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): August 2, 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))
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
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





Item 2.02. Results of Operations and Financial Condition.
On August 2, 2019 Noble Energy, Inc. (the “Company”) issued a press release announcing results for the fiscal quarter ended June 30, 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 June 30, 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 August 2, 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:
August 2, 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’S SECOND QUARTER 2019 HIGHLIGHTS CAPITAL EFFICIENCY GAINS
Full-year capital and operating expense guided lower

HOUSTON (August 2, 2019) -- Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or the "Company”) today announced second quarter 2019 financial and operating results. Highlights include:
Organic capital expenditures funded by Noble Energy totaled $618 million, below the low end of guidance.
U.S. onshore well costs have been reduced more than 15% in both the DJ and Delaware Basins as compared to the fourth quarter 2018.
Offshore spend continues to trend below budget, primarily due to strong project execution at Leviathan.
Unit production costs totaled $8.19 per BOE, below guidance, driven by U.S. onshore cost reductions and onshore and offshore production outperformance.
Total Company sales volumes of 349 MBoe/d and U.S. onshore volumes of 263 MBoe/d exceeded guidance. Total oil volumes of 130 MBbl/d and U.S. onshore oil of 117 MBbl/d were also above plan.
Quarterly production records were established for both the DJ and Delaware Basins.
Mustang IDP production in the DJ Basin reached more than 51 MBoe/d, net, following continued Row 2 development.
Delaware Basin production increased nearly 9% from the first quarter 2019.
Progressed Leviathan to 88% complete, including finalizing construction of the production decks.

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David L. Stover, Noble Energy’s Chairman and CEO, commented, “Noble Energy continues to execute well on its strategy to deliver free cash flow through capital discipline and moderate growth. In the second quarter, capital and operating costs were again below plan, and production was above expectations. I’ve been very pleased with the capital efficiency gains in our U.S. onshore business, and we are delivering on a meaningful production ramp in the third quarter. This onshore momentum, combined with startup of the world-class Leviathan project by the end of the year, will result in a substantial transformation for the Company. Our competitively advantaged portfolio and leading execution capability position Noble Energy to deliver sustainable long-term free cash flow, improve corporate returns and return significant amounts of capital to investors.”

Second Quarter 2019 Results
The Company reported a second quarter net loss attributable to Noble Energy of $10 million, or $0.02 per diluted share. Net income including noncontrolling interest was $8 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 $49 million, or $0.10 per diluted share. Adjusted EBITDAX(1) was $589 million, and cash provided by operating activities was $564 million.

Second quarter 2019 organic capital investments attributable to Noble Energy included $453 million related to U.S. onshore upstream activities and $23 million for midstream activities funded by the Company. Noble Energy also invested $119 million in the Eastern Mediterranean, primarily for the development of the Leviathan project, and $12 million in West Africa.

Revenues for the second quarter 2019 were benefited by strong production performance and realized oil pricing; while, along with the rest of the industry, natural gas pricing and natural gas liquids (NGL) realizations were lower than expected. The Company's U.S. onshore oil price averaged 98% of the West Texas Intermediate index (WTI) price for the quarter and U.S. onshore NGL pricing per barrel averaged 24% of WTI crude. The Company's natural gas price in the U.S. onshore averaged $1.61 per thousand cubic feet (Mcf) before hedge impacts, reflecting increased differentials in the DJ and Delaware Basins. In the second


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quarter, Noble Energy’s basis hedges for Delaware Basin gas production generated nearly $5 million in additional cash flow or approximately $0.80 per Mcf.

Unit production expenses for the second quarter 2019 were $8.19 per barrel of oil equivalent (BOE), including lease operating expenses, production taxes, gathering and transportation expenses, and other royalty costs. Noble Energy continues to drive U.S. onshore production costs lower through workover and chemical cost optimization and fuel cost savings. Per barrel operating costs also benefited from higher production during the quarter. Depreciation, depletion and amortization was $16.64 per BOE and general and administrative expenses totaled $105 million for the quarter. Marketing and other expenses, including sales and costs of purchased oil and gas, netted to $24 million in the second quarter, primarily reflecting mitigation of firm transportation costs.

Income from equity method investees for the second quarter totaled $16 million, below guidance due to lower than anticipated methanol and LPG pricing. Midstream Services Revenue of $20 million for the quarter was primarily composed of Noble Midstream Partners L.P. gathering revenue from unaffiliated third parties.

The Company’s effective tax rate, after excluding items impacting comparability of earnings to prior periods, was approximately 12%. On this basis, current tax expense was $17 million, resulting from the income generated in West Africa and Israel. Deferred taxes were a benefit of $21 million on this same basis.

The Company ended the second quarter 2019 with $4.4 billion in financial liquidity, including cash and available credit facility.

U.S. Onshore Inflection Point Underway
Well cost reductions in the U.S. onshore business are exceeding the 2019 guidance targets of up to $1 million per well in the DJ Basin and $1.5 million per well in the Delaware Basin. Completion stages performed per day are on average 50 percent higher than in late 2018, contributing to reduced well costs and accelerated first production for new wells. Spud to rig release drilling days continue to improve with the DJ Basin long


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laterals now below 5 drilling days per well, and in the Delaware Basin, the Company has recently drilled a 10-thousand-foot lateral well in under 17 days.

As a result of these efficiency gains, the Company was able to bring online an additional 17 wells in the first half of the year. Across the U.S. onshore portfolio, the Company operated 6 rigs (2 DJ and 4 Delaware) and drilled 42 wells (26 DJ and 16 Delaware) in the quarter. Noble Energy completed 59 wells (33 DJ, 17 Delaware, 9 Eagle Ford) and commenced production on 77 wells (36 DJ, 25 Delaware, 16 Eagle Ford).

Total sales volumes across the Company’s U.S. onshore assets averaged a record 263 thousand barrels of oil equivalent per day (MBoe/d) in the second quarter 2019. The U.S. onshore assets produced total liquids volumes of 181 thousand barrels per day (MBbl/d) of which oil production was 117 MBbl/d, also a record.

The DJ Basin averaged 145 MBoe/d, up 20% from the second quarter 2018, while continuing to generate operating cash flows in excess of capital expenditures. More than half of the Company’s second quarter 2019 DJ Basin activity was focused in Mustang (55% of wells commencing production), with certain Wells Ranch and East Pony wells also commencing production. Sales volumes from the Company's Delaware Basin assets totaled 64 MBoe/d, up more than 35% from the second quarter 2018. During the quarter, the Company brought online a full section row development (10 wells) in the Calamity Jane lease in late June. Sales volumes from the Eagle Ford totaled 54 MBoe/d for the second quarter 2019, benefiting from accelerated production as the Company delivered 16 wells to first production. These Eagle Ford wells commenced production in June from the Company’s North Gates Ranch area.

July 2019 production for the Company's U.S. onshore assets was approximately 285 MBoe/d, reflecting robust base and new well performance. U.S. onshore oil volumes for July 2019 were estimated to be 125 MBbl/d.




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Leviathan Sets Sail with Production on Track for YE 2019
Delivery of the Leviathan project remains on budget and on schedule for first production by the end of 2019. The production decks have left the Gulf Coast fabrication yard for Israel. Due diligence on the EMG Pipeline was completed in the second quarter confirming pipeline integrity and flow capacity. Closing the acquisition of an interest in the EMG Pipeline, which supports sales into Egypt, is targeted in the third quarter 2019.

Second quarter 2019 sales volumes from the Company’s assets in Israel totaled 210 million cubic feet of natural gas equivalent per day. Production was above plan due to high seasonal natural gas demand and lower than planned maintenance. Sales volumes for West Africa averaged 51 MBoe/d, including 13
MBbl/d of crude oil. Production volumes in Equatorial Guinea exceeded sales volumes in the second quarter by 4 MBbl/d and consequently, cargo liftings are expected to increase in the back half of the year. Drilling is ongoing at the Aseng oil field, where an additional development well will come online in the fourth quarter.

Updating Guidance to Reflect Lower Capital and Operating Costs, Higher Volumes
The Company has lowered full-year capital and operating cost expectations due to year-to-date progress on cost initiatives. Full-year capital is now estimated $100 million less than original plan, primarily due to U.S. onshore capital reductions. For the third quarter, Noble Energy expects organic capital expenditures between $600 million and $675 million. As compared to the second quarter, U.S. onshore capital is estimated to be about $75 million lower, with offshore spend planned higher as a result of Leviathan installation and the Aseng development drilling and completion activity.

Unit production expenses continue to trend favorably with full-year guidance lowered $0.15 per BOE.

All three U.S. onshore basins are expected to deliver higher third quarter 2019 volumes sequentially as a result of the count and timing of wells that began production during the second quarter. At the mid-point of guidance, U.S. onshore oil volumes are expected to increase 10 MBbl/d.



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Internationally, third quarter 2019 sales volumes are also anticipated to be higher, benefiting from the timing of liquids liftings in West Africa and seasonal demand in Israel. The Company anticipates third quarter volumes to average in the range of 370 to 385 MBoe/d.

Following outperformance in the first half of the year, the Company has raised its full-year 2019 sales volume guidance.

Additional details and updated guidance can be found in the Company’s supplemental presentation on the Company’s website, www.nblenergy.com.

(1)A Non-GAAP measure, please see the respective earnings release schedules included herein for reconciliations.

Webcast and Conference Call Information
Noble Energy, Inc. will host a live audio webcast and conference call at 8:00 a.m. Central Daylight Time on August 2, 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: 0526055

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


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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
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.


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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. 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 June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Revenues
 
 
 
 
 
 
 
Oil, NGL and Gas Sales
$
954

 
$
1,100

 
$
1,891

 
$
2,273

Sales of Purchased Oil and Gas
103

 
66

 
177

 
119

Income from Equity Method Investees
16

 
49

 
33

 
96

Midstream Services Revenues – Third Party
20

 
15

 
44

 
28

Total Revenues
1,093

 
1,230

 
2,145

 
2,516

Operating Expenses
 
 
 
 
 
 
 
Lease Operating Expense
122

 
132

 
273

 
287

Production and Ad Valorem Taxes
41

 
50

 
90

 
104

Gathering, Transportation and Processing Expense
96

 
98

 
198

 
191

Other Royalty Expense
1

 
10

 
4

 
27

Exploration Expense
33

 
29

 
57

 
64

Depreciation, Depletion and Amortization
528

 
465

 
1,036

 
933

General and Administrative
105

 
105

 
207

 
209

Cost of Purchased Oil and Gas
113

 
71

 
200

 
128

Marketing Expense
14

 
9

 
19

 
16

Other Operating Expense, Net
8

 
(4
)
 
28

 
4

Gain on Divestitures, Net

 
(78
)
 

 
(666
)
Asset Impairments

 

 

 
168

Firm Transportation Exit Cost

 

 
92

 

Total Operating Expenses
1,061

 
887

 
2,204

 
1,465

Operating Income (Loss)
32

 
343

 
(59
)
 
1,051

Other Expense
 
 
 
 
 
 
 
(Gain) Loss on Commodity Derivative Instruments
(60
)
 
249

 
152

 
328

Interest, Net of Amount Capitalized
63

 
73

 
129

 
146

Other Non-Operating Expense, Net
1

 
11

 
5

 
24

Total Other Expense
4

 
333

 
286

 
498

Income (Loss) Before Income Taxes
28

 
10

 
(345
)
 
553

Income Tax Expense (Benefit)
20

 
16

 
(64
)
 
(15
)
Net Income (Loss) and Comprehensive Income (Loss) Including Noncontrolling Interests
8

 
(6
)
 
(281
)
 
568

Less: Net Income and Comprehensive Income Attributable to Noncontrolling Interests (1)
18

 
17

 
42

 
37

Net (Loss) Income and Comprehensive (Loss) Income Attributable to Noble Energy
$
(10
)
 
$
(23
)
 
$
(323
)
 
$
531

 
 
 
 
 
 
 
 
Net (Loss) Income Attributable to Noble Energy Per Share of Common Stock
 
 
 
 
 
 
 
(Loss) Income Per Share, Basic
$
(0.02
)
 
$
(0.05
)
 
$
(0.68
)
 
$
1.09

(Loss) Income Per Share, Diluted
$
(0.02
)
 
$
(0.05
)
 
$
(0.68
)
 
$
1.09

 
 
 
 
 
 
 
 
Weighted Average Number of Shares Outstanding
 
 
 
 
 
 
 

9


Basic
478

 
484

 
478

 
485

Diluted
478

 
484

 
478

 
487


(1) 
The Company consolidates Noble Midstream Partners LP (NBLX), a publicly traded subsidiary of Noble Energy, as a variable interest entity for financial reporting purposes. The public's ownership interest in NBLX is reflected as a noncontrolling interest in the financial statements.


These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on August 2, 2019.

10


Schedule 2
Noble Energy, Inc.
Condensed Statement of Cash Flows
(in millions, unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Cash Flows From Operating Activities
 
 
 
 
 
 
 
Net (Loss) Income Including Noncontrolling Interests (1)
$
8

 
$
(6
)
 
$
(281
)
 
$
568

Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities
 
 
 
 
 
 
 
Depreciation, Depletion and Amortization
528

 
465

 
1,036

 
933

Gain on Divestitures, Net

 
(78
)
 

 
(666
)
Asset Impairments

 

 

 
168

Firm Transportation Exit Cost

 

 
92

 

Deferred Income Tax Benefit
(1
)
 
(7
)
 
(101
)
 
(164
)
(Gain) Loss on Commodity Derivative Instruments
(60
)
 
249

 
152

 
328

Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments
1

 
(65
)
 
15

 
(93
)
Other Adjustments for Noncash Items Included in Income
31


59


59


57

Net Changes in Working Capital
57

 
(121
)
 
120

 
(52
)
Net Cash Provided by Operating Activities
564

 
496

 
1,092

 
1,079

Cash Flows From Investing Activities
 
 
 
 
 
 
 
Additions to Property, Plant and Equipment
(642
)
 
(995
)
 
(1,405
)
 
(1,782
)
Acquisitions, Net of Cash Received (2)

 

 

 
(650
)
Additions to Equity Method Investments (3)
(144
)
 

 
(415
)
 

Proceeds from Divestitures, Net (4)

 
517

 
123

 
1,382

Net Cash Used in Investing Activities
(786
)
 
(478
)
 
(1,697
)
 
(1,050
)
Cash Flows From Financing Activities
 
 
 
 
 
 
 
Dividends Paid, Common Stock
(58
)
 
(54
)
 
(111
)
 
(102
)
Purchase and Retirement of Common Stock

 
(63
)
 

 
(130
)
Noble Midstream Services Revolving Credit Facility, Net
140

 
95

 
310

 
445

Revolving Credit Facility, Net

 

 

 
(230
)
Commercial Paper Borrowings, Net
240

 

 
240

 

Repayment of Senior Notes
(9
)
 
(384
)
 
(9
)
 
(384
)
Contributions from Noncontrolling Interest Owners
11

 
(2
)
 
21

 
331

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

 

 
99

 

Other
(30
)

(11
)

(62
)

(51
)
Net Cash Provided by (Used in) Financing Activities
294

 
(419
)
 
488

 
(121
)
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
72


(401
)

(117
)

(92
)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period (6)
530

 
1,022

 
719

 
713

Cash, Cash Equivalents, and Restricted Cash at End of Period (7)
$
602

 
$
621

 
$
602

 
$
621


(1) 
The Company consolidates Noble Midstream Partners LP (NBLX), a publicly traded subsidiary of Noble Energy, as a variable interest entity for financial reporting purposes. For the three and six months ended June 30, 2019, net (loss) income includes net income attributable to noncontrolling interests in NBLX.
(2) 
Acquisitions, net of cash received, related to 100 percent of the acquisition of Saddle Butte Rockies Midstream, LLC by NBLX.

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(3) 
Additions relate primarily to investments in EPIC Y-Grade, LP, EPIC Crude Holdings, LP and Delaware Crossing LLC by NBLX.
(4) 
For the six months ended June 30, 2019, proceeds related to the SW Reeves County, Texas asset divestiture. For the six months ended June 30, 2018, proceeds include $484 million from the sale of our 7.5% interest in Tamar field, $443 million from the sale of CONE Gathering LLC and CNX Midstream Partners common units and $383 million from the Gulf of Mexico asset divestiture.
(5) 
For the six months ended June 30, 2019, proceeds related to the issuance of preferred equity by NBLX. As the preferred equity is redeemable, it is presented within the mezzanine section of our consolidated balance sheet. In addition, as the preferred equity is held by a third party, it is considered a redeemable noncontrolling interest.
(6) 
As of the beginning of the periods presented, amounts include $2 million, $30 million, $3 million, and $38 million of restricted cash, respectively.
(7) 
As of June 30, 2019 and June 30, 2018, amounts include $132 million and $0 million of restricted cash, respectively.


These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on August 2, 2019.

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Schedule 3
Noble Energy, Inc.
Condensed Balance Sheets
(in millions, unaudited)
 
 
June 30,
2019
 
December 31, 2018
Assets
 
 
 
Current Assets
 
 
 
Cash and Cash Equivalents
$
470

 
$
716

Accounts Receivable, Net
575

 
616

Other Current Assets
313

 
418

Total Current Assets
1,358

 
1,750

Net Property, Plant and Equipment
18,775

 
18,419

Other Noncurrent Assets
1,516

 
841

Total Assets
$
21,649

 
$
21,010

Liabilities, Mezzanine Equity and Shareholders' Equity
 
 
 
Current Liabilities
 
 
 
Accounts Payable - Trade
$
1,313

 
$
1,207

Other Current Liabilities
998

 
519

Total Current Liabilities
2,311

 
1,726

Long-Term Debt
6,866

 
6,574

Deferred Income Taxes
961

 
1,061

Other Noncurrent Liabilities
1,307

 
1,165

Total Liabilities
11,445

 
10,526

Total Mezzanine Equity (1)
100

 

Total Shareholders' Equity
9,029

 
9,426

Noncontrolling Interests (2)
1,075

 
1,058

Total Equity
10,104

 
10,484

Total Liabilities and Equity
$
21,649

 
$
21,010


(1) 
Amount relates to preferred equity issued by Noble Midstream Partners LP (NBLX). As the preferred equity is redeemable, it is presented within the mezzanine section of our consolidated balance sheet. In addition, as the preferred equity is held by a third party, it is considered a redeemable noncontrolling interest.
(2) 
The Company consolidates NBLX, a publicly traded subsidiary of Noble Energy, as a variable interest entity for financial reporting purposes. The public's ownership interest in NBLX is reflected as a noncontrolling interest in the financial statements.


These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on August 2, 2019.

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Schedule 4
Noble Energy, Inc.
Volume and Price Statistics
(unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Sales Volumes
2019
 
2018
 
2019
 
2018
Crude Oil and Condensate (MBbl/d)
 
 
 
 
 
 
 
United States Onshore
117

 
105

 
115

 
104

United States Gulf of Mexico

 
3

 

 
11

Equatorial Guinea
11

 
17

 
11

 
16

Equity Method Investee - Equatorial Guinea
2

 
2

 
2

 
2

Total (1)
130

 
127

 
128

 
133

Natural Gas Liquids (MBbl/d)
 
 
 
 
 
 
 
United States Onshore
64

 
61

 
62

 
62

United States Gulf of Mexico (2)

 

 

 
1

Equity Method Investee - Equatorial Guinea
4

 
5

 
4

 
5

Total
68

 
67

 
66

 
68

Natural Gas (MMcf/d)
 
 
 
 
 
 
 
United States Onshore
495

 
465

 
489

 
474

United States Gulf of Mexico

 
2

 

 
12

Israel
209

 
225

 
220

 
243

Equatorial Guinea
199

 
225

 
184

 
215

Total
903

 
917

 
893

 
944

Total Sales Volumes (MBoe/d)
 
 
 
 
 
 
 
United States Onshore
263

 
244

 
258

 
245

United States Gulf of Mexico

 
3

 

 
14

Israel
35

 
38

 
37

 
41

Equatorial Guinea
45

 
54

 
42

 
51

Equity Method Investee - Equatorial Guinea
6

 
7

 
6

 
7

Total Sales Volumes (MBoe/d)
349

 
346

 
343

 
358

 
 
 
 
 
 
 
 
Total Sales Volumes (MBoe)
31,733

 
31,527

 
62,108

 
64,799

 
 
 
 
 
 
 
 
Price Statistics - Realized Prices (3)
 
 
 
 
 
 
 
Crude Oil and Condensate ($/Bbl)
 
 
 
 
 
 
 
United States Onshore
$
58.13

 
$
64.62

 
$
55.84

 
$
63.08

United States Gulf of Mexico

 
66.80

 

 
64.87

Equatorial Guinea
66.61

 
72.79

 
63.74

 
70.65

Natural Gas Liquids ($/Bbl)
 
 
 
 
 
 
 
United States Onshore
$
14.54

 
$
24.39

 
$
16.12

 
$
24.93

United States Gulf of Mexico

 
36.87

 

 
30.00

Natural Gas ($/Mcf)
 
 
 
 
 
 
 
United States Onshore
$
1.61

 
$
2.29

 
$
2.04

 
$
2.45

United States Gulf of Mexico

 
3.19

 

 
3.50

Israel
5.53

 
5.46

 
5.55

 
5.47

Equatorial Guinea
0.27

 
0.27

 
0.27

 
0.27


(1) 
Total includes a small amount of condensate from the Company’s offshore Israel assets.
(2) 
For the three months ended June 30, 2018, U.S. Gulf of Mexico NGL sales volumes were less than 1 MBbl/d.

14


(3) 
Average realized prices do not include gains or losses on commodity derivative instruments. For second quarter 2019 and 2018, including the impact of hedges settled in the period, the Company's U.S. onshore oil price was $58.13 and $59.17, E.G. oil price was $61.65 and $64.02, and U.S. onshore gas price was $1.77 and $2.31, respectively. For the six months ended 2019 and 2018, including the impact of hedges settled in the period, the Company's U.S. onshore oil price was $56.42 and $59.10, E.G. oil price was $59.97 and $63.69, and U.S. onshore gas price was $2.18 and $2.48, respectively.

15


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 June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Net (Loss) Income Attributable to Noble Energy (GAAP)
$
(10
)
 
$
(23
)
 
$
(323
)
 
$
531

Adjustments to Net (Loss) Income
 
 
 
 
 
 
 
Firm Transportation Exit Cost

 

 
92

 

Gain on Divestitures, Net

 
(78
)
 

 
(666
)
Asset Impairments

 

 

 
168

Loss on Investment in Tamar Petroleum Ltd., Net

 
11

 

 
40

(Gain) Loss on Commodity Derivative Instruments, Net of Cash Settlements
(59
)
 
184

 
167

 
235

Other Adjustments
(4
)
 
4

 
15

 
22

Total Adjustments Before Tax
(63
)
 
121

 
274

 
(201
)
Current Income Tax Effect of Adjustments (1)
4

 
(3
)
 
1

 
94

Deferred Income Tax Effect of Adjustments (1)
20

 
(14
)
 
(45
)
 
(26
)
         Tax Reform Impact (2)

 

 

 
(145
)
Adjusted Net (Loss) Income Attributable to Noble Energy (Non-GAAP)
$
(49
)
 
$
81

 
$
(93
)
 
$
253

 
 
 
 
 
 
 
 
Net (Loss) Income Attributable to Noble Energy Per Share, Basic and Diluted (GAAP)
$
(0.02
)
 
$
(0.05
)
 
$
(0.68
)
 
$
1.09

Firm Transportation Exit Cost

 

 
0.20

 

Gain on Divestitures, Net

 
(0.15
)
 

 
(1.36
)
Asset Impairments

 

 

 
0.34

Loss on Investment in Tamar Petroleum Ltd., Net

 
0.02

 

 
0.08

(Gain) Loss on Commodity Derivative Instruments, Net of Cash Settlements
(0.12
)
 
0.38

 
0.35

 
0.48

Other Adjustments
(0.01
)
 
0.01

 
0.03

 
0.05

Current Income Tax Effect of Adjustments (1)
0.01

 
(0.01
)
 

 
0.19

Deferred Income Tax Effect of Adjustments (1)
0.04

 
(0.03
)
 
(0.09
)
 
(0.05
)
         Tax Reform Impact (2)

 

 

 
(0.30
)
Adjusted (Loss) Income Attributable to Noble Energy per Share, Diluted (Non-GAAP)
$
(0.10
)
 
$
0.17

 
$
(0.19
)
 
$
0.52

 
 
 
 
 
 
 
 
Weighted Average Number of Shares Outstanding, Basic
478

 
484

 
478

 
485

Weighted Average Number of Shares Outstanding, Diluted
478

 
486

 
478

 
487


(1) 
Amount represents the income tax effect of adjustments, determined for each major tax jurisdiction for each adjusting item, including the impact of timing and magnitude of divestiture activities.

16


(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).

17


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 June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Net (Loss) Income Including Noncontrolling Interests (GAAP)
$
8

 
$
(6
)
 
$
(281
)
 
$
568

Adjustments to Net (Loss) Income, After Tax (1)
(39
)
 
104

 
230

 
(278
)
Depreciation, Depletion and Amortization
528

 
465

 
1,036

 
933

Exploration Expense
33

 
29

 
57

 
64

Interest, Net of Amount Capitalized
63

 
73

 
129

 
146

Current Income Tax Expense (2)
17

 
26

 
36

 
39

Deferred Income Tax (Benefit) Expense (2)
(21
)
 
7

 
(56
)
 
23

Adjusted EBITDAX (Non-GAAP)
$
589

 
$
698

 
$
1,151

 
$
1,495


(1) 
See Reconciliation of Net (Loss) Income Attributable to Noble Energy (GAAP) to Adjusted Net (Loss) Income Attributable to Noble Energy (Non-GAAP).
(2) 
Represents remaining Income Tax Expense (Benefit) after reversal of Adjustments to Net (Loss) Income, After Tax, above.



Schedule 7
Noble Energy, Inc.
Capital Expenditures
(in millions, unaudited)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Organic Capital Expenditures, Attributable to Noble Energy (Accrual Based) (1)
$
618

 
$
857

 
$
1,301

 
$
1,634

Acquisition Capital Attributable to Noble Energy
4

 
9

 
43

 
13

Noble Midstream Partners Capital Expenditures (2)
29

 
78

 
58

 
423

Investment in Equity Method Investees (3)
144

 

 
415

 

Increase in Finance Lease Obligations
1

 

 
3

 

Total Reported Capital Expenditures (Accrual Based)
$
796

 
$
944

 
$
1,820

 
$
2,070


(1) 
Organic capital expenditures include $23 million, $79 million, $60 million, and $192 million for midstream capital not funded by Noble Midstream Partners LP (NBLX) for the periods presented.
(2) 
NBLX capital expenditures for the six months ended June 30, 2018 include $206 million related to the 100 percent acquisition of Saddle Butte Rockies Midstream, LLC.
(3) 
Investment in equity method investees for the six months ended June 30, 2019 include primarily NBLX investments of $369 million in EPIC Y-Grade, LP and EPIC Crude Holdings, LP and $39 million in Delaware Crossing LLC.

18
a2q19earningsslidesfinal
2Q19 Financial and Operational Results August 2019


 
2Q19 Key Highlights www.nblenergy.com NYSE: NBL Focus on capital discipline and execution driving 2019 success Strong Operational Execution and Cost Control • Capital expenditures lower than expected from U.S. onshore and offshore developments • Total Company volumes of 349 MBoe/d, above quarterly guidance, with oil volumes towards the high end • Unit production expenses benefitted from production outperformance and cost initiatives Accelerating Delivery of U.S. Onshore; Capital Efficiency >10% Ahead of Plan • All U.S. onshore wells commencing production ahead of plan with reduced drilling / completion times • Well cost reductions exceeding $1MM per well in DJ and $1.5MM per well in Delaware • Record DJ and Delaware Basin production, all BU’s contributing to 3Q19 production uplift Progressing Monetization of Low-cost, Offshore Discovered Resources • EMed natural gas sales nearly 1 Bcfe/d, gross; scheduled maintenance at Tamar completed ahead of plan • Completion of Leviathan platform construction; first gas delivery on schedule by the end of 2019 • Strong reservoir management in E.G.; commenced drilling oil development well at Aseng Financial Strength and Return of Capital to Investors • Exited 2Q19 with $4.4 B in liquidity, including cash and available NBL credit facility • On track for sustainable organic free cash flow delivery 2020 and beyond 2


 
2Q19 Actuals vs. Guidance www.nblenergy.com NYSE: NBL Continued cost performance and volume delivery better than plan Financial & Operating Metrics 2Q Guidance 2Q Actuals Adjusted Net Earnings 2Q ($MM) Organic Capital(1) ($MM) 675 – 750 618 Net Loss Attributable to NBL (GAAP) (10) Total Sales Volumes (MBoe/d) 332 – 347 349 Adjustments to Net Loss, Before Tax (63) Oil (MBbl/d) 122 – 132 130 Current Income Tax Effect of Adjustments 4 Total U.S. Onshore (MBoe/d) 250 – 262 263 Deferred Income Tax Effect of Adjustments 20 Oil (MBbl/d) 109 – 119 117 Adjusted Net Loss Attributable to NBL(3) (Non-GAAP) (49) Unit Production Expenses ($/BOE) 9.75 – 10.25 8.19 Lease Operating Expense ($/BOE) 3.86 Adjusted EBITDAX 2Q ($MM) Gathering, Transportation & Processing ($/BOE) 2.98 Production Taxes ($/BOE) 1.32 Net Income Including Noncontrolling Interest (GAAP) 8 Other Royalty ($MM) 1 Adjustments to Net Loss, After Tax (39) Marketing and Other(2) ($MM) 15 – 20 24 DD&A 528 DD&A ($/BOE) 16.64 Exploration 33 Exploration ($MM) 33 Interest, net 63 G&A ($MM) 105 Current Income Tax Expense, Adjusted 17 Interest, net ($MM) 63 Deferred Income Tax Benefit, Adjusted (21) Equity Investment Income ($MM) 20 – 30 16 Adjusted EBITDAX(3) (Non-GAAP) 589 Midstream Services Revenue – 3rd Party ($MM) 20 Noncontrolling Interest – NBLX Public Unitholders ($MM) 18 (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. 3 (3) Non-GAAP reconciliation to GAAP measure available in 2Q19 earnings release.


 
U.S. Onshore www.nblenergy.com NYSE: NBL Lower costs, higher volumes - resulting from ongoing efficiency improvements USO Net Production and Capex 2Q19 Key Highlights MBoe/d Capex ($MM) 300 $1,000 U.S. Onshore Efficiencies Trending above Projection $750 • USO capital below estimates for third quarter in a row 200 • Continued efficiency improvements and design changes driving $500 100 quicker cycle times and cost savings $250 • Unit operating costs below guidance on higher production and 0 $0 lower LOE 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19E • 2Q19 total and oil production nearly 3% above midpoint Oil NGL Gas CAPEX Maintaining Capital Discipline while Accelerating TILs 2Q19 Activity DJ Basin Delaware Eagle Ford Total • All 1H wells TIL’d at or ahead of schedule Oil (MBbl/d) 68 40 9 117 • 2019 USO savings driving lower revised capital guidance NGL (MBbl/d) 30 13 22 64 • Gas (MMcf/d) 286 65 143 495 No meaningful adjustment to 2019 USO production exit rate Total Sales (MBoe/d) 145 64 54 263 All Three Onshore Basins Contributing to 3Q Ramp Organic Capital (1) ($MM) 213 164 76 453 • 2Q TIL count highest in 2019 activity Operated Rigs (2) 2 4 0 6 Wells Drilled (2) 26 16 0 42 • USO July production rate of ~285 MBoe/d, 125 MBbl/d oil Wells Completed (2) 33 17 9 59 Wells Brought Online (2) 36 25 16 77 Avg. Working Interest 100% 96% 100% Avg. Lateral Length (ft) 10,051 9,012 9,427 (1) Excludes NBL funded midstream of $23 MM (2) Activity represents NBL operated only 4


 
U.S. Onshore www.nblenergy.com NYSE: NBL Well costs lower than budget $ MM Efficiency Gains Driving Savings across USO 9,500’ Lateral • Reducing cycle time and drilling, completion and facilities costs in all three basins ~$0.5 MM ▪ Record drill times set in Delaware (17 days) for a below budget ~10,000’ lateral and in the DJ (<5 days) for 9,500’ ▪ Hours pumped increased across USO by 10-15% in 1H19 ▪ Record completion time per well reduced to 4 days in DJ Basin for lower fluid designs $ MM 7,500’ Lateral Row Development Driving Infrastructure and ~$0.5 MM Design Savings below budget • Row development requires significantly less surface equipment • Modular equipment design reduces installation timing and standardizes well design Note: Well costs include allocated facilities and exclude water handling fees 5


 
USO Oil Takeaway www.nblenergy.com NYSE: NBL Significant pipeline expansions improving oil netbacks DJ Basin – Securing Long-Term Takeaway at Lower Cost • NBL has entered into a new contract with Saddlehorn Pipeline, which increases NBL’s overall capacity at a reduced transportation rate • Extends current contract and assures volume delivery to Cushing (in addition to other takeaway agreements) • Significantly reduces NBL basin transportation cost longer term Saddlehorn Pipeline • Currently negotiating other pipeline contracts for lower cost arrangements Delaware Basin - Access to Gulf Coast Pricing in 2H19 Cushing • EPIC interim crude service line fill started in July and NBL will begin transporting barrels in August and transition NBL pricing from Midland more towards MEH • Crude volumes transported to EPIC via the Advantage Pipeline and Delaware Crossing pipelines, providing redundancy Advantage • Contracted sales agreements of 35,000 Bbl/d in 2H19 with end-point customer Pipeline and access to dock space and storage EPIC Pipeline • NBLX has a 15% equity ownership in EPIC Y-Grade and 30% in Crude Pipeline CorpusCorpus ChristiChristi NBL Acreage 6


 
DJ Basin www.nblenergy.com NYSE: NBL Improving execution and efficiencies NBL Acreage Municipalities Continued Outperformance Delivered from DJ Basin GOR: Low Mid High East Pony Weld • 1H19 operations generating cash flow above capital expenditures • Base production management and new well performance driving production of 145 MBoe/d in 2Q19, eclipsed 150+ MBoe/d late in quarter • ~30 to 35 TILs anticipated in 3Q, 2 rigs and 1 frac crew currently operating Wells Ranch Long-Term Development Planning • 550+ permits in hand across DJ position, working with all stakeholders on Mustang long term planning and regulatory rulemaking 349,000 net acres • Submitted application for North Wells Ranch CDP, potential for 250 86% avg. WI additional permits MBoe/d Net Production TILs 150 50 Mustang Driving Sustainable Energy Development in CO 100 25 • CDP reduces surface impact and eliminates 152 million truck miles over the 50 development 0 0 • Signed joint venture to electrify Mustang field, providing opportunity for 2Q18 3Q18 4Q18 1Q19 2Q19 electric rigs and fleet use Oil NGL Gas TILs 7


 
DJ Basin: 2019 Mustang Activity www.nblenergy.com NYSE: NBL Improving capital efficiency with design changes MBoe/d Mustang Production, Gross Mustang Driving Significant Volume Growth 60 (Row 1 and 2) • Mustang Row 2 had 20 TILs in 2Q, Rows 1 and 2 now 45 producing over 55 MBoe/d (~60% oil) in just 1 year of development 30 • Anticipate ~15 wells online from Mustang in 3Q19 15 • 0 Benefitting from gas processing optionality to multiple 7/12/2018 10/10/2018 1/8/2019 4/8/2019 providers MBoe Mustang DP 408 Per Well Cumulative Production 75 12 Lower Fluid Wells and 12 Standard Wells (9,900’ avg. lateral length) Lower Fluid Completion Design Providing Further Lower Fluid (Oil) 50 Standard (Oil) Lower Fluid (Boe) Cost Savings Standard (Boe) • Latest design, first tested in 2018, focuses on lower fluid 25 volumes downhole and the incorporation of high viscosity friction reducers 0 0 15 30 45 60 • Less fluid allows for quicker cleanup of new wells, increases Days Online early time cash flows Driving Efficiency through Design ReductionReduction in FewerFewer ~100k660k 30%30% -- PerPer well well cost waterwater usageusage completioncompletion $500k costsavings savings barrel perper wellwell 50%50% daysdays per per wellwell 8


 
Delaware Basin www.nblenergy.com NYSE: NBL Realizing the benefits of row development Reeves 10-well Base Performance and TIL Acceleration Calamity • Record production as efficiencies accelerated 7 TILs into 2Q19 . Jane Row • Currently running 4 rigs and 2 completion crews, dropping to 1 crew in 3Q • Recent wells in southern acreage producing an average 80% oil cut Carolina Reaper 4-Well On Target for Second Half Volume Ramp Pad • Overall 25 wells online in 2Q, 50% of wells commenced production in June, accentuating 2H ramp NBL Acreage • Anticipating ~15 wells TIL in 3Q19 94,000 net acres 2Q19 TILs 82% avg. WI 3Q19 TILs . . . . . . . . . .. . . . . . . Row Development Improving Operational Efficiency MBoe/d Net Production TILs 75 30 • Row development improving cycle times and consistency of well delivery 60 20 • CGF connections providing necessary infrastructure to bring wells online 45 with water gathering and takeaway 30 10 • Calamity Jane Row online in June with 10 wells from three zones 15 0 0 2Q18 3Q18 4Q18 1Q19 2Q19 Oil Gas NGL TILs 9


 
Delaware Basin www.nblenergy.com NYSE: NBL Leveraging row development to drive results Calamity Jane Development Highlights Execution Improvements • 10 well row development driving drilling and completion efficiency gains ▪ Drilling and completion time lowered ~1 week or 10% per well ▪ Average drilling cost down 10% to 15% ▪ 2 crews completed the 10 wells with an average of less than 7 Existing Well Row Development Well days per well Gross Production – Calamity Jane • Production from the 10 wells ramped to over 20 MBoe/d in 7 weeks . . MBoe/d (9,150’ avg. lateral) TILs . . . . . . . . . 25 15 Operational Improvements in the Permian Production Well count 20 Drilling and Completion Timing (weeks) 1 2 3 4 5 6 Drilling and Completion Time (per week) 10 2018 Average per Well 15 10 Calamity Jane Average per Well 5 5 2019 1H Well Average per Well 0 0 11-Jun 18-Jun 25-Jun 2-Jul 9-Jul 16-Jul 10


 
Eagle Ford www.nblenergy.com NYSE: NBL Harvesting cash flows MBoe/d Net Production TILs 80 20 Production Uplift in 3Q 16 60 • 54 MBoe/d in 2Q19 12 • Brought online 16 DUCs (12 in June) in N. Gates Ranch, 40 codeveloping Upper and Lower Eagle Ford 8 20 4 Generating Significant Cash Flows for USO Business 0 0 2Q18 3Q18 4Q18 1Q19 2Q19 • Eagle Ford asset generating cash flow in excess of capital in 2019, Oil NGL Gas TILs critical to balancing USO capital MBoe/d 2Q19 TIL Gross Production TILs • No further 2019 drilling and completion activity planned, focused (9,427’ avg. lateral) 36 20 on LOE management and driving base performance improvements Production TIL Count 30 Testing Upside Potential in 2H19 15 24 Thousands • Testing refrac opportunities in the S. Gates Ranch area, with potential to unlock 75 to 100 refrac candidates 18 10 12 5 6 0 0 3-Apr 3-May 2-Jun 2-Jul 11


 
Portfolio Combination Provides Competitive Advantage www.nblenergy.com NYSE: NBL Step change in sustainable production profile with Leviathan start-up Eastern Mediterranean World-class natural gas reservoirs with low decline profile Leviathan online by YE19, material cash flow increase NBL vs. Onshore Basin 2018 Base Decline Rates High-margin, capital-efficient expansion opportunities Annual Diverse Portfolio Drives Lower Corporate Decline Rate Decline 50% 40% U.S. Onshore Aligning near-term activity to drive USO growth within cash flows 30% DJ Basin: Delivering growth while generating significant cash flows Delaware: Oil growth driver, majority linked to Gulf Coast pricing by 2H19 20% Eagle Ford: Cash engine 10% West Africa Delivering substantial cash flows 0% from Brent-linked oil and condensate Alen gas monetization drives Eagle Delaware DJ Scoop Bakken Appalachia NBL NBL NBL high-margin growth linked to global Ford Stack Current Post EMed LNG markets Base Leviathan Source: RS Energy Group, Inc. analysis of aggregate basin-level base production declines from Dec. 2018 to Dec. 2019, as of February 2019. NBL data based on company estimates. 12


 
Eastern Mediterranean www.nblenergy.com NYSE: NBL World-class assets continue to provide differentiated outlook Tamar Continues to Sell Near 1 Bcfe/d Leviathan Tamar • 2Q19 volumes higher than expected due to strong demand; planned (22 Tcfe, 39.7% WI) (11 Tcfe, 25% WI) maintenance completed ahead of schedule Lev. Pipeline 2.1 Bcfe/d • Performance continues to highlight value of low decline assets Dor Leviathan Now 88% Complete; on Schedule, on Budget • First gas sales still on target for year-end 2019, modeling ~800 MMcfe/d gross volume avg. in 2020. . • Major Milestones Accomplished ▪ Platform jacket installation completed in February; subsea pipelines and production manifold successfully installed in 1Q ▪ Umbilical installation and offshore/onshore pipeline connections in 2Q ▪ Production decks shipped in July, currently in route to Israel, Tamar Pipeline Ashdod anticipate arrival in Israel late August. . 1.6 Bcfe/d Ashkelon Future Monetization of World-Class Natural Gas Resources Tamar – commenced production in 2013 • ~37 Tcf of low-cost discovered resource in the region Leviathan – first production expected by YE 2019 13


 
Leviathan www.nblenergy.com NYSE: NBL Progressing towards first gas sales Under Construction Loading for Sail On Route to Israel Project Execution Continues with Sailing of Production Decks • Project is on time and trending under budget at 88% complete Regional Infrastructure Progressing to Completion • EMG Pipeline due diligence completed, close on acquisition of interest expected in 3Q Technical Continued Gas Contracting Assessment of EMG • Firming up volumes for Tamar and Leviathan contracts into Egypt Pipeline 14


 
West Africa www.nblenergy.com NYSE: NBL Active production management, near-term developments, long-term potential Operational Execution Major Projects Future Opportunities • 99% uptime YTD at Aseng, • Aseng 6P production well spud • Alen natural gas infrastructure Alen and Alba early July, first production unlocks regional resources October 2019 • PUA executed by E.G. and • Alen injection management Cameroon allows for cross- leading to higher and more • Alen Gas Monetization border development stable condensate rates ▪ 1H 2021 start up; global gas • Aseng active reservoir prices • Existing Aseng infrastructure management continues to ▪ $165 MM net capital; 75- provides exit route for mitigate production declines 115 MMcfe/d net discovered oil resources production Alba Platforms Aseng FPSO Alen Platform 15


 
West Africa www.nblenergy.com NYSE: NBL Exceptional operational execution and reservoir management at Aseng Cumulative Production of 100 MMBo Consistent with Sanction Model Over Initial 8 Years Aseng 6P – Another Example of Capital Efficient Development 6P well, • Subsea tie-back of well to existing Aseng FPSO allows for additional capital- targeting edge efficient reservoir recovery resources • High ROR project designed to mitigate field decline rate Aseng Reservoir Model Aseng Reservoir Model Leveraging Subsurface Technical Work to Target Unswept Pay • Estimated increase in field recovery of >10% MBbl/d Aseng Gross Production 25 • Initial production anticipated to be ~10 MBbl/d, gross • Well will provide additional subsurface data, further refining models with 20 the possibility of identifying further development potential 15 10 First Production Expected Early 4Q • Rig spud Aseng 6P early July, expected drilling time is 40 – 50 days, 5 Forecast expected completion time is 30 – 40 days Historical Volumes Volumes 0 Jan-18 Jan-19 Jan-20 16


 
Third Quarter and Updated 2019 Guidance www.nblenergy.com NYSE: NBL Capital and costs lowered; volumes raised Crude Oil and Natural Gas Total Natural Gas Third Quarter 2019 Guidance Condensate Liquids Equivalent Full-Year 2019 (MMcf/d) Sales Volume (MBbl/d) (MBbl/d) (MBoe/d) Sales Volumes LOW HIGH Total Company Equivalent (MBoe/d) 370 385 Low High Low High Low High Low High Total U.S. Onshore (MBoe/d) 282 294 United States Onshore 119 125 63 66 500 525 268 276 Total Company Oil (MBbl/d) 139 149 Israel - - - - 215 225 36 38 Total U.S. Onshore Oil (MBbl/d) 122 132 Equatorial Guinea 12 14 - - 175 190 41 45 (1) Equatorial Guinea – Equity Capital Expenditures ($MM) 1 2 4 5 - - 5 7 Method Investment Total Company Organic Capital $600 - $675 Total Company 133 140 67 71 895 935 353 363 Cost Metrics LOW HIGH Unit Production Expenses(2) ($/BOE) 9.05 9.55 Marketing and Other(3) ($MM) 20 30 Full-Year 2019 Capital & Cost Metrics Equity Investment Income ($MM) 20 30 Capital Expenditures(1) ($MM) Total Company Organic Capital $2,300 - $2,500 Guidance Commentary: Cost Metrics LOW HIGH • Capital – $100 MM reduction from original full-year guidance Unit Production Expenses(2) ($/BOE) 9.15 9.55 • Unit production expenses – midpoint of full-year guidance reduced $0.15/ Marketing and Other(3) ($MM) 90 110 BOE; 3Q19 unit rate includes impact from uptick in West Africa liftings DD&A ($/BOE) 16.50 17.25 • Sales volumes – full-year midpoint raised from U.S. Onshore and West Africa Exploration ($MM) 110 140 asset performance G&A ($MM) 400 420 Interest, net ($MM) 245 265 ▪ U.S. Onshore 3Q – substantial oil (10 MBbl/d) and total volume Other Guidance Items ($MM) (25 MBoe/d) increase from 2Q19 driven by mid-year TILs Equity Investment Income 80 95 ▪ Israel 3Q – expect quarterly high for 2019 based on seasonal Midstream Services Revenue – Third Party 100 120 demand Non-Controlling Interest – NBLX Public Unitholders 75 90 ▪ E.G. 3Q – oil sales expected higher than production (liftings timing) (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 commodity 17 pricing. (3) Represents marketing costs and mitigation of firm transportation through 3rd party commodity purchases/sales.


 
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 “net 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. 18


 
Investor Relations Contacts Brad Whitmarsh Park Carrere Kim Hendrix 281.943.1670 281.872.3208 281.943.2197 brad.whitmarsh@nblenergy.com park.carrere@nblenergy.com kim.hendrix@nblenergy.com Visit us on the Investor Relations Homepage at www.nblenergy.com