Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 3, 2019

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NOBLE ENERGY, INC.
(Exact name of Registrant as specified in its charter)
 
 
 
 
 
 
Delaware
 
001-07964
 
73-0785597
(State or other jurisdiction of
incorporation or organization)
 
Commission
File Number
 
(I.R.S. Employer
Identification No.)
 
1001 Noble Energy Way,
Houston, Texas
 
 
 
77070
(Address of principal executive offices)
 
 
 
(Zip Code)
 
 
 
 
 
Registrant’s telephone number, including area code: (281) 872-3100
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
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
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, $0.01 par value
 
NBL
 
New York Stock Exchange





Item 2.02. Results of Operations and Financial Condition.
On May 3, 2019 Noble Energy, Inc. (the “Company”) issued a press release announcing results for the fiscal quarter ended March 31, 2019. A copy of the press release issued by the Company is furnished as Exhibit 99.1 to this Current Report and will be published on the Company’s website at www.nblenergy.com.
The Company’s press release announcing its financial results for its fiscal quarter ended March 31, 2019 contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles, or GAAP. The Company has provided quantitative reconciliations within the press release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
In accordance with General Instruction B.2. of Form 8-K, the information set forth herein and in the press release is deemed to be “furnished” and shall not be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Item 7.01. Regulation FD Disclosure.
On May 3, 2019, we will present certain information in connection with our call with shareholders, analysts and others relating to our results of operations discussed above.  Attached hereto as Exhibit 99.2 are slides that will be presented at that time.
The information included in this Current Report under Item 7.01, including Exhibit 99.2, is deemed to be “furnished” and shall not be “filed” for purposes of Section 18 of the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits. The following exhibits are furnished as part of this Current Report on Form 8-K:
Exhibit No.
 
Description
99.1
 
99.2
 





SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
 
 
NOBLE ENERGY, INC.
 
 
 
 
 
 
 
Date:
May 3, 2019
 
 
By: 
 
/s/ Kenneth M. Fisher
 
 
 
 
 
 
Kenneth M. Fisher
 
 
 
 
 
 
Executive Vice President, Chief Financial Officer



Exhibit
Exhibit 99.1

 
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NEWS RELEASE
 
 
 
 
 
 
 
NOBLE ENERGY ANNOUNCES FIRST QUARTER 2019 RESULTS
Capital efficiency showing meaningful progress year-to-date

HOUSTON (May 3, 2019) -- Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or the “Company”) today announced first quarter 2019 financial and operating results. Highlights include:

Organic capital expenditures funded by Noble Energy totaled $683 million, below the low end of guidance, a result of lower spend in the U.S. onshore and Israel.
Delivered total Company sales volumes of 337 MBoe/d and U.S. onshore volumes of 253 MBoe/d, exceeding the top end of guidance.
Produced a quarterly record in the DJ Basin of 144 MBoe/d, driven by strong base performance and Mustang IDP growth.
Progressed Leviathan to 81% complete, with first gas sales expected by the end of 2019.
Sanctioned the Alen gas monetization project in Equatorial Guinea with initial sales planned for the first half of 2021.
Farmed into two exploration blocks offshore Colombia; Noble Energy operates the blocks with a 40% working interest.
Noble Midstream Partners closed its options with EPIC Midstream Holdings to acquire a 15% equity interest in the Y-grade pipeline and a 30% equity interest in the crude oil pipeline.

David L. Stover, Noble Energy’s Chairman and CEO, commented, “Noble Energy is off to a great start in 2019, building upon our success in the second half of 2018, with capital expenditures below and


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production above plan. Earlier this year, Noble Energy outlined a path to deliver long-term sustainable value creation through capital efficiency and prioritizing returns over headline volume growth. Our onshore accomplishments in 2019 include lower well costs in each of our basins, reduced cycle times and strong production. Offshore, we are uniquely positioned with world-class international projects that have minimal to no decline, and by the end of the year, Leviathan is expected to be generating significant new cash flow for our Company. I am pleased with our accomplishments to-date, our momentum on 2019 delivery, and our pathway to organic free cash flow generation.”

First Quarter 2019 Results
The Company reported a first quarter net loss attributable to Noble Energy of $313 million, or $0.65 per diluted share. Net loss including noncontrolling interest was $289 million. Excluding items impacting comparability, the Company generated an adjusted net loss and adjusted net loss per share(1) attributable to Noble Energy for the quarter of $44 million, or $0.09 per diluted share. Adjusted EBITDAX(1) was $562 million, and cash provided by operating activities was $528 million.

The Company’s effective tax rate, after excluding items impacting comparability of earnings to prior periods, was approximately 40%. On this basis, current tax expense was $19 million, resulting from the income generated in West Africa and Israel. Deferred taxes were a benefit of $35 million on this same basis.

First quarter 2019 organic capital investments attributable to Noble Energy included $487 million related to U.S. onshore upstream activities and $37 million for midstream activities funded by the Company. These amounts were lower than anticipated as a result of reduced well costs and facility expenditures. The Company also invested $132 million in the Eastern Mediterranean, primarily for the development of the Leviathan project. Noble Energy’s acquisition capital for the first quarter amounted to $39 million, which primarily represented U.S. onshore exploration acreage capture.

Total Company sales volumes for the first quarter 2019 were 337 thousand barrels of oil equivalent per day (MBoe/d). Total Company liquids sales volumes (crude oil and natural gas liquids) averaged 190 thousand


2


barrels per day (MBbl/d) for the first quarter 2019, or 56 percent of total volumes. The Company’s U.S. onshore assets produced 75 percent of sales volumes, Equatorial Guinea (E.G.) represented 13 percent and Israel comprised 12 percent. Each business unit in the U.S. onshore performed in line or above expectation while International volumes benefitted from high demand in Israel and shorter than anticipated facility maintenance in E.G.

Unit production expenses for the first quarter 2019 were $10.02 per barrel of oil equivalent (BOE), including lease operating expenses, production taxes, gathering and transportation expenses, and other royalty costs. Unit production expenses benefitted from cost management and production outperformance, primarily in the U.S. onshore business. Depreciation, depletion and amortization was $16.71 per BOE and general and administrative expenses totaled $102 million for the quarter.

Income from equity method investees for the first quarter totaled $17 million, in line with expectation as a result of planned maintenance at the onshore plant facilities in E.G.

The results for Noble Midstream Partners LP ("NBLX") (NYSE: NBLX) are consolidated into Noble Energy’s financial statements, including $29 million in organic capital expenditures funded by NBLX in the first quarter. In addition, NBLX had $271 million in equity method investments in the first quarter 2019 relating to its acquisition of interests in the EPIC Y-grade and crude oil pipelines along with its joint venture investment for a new Delaware Basin oil pipeline from Reeves County to Wink, Texas. Midstream Services Revenue of $24 million for the quarter was primarily composed of NBLX's gathering revenue from unaffiliated third parties. The public’s 55 percent ownership of first quarter net income attributable to NBLX, $24 million, has been excluded from net income attributable to Noble Energy.

Well Performance and Capital Efficiency Drive U.S. Onshore Performance
Total sales volumes across the Company’s U.S. onshore assets averaged 253 MBoe/d in the first quarter 2019. The Company produced total liquids volumes of 173 MBbl/d of which oil production was 113 MBbl/d. First quarter 2019 volumes reflect another quarterly production record for the Company’s DJ Basin.


3



Noble Energy continued to drive capital efficiency in the U.S. onshore business, delivering execution improvements to sustainably reduce well costs and improve cycle times, with many of the improvements a result of the Company’s row development process. As compared to the fourth quarter of 2018, pumping hours per day improved 5 to 10 percent, contributing to lower than budgeted well costs and accelerated first production for new wells.

The DJ Basin averaged 144 MBoe/d, an increase of five percent sequentially and 21% from the first quarter 2018, while continuing to generate operating cash flows in excess of capital expenditures. The increased volumes for the quarter were driven primarily by the completion activity at Row 2 in the Mustang area, where the company brought online 21 wells in the western portion of the row. Mustang production averaged 39 MBoe/d in the quarter, with nearly 55 percent of the volume being oil. Wells Ranch grew to 66 MBoe/d in the first quarter, benefitted by additional gas offload.

Sales volumes from the Company's Delaware Basin assets totaled 59 MBoe/d, up 30% from the first quarter of 2018. Early in the year, the Company closed on the divestment of a 13,000 net acre position in the southwest portion of the Company’s acreage. The divestment included approximately 1,000 Boe/d of production. During the first quarter, the Company brought online nine wells to production. The new wells generated an average IP-30 rate of 1,560 Boe/d (68% oil). Excluding two of these wells, which were drilled in the Company’s southwest acreage for lease retention purposes, the IP-30 production average was 211 Boe/d per 1,000 lateral feet.

Sales volumes from the Eagle Ford totaled 50 MBoe/d for the first quarter while continuing to generate operating cash flows above capital expenditures. Seven drilled-but-uncompleted wells commenced production during the quarter from the Company’s North Gates Ranch area.


4


Across the U.S. onshore portfolio, the Company operated six rigs (2 DJ and 4 Delaware) and drilled 42 wells (26 DJ and 16 Delaware) in the quarter. Noble Energy commenced production on 37 wells (21 DJ, 9 Delaware, 7 Eagle Ford) and completed 56 wells (29 DJ, 20 Delaware, 7 Eagle Ford).

Offshore Major Projects Driving Long-term Sustainable Cash Flow Profile
First quarter net sales volumes from the Company’s assets in Israel totaled 235 million cubic feet of natural gas equivalent per day (MMcfe/d). Production on a gross basis exceeded one billion cubic feet of natural gas equivalent per day, above expectation as a result of higher domestic natural gas demand.

The Leviathan project is 81 percent complete. Project highlights during the first quarter include jacket and pile installation, production manifold installation and completion of pipeline installation. The next major milestone will be the loading and shipping of the platform topsides expected by the end of the second quarter. The project remains on budget and on schedule for first production by the end of 2019.

Sales volumes for West Africa were 45 MBoe/d, including 13 MBbl/d of crude oil. Production volumes exceeded sales volumes by approximately 2 MBbl/d due to the timing of cargo liftings in E.G. During the quarter, the onshore plant facilities, which process Alba field gas, incurred downtime for routine maintenance. The maintenance was completed ahead of schedule, and the plants and Alba field returned to full capacity. Active reservoir management, including optimized field injection, is delivering lower production declines than previously expected at the Company’s operated Aseng and Alen fields.

At the end of the quarter, Noble Energy announced the sanction of the Alen gas monetization project. At start-up, incremental sales from the Alen field are anticipated to be between 200 and 300 MMcfe/d, gross (~75 to 115 MMcfe/d net to Noble Energy), including condensate, NGL, and natural gas volumes.

Exploration Focused on Quality; High-impact, Low-risk Opportunities

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Noble Energy finalized an agreement to farm into two deepwater blocks offshore Colombia, totaling 2.2 million acres. The prospectivity on the blocks includes both liquids and natural gas resource potential. Noble Energy operates in both blocks with a 40% working interest. A prospect is planned to be drilled in 2020.

The Company also had significant success in the quarter continuing to build its onshore unconventional exploration position. Over the past two years, the Company has amassed more than 140,000 acres in two plays in Wyoming at an average cost of less than $430 per acre.

Executing to Plan, Full Year Guidance Maintained
The Company's full year capital expenditures guidance and sales volume expectations remain unchanged.

Sales volumes for the second quarter of 2019 are expected to be slightly higher than the first quarter, reflecting increased U.S. onshore production and relatively flat International volumes. The Company’s second quarter sales volumes range is 332 to 347 MBoe/d. In the U.S. onshore, total production and oil volumes are expected to increase slightly from the first quarter, driven by an increased turn in-line well count in the DJ and Delaware Basins. The Company’s second quarter TILs will drive a substantial increase in third quarter production. As guided earlier in the year, second half U.S. Onshore production is anticipated to be approximately 15% higher than the first half of the year.

Internationally, sales volumes for the second quarter are anticipated to be relatively flat with the first quarter. West Africa is expected to be up slightly, driven by higher Alba field gas production following onshore plant maintenance in the first quarter. Consistent with the first quarter, liquids sales volumes are anticipated to be less than production volumes, before reversing in the second half of the year. In Israel, second quarter production volumes will be slightly lower than the first quarter due to seasonal holiday impacts.

For the second quarter, Noble Energy expects organic capital expenditures between $675 million and $750 million, with the majority to be spent in the DJ and Delaware Basins and to progress Leviathan development.


6


Additional guidance details can be found in the Company’s latest 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
Noble Energy, Inc. will host a live audio webcast and conference call at 8:00 a.m. Central Time on May 3, 2019. The webcast link is accessible on the 'Investors' page at www.nblenergy.com. A replay will be available on the website. Conference call numbers for participation during the question and answer session are:

Toll Free Dial in: 877-883-0383
International Dial in: 412-902-6506
Conference ID: 4600542

Noble Energy (NYSE: NBL) is an independent oil and natural gas exploration and production company committed to meeting the world’s growing energy needs and delivering leading returns to shareholders. The Company operates a high-quality portfolio of assets onshore in the United States and offshore in the Eastern Mediterranean and off the west coast of Africa. Founded more than 85 years ago, Noble Energy is guided by its values, its commitment to safety, and respect for stakeholders, communities and the environment. For more information on how the Company fulfills its purpose: Energizing the World, Bettering People’s Lives®, visit https://www.nblenergy.com.

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 
Reba Reid 
(713) 412-8441 

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media@nblenergy.com 
 
Paula Beasley 
(281) 876-6133 
media@nblenergy.com

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 Noble Energy's current views about future events. Such forward-looking statements may include, but are not limited to, future financial and operating results, and other statements that are not historical facts, including estimates of oil and natural gas reserves and resources, estimates of future production, assumptions regarding future oil and natural gas pricing, planned drilling activity, future results of operations, projected cash flow and liquidity, business strategy and other plans and objectives for future operations.  No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, volatility in commodity prices for crude oil and natural gas, the presence or recoverability of estimated reserves, the ability to replace reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other actions, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's businesses that are discussed in Noble Energy's most recent annual report on Form 10-K, quarterly report on Form 10-Q, and in other Noble Energy reports on file with the Securities and Exchange Commission (the "SEC"). These reports are also available from the sources described above. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Energy does not assume any obligation to update any forward-looking statements should circumstances or management’s estimates or opinions change. 
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.

8



Schedule 1
Noble Energy, Inc.
Summary Statement of Operations
(in millions, except per share amounts, unaudited) 
 
Three Months Ended March 31,
 
2019
 
2018
Revenues
 
 
 
Oil, NGL and Gas Sales
$
937

 
$
1,173

Sales of Purchased Oil and Gas
74

 
53

Income from Equity Method Investees
17

 
47

Midstream Services Revenues – Third Party
24

 
13

Total Revenues
1,052

 
1,286

Operating Expenses
 
 
 
Lease Operating Expense
151

 
155

Production and Ad Valorem Taxes
49

 
54

Gathering, Transportation and Processing Expense
102

 
93

Other Royalty Expense
3

 
17

Exploration Expense
24

 
35

Depreciation, Depletion and Amortization
508

 
468

General and Administrative
102

 
104

Cost of Purchased Oil and Gas
87

 
57

Other Operating Expense, Net
25

 
15

Gain on Divestitures, Net

 
(588
)
Asset Impairments

 
168

Firm Transportation Exit Cost
92

 

Total Operating Expenses
1,143

 
578

Operating (Loss) Income
(91
)
 
708

Other Expense
 
 
 
Loss on Commodity Derivative Instruments
212

 
79

Interest, Net of Amount Capitalized
66

 
73

Other Non-Operating Expense, Net
4

 
13

Total Other Expense
282

 
165

(Loss) Income Before Income Taxes
(373
)
 
543

Income Tax Benefit
(84
)
 
(31
)
Net (Loss) Income and Comprehensive (Loss) Income Including Noncontrolling Interests
(289
)
 
574

Less: Net Income and Comprehensive Income Attributable to Noncontrolling Interests (1)
24

 
20

Net (Loss) Income and Comprehensive (Loss) Income Attributable to Noble Energy
$
(313
)
 
$
554

 
 
 
 
Net (Loss) Income Attributable to Noble Energy Per Share of Common Stock
 
 
 
(Loss) Income Per Share, Basic
$
(0.65
)
 
$
1.14

(Loss) Income Per Share, Diluted
$
(0.65
)
 
$
1.14

 
 
 
 
Weighted Average Number of Shares Outstanding
 
 
 
Basic
478

 
487

Diluted
478

 
488



9


(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 May 3, 2019.

10


Schedule 2
Noble Energy, Inc.
Condensed Statement of Cash Flows
(in millions, unaudited)
 
Three Months Ended March 31,
 
2019
 
2018
Cash Flows From Operating Activities
 
 
 
Net (Loss) Income Including Noncontrolling Interests (1)
$
(289
)
 
$
574

Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities
 
 
 
Depreciation, Depletion and Amortization
508

 
468

Gain on Divestitures, Net

 
(588
)
Asset Impairments

 
168

Firm Transportation Exit Cost
92

 

Deferred Income Tax Benefit
(100
)
 
(157
)
Loss on Commodity Derivative Instruments
212

 
79

Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments
14

 
(28
)
Other Adjustments for Noncash Items Included in Income
28


(2
)
Net Changes in Working Capital
63

 
69

Net Cash Provided by Operating Activities
528

 
583

Cash Flows From Investing Activities
 
 
 
Additions to Property, Plant and Equipment
(763
)
 
(787
)
Acquisitions, Net of Cash Received (2)

 
(650
)
Additions to Equity Method Investments (3)
(271
)
 

Proceeds from Divestitures, Net (4)
123

 
865

Net Cash Used in Investing Activities
(911
)
 
(572
)
Cash Flows From Financing Activities
 
 
 
Dividends Paid, Common Stock
(53
)
 
(48
)
Purchase and Retirement of Common Stock

 
(67
)
Noble Midstream Services Revolving Credit Facility, Net
170

 
350

Revolving Credit Facility, Net

 
(230
)
Contributions from Noncontrolling Interest Owners
10

 
333

Proceeds from Issuance of Mezzanine Equity, Net of Offering Costs (5)
99

 

Other
(32
)

(40
)
Net Cash Provided by Financing Activities
194

 
298

(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash
(189
)

309

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period (6)
719

 
713

Cash, Cash Equivalents, and Restricted Cash at End of Period (7)
$
530

 
$
1,022


(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 months ended March 31, 2019, Net (Loss) Income includes Net Income Attributable to Noncontrolling Interests in NBLX.
(2) 
For the three months ended March 31, 2018, acquisitions, net of cash received, related to 100 percent of the acquisition of Saddle Butte Rockies Midstream, LLC by NBLX.
(3) 
For the three months ended March 31, 2019, additions related to initial investments in the EPIC Pipelines and Delaware Crossing Joint Venture by NBLX.
(4) 
For the three months ended March 31, 2019, proceeds related to the SW Reeves County, Texas asset divestiture. For the three months ended March 31, 2018, proceeds include $487 million from the sale of our 7.5% interest in Tamar field and $308 million from the sale of CONE Gathering LLC.

11


(5) 
For the three months ended March 31, 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 $3 million and $38 million of restricted cash, respectively.
(7) 
As of March 31, 2019 and March 31, 2018, amounts include $2 million and $30 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 May 3, 2019.

12


Schedule 3
Noble Energy, Inc.
Condensed Balance Sheets
(in millions, unaudited)
 
 
March 31,
2019
 
December 31, 2018
Assets
 
 
 
Current Assets
 
 
 
Cash and Cash Equivalents
$
528

 
$
716

Accounts Receivable, Net
573

 
616

Other Current Assets
142

 
418

Total Current Assets
1,243

 
1,750

Net Property, Plant and Equipment
18,701

 
18,419

Other Noncurrent Assets
1,376

 
841

Total Assets
$
21,320

 
$
21,010

Liabilities, Mezzanine Equity and Shareholders' Equity
 
 
 
Current Liabilities
 
 
 
Accounts Payable - Trade
$
1,284

 
$
1,207

Other Current Liabilities
659

 
519

Total Current Liabilities
1,943

 
1,726

Long-Term Debt
6,738

 
6,574

Deferred Income Taxes
961

 
1,061

Other Noncurrent Liabilities
1,438

 
1,165

Total Liabilities
11,080

 
10,526

Total Mezzanine Equity (1)
97

 

Total Shareholders' Equity
9,071

 
9,426

Noncontrolling Interests (2)
1,072

 
1,058

Total Equity
10,143

 
10,484

Total Liabilities and Equity
$
21,320

 
$
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 May 3, 2019.

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Schedule 4
Noble Energy, Inc.
Volume and Price Statistics
(unaudited)
 
Three Months Ended March 31,
Sales Volumes
2019
 
2018
Crude Oil and Condensate (MBbl/d)
 
 
 
United States Onshore
113

 
103

United States Gulf of Mexico

 
19

Equatorial Guinea
12

 
15

Equity Method Investee - Equatorial Guinea
1

 
2

Total (1)
127

 
139

Natural Gas Liquids (MBbl/d)
 
 
 
United States Onshore
59

 
63

United States Gulf of Mexico

 
1

Equity Method Investee - Equatorial Guinea
4

 
5

Total
63

 
69

Natural Gas (MMcf/d)
 
 
 
United States Onshore
483

 
482

United States Gulf of Mexico

 
22

Israel
233

 
261

Equatorial Guinea
168

 
206

Total
884

 
971

Total Sales Volumes (MBoe/d)
 
 
 
United States Onshore
253

 
246

United States Gulf of Mexico

 
24

Israel
39

 
44

Equatorial Guinea
40

 
49

Equity Method Investee - Equatorial Guinea
5

 
7

Total Sales Volumes (MBoe/d)
337

 
370

 
 
 
 
Total Sales Volumes (MBoe)
30,375

 
33,272

 
 
 
 
Price Statistics - Realized Prices (2)
 
 
 
Crude Oil and Condensate ($/Bbl)
 
 
 
United States Onshore
$
53.46

 
$
61.50

United States Gulf of Mexico

 
64.55

Equatorial Guinea
61.01

 
68.14

Natural Gas Liquids ($/Bbl)
 
 
 
United States Onshore
$
17.86

 
$
25.47

United States Gulf of Mexico

 
28.41

Natural Gas ($/Mcf)
 
 
 
United States Onshore
$
2.49

 
$
2.60

United States Gulf of Mexico

 
3.54

Israel
5.57

 
5.48

Equatorial Guinea
0.27

 
0.27


(1) 
Total includes a small amount of condensate from the Company’s offshore Israel assets.
(2) 
Average realized prices do not include gains or losses on commodity derivative instruments.

14


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 Noble Energy and per share (Non-GAAP) should not be considered an alternative to, or more meaningful than, net (loss) income attributable to Noble Energy and per share (GAAP) or any other measure as reported in accordance with GAAP. Our management believes, and certain investors may find, that adjusted net (loss) income attributable to Noble Energy and per share (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 this Non-GAAP measure is used by analysts and investors to evaluate and compare our operating and financial performance across periods. As a performance measure, adjusted net (loss) income attributable to Noble Energy and per share (Non-GAAP) may be useful for comparison of earnings and per share to forecasts prepared by analysts and other third parties. However, our presentation of adjusted net (loss) income attributable to Noble Energy and per share (Non-GAAP), may not be comparable to similar measures of other companies in our industry.
 
Three Months Ended March 31,
 
2019
 
2018
Net (Loss) Income Attributable to Noble Energy (GAAP)
$
(313
)
 
$
554

Adjustments to Net (Loss) Income
 
 
 
Firm Transportation Exit Cost
92

 

Gain on Divestitures, Net

 
(588
)
Asset Impairments

 
168

Loss on Investment in Tamar Petroleum Ltd., Net

 
29

Loss on Commodity Derivative Instruments, Net of Cash Settlements
226

 
51

Other Adjustments
19

 
18

Total Adjustments Before Tax
337

 
(322
)
Current Income Tax Effect of Adjustments (1)
(3
)
 
97

Deferred Income Tax Effect of Adjustments (1)
(65
)
 
(12
)
         Tax Reform Impact (2)

 
(145
)
Adjusted Net (Loss) Income Attributable to Noble Energy (Non-GAAP)
$
(44
)
 
$
172

 
 
 
 
Net (Loss) Income Attributable to Noble Energy Per Share, Basic and Diluted (GAAP)
$
(0.65
)
 
$
1.14

Firm Transportation Exit Cost
0.19

 

Gain on Divestitures, Net

 
(1.21
)
Asset Impairments

 
0.34

Loss on Investment in Tamar Petroleum Ltd., Net

 
0.06

Loss on Commodity Derivative Instruments, Net of Cash Settlements
0.47

 
0.10

Other Adjustments
0.04

 
0.05

Current Income Tax Effect of Adjustments (1)

 
0.20

Deferred Income Tax Effect of Adjustments (1)
(0.14
)
 
(0.03
)
         Tax Reform Impact (2)

 
(0.30
)
Adjusted (Loss) Income Attributable to Noble Energy per Share, Diluted (Non-GAAP)
$
(0.09
)
 
$
0.35

 
 
 
 
Weighted Average Number of Shares Outstanding, Basic
478

 
487

Weighted Average Number of Shares Outstanding, Diluted
478

 
488


(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).

15


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 March 31,
 
2019
 
2018
Net (Loss) Income Including Noncontrolling Interests (GAAP)
$
(289
)
 
$
574

Adjustments to Net (Loss) Income, After Tax (1)
269

 
(382
)
Depreciation, Depletion and Amortization
508

 
468

Exploration Expense
24

 
35

Interest, Net of Amount Capitalized
66

 
73

Current Income Tax Expense (2)
19

 
13

Deferred Income Tax Benefit (2)
(35
)
 
16

Adjusted EBITDAX (Non-GAAP)
$
562

 
$
797


(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 March 31,
 
2019
 
2018
Organic Capital Expenditures, Attributable to Noble Energy (Accrual Based) (1)
$
683

 
$
777

Acquisition Capital Attributable to Noble Energy
39

 
4

Noble Midstream Partners Capital Expenditures (2)
29

 
345

Investment in Equity Method Investees (3)
271

 

Increase in Finance Lease Obligations
2

 

Total Reported Capital Expenditures (Accrual Based)
$
1,024

 
$
1,126


(1) 
For the three months ended March 31, 2019 and March 31, 2018, organic capital expenditures include $37 million and $110 million for midstream capital not funded by Noble Midstream Partners LP (NBLX), respectively.
(2) 
NBLX capital expenditures for the three months ended March 31, 2018 include $206 million related to the 100 percent acquisition of Saddle Butte Rockies Midstream, LLC.
(3) 
Investment in equity method investees includes primarily NBLX investments of $227 million in EPIC Y-Grade, LP and EPIC Crude Holdings, LP and $38 million in Delaware Crossing LLC.

16
a1q19slidedeckfinalslide
1Q19 Financial and Operational Results May 2019


 
www.nblenergy.com NYSE: NBL Forward-Looking Statements and Other Matters This presentation 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 Noble Energy's current views about future events. Such forward-looking statements may include, but are not limited to, future financial and operating results, and other statements that are not historical facts, including estimates of oil and natural gas reserves and resources, estimates of future production, assumptions regarding future oil and natural gas pricing, planned drilling activity, future results of operations, projected cash flow and liquidity, business strategy and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this presentation will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, the volatility in commodity prices for crude oil and natural gas, the presence or recoverability of estimated reserves, the ability to replace reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other actions, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's businesses that are discussed in Noble Energy's most recent annual report on Form 10-K, quarterly report on Form 10-Q, and in other Noble Energy reports on file with the Securities and Exchange Commission (the "SEC"). These reports are also available from the sources described above. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Energy does not assume any obligation to update any forward-looking statements should circumstances or management’s estimates or opinions change. The SEC requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The SEC permits the optional disclosure of probable and possible reserves, however, we have not disclosed our probable and possible reserves in our filings with the SEC. We may use certain terms in this presentation, such as “net unrisked resources” or “newt risked resources” or “discovered resources”, which by their nature are more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent Form 10-K and in other reports on file with the SEC, available from Noble Energy’s offices or website, http://www.nblenergy.com. This presentation contains certain non-GAAP financial measures, such as Adjusted Net Income and Adjusted EBITDAX. Reconciliations of these non-GAAP measures to the most comparable financial measure calculated in accordance with GAAP can be found in our most recent earnings release covering the relevant reporting period. Management believes the aforementioned non-GAAP financial measures 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. This presentation also contains a forward-looking non-GAAP financial measure of free cash flow, which we define as cash flow from operations (the most comparable GAAP measure) less consolidated capital investments. Because we provide this measure on a forward-looking basis, however, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure, such as future impairments and future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to its most directly comparable forward-looking GAAP financial measure. Management believes this forward-looking non-GAAP measure is a useful tool for the investment community in evaluating Noble Energy’s future liquidity. As with any non-GAAP measure, amounts excluded from such measure may be significant and such measure is not a substitute for the comparable measure calculated in accordance with GAAP. 2


 
1Q19 Key Highlights www.nblenergy.com NYSE: NBL Focus on capital discipline and execution driving early 2019 success Strong Operational Execution and Cost Control • Capital expenditures lower than expected from U.S. onshore and Leviathan • Total Company production of 337 MBoe/d above the high end of guidance with oil volumes above the midpoint • Unit production expenses benefitted from production outperformance and LOE management U.S. Onshore Capital Efficiencies Ahead of Plan • Row development driving improved cycle times in all basins – pumping hours per day improved 5 to 10% from 4Q 2018 • Well cost reductions resulting from improvements in cycle times and well design – sustainable efficiencies • Record DJ Basin production of 144 MBoe/d, benefitted by strong performance from Mustang IDP Progressing International Natural Gas Projects to Cash Flow • EMed natural gas sales continued in excess of 1 Bcfe/d, gross, due to strong underlying demand in Israel • Progressed Leviathan project to 81% complete, on budget, for first gas delivery by the end of 2019 • Sanctioned Alen gas monetization in E.G., accessing global LNG demand with startup in 1H 2021 Financial Strength and Return of Capital to Investors • Exited 1Q19 with $4.5 B in liquidity, including cash and undrawn NBL credit facility • Increased quarterly dividend in April by 9% to $0.12/share, reflecting confidence in multi-year cash flow outlook 3


 
1Q19 Actuals vs. Guidance www.nblenergy.com NYSE: NBL Solid start to 2019 with volumes above, expenses and capital below expectations Financial & Operating Metrics 1Q Guidance 1Q Actuals Adjusted Net Earnings 1Q ($MM) Total Sales Volumes (MBoe/d) 321 – 336 337 Net Loss Attributable to NBL (GAAP) (313) Oil (MBbl/d) 120 – 130 127 Adjustments to Net Loss, Before Tax 337 Total U.S. Onshore (MBoe/d) 240 – 252 253 Current Income Tax Effect of Adjustments (3) Deferred Income Tax Effect of Adjustments (65) Oil (MBbl/d) 107 – 117 113 (3) Organic Capital(1) ($MM) 725 – 800 683 Adjusted Net Loss Attributable to NBL (Non-GAAP) (44) Unit Production Expenses ($/BOE) 10.02 Lease Operating Expense ($/BOE) 4.96 Adjusted EBITDAX 1Q ($MM) Gathering, Transportation & Processing ($/BOE) 3.35 Net Loss Including Noncontrolling Interest(GAAP) (289) Production Taxes ($/BOE) 1.61 Other Royalty ($MM) 3 Adjustments to Net Loss, After Tax 269 Marketing and Other(2) ($MM) 18 DD&A 508 DD&A ($/BOE) 16.71 Exploration 24 Exploration ($MM) 24 Interest, net 66 G&A ($MM) 102 Current Income Tax Expense, Adjusted 19 Interest, net ($MM) 66 Deferred Income Tax Benefit, Adjusted (35) Equity Investment Income ($MM) 17 Adjusted EBITDAX(3) (Non-GAAP) 562 Midstream Services Revenue – 3rd Party ($MM) 24 Noncontrolling Interest – NBLX Public Unitholders ($MM) 24 (1) Represents NBL organic capital expenditures, including NBL-funded midstream capital. (2) Represents marketing costs and mitigation of firm transportation through 3rd party commodity purchases/sales. 4 (3) Non-GAAP reconciliation to GAAP measure available in 1Q19 earnings release.


 
U.S. Onshore www.nblenergy.com NYSE: NBL Efficiencies driving capital lower, volumes higher 1Q19 Key Highlights Primary Drivers of Lower Capital: U.S. Onshore Completion Cost and Facility Spend Reductions • Record stages per day from DJ, Eagle Ford and Delaware • Row development reducing drilling times • Cycle time improvement as all 1Q wells TIL’d at or ahead of schedule DJ / Delaware Combined Volumes Up 23% from 1Q18 (>37 MBoe/d) 1Q19 Activity DJ Basin Delaware Eagle Ford Total • Mustang Rows 1&2 now producing nearly 50,000 Boe/d gross (55%+ oil) Oil (MBbl/d) 67 37 9 113 NGL (MBbl/d) 30 12 18 59 • Delaware volumes up 30% from 1Q18; leveraging central Gas (MMcf/d) 285 56 142 483 gathering infrastructure Total Sales (MBoe/d) 144 59 50 253 Organic Capital (1) ($MM) 226 193 68 487 Maintaining Capital Discipline Operated Rigs (2) 2 4 0 6 • No plans to increase capital with higher than planned oil Wells Drilled (2) 26 16 0 42 prices Wells Completed (2) 29 20 7 56 Wells Brought Online (2) 21 9 7 37 Avg. Working Interest 98% 96% 100% Avg. Lateral Length (ft) 9,323 8,745 6,194 (1) Excludes NBL funded midstream of $37 MM (2) Activity Represents NBL operated only 5


 
DJ Basin www.nblenergy.com NYSE: NBL Differentiated position and execution driving record production NBL Acreage Municipalities Continued Delivery from DJ Basin GOR: Low Mid High East Pony Weld • Generating operating cash flow above capital expenditures • Record net production of 144 MBoe/d in 1Q19, up 21% from 1Q18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mustang/Wells Ranch Driving Outperformance Wells Ranch • Mustang / Wells Ranch total 106 MBoe/d in 1Q19, up 44% from 1Q18 • Additional Wells Ranch offloads providing gas and NGL uplift • Mustang Row 2 wells producing as expected (western portion of row 2 Mustang higher GOR area of field). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342,000 net acres 78% avg. WI Large-Scale Planning Provides Long-Term Visibility MBoe/d Net Production TILs • Currently permitted for ~600 locations – over 5 years activity at current 150 50 drilling pace 125 100 • Mustang CDP permits with 6-year timeframe 75 25 50 • Evaluating additional comprehensive drilling plans for future development 25 0 0 1Q18 2Q18 3Q18 4Q18 1Q19 Oil NGL Gas TILs 6


 
DJ Basin: 2019 Mustang Activity www.nblenergy.com NYSE: NBL Building upon 2018 Success Boe/d Mustang Row 1 and Row 2 Gross Production Initial Wells from Row 2 of Mustang Online 50,000 • 21 wells from Row 2 (1Q19) and 31 wells from Row 1 (4Q18) delivering gross production near 50 MBoe/d 40,000 . Initial wells performing in line with Row 1 wells 30,000 • Gas processing diversification benefitting performance 20,000 • Additional gas offload online ahead of DCP plant 11 10,000 projected start up in 2Q19 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 2Q Activity Including Mustang, East Pony and Wells Ranch Row 2: Concept to Reality • ~30 TILs in 2Q, 2 rigs and 2 frac crews currently operating • Focused on further capital efficiency gains including lower fluid volumes. Buffer Drill Rigs Drill • Shared facilities in row development allowing for quicker Prep Site Frac Crews Frac infrastructure connects and re-use of facilities and pads . . Online . . . Flow Prep Shared Facilities from Row 2&3 7


 
Delaware Basin www.nblenergy.com NYSE: NBL Building momentum for 2H19 growth Reeves Strong 1Q Well Performance • Production flat from 4Q18 despite low TILs and acreage divestiture . • Wells TIL’d ahead of schedule from improved frac times • 1Q19 avg. IP-30 of 1,560 Boe/d from nine wells (2 3rd Bone Spring, 7 Wolfcamp) • Two wells drilled for leasehold retention at expected rates in SW Reeves • Remaining wells IP-30 rates avg. 211 Boe/d (68% oil) per 1,000’ Row Development Catalysts Upcoming • ~15-20 wells TIL in 2Q19, including row development completions NBL Acreage Currently running 4 rigs and 2 completion crews 94,000 net acres 1Q19 TILs • 72% avg. WI 2Q19 TILs • Significant production growth expected in 3Q/4Q . . . . . . . . . . . . . . .. . . . . . . MBoe/d Net Production TILs 60 30 EPIC Progressing, Gas and NGL Takeaway Secured 50 25 • EPIC early crude service on target for 3Q19 start-up 40 20 30 15 • Firm processing / takeaway for natural gas and NGLs 20 10 • Hedged basis for ~75% of WAHA-exposed gas volumes through 2020 10 5 0 0 1Q18 2Q18 3Q18 4Q18 1Q19 Oil NGL Gas Divested TILs 8


 
Noble Midstream (NBLX) www.nblenergy.com NYSE: NBL Peer-leading distribution growth and growing third-party services 20% 287 22% 1.9x targeted MBoe/d record quarterly oil increase in 1Q fresh distribution coverage annual distribution and gas volumes gathered water delivery with a strong growth in 1Q compared to 4Q18 balance sheet Delaware Basin Highlights DJ Basin Highlights • Oil and gas gathering throughput increased 154% over 1Q18 • Combined NBL and third-party oil and gas gathering • Planned lower volumes versus 4Q18 throughput up 4% over 4Q • Gathering substantially all NBL new wells with all 5 CGFs operational • Record contribution from Mustang oil, gas and produced • Strong average CGF availability of 99% during 1Q water gathering in Green River DevCo • Closed EPIC pipeline equity investments: crude (30%) and Y- grade (15%) • Preparing for additional Wells Ranch connections in 3Q19 • On-track for early crude service via EPIC NGL pipeline in 3Q19 • Continued basin-wide gas processing additions in 2019 • Permanent crude service anticipated January 2020 support growth expectations and position basin for the • Closed Delaware Crossing JV with Salt Creek Midstream LLC future for development of crude oil gathering and transportation system • Will enhance customer market optionality with route to Wink 9


 
Eastern Mediterranean www.nblenergy.com NYSE: NBL World-class assets continue to provide differentiated outlook Maintaining Production in EMed Above ~1 Bcfe/d Gross Aphrodite Tamar 35% WI 25% WI • Tamar 1Q volumes exceeded expectations due to increased demand Leviathan . . . . . . . . . . . . . • 2Q volumes expected to be down slightly for holiday seasonality 39.7% WI Dor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tamar SW Leviathan Now 81% Complete; On Schedule, On Budget 25% WI Tel Aviv • First gas sales on target for year-end 2019, modeling ~800 MMcfe/d gross NBL Interests volumes in 2020. . Producing Ashdod Discovery • Major Milestones Accomplished Field Development Israel Existing Pipeline Egypt . Jacket installation completed in February ; subsea pipelines and production manifold successfully installed in 1Q MMcfe/d Israel Gross Sales Volumes 1,100 • Anticipate platform topsides to ship early 3Q19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Up 25% from 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 825 Progressing Future Monetization of Robust Natural Gas Resources 550 • Continuing negotiations for additional gas sales contracts to fill up the first phase of Leviathan and for future development phases 275 • Additional opportunities for monetization via pipeline-accessible demand centers (Israel, Jordan, Egypt) and existing regional LNG facilities 0 1Q 2016 1Q 2017 1Q 2018 1Q 2019 10


 
Regional Development Opportunities www.nblenergy.com NYSE: NBL EMED regional dynamics support gas exports Finalizing Gas Transportation to Egypt Map Legend LNG Plants • Completing EMG Pipeline due diligence and expect pipeline acquisition Cyprus to close mid-year 2019 Platforms • Volume from Leviathan to Egypt anticipated to ramp to 400 - 450 MMcf/d during 2020 • Multiple pipeline routes for delivery of significant volumes to Egypt Israel: Rapidly Switching from Coal to Gas Leviathan • Opportunity for additional near term demand through coal conversion Amman Tamar Jordan: Lower Cost Energy for a Growing Population Jerusalem EMG • NEPCO estimated savings of $600 million per year in fuel costs Damietta • Expansion opportunities beyond 350 MMcf/d contracted at Leviathan Idku El Arish Egypt: Improving Economy and Becoming a Regional Energy Hub Israel • Highest economic growth rate in 10 years, recent Moody’s upgrade • Growing gas hub with underutilized LNG facilities Egypt Taba Aqaba 11


 
West Africa www.nblenergy.com NYSE: NBL Strong cash flow profile from existing production and project developments Alen Gas Monetization Sanctioned • Capital-efficient development accessing global LNG demand EG LNG Global LNG Sales • Approximately 600 Bcfe gross recoverable resource at Alen Dry Gas • First gas sales anticipated 1H21 at a gross rate of 200-300 MMcfe/d (75-115 MMcfe/d, net to NBL) 25-30 BBL/MMCF • Utilizes available capacity at E.G. LNG plant resulting from Alba declines Alba LPG Tanker Lifting • Opportunities for additional tie-ins beyond Alen include ~2.5 Tcfe of NBL discovered resources (pipeline sized for 950 MMcfe/d) 200-300 MMcfe/d Punta Europa Pipeline Aseng 6P Well to Spud 2Q 2019 Bioko Island • Subsea tie-back of 6P well to existing Aseng infrastructure allows for Alen Platform additional capital-efficient reservoir recovery • First production expected late 3Q / early 4Q 2019 ~10% Decline Planned 1Q Alba Turn Around Accomplished Ahead of Schedule Alen Platform 12


 
Colombia Farm-In www.nblenergy.com NYSE: NBL Significant new exploration opportunity captured NBL 40% Operated Working Interest in Offshore Colombia • 2 MM gross acres • Colombia-3 and Guajira Offshore-3 blocks contain in excess of 2 BBoe gross unrisked resource potential • Shell is our co-venturer with 60% working interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NBL/Shell Exploration Blocks Multiple Large Prospects Identified Structures mapped • Extensive 3D seismic data over nearly all of position on 3D seismic • Geochemical data provides outlook for both liquids and gas Block GUA-3 • Tertiary-aged structures and stratigraphic traps with Block GUA OFF-3 potential direct hydrocarbon indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Block COL-3 Block COL-3 Prospect Drilling Anticipated in 2020 • Water depths between 5,000-10,000 feet Colombia • Well has potential to de-risk additional nearby opportunities Colombia 13


 
2019 and Second Quarter Guidance www.nblenergy.com NYSE: NBL Maintaining full year outlook, 2Q as planned heading into 2H production ramp Crude Oil and Natural Gas Total Natural Gas Second Quarter 2019 Guidance Full-Year 2019 Condensate Liquids Equivalent (MMcf/d) Sales Volumes LOW HIGH Sales Volume (MBbl/d) (MBbl/d) (MBoe/d) Total Company Equivalent (MBoe/d) 332 347 Low High Low High Low High Low High Total U.S. Onshore (MBoe/d) 250 262 United States Onshore 117 127 61 66 485 525 262 278 Total Company Oil (MBbl/d) 122 132 Israel - - - - 210 230 35 39 Total U.S. Onshore Oil (MBbl/d) 109 119 Equatorial Guinea 11 15 - - 160 190 38 47 (1) Equatorial Guinea – Equity Capital Expenditures ($MM) 1 2 4 5 - - 5 7 Method Investment Total Company Organic Capital $675 - $750 Total Company 130 143 65 71 865 935 345 365 Cost Metrics LOW HIGH Unit Production Expenses(2) ($/BOE) 9.75 10.25 Marketing and Other(3) ($MM) 15 20 Full-Year 2019 Capital & Cost Metrics Equity Investment Income ($MM) 20 30 Capital Expenditures(1) ($MM) Total Company Organic Capital $2,400 - $2,600 2Q 2019 Guidance Commentary: Cost Metrics LOW HIGH • Capital – 2Q19 slightly higher than 1Q due primarily to Aseng 6P (E.G.) Unit Production Expenses(2) ($/BOE) 9.25 9.75 Unit production expenses trending lower in 2H19 as production ramps Marketing and Other(3) ($MM) 75 100 • DD&A ($/BOE) 16.90 17.90 • U.S. Onshore volumes – production modestly higher than 1Q as TILs Exploration ($MM) 150 175 pick up for significant 2H19 production ramp (2H ~ 15% higher than G&A ($MM) 400 430 1H as previously guided) Interest, net ($MM) 245 265 • Israel volumes expected slightly lower than 1Q on holiday seasonality Other Guidance Items ($MM) Equity Investment Income 95 115 • E.G. natural gas volumes anticipated higher than 1Q due to onshore Midstream Services Revenue – Third Party 120 140 plant maintenance in March Non-Controlling Interest – NBLX Public Unitholders 80 105 . 2Q equity investment income impacted by 1Q plant downtime (1) Represents NBL organic capital expenditures, including NBL-funded midstream capital. Excludes NBLX-funded capital and EMG pipeline acquisition capital, as well as costs associated with NBLX acquisition and funding of EPIC pipeline interest. (2) Includes lease operating expenses, production and ad valorem taxes, gathering , transportation and processing expenses, and other royalty. Production taxes reflect current 14 commodity pricing. (3) Represents marketing costs and mitigation of firm transportation through 3rd party commodity purchases/sales.


 
Key Deliverables Through 2019 www.nblenergy.com NYSE: NBL Operational momentum building 1Q 2Q 3Q 4Q 2020 and Beyond • >$500 MM free cash flow(1) returned to investors Capital below, Permian initial row EPIC pipeline Climate Change • Modest annual production growth production above✔ developments interim oil service Report by YE of 5 to 10% start up . 2020 growth of 15-20% on upstream capital of $2 - $2.2 Bn Record DJ Basin Sustained USO • Target leverage position of 1.5X net volume, led by ✔ Aseng 6P well in Significant 2H USO capital efficiency debt/EBITDA(1) at upstream level Mustang E.G. production ramp enhancements • Contract negotiations to deliver Leviathan gas at 1.2 Bcfe/d capacity Sanction Alen Gas EMG pipeline Mustang Row 2 • Alen gas monetization startup 1H Monetization acquisition development 2021 ✔ complete Leviathan First Gas by year- • Onshore and offshore exploration end 2019 opportunities Close Colombia Issue 8th Exploration Sustainability Report Leviathan platform Agreement ✔ arrives in Israel Price deck defined in appendix. (1) Non-GAAP measure. Term defined in appendix. 15


 
www.nblenergy.com NYSE: NBL Defined Terms and Price Deck Terms Definition Free Cash Flow (FCF) GAAP cash flow from operations less consolidated capital investments Net Debt Total debt less cash on balance sheet EBITDA GAAP earnings before interest, taxes, depreciation, depletion, and amortization Benchmark Prices 2019 2020 WTI $50/Bbl $55/Bbl Brent $60/Bbl $65/Bbl Henry Hub $3/Mcf $3/Mcf 16