 

Midstream Services Revenues – Third Party
13

 

Total
$
113

 
$
42

Production Expense
 
 
 
Lease Operating Expense
$
155

 
$
139

Production and Ad Valorem Taxes
54

 
41

Gathering, Transportation and Processing Expense
95

 
119

Other Royalty Expense
17

 
4

Total
$
321

 
$
303

Exploration Expense
 
 
 
Leasehold Impairment and Amortization
$

 
$
18

Seismic, Geological and Geophysical
11

 
5

Staff Expense
14

 
13

Other
10

 
6

Total
$
35

 
$
42

Other Operating Expense, Net
 
 
 
Marketing Expense (2)
$
5

 
$
19

Purchased Oil and Gas (1)
57

 

Other, Net
8

 
10

Total
$
70

 
$
29

Other Non-Operating Expense (Income), Net
 
 
 
Loss on Investment in Tamar Petroleum Ltd., Net (3)
$
15

 
$

Other
(2
)
 
(1
)
Total
$
13

 
$
(1
)

(1) 
As part of the Midstream Saddle Butte acquisition in first quarter 2018, we acquired certain contracts which include the purchase and sale of crude oil with third parties. In addition, in first quarter 2018, as part of our Marcellus Shale upstream firm transportation mitigation efforts, we entered into certain transactions for the purchase of third party natural gas and the subsequent sale of natural gas to other third parties. The cost to purchase natural gas includes transportation expense incurred of $5 million. See Note 11. Segment Information.
(2) 
Expense relates to unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments.
(3) 
Amount includes a $29 million loss related to the change in fair value, net of $14 million of dividend income related to our investment in Tamar Petroleum Ltd. shares.

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Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



Balance Sheet Information   Other balance sheet information is as follows:
(millions)
March 31,
2018
 
December 31,
2017
Accounts Receivable, Net
 
 
 
Commodity Sales
$
413

 
$
455

Joint Interest Billings
234

 
207

Other
77

 
103

Allowance for Doubtful Accounts
(17
)
 
(17
)
Total
$
707

 
$
748

Other Current Assets
 

 
 

Inventories, Materials and Supplies
$
43

 
$
66

Inventories, Crude Oil
17

 
16

Assets Held for Sale (1)
751

 
629

Restricted Cash (2)
30

 
38

Prepaid Expenses and Other Current Assets (3)
54

 
31

Total
$
895

 
$
780

Other Noncurrent Assets
 

 
 

Equity Method Investments (4)
$
378

 
$
305

Customer-Related Intangible Assets (5)
334

 

Investment in Tamar Petroleum Ltd. (6)
162

 

Mutual Fund Investments
56

 
57

Net Deferred Income Tax Asset
25

 
25

Other Assets, Noncurrent
66

 
74

Total
$
1,021

 
$
461

Other Current Liabilities
 

 
 

Production and Ad Valorem Taxes
$
93

 
$
84

Commodity Derivative Liabilities
112

 
58

Income Taxes Payable
32

 
18

Asset Retirement Obligations
51

 
51

Interest Payable
94

 
67

Current Portion of Capital Lease Obligations
54

 
61

Liabilities Associated with Assets Held for Sale (1)
231

 
55

Other Liabilities, Current
124

 
184

Total
$
791

 
$
578

Other Noncurrent Liabilities
 

 
 

Deferred Compensation Liabilities
$
180

 
$
197

Asset Retirement Obligations
577

 
824

Marcellus Shale Firm Transportation Commitment (7)
73

 
76

Production and Ad Valorem Taxes
86

 
69

Other Liabilities, Noncurrent
97

 
79

Total
$
1,013

 
$
1,245

(1) 
Assets held for sale at March 31, 2018 include our Gulf of Mexico assets and assets in the Greeley Crescent area of the DJ Basin. Assets held for sale at December 31, 2017 include assets in the Greeley Crescent area of the DJ Basin, a 7.5% interest in the Tamar field, offshore Israel, our interest in Southwest Royalties, Inc. acquired in the Clayton Williams Energy Acquisition, and the CONE investments. Liabilities associated with assets held for sale primarily represent asset retirement obligations and other liabilities to be assumed by the purchaser. See Note 3. Acquisitions and Divestitures.
(2) 
Balance at March 31, 2018 represents amount held in escrow pending closing of the Gulf of Mexico asset sale. Balance at December 31, 2017 represents amount held in escrow pending closing of the Saddle Butte acquisition. See Note 3. Acquisitions and Divestitures.

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Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



(3) 
Balance at March 31, 2018 includes $14 million of accrued dividends receivable on shares of Tamar Petroleum Ltd.
(4) 
Includes $72 million for our investment in shares of CNX Midstream Partners LP. At December 31, 2017, this investment was included in assets held for sale. See Note 3. Acquisitions and Divestitures and Note 6. Fair Value Measurements and Disclosures.
(5) 
Amount relates to intangible assets acquired in the Saddle Butte acquisition. See Note 3. Acquisitions and Divestitures.
(6) 
Amount relates to our investment in shares of Tamar Petroleum Ltd. See Note 3. Acquisitions and Divestitures and Note 6. Fair Value Measurements and Disclosures.
(7) 
Amounts relate to the long-term portion of retained firm transportation agreements. At March 31, 2018 and December 31, 2017, we recorded $11 million and $14 million, respectively, associated with the current portion of the Marcellus Shale firm transportation commitment. See Note 12. Commitments and Contingencies.

Reconciliation of Total Cash We define total cash as cash, cash equivalents and restricted cash. The following table provides a reconciliation of total cash:
 
Three Months Ended March 31,
(millions)
2018
 
2017
Cash and Cash Equivalents at Beginning of Period
$
675

 
$
1,180

Restricted Cash at Beginning of Period
38

 
30

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period
$
713

 
$
1,210

Cash and Cash Equivalents at End of Period
$
992

 
$
787

Restricted Cash at End of Period
30

 

Cash, Cash Equivalents, and Restricted Cash at End of Period
$
1,022

 
$
787



Note 3. Acquisitions and Divestitures
2018 Asset Transactions
Divestiture of 7.5% Interest in Tamar Field On March 14, 2018, we closed the sale of a 7.5% working interest in the Tamar field to Tamar Petroleum Ltd. (Tamar Petroleum), a publicly traded entity on the Tel Aviv Stock Exchange (TASE: TMRP). Total consideration included cash and 38.5 million shares of Tamar Petroleum that had a market value of $224 million. The transaction had an effective date of January 1, 2018 and after consideration of closing adjustments and before consideration of taxes, we received $487 million of cash. Our shares of Tamar Petroleum are currently subject to certain temporary lock-up provisions and have no voting rights. Upon subsequent sale of the shares to a third party, the voting rights will be restored and granted to the third party. Due to the lock-up provisions associated with the Tamar Petroleum shares, we have attributed $190 million of fair value to the shares, or 15% lower than the trading value. See Note 6. Fair Value Measurements and Disclosures. In connection with the transaction, we incurred tax expense of $90 million. Total consideration received was applied to the field's basis and resulted in the recognition of a pre-tax gain of $386 million.
The sale is in accordance with the terms of the Israel Natural Gas Framework (Framework) that requires us to reduce our ownership interest in the Tamar field from 32.5% to 25% by year-end 2021. We expect to sell the Tamar Petroleum shares before year-end 2021. Proved reserves related to the 7.5% interest totaled approximately 84 MMBoe as of December 31, 2017.
Divestiture of Southwest Royalties In January 2018, we closed the sale of our interest in Southwest Royalties, Inc. (Southwest Royalties), a subsidiary of Clayton Williams Energy, Inc. (Clayton Williams Energy), which we acquired in the acquisition of Clayton Williams Energy (Clayton Williams Energy Acquisition) in 2017. We received proceeds of $60 million, resulting in no gain or loss recognition on the sale of these assets.
Divestiture of Marcellus Shale CONE Gathering In January 2018, we closed the sale of our 50% interest in CONE Gathering LLC (CONE Gathering) to CNX Resources Corporation. CONE Gathering owns the general partner of CNX Midstream Partners LP (CNX Midstream Partners, NYSE: CNXM). We received proceeds of $308 million in cash and recognized a pre-tax gain of $196 million. We currently hold 21.7 million common units representing a 33.5% limited partner interest in CNX Midstream Partners.
Saddle Butte Acquisition On January 31, 2018, Black Diamond Gathering LLC (Black Diamond), an entity formed by Black Diamond Gathering Holdings LLC, a wholly-owned subsidiary of Noble Midstream Partners, and Greenfield Midstream, LLC (Greenfield), completed the acquisition of Saddle Butte Rockies Midstream, LLC and affiliates (collectively Saddle Butte and subsequently renamed Black Diamond) from Saddle Butte Pipeline II, LLC for total consideration of $681 million, which included $663 million of cash and assumption of $18 million of liabilities. Greenfield funded approximately $343 million of the purchase price, which is reflected as a contribution from noncontrolling interest within our consolidated statement of equity,

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Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



and Noble Midstream Partners funded the remainder. We consolidate Black Diamond and reflect the third-party ownership within noncontrolling interest within our consolidated statement of equity.
We accounted for the transaction as a business combination using the acquisition method. The total purchase price was allocated to assets acquired and liabilities assumed based on the fair value at the acquisition date. We have recognized goodwill for the amount of the purchase price exceeding the fair value of the assets acquired. Allocated fair value included: $206 million to property, plant and equipment; $340 million to customer-related intangible assets (acquired customer contracts); and $111 million to implied goodwill. The purchase price allocation is preliminary as certain data necessary to complete the purchase allocation is not yet available, such as analysis of the final appraisals of assets acquired and liabilities assumed. We expect to complete the purchase price allocation during the 12-month period following the acquisition date, during which time the value of the assets and liabilities, including any goodwill, may be revised as appropriate.
Other Divestitures During first quarter 2018, we also closed the sale of certain other smaller US onshore properties and received total cash consideration of $10 million, recording a de minimis gain of $6 million.
Subsequent Event – Divestiture of Gulf of Mexico Assets  On February 15, 2018, we announced that we had signed a definitive agreement to sell our Gulf of Mexico assets, including all of our interests in producing properties and undeveloped acreage, for cash consideration of $480 million, along with the assumption, by the purchaser, of all abandonment obligations associated with the properties. Proved reserves associated with these properties totaled approximately 23 MMBoe as of December 31, 2017.
In April 2018, we completed the initial closing for certain of the assets. The transaction had an effective date of January 1, 2018 and after consideration of customary closing adjustments, we received $404 million of cash.
A subsequent closing for the remainder of the assets is expected to occur mid-year 2018 with no significant financial statement impact.
In addition, a cumulative contingent payment of up to $100 million is payable to us in the period after the closing of the transaction through the end of 2022, determined quarterly, at a rate of $2 per barrel produced by these assets when the average purchase price for Light Louisiana Sweet (LLS) crude oil exceeds $63 per barrel, and if produced crude oil volumes exceed certain minimum amounts. 
As of March 31, 2018, the net book value of the Gulf of Mexico assets was $480 million. In addition, we retained certain transaction related obligations approximating $92 million which will be settled at final close. During first quarter 2018, we recorded impairment expense of $168 million associated with these assets held for sale.
2017 Asset Transactions
During the first three months of 2017, we closed a bolt-on acquisition in the Delaware Basin for $301 million, approximately $246 million of which was allocated to undeveloped leasehold costs. The acquisition included interest in seven producing wells, four of which are operated by us.
Clayton Williams Energy Acquisition On April 24, 2017, we completed the Clayton Williams Energy Acquisition. The acquisition was effected through the issuance of 56 million shares of Noble Energy common stock, with a fair value of $1.9 billion, and cash consideration of $637 million, for total consideration of $2.5 billion, in exchange for all of the outstanding Clayton Williams Energy shares, including stock options, restricted stock awards and warrants.
The transaction was accounted for as a business combination using the acquisition method. The following table represents the final allocation of the total purchase price of Clayton Williams Energy to the assets acquired and liabilities assumed, based on the fair value at the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net

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Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



assets acquired recorded as goodwill.
(millions)
 
Fair Value of Common Stock Issued
$
1,851

Plus: Cash Consideration Paid to Clayton Williams Energy Stockholders
637

Total Purchase Price
$
2,488

Plus Liabilities Assumed by Noble Energy:
 
Accounts Payable
99

Other Current Liabilities
38

Long-Term Deferred Tax Liability
515

Long-Term Debt
595

Asset Retirement Obligations
63

Total Purchase Price Plus Liabilities Assumed
$
3,798

The fair value of Clayton Williams Energy's identifiable assets was as follows:
(millions)
 
Cash and Cash Equivalents
$
21

Other Current Assets
70

Oil and Gas Properties:
 
Proved Reserves
722

Undeveloped Leasehold Costs
1,571

Gathering and Processing Assets
48

Asset Retirement Costs
63

Other Noncurrent Assets
12

Implied Goodwill
1,291

Total Asset Value
$
3,798


In connection with the acquisition, we assumed, and then subsequently retired in second quarter 2017, all of Clayton Williams Energy's long-term debt at a cost of $595 million. The fair value measurements of long-term debt were estimated based on the early redemption prices and represent Level 1 inputs.
The fair value measurements of crude oil and natural gas properties and asset retirement obligations were based on inputs that are not observable in the market and, therefore, represent Level 3 inputs. The fair values of crude oil and natural gas properties and asset retirement obligations were measured using valuation techniques that convert expected future cash flows to a single discounted amount. Significant inputs to the valuation of crude oil and natural gas properties included estimates of: (i) proved, possible and probable reserves; (ii) production rates and related development timing; (iii) future operating and development costs; (iv) future commodity prices; and (v) a market-based weighted average cost of capital rate. These inputs required significant judgments and estimates by management at the time of the valuation and were the most sensitive.
Based upon the final purchase price allocation, we recognized $1.3 billion of goodwill, all of which is assigned to the Texas reporting unit.
The following pro forma condensed combined financial information was derived from the historical financial statements of Noble Energy and Clayton Williams Energy and gives effect to the acquisition as if it had occurred on January 1, 2017. The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including: (i) Noble Energy's common stock and equity awards issued to convert Clayton Williams Energy's outstanding shares of common stock and equity awards and conversion of warrants as of the closing date of the acquisition, (ii) depletion of Clayton Williams Energy's fair-valued proved crude oil and natural gas properties, and (iii) the estimated tax impacts of the pro forma adjustments.
The pro forma results of operations do not include any cost savings or other synergies that we expect to realize from the Clayton Williams Energy Acquisition or any estimated costs that have been or will be incurred by us to integrate the Clayton Williams Energy assets. The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Clayton Williams Energy Acquisition

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Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



taken place on January 1, 2017; furthermore, the financial information is not intended to be a projection of future results.
 
Three Months Ended March 31,
(millions, except per share amounts)
2018 (1)
 
2017
Revenues
$
1,286

 
$
933

Net Income and Comprehensive Income Attributable to Noble Energy
554

 
51

 
 
 
 
Net Income Attributable to Noble Energy per Common Share
 
 
 
Basic
$
1.14

 
$
0.10

Diluted
$
1.14

 
$
0.10

(1) 
No pro forma adjustments were made for the period as Clayton Williams Energy operations are included in our historical results.
Note 4. Derivative Instruments and Hedging Activities
Objective and Strategies for Using Derivative Instruments   We are exposed to fluctuations in crude oil, natural gas and NGL pricing. In order to mitigate the effect of commodity price volatility and enhance the predictability of cash flows relating to the marketing of our global crude oil and domestic natural gas, we enter into crude oil and natural gas price hedging arrangements.
While these instruments mitigate the cash flow risk of future decreases in commodity prices, they may also curtail benefits from future increases in commodity prices. See Note 6. Fair Value Measurements and Disclosures for a discussion of methods and assumptions used to estimate the fair values of our derivative instruments.
Unsettled Commodity Derivative Instruments   As of March 31, 2018, the following crude oil derivative contracts were outstanding:
 
 
 
 
Swaps
 
Collars
Settlement
Period
Type of Contract
Index
Bbls Per
Day
Weighted Average Differential
Weighted
Average
Fixed
Price
 
Weighted
Average
 Short Put
 Price
Weighted
Average
Floor
Price
Weighted
Average
 Ceiling
Price
2018
Three-Way Collars
NYMEX WTI
10,000
$

$

 
$
45.50

$
52.50

$
69.09

2018
Swaps
NYMEX WTI
58,000

59.74

 



2018
Two-Way Collars
NYMEX WTI
18,000


 

50.42

58.82

2018
Three-Way Collars
Dated Brent
3,000


 
40.00

50.00

70.41

2018
Swaps
ICE Brent
2,000

59.00

 



2018
Two-Way Collars
ICE Brent
2,000


 

50.00

55.25

2018
Three-Way Collars
ICE Brent
5,000


 
43.00

50.00

59.50

2018
Basis Swaps
(1) 
12,000
(0.60
)

 



2019
Swaps
NYMEX WTI
31,000

57.77

 



2019
Swaps
ICE Brent
5,000

57.00

 



2019
Three-Way Collars
ICE Brent
3,000


 
43.00

50.00

64.07

2019
Basis Swaps
(1) 
12,000
(1.01
)

 



2020
Swaption(2)
NYMEX WTI
5,000

61.79

 




(1) We have entered into crude oil basis swap contracts in order to fix the differential between pricing in Midland, Texas, and Cushing, Oklahoma. The weighted average differential represents the amount of reduction to Cushing, Oklahoma prices for the notional volumes covered by the basis swap contracts.
(2) We have entered into certain derivative contracts (swaptions), which give counterparties the right, but not the obligation, to enter into swap agreements with us on the option expiration dates.




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Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



As of March 31, 2018, the following natural gas derivative contracts were outstanding:
 
 
 
 
Swaps
 
Collars
Settlement
Period
Type of Contract
Index
MMBtu
Per Day
Weighted
Average
Fixed
Price
 
Weighted
Average
Short Put
 Price
Weighted
Average
Floor
Price
Weighted
Average
Ceiling
Price
2018
Three-Way Collars
NYMEX HH
120,000

$

 
$
2.50

$
2.88

$
3.65


Fair Value Amounts and Loss (Gain) on Commodity Derivative Instruments   The fair values of commodity derivative instruments in our consolidated balance sheets were as follows:
 
Fair Value of Derivative Instruments
 
Asset Derivative Instruments
 
Liability Derivative Instruments
 
March 31,
2018
 
December 31,
2017
 
March 31,
2018
 
December 31,
2017
(millions)
Balance Sheet Location
 
Fair
Value
 
Balance Sheet Location
 
Fair
 Value
 
Balance Sheet Location
 
Fair
Value
 
Balance Sheet Location
 
Fair
Value
Commodity Derivative Instruments
Current Assets
 
$
8

 
Current Assets
 
$
2

 
Current Liabilities
 
$
112

 
Current Liabilities
 
$
58

 
Noncurrent Assets
 
2

 
Noncurrent Assets
 

 
Noncurrent Liabilities
 
20

 
Noncurrent Liabilities
 
15

Total
 
 
$
10

 
 
 
$
2

 
 
 
$
132

 
 
 
$
73



The effect of commodity derivative instruments on our consolidated statements of operations was as follows:
 
Three Months Ended March 31,
(millions)
2018
 
2017
Cash Paid (Received) in Settlement of Commodity Derivative Instruments
 
 
 
Crude Oil
$
30

 
$
(5
)
Natural Gas
(2
)
 
2

Total Cash Paid (Received) in Settlement of Commodity Derivative Instruments
28

 
(3
)
Non-cash Portion of Loss (Gain) on Commodity Derivative Instruments
 
 
 
Crude Oil
50

 
(63
)
Natural Gas
1

 
(44
)
Total Non-cash Portion of Loss (Gain) on Commodity Derivative Instruments
51

 
(107
)
Loss (Gain) on Commodity Derivative Instruments
 
 
 
Crude Oil
80

 
(68
)
Natural Gas
(1
)
 
(42
)
Total Loss (Gain) on Commodity Derivative Instruments
$
79

 
$
(110
)


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Table of Contents
Noble Energy, Inc.
Notes to Consolidated Financial Statements (Unaudited)



Note 5. Debt
Debt consists of the following:
 
March 31,
2018
 
December 31,
2017
(millions, except percentages)
Debt
 
Interest Rate

 
Debt
 
Interest Rate
Revolving Credit Facility, due March 9, 2023
$

 
%
 
$
230

 
2.27
%
Noble Midstream Services Revolving Credit Facility, due March 9, 2023
435

 
2.78
%
 
85

 
2.49
%
Leviathan Term Loan Facility, due February 23, 2025

 
%
 

 
%
Senior Notes, due May 1, 2021 (1) 
379

 
5.63
%
 
379

 
5.63
%
Senior Notes, due December 15, 2021
1,000

 
4.15
%
 
1,000

 
4.15
%
Senior Notes, due October 15, 2023
100

 
7.25
%
 
100

 
7.25
%
Senior Notes, due November 15, 2024
650

 
3.90
%