Document
false0000072207 0000072207 2019-11-07 2019-11-07


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): November 7, 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:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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
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.





Item 2.02. Results of Operations and Financial Condition.
On November 7, 2019 Noble Energy, Inc. (the “Company”) issued a press release announcing results for the fiscal quarter ended September 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 September 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 November 7, 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
 
104
 
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.





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:
November 7, 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 THIRD QUARTER 2019 DEMONSTRATES CONTINUED EXECUTION AND IMPROVEMENT IN CAPITAL EFFICIENCY

2019 Capital Expenditures Now Approximately $200 Million Below Plan

HOUSTON (November 7, 2019) -- Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or the "Company”) today announced third quarter 2019 financial and operating results. Highlights include:
Capital expenditures funded by Noble Energy were more than 12% below the midpoint of guidance at $556 million.
DJ Basin and Delaware Basin well costs have been reduced a further $500 thousand per well; now more than $2 million per well below year-end 2018 costs.
Leviathan project spend was more than $30 million under guidance in the third quarter.
Total Company sales volumes of 385 MBoe/d were at the high end of Company expectations.
U.S. onshore volumes increased 30 MBoe/d (10 MBbl/d oil) from the second quarter 2019.
DJ and Delaware Basin total volumes and oil volumes represented quarterly records.
Gross natural gas sales from Israel totaled over 1 Bcfe/d.
Unit production costs were below guidance at $8.39 per BOE, driven by workover reductions, compression optimization and lower fuel costs.
The Leviathan project is 96% complete, and the production decks were installed on the jacket in the third quarter. First production from Leviathan is now expected in December 2019, and total gross capital for the project has been reduced $150 million to $3.6 billion.
An infield development well was drilled and completed under budget at the Aseng field in Equatorial Guinea. First oil production occurred in October 2019.


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David L. Stover, Noble Energy’s Chairman and CEO, commented, “Noble Energy continued its strong execution momentum in the third quarter, with further capital efficiency gains onshore and the accomplishment of major project milestones offshore. In 2019, we’ve significantly lowered the capital and cost intensity of our business through continuous improvement initiatives. This is reflected in a $200 million reduction in our 2019 capital expenditures from original plan, which we are prioritizing for the balance sheet rather than additional growth. We have also delivered more than a five percent reduction in our operating and G&A costs versus plan this year. As we head into 2020, we are differentially positioned with a lower corporate decline profile, reduced maintenance capital needs, and materially higher cash flows. We are on track to deliver sustainable long-term free cash flow and increasing returns to investors.”


Third Quarter 2019 Financial Results
The Company reported third quarter net income attributable to Noble Energy of $17 million, or $0.04 per diluted share. Net income including noncontrolling interest was $36 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 $47 million and $0.10 per diluted share. Adjusted EBITDAX(1) was $641 million, and cash provided by operating activities was $437 million. Prior to working capital changes, operating cash flow was $550 million for the third quarter.

Third quarter 2019 organic capital investments attributable to Noble Energy included $355 million related to U.S. onshore upstream activities and $17 million for midstream activities funded by the Company. Noble Energy also invested $129 million in the Eastern Mediterranean, primarily for continued development of the Leviathan project, and $47 million in West Africa, primarily for the drilling and completion of the Aseng 6P well. Included in Additions to Equity Method Investments is the Company's $185 million investment to purchase interest in the EMG Pipeline.

Unit production expenses for the third quarter 2019 were $8.39 per barrel of oil equivalent (BOE), including lease operating expenses, production taxes, gathering, transportation, and processing expenses, and other


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royalty costs. These costs were below guidance primarily as a result of workover reductions, compression optimization, and lower fuel costs.

Marketing and other expenses, including sales and costs of purchased oil and gas, netted to $16 million in the third quarter, primarily reflecting mitigation of firm transportation costs. Depreciation, depletion and amortization was $16.46 per BOE, benefitting from strong production performance. General and administrative expenses totaled $91 million for the quarter, 15% below the third quarter of last year as a result of multiple cost and continuous improvement initiatives.

Income from equity method investments for the third quarter of $10 million was impacted by lower than anticipated methanol and LPG pricing, as well as operating losses on Noble Midstream Partners LP's pipeline investments (EPIC and Delaware Crossing) incurred prior to full service commencement. Midstream Services Revenue of $19 million for the quarter was primarily composed of Noble Midstream Partner LP's gathering revenue from unaffiliated third parties.

The Company’s effective tax rate on adjusted earnings was approximately 17%. On this basis, current tax expense was $25 million, resulting from the income generated in West Africa and Israel. Deferred taxes were a benefit of $31 million on this same basis.

During the quarter, the Company initiated an offering of $500 million of 3.25% notes due 2029 and $500 million of 4.20% notes due 2049. Closing of the offering occurred in October 2019 and proceeds were used to fund the redemption of $1.0 billion of 4.15% notes due 2021. The debt transaction removed all near-term maturities of term debt and lowered the Company’s annual interest cost by more than $4 million.

The Company ended the third quarter 2019 with $4.0 billion in financial liquidity, including cash and available credit facility.



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Third Quarter 2019 Production and Operational Results
Total sales volumes for the quarter averaged 385 thousand barrels of oil equivalent per day (MBoe/d), an increase of 12% from the third quarter 2018. The Company’s U.S. onshore assets averaged a record 293 MBoe/d in the third quarter 2019, with total liquids volumes of 203 thousand barrels per day (MBbl/d). U.S. onshore oil was a record 127 MBbl/d. The Company’s international portfolio contributed 92 MBoe/d in the quarter with 21 MBbl/d of liquids volume.

Benchmark Index prices for crude oil, natural gas and NGLs weakened in the U.S. as compared to the second quarter 2019. The Company’s realized U.S. onshore oil price reflected an average differential consistent with prior periods, while natural gas differentials in the DJ and Delaware Basins improved compared to the benchmark. Noble Energy's U.S. onshore NGL realizations reflect consistent transportation and fractionation costs as compared to prior periods.

Across the U.S. onshore portfolio, the Company operated 5 rigs (2 DJ and 3 Delaware) and drilled 49 wells (30 DJ and 19 Delaware) in the quarter. Noble Energy completed 48 wells (28 DJ and 20 Delaware) and commenced production on 55 new wells (38 DJ and 17 Delaware). Internationally, the Company drilled and completed an oil development well in the Aseng field in Equatorial Guinea.

Denver-Julesburg Basin
The DJ Basin averaged 158 MBoe/d, up 25% from the third quarter 2018, while continuing to generate operating cash flow in excess of capital expenditures. Total oil volumes of 73 MBbl/d were a quarterly record for the Company. Production from the Wells Ranch and Mustang areas each grew to over 60 MBoe/d, net, with 23 and 15 wells, respectively, turned-in-line. Well costs decreased an additional $500 thousand per well from the first half 2019, led by continued capital efficiencies and cycle time reductions in drilling and completion.

Included in the Company's wells drilled in the third quarter was a world record 10,308 foot lateral drilled in under 24 hours. The Company utilized its first electric-powered drilling rig in the Mustang area during the


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quarter. The use of an electric drilling rig is anticipated to reduce emissions by 130 tons per year, while also significantly reducing noise and fuel costs.

Following on the success of the Mustang Comprehensive Drilling Plan (CDP), the Company submitted for approval of the North Wells Ranch CDP. The North Wells Ranch CDP covers approximately 38,000 net acres and will provide up to 250 additional permits.

Delaware Basin
Sales volumes from the Company's Delaware Basin assets totaled 70 MBoe/d, up 21% from the third quarter 2018. During the quarter, the Company brought online its second full section row development project, a 9-well development in the central portion of the Company’s acreage. Initial results highlight strong well performance and continued capital efficiency gains from row development. Drilling days for the quarter were reduced to an average of 17 days and pressure pump hours per day continued to trend upward, averaging 13 hours per day in the quarter. Well costs have continued to trend favorably with an incremental $500 thousand per well savings from the first half 2019.

During the third quarter, the Company began transporting crude oil volumes to the Gulf Coast on the EPIC Y-Grade Pipeline temporary oil service.

Eagle Ford
Sales volumes from the Eagle Ford totaled 65 MBoe/d for the third quarter 2019, benefitting from late second quarter 2019 wells commencing production. Base production for the third and fourth quarter 2019 has been impacted by unplanned facility repairs, which began in September and were completed in late October. The impact to production for each quarter is approximately 5 MBoe/d.

Eastern Mediterranean


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Third quarter 2019 sales volumes from the Company’s Israel assets totaled 234 million cubic feet of natural gas equivalent per day. During the quarter, the Tamar field reached a milestone of 2 trillion cubic feet (Tcf) of natural gas produced with runtime of over 99% since startup.

Delivery of the Leviathan project is ahead of schedule and below budget. During the quarter, the production decks were successfully installed on the jacket, setting the offshore world record for the largest crane vessel lift in history (15,300 metric tons). Full hookup of the platform and living quarters, as well as platform commissioning, continues to progress towards first production in December. Acquisition of interest in the EMG pipeline closed in early November 2019.

During the quarter, Noble Energy and its partners amended sales agreements for the delivery of natural gas from the Leviathan and Tamar fields to Dolphinus Holdings Limited in Egypt. The amended agreements now provide for total combined firm contract quantities of 3 Tcf of natural gas, an increase of 1.85 Tcf from the prior agreements.

West Africa
Sales volumes for West Africa averaged 53 MBoe/d, including 16 MBbl/d of crude oil. During the quarter, the Aseng field surpassed 100 million barrels of oil produced. The Company concluded drilling and completion operations at the Aseng 6P development well, under budget. First production commenced in October. The Alen gas monetization project continues to progress, with anticipated start-up in the first half of 2021.

Guidance
The Company has lowered full-year capital expenditures an incremental $100 million for a total reduction of $200 million versus original guidance, bringing the 2019 capital estimate to $2.3 billion. For the fourth quarter, Noble Energy expects organic capital expenditures between $425 million and $475 million. As compared to the third quarter, U.S. onshore spend reflects planned lower activity and offshore spend reflects completion activities on the Leviathan project. In addition to the capital expenditure reductions, the Company


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has lowered operating cash costs and G&A for the full year 2019 by more than $100 million versus original guidance.

Full-year sales volumes continue to trend above original guidance. Fourth quarter sales volumes are expected to total 364 to 376 MBoe/d, with U.S. onshore volumes anticipated to range between 276 and 288 MBoe/d. Volumes from the DJ Basin are anticipated to increase slightly from the third quarter, while the Delaware Basin is expected to remain relatively level to the third quarter. Eagle Ford production is anticipated to be lower primarily as a result of base production decline. Fourth quarter average production in the Eagle Ford is also negatively impacted approximately 5 MBoe/d by unplanned facility maintenance that was recently completed.

Internationally, West Africa gas volumes are anticipated to be lower than third quarter primarily as a result of continued decline at the Alba field. Israel natural gas volumes are expected to be lower sequentially due to seasonal demand. Noble Energy has not included sales volumes from the Leviathan project in its fourth quarter guidance, however, the project is anticipated to have first gas production in December.

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 10:00 a.m. Central Daylight Time on November 7, 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


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International Dial in: 412-902-6506
Conference ID: 5691351

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

Kim Hendrix
(281) 943-2197
Kim.Hendrix@nblenergy.com

Media Contacts
Trudi Boyd
(281) 569-8009
media@nblenergy.com

Paula Beasley
(281) 876-6133


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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. 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


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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.


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Schedule 1
Noble Energy, Inc.
Summary Statement of Operations
(in millions, except per share amounts, unaudited) 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Revenues
 
 
 
 
 
 
 
Oil, NGL and Gas Sales
$
1,003

 
$
1,136

 
$
2,894

 
$
3,409

Sales of Purchased Oil and Gas
87

 
72

 
264

 
191

Income from Equity Method Investments and Other
10

 
44

 
43

 
140

Midstream Services Revenues – Third Party
19

 
21

 
63

 
49

Total Revenues
1,119

 
1,273

 
3,264

 
3,789

Operating Expenses
 
 
 
 
 
 
 
Lease Operating Expense
132

 
124

 
405

 
411

Production and Ad Valorem Taxes
52

 
47

 
142

 
151

Gathering, Transportation and Processing Expense
108

 
97

 
306

 
292

Other Royalty Expense
5

 
5

 
9

 
32

Exploration Expense
25

 
25

 
82

 
89

Depreciation, Depletion and Amortization
583

 
485

 
1,619

 
1,418

General and Administrative
91

 
107

 
298

 
316

Cost of Purchased Oil and Gas
96

 
76

 
296

 
204

Marketing Expense
7

 
11

 
26

 
21

Other Operating (Income) Expense, Net
29

 
(9
)
 
57

 
(3
)
Gain on Divestitures, Net

 
(193
)
 

 
(859
)
Asset Impairments

 

 

 
168

Firm Transportation Exit Cost

 

 
92

 

Total Operating Expenses
1,128

 
775

 
3,332

 
2,240

Operating (Loss) Income
(9
)
 
498

 
(68
)
 
1,549

Other (Income) Expense
 
 
 
 
 
 
 
(Gain) Loss on Commodity Derivative Instruments
(129
)
 
155

 
23

 
483

Interest, Net of Amount Capitalized
67

 
70

 
196

 
216

Other Non-Operating (Income) Expense, Net
2

 
(34
)
 
7

 
(10
)
Total Other (Income) Expense
(60
)
 
191

 
226

 
689

Income (Loss) Before Income Taxes
51

 
307

 
(294
)
 
860

Income Tax Expense (Benefit)
15

 
59

 
(49
)
 
44

Net Income (Loss) and Comprehensive Income (Loss) Including Noncontrolling Interests
36

 
248

 
(245
)
 
816

Less: Net Income and Comprehensive Income Attributable to Noncontrolling Interests (1)
19

 
21

 
61

 
58

Net Income (Loss) and Comprehensive Income (Loss) Attributable to Noble Energy
$
17

 
$
227

 
$
(306
)
 
$
758

 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Noble Energy Per Share of Common Stock
 
 
 
 
 
 
 
Income (Loss) Per Share, Basic
$
0.04

 
$
0.47

 
$
(0.64
)
 
$
1.57

Income (Loss) Per Share, Diluted
$
0.04

 
$
0.47

 
$
(0.64
)
 
$
1.56

 
 
 
 
 
 
 
 
Weighted Average Number of Shares Outstanding
 
 
 
 
 
 
 

11


Basic
478

 
482

 
478

 
484

Diluted
480

 
484

 
478

 
486


(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 November 7, 2019.

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Schedule 2
Noble Energy, Inc.
Condensed Statement of Cash Flows
(in millions, unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Cash Flows From Operating Activities
 
 
 
 
 
 
 
Net Income (Loss) Including Noncontrolling Interests (1)
$
36

 
$
248

 
$
(245
)
 
$
816

Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities
 
 
 
 
 
 
 
Depreciation, Depletion and Amortization
583

 
485

 
1,619

 
1,418

Gain on Divestitures, Net

 
(193
)
 

 
(859
)
Asset Impairments

 

 

 
168

Firm Transportation Exit Cost

 

 
92

 

Deferred Income Tax (Benefit) Expense
(9
)
 
14

 
(110
)
 
(150
)
(Gain) Loss on Commodity Derivative Instruments
(129
)
 
155

 
23

 
483

Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments
13

 
(67
)
 
28

 
(160
)
Other Adjustments for Noncash Items Included in Income
56


(12
)

115


45

Net Changes in Working Capital
(113
)
 
67

 
7

 
15

Net Cash Provided by Operating Activities
437

 
697

 
1,529

 
1,776

Cash Flows From Investing Activities
 
 
 
 
 
 
 
Additions to Property, Plant and Equipment
(593
)
 
(807
)
 
(1,998
)
 
(2,589
)
Acquisitions, Net of Cash Received (2)

 
(3
)
 

 
(653
)
Additions to Equity Method Investments (3)
(271
)
 

 
(686
)
 

Proceeds from Divestitures, Net (4)
8

 
358

 
131

 
1,740

Other
25

 

 
25

 

Net Cash Used in Investing Activities
(831
)
 
(452
)
 
(2,528
)
 
(1,502
)
Cash Flows From Financing Activities
 
 
 
 
 
 
 
Dividends Paid, Common Stock
(57
)
 
(54
)
 
(168
)
 
(156
)
Purchase and Retirement of Common Stock

 
(93
)
 

 
(223
)
Noble Midstream Services Revolving Credit Facility, Net
(320
)
 
(480
)
 
(10
)
 
(35
)
Revolving Credit Facility, Net

 

 

 
(230
)
Proceeds from Noble Midstream Services Term Loan Credit Facilities
400

 
500

 
400

 
500

Commercial Paper Borrowings, Net
271

 

 
511

 

Repayment of Senior Notes

 

 
(9
)
 
(384
)
Contributions from Noncontrolling Interest Owners
6

 
17

 
27

 
348

Proceeds from Issuance of Mezzanine Equity, Net of Offering Costs (5)
(2
)
 

 
97

 

Other
(33
)

(35
)

(95
)

(86
)
Net Cash Provided by (Used in) Financing Activities
265

 
(145
)
 
753

 
(266
)
(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash
(129
)

100


(246
)

8

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period (6)
602

 
621

 
719

 
713

Cash, Cash Equivalents, and Restricted Cash at End of Period (7)
$
473

 
$
721

 
$
473

 
$
721



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(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 periods presented, net income (loss) includes net income attributable to noncontrolling interests in NBLX.
(2) 
Acquisitions, net of cash received, related to the acquisition of Saddle Butte Rockies Midstream, LLC by NBLX.
(3) 
Additions relate primarily to investments in Eastern Mediterranean Pipeline B.V. by Noble Energy and in EPIC Y-Grade, LP, EPIC Crude Holdings, LP and Delaware Crossing LLC by NBLX.
(4) 
For the nine months ended September 30, 2019, proceeds related to the SW Reeves County, Texas asset divestiture. For the nine months ended September 30, 2018, proceeds include $484 million from the sale of our 7.5% interest in Tamar field, $691 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 nine months ended September 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 $132 million, $0 million, $3 million, and $38 million of restricted cash, respectively.
(7) 
As of September 30, 2019 and September 30, 2018, amounts include $0 million and $1 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 November 7, 2019.

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Schedule 3
Noble Energy, Inc.
Condensed Balance Sheets
(in millions, unaudited)
 
September 30,
2019
 
December 31, 2018
Assets
 
 
 
Current Assets
 
 
 
Cash and Cash Equivalents
$
473

 
$
716

Accounts Receivable, Net
677

 
616

Other Current Assets
277

 
418

Total Current Assets
1,427

 
1,750

Property, Plant and Equipment, Net
18,797

 
18,419

Other Noncurrent Assets
1,780

 
841

Total Assets
$
22,004

 
$
21,010

Liabilities, Mezzanine Equity and Shareholders' Equity
 
 
 
Current Liabilities
 
 
 
Accounts Payable - Trade
$
1,395

 
$
1,207

Other Current Liabilities
1,190

 
519

Total Current Liabilities
2,585

 
1,726

Long-Term Debt
6,941

 
6,574

Deferred Income Taxes
954

 
1,061

Other Noncurrent Liabilities
1,338

 
1,165

Total Liabilities
11,818

 
10,526

Total Mezzanine Equity (1)
103

 

Total Shareholders' Equity
9,004

 
9,426

Noncontrolling Interests (2)
1,079

 
1,058

Total Equity
10,083

 
10,484

Total Liabilities and Equity
$
22,004

 
$
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 November 7, 2019.

15


Schedule 4
Noble Energy, Inc.
Volume and Price Statistics
(unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Sales Volumes
2019
 
2018
 
2019
 
2018
Crude Oil and Condensate (MBbl/d)
 
 
 
 
 
 
 
United States Onshore
127

 
109

 
119

 
106

United States Gulf of Mexico

 

 

 
7

Equatorial Guinea
15

 
13

 
13

 
15

Equity Method Investments - Equatorial Guinea
1

 
1

 
1

 
2

Total (1)
143

 
123

 
133

 
130

Natural Gas Liquids (MBbl/d)
 
 
 
 
 
 
 
United States Onshore
76

 
63

 
67

 
62

United States Gulf of Mexico

 

 

 
1

Equity Method Investments - Equatorial Guinea
5

 
5

 
4

 
5

Total
81

 
68

 
71

 
68

Natural Gas (MMcf/d)
 
 
 
 
 
 
 
United States Onshore
542

 
464

 
507

 
471

United States Gulf of Mexico

 

 

 
8

Israel
231

 
241

 
224

 
242

Equatorial Guinea
190

 
217

 
186

 
216

Total
963

 
922

 
917

 
937

Total Sales Volumes (MBoe/d)
 
 
 
 
 
 
 
United States Onshore
293

 
249

 
270

 
246

United States Gulf of Mexico

 

 

 
9

Israel
39

 
41

 
38

 
41

Equatorial Guinea
47

 
49

 
44

 
51

Equity Method Investments - Equatorial Guinea
6

 
6

 
5

 
7

Total Sales Volumes (MBoe/d)
385

 
345

 
357

 
354

 
 
 
 
 
 
 
 
Total Sales Volumes (MBoe)
35,380

 
31,714

 
97,488

 
96,493

 
 
 
 
 
 
 
 
Price Statistics - Realized Prices (2)
 
 
 
 
 
 
 
Crude Oil and Condensate ($/Bbl)
 
 
 
 
 
 
 
United States Onshore
$
55.13

 
$
65.54

 
$
55.59

 
$
63.93

United States Gulf of Mexico

 

 

 
64.87

Equatorial Guinea
58.62

 
73.70

 
61.75

 
71.55

Natural Gas Liquids ($/Bbl)
 
 
 
 
 
 
 
United States Onshore
$
11.18

 
$
28.58

 
$
14.22

 
$
26.18

United States Gulf of Mexico

 

 

 
30.00

Natural Gas ($/Mcf)
 
 
 
 
 
 
 
United States Onshore
$
1.57

 
$
2.31

 
$
1.87

 
$
2.40

United States Gulf of Mexico

 

 

 
3.50

Israel
5.55

 
5.49

 
5.55

 
5.48

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.

16


(2) 
Average realized prices do not include gains or losses on commodity derivative instruments. For third quarter 2019 and 2018, including the impact of hedges settled in the period, the Company's U.S. onshore oil price was $55.82 and $60.34 per Bbl, E.G. oil price was $57.27 and $61.45 per Bbl, and U.S. onshore gas price was $1.71 and $2.33 per Mcf, respectively. For the nine months ended 2019 and 2018, including the impact of hedges settled in the period, the Company's U.S. onshore oil price was $56.21 and $59.53 per Bbl, E.G. oil price was $58.91 and $63.04 per Bbl, and U.S. onshore gas price was $2.01 and $2.43 per Mcf, respectively.

17


Schedule 5
Noble Energy, Inc.
Reconciliation of Net Income (Loss) 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 income (loss) 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 September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net Income (Loss) Attributable to Noble Energy (GAAP)
$
17

 
$
227

 
$
(306
)
 
$
758

Adjustments to Net Income (Loss)
 
 
 
 
 
 
 
Firm Transportation Exit Cost

 

 
92

 

Gain on Divestitures, Net

 
(193
)
 

 
(859
)
Asset Impairments

 

 

 
168

(Gain) Loss on Investment in Tamar Petroleum Ltd., Net

 
(15
)
 

 
25

(Gain) Loss on Commodity Derivative Instruments, Net of Cash Settlements
(116
)
 
88

 
51

 
323

Other Adjustments (1)
31

 
(1
)
 
46

 
21

Total Adjustments Before Tax
(85
)
 
(121
)
 
189

 
(322
)
Current Income Tax Effect of Adjustments (2)
(1
)
 
(1
)
 

 
93

Deferred Income Tax Effect of Adjustments (2)
22

 
24

 
(23
)
 
(2
)
         Tax Reform Impact (3)

 

 

 
(145
)
Adjusted Net (Loss) Income Attributable to Noble Energy (Non-GAAP)
$
(47
)
 
$
129

 
$
(140
)
 
$
382

 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Noble Energy Per Share, Basic and Diluted (GAAP)
$
0.04

 
$
0.47

 
$
(0.64
)
 
$
1.57

Firm Transportation Exit Cost

 

 
0.19

 

Gain on Divestitures, Net

 
(0.40
)
 

 
(1.77
)
Asset Impairments

 

 

 
0.35

(Gain) Loss on Investment in Tamar Petroleum Ltd., Net

 
(0.03
)
 

 
0.05

(Gain) Loss on Commodity Derivative Instruments, Net of Cash Settlements
(0.24
)
 
0.18

 
0.11

 
0.66

Other Adjustments (1)
0.06

 

 
0.10

 
0.04

Current Income Tax Effect of Adjustments (2)

 

 

 
0.19

Deferred Income Tax Effect of Adjustments (2)
0.04

 
0.05

 
(0.05
)
 

         Tax Reform Impact (3)

 

 

 
(0.30
)
Adjusted (Loss) Income Attributable to Noble Energy per Share, Diluted (Non-GAAP)
$
(0.10
)
 
$
0.27

 
$
(0.29
)
 
$
0.79

 
 
 
 
 
 
 
 
Weighted Average Number of Shares Outstanding, Basic
478

 
482

 
478

 
484

Weighted Average Number of Shares Outstanding, Diluted
478

 
484

 
478

 
486


(1) 
For the three and nine months ended September 30, 2019, includes loss on sale of a corporate aircraft and a non-cash charge associated with acceleration of retirement obligations for the Mari-B field offshore Israel.
(2) 
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.

18


(3) 
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).

19


Schedule 6
Noble Energy, Inc.
Reconciliation of Net Income (Loss) 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 income (loss) 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 September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net Income (Loss) Including Noncontrolling Interests (GAAP)
$
36

 
$
248

 
$
(245
)
 
$
816

Adjustments to Net Income (Loss), After Tax (1)
(64
)
 
(98
)
 
166

 
(376
)
Depreciation, Depletion and Amortization
583

 
485

 
1,619

 
1,418

Exploration Expense
25

 
25

 
82

 
89

Interest, Net of Amount Capitalized
67

 
70

 
196

 
216

Current Income Tax Expense (2)
25

 
46

 
61

 
85

Deferred Income Tax (Benefit) Expense (2)
(31
)
 
(10
)
 
(87
)
 
13

Adjusted EBITDAX (Non-GAAP)
$
641

 
$
766

 
$
1,792

 
$
2,261


(1) 
See Reconciliation of Net Income (Loss) 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 September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Organic Capital Expenditures, Attributable to Noble Energy (Accrual Based) (1)
$
556

 
$
716

 
$
1,857

 
$
2,350

Acquisition Capital Attributable to Noble Energy
(4
)
 
8

 
39

 
21

Noble Midstream Partners Capital Expenditures (2)
39

 
40

 
97

 
463

Additions to Equity Method Investments (3)
271

 

 
686

 

Increase in Finance Lease Obligations
1

 
9

 
4

 
9

Total Reported Capital Expenditures (Accrual Based)
$
863

 
$
773

 
$
2,683

 
$
2,843


(1) 
Organic capital expenditures include $17 million, $29 million, $77 million, and $222 million for midstream capital not funded by Noble Midstream Partners LP (NBLX) for the periods presented.
(2) 
NBLX capital expenditures for the nine months ended September 30, 2018 include $206 million related to the acquisition of Saddle Butte Rockies Midstream, LLC.
(3) 
Additions to equity method investments for the nine months ended September 30, 2019 include primarily the Company's investment of $185 million in Eastern Mediterranean Pipeline B.V. and NBLX investments of $442 million in EPIC Y-Grade, LP and EPIC Crude Holdings, LP and $53 million in Delaware Crossing LLC.

20
a3q19earningsslidesfinal
3Q19 Financial and Operational Results November 2019


 
3Q19 Key Highlights www.nblenergy.com NYSE: NBL Continued momentum through 2019 Strong Operational Execution and Cost Control • Capital expenditures lower than expected from onshore and offshore developments; YTD 2019 reduction of $200 MM vs. original guide • Total Company volumes of 385 MBoe/d, at the high end of guidance and up 10% from 2Q19 • Unit production expenses approximately 10% lower than expectation, primarily driven by U.S. onshore cost initiatives Advancing Capital Efficiencies • U.S. onshore well costs decreased an incremental $0.5 MM per well from 1H19 • Record DJ and Delaware Basin production, all BU’s contributing to 3Q19 production uplift • First electric line-powered drilling rig in DJ Basin – cost reduction, lower noise and reduced emissions Leviathan Ahead of Schedule and Below Budget • Production decks installed during 3Q; first gas anticipated in December 2019 • Gross total project capital estimate lowered approximately $150 MM to $3.6 B • Expanded long-term firm sales into Egypt; acquisition of interest in EMG Pipeline closed in early November Financial Strength • Exited 3Q19 with $4.0 B in liquidity, including cash and available NBL credit facility • Extended debt maturity and reduced interest expense through liability management • On track for sustainable organic free cash flow delivery in 2020 and beyond 2


 
3Q19 Actuals vs. Guidance www.nblenergy.com NYSE: NBL Outperformance on volumes and costs Financial & Operating Metrics 3Q Guidance 3Q Actuals Adjusted Net Earnings 3Q ($MM) Organic Capital(1) ($MM) 600 – 675 556 Net Income Attributable to NBL (GAAP) 17 Total Sales Volumes (MBoe/d) 370 – 385 385 Adjustments to Net Income, Before Tax (85) Oil (MBbl/d) 139 – 149 143 Current Income Tax Effect of Adjustments (1) Total U.S. Onshore (MBoe/d) 282 – 294 293 Deferred Income Tax Effect of Adjustments 22 Oil (MBbl/d) 122 – 132 127 Adjusted Net Loss Attributable to NBL(3) (Non-GAAP) (47) Unit Production Expenses ($/BOE) 9.05 – 9.55 8.39 Lease Operating Expense ($/BOE) 3.73 Adjusted EBITDAX 3Q ($MM) Gathering, Transportation & Processing ($/BOE) 3.05 Production Taxes ($/BOE) 1.47 Net Income Including Noncontrolling Interest(GAAP) 36 Other Royalty ($MM) 5 Adjustments to Net Income, After Tax (64) Marketing and Other(2) ($MM) 20 – 30 16 DD&A 583 DD&A ($/BOE) 16.46 Exploration 25 Exploration ($MM) 25 Interest, net 67 G&A ($MM) 91 Current Income Tax Expense, Adjusted 25 Interest, net ($MM) 67 Deferred Income Tax Benefit, Adjusted (31) Equity Investment Income ($MM) 20 – 30 10 Adjusted EBITDAX(3) (Non-GAAP) 641 Midstream Services Revenue – 3rd Party ($MM) 19 Noncontrolling Interest – NBLX Public Unitholders ($MM) 19 (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 3Q19 earnings release.


 
Delivering Key Outcomes For 2019 www.nblenergy.com NYSE: NBL Setting the stage for sustainable long-term FCF(1) 1Q 2Q 3Q 4Q Other 2019 Accomplishments • Reduced full-year capital expenditures by $200 MM Capital below, Permian initial row EPIC pipeline Issue Climate production above ✔ developments ✔ interim oil service ✔ Change Report ✔ • Decreased operating cash costs and start up G&A by >$100 MM as compared to original guidance Sustained USO Record DJ Basin • Increased FY production outlook - Aseng 6P well in Significant 2H USO capital efficiency volume, led by delivering more than 10% U.S. ✔ E.G. ✔ production ramp ✔ enhancements ✔ Mustang onshore total and oil growth over 2018 Complete • Increased return of capital to Sanction Alen Gas Mustang Row 2 EMG pipeline Midstream shareholders with 9% dividend raise Monetization ✔ activity complete ✔ acquisition ✔ Strategic Review • Captured 175,000 acre position in unconventional exploration plays in Close Colombia Issue 8th Wyoming Leviathan platform Leviathan First Exploration Sustainability Report Agreement ✔ ✔ arrives in Israel ✔ Gas in December (1) Free cash flow defined as GAAP cash flow from operations less consolidated capital investments. 4


 
Eastern Mediterranean www.nblenergy.com NYSE: NBL High-margin, low-decline assets with material cash flow inflection in 2020 Aphrodite Tamar 3Q19 Key Highlights 35% WI 25% WI Leviathan Tamar Production Above ~1 Bcfe/d Gross in 3Q 39.7% WI Dor • FY 2019 volumes anticipated above midpoint of guidance range Tamar SW • 2 TCF cumulative production reached in July 2019 with over 99% 25% WI Tel Aviv runtime since startup NBL Interests • Completed air emissions upgrade project, reducing emissions by Producing Ashdod more than 99% Discovery Field Development Israel Leviathan First Gas Expected in December, Ahead of Plan Existing Pipeline Egypt • Construction is 96% complete; capital trending below estimate Israel GrossFully constructed Sales Volumes Leviathan platform • Topside production facilities installed and commissioning underway MMcfe/d 1,200 Tamar 1.1. Bcfe/d platform capacity Monetizing World-Class Gas Resources 900 • Increased firm sales to Dolphinus in Egypt by ~1.85 Tcf from Leviathan and Tamar, extended sales agreements to 15 years 600 • Acquisition of interest in EMG closed in early November 2019 300 • Progressing FLNG FEED and INGL debottlenecking projects 0 3Q16 3Q17 3Q18 3Q19 5


 
Leviathan www.nblenergy.com NYSE: NBL Project $150 MM under budget with production ahead of schedule Leviathan 96% Complete; First Gas Expected in December • $150 MM under project sanction, now $3.6 B total, gross. • Major Milestones Accomplished . Platform jacket installation, subsea pipeline and production manifold successfully installed in 1Q . Umbilical installation and offshore/onshore pipeline connections in 2Q . Production decks shipped in July, arrived in Israel in August, Lifting of the production decks and were successfully installed on the platform jacket in September . Crew quarters commissioned, now occupied by operations and project staff . Onshore valve stations and pipelines complete World Record Offshore Lift of Production Decks Completed Without a Lost-Time Incident Fully constructed Leviathan platform 6


 
Eastern Mediterranean www.nblenergy.com NYSE: NBL EMG infrastructure ready for significant exports Closed Acquisition of Interest November 2019 Leviathan • Mechanical integrity of EMG Pipeline confirmed and Leviathan certified by third party Amman Amman • EMG Pipeline hydro tested from Israel into Egypt, Tamar Tamar Jerusalem confirming sales capability Jerusalem EMG Ashkelon • NBL owns an effective 10% interest in the pipeline EMG AshkelonJordan El Arish Egypt Export Contracts Increase Firm Volumes by El Arish Compact electrical driven booster Israel More Than 160% compressor for Ashkelon station Egypt • Amended contracts increase firm volumes from 1.15 Tcf to 3 Tcf of total contracted quantities MMcf/d 700 EMG Pipeline Capacity . Agreement totals - Leviathan 2.1 Tcf, Tamar 0.9 Tcf Fully accommodating firm sales to Egypt 600 INGL . Leviathan ramps to 450 MMcf/d and Tamar to 200 500 Compressor de-bottlenecking MMcf/d over first 2.5 years installation at 400 • Contract terms extended from 10 to 15 years Ashkelon 300 station • Pricing consistent with original terms 200 100 0 1H 2020 2H 2020 1H 2021 2H 2021 1H 2022 2H 2022 7


 
Eastern Mediterranean www.nblenergy.com NYSE: NBL 2020 inflection point with long-term running room Strong Regional Sales Outlook • Expecting combined regional sales for Tamar and Leviathan Israel 2020 Outlook to range between 1.6 and 1.8 Bcfe/d for 2020 Contracts ~45 • Pricing structure for Israel assets and regional contracts unchanged Avg. Gross Volume 1.6 – 1.8 Bcf/d • Substantial cashflow uplift from 2019 to 2020, highlighting Avg. Sales Price at $60 Brent ~$5.25 / Mcf critical inflection point for company Demand Growth to Fill Installed Capacity Eastern Mediterranean Sales Outlook Volumes ramping to 2H20 average of 1.8-2.0 Bcfe/d • Israel: Continued coal conversion, industrial usage, and Bcfe/d transportation 2.0 . Natural gas electricity generation has grown from 1.6 ~50% in 2015 to an anticipated ~70% in 2019 1.2 • Jordan: Industrialization leading to residential and commercial natural gas consumption 0.8 • Egypt: Growth anticipated in all market segments 0.4 . Focus on becoming a regional hub for natural gas - 1H 2019 2H 2019 1H 2020 2H 2020 8


 
West Africa www.nblenergy.com NYSE: NBL Strong cash flow profile from existing production and development projects 3Q19 Key Highlights Maximizing Cash flows from Existing Production Alba Field 33% WI Cameroon • Improved volumes at Aseng and Alen via reservoir and base Equatorial Guinea Alen production management 45% WI LNG Plant • Nearly 100% runtime YTD Methanol Plant 45% WI LPG Plant 28% WI • Low methanol and LPG pricing partially offset by cost savings and NBL Interests Bioko Producing higher production volumes Island Discovery Aseng Planned Successful Development Well at Aseng Oil Field 40% WI Pipeline • Production commenced in October 2019 MBoe/d West Africa Sales Volumes • Field reached 100 MMBbl cumulative oil production in September 75 Decline primarily from Alba natural gas 2019 Alen Gas Monetization Project Startup in 1H2021 50 • Capital-efficient development accessing global LNG markets 25 • Approximately 600 Bcfe gross recoverable resources • Infrastructure-led development: ~2.4 Tcfe of additional low-cost, 0 discovered resource for future monetization 3Q17 3Q18 3Q19 Oil NGL Gas 9


 
U.S. Onshore www.nblenergy.com NYSE: NBL Lower costs, higher volumes - resulting from ongoing efficiency improvements USO Net Production and Capex 3Q19 Key Highlights MBoe/d Capex ($MM) 300 $800 250 $600 U.S. Onshore Efficiencies Exceeding 1H19 Performance 200 • Avg. well cost reduction of $0.5 MM from mid-year driven by 150 $400 shorter cycle times and efficiency improvements 100 $200 • Unit operating costs significantly below guidance, LOE average 50 of $3.71 / BOE 0 $0 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19E All Three Basins Contributed to 3Q Production Growth Oil NGL Gas CAPEX • 3Q19 total production of 293 MBoe/d near high end of 3Q19 Activity DJ Basin Delaware Eagle Ford Total guidance, up 30 MBoe/d (10 MBbl/d oil) from 2Q19 • DJ and Delaware Basin record quarterly total and oil volumes Oil (MBbl/d) 73 43 11 127 NGL (MBbl/d) 35 15 26 76 • Significant Eagle Ford ramp from late 2Q19 TILs Gas (MMcf/d) 300 75 167 542 Total Sales (MBoe/d) 158 70 65 293 Maintaining Capital Discipline while Accelerating TILs Organic Capital (1) ($MM) 170 157 28 355 • All 2019 wells TIL’d at or ahead of schedule Operated Rigs (2) 2 3 0 5 • USO well cost and facilities savings contributing to lower revised Wells Drilled (2) 30 19 0 49 NBL 2019 capital guidance Wells Completed (2) 28 20 0 48 Wells Brought Online (2) 38 17 0 55 • Delivering 10% U.S. onshore total and oil growth over 2018 Avg. Working Interest 98% 97% - Avg. Lateral Length (ft) 9,048 7,525 - (1) Excludes NBL funded midstream of $17 MM (2) Activity represents NBL operated only 10


 
DJ Basin www.nblenergy.com NYSE: NBL Improving execution and efficiencies NBL Acreage Municipalities GOR: Low Mid High East Pony Continued Outperformance in DJ Basin Weld • 2019 YTD operations generating cash flow above capital expenditures • Record quarterly production of 158 MBoe/d driven by strong base and Wells Ranch new well performance • ~20 TILs anticipated in 4Q (Wells Ranch and East Pony), 2 rigs and 1 frac crew currently operating Mustang 349,000 net acres 86% avg. WI Efficiencies Continue to Improve • World-record 10,308’ of lateral drilled in 24 hours MBoe/d Net Production TILs 160 50 • Stage transition time and non-productive time continue to decrease • Avg. well cost down approximately $0.5 MM from mid-year 120 80 25 Mustang Driving Sustainable Energy Development in CO • Decreasing emissions through use of electric compression and tankless 40 surface facilities • Mustang row development allowed for use of first electric line-powered 0 0 drilling rig in the quarter, reducing noise and emissions 3Q18 4Q18 1Q19 2Q19 3Q19 Oil NGL Gas TILs 11


 
DJ Basin www.nblenergy.com NYSE: NBL Long-term planning continues to pay dividends Mustang Continuing Significant Volume Growth MBoe/d Mustang Production, Gross 70 (Row 1 and 2) • Average 61 MBoe/d net, in 3Q19, an increase of 20% from 60 2Q19 50 • Mustang Row 2 had 15 TILs in 3Q, anticipate next Mustang 40 TILs in early 2020 30 • Mustang differentially advantaged with diversified processing 20 capacity across multiple providers and offload points 10 • ~370 drilling permits approved and remaining in the Mustang 0 CDP Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 North Wells Ranch CDP East Pony Permitting Second Large CDP in Wells Ranch Area Weld • Application submitted September 2019 • Approximately 38,000 net acres with up to 250 additional North Wells Ranch CDP drilling permits Wells Ranch • CDP acreage located in higher oil cut area, just north of prolific Kona wells Mustang 12


 
Delaware Basin www.nblenergy.com NYSE: NBL Realizing the benefits of row development Capital and Operating Cost Focus ReevesReeves • Well costs reduced by an incremental $0.5 MM from 1H19 • LOE/BOE down 33% from the 4Q18 Improved Cycle Times and Well Results • Record quarterly production of 70 MBoe/d • Strong 3Q19 well results in northern and central areas; improved southern well performance with early 4Q results • Avg. drilling days reduced to ~17, record of <13 days for a 7,500’ lateral 94,000 net acres NBL Acreage • Pump hours per day improved 20% from 4Q18 82% avg. WI MBoe/d TILs • ~10 TILs anticipated in 4Q19, 3 rigs and 0 frac crews currently active 80 Net Production 30 EPIC Y-Grade Startup for Crude Service in 3Q19 60 • NBL transporting barrels at low tariff to Gulf Coast pricing 20 • Crude line anticipated startup in 1Q20 40 Newly Installed Electrical Substations Increasing Reliability of 10 Production and Reducing Costs 20 • LOE savings of over $0.5 MM in first month of use 0 0 3Q18 4Q18 1Q19 2Q19 3Q19 Oil NGL Gas TILs 13


 
U.S. Onshore www.nblenergy.com NYSE: NBL Continued capital and LOE reductions (1) (1) $MM DJ Well Cost $MM Delaware Well Cost $8 Normalized to 9,500’ $12 Normalized to 7,500’ Down $10 $2 MM Down $6 >$2 MM $8 $6 $4 $4 $2 $2 4Q 2018 2019 Budget 1H 2019 3Q 2019 4Q 2018 2019 Budget 1H 2019 3Q 2019 DJ Lease Operating Expense $/BOE $/BOE Delaware Lease Operating Expense $4.00 $12 $10 $3.75 33% $8 Reduction $3.50 15% Reduction $6 $3.25 $4 $3.00 $2 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2018 1Q 2019 2Q 2019 3Q 2019 (1) Includes drilling, completions, and well level facilities 14


 
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 Capital and operating efficiencies while delivering moderate growth DJ Basin: Significant cash flows in 30% excess of capital; increasing volumes Delaware: Oil growth, majority linked to Gulf Coast pricing by 2H19 20% Eagle Ford: Cash engine 10% West Africa Delivering substantial cash flows from oil and condensate 0% Alen gas monetization (1H21) 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. 15


 
2020 Inflection Point www.nblenergy.com NYSE: NBL Differentially positioned for sustainable returns to investors NBL Competitive Advantages Leading Into 2020 2020 Priorities Generate Free Cash Flow(1), . Driven by Leviathan impact and portfolio Reduction in Corporate Focused on $500 MM Target Decline Profile to Low 20% diversification (conventional and shale) • Prioritize FCF - U.S. onshore and . Anticipated to further improve with Alen exploration activity to be modified in start-up and Leviathan growth in 2021 lower pricing environments Return Significant Capital to Lower Capital and Cash . Capital efficiency gains in the U.S. onshore Investors sustainable into 2020 Cost Needs • Increase dividend as cash flow grows . Operating cash costs and G&A improved more • Target long-term leverage of <1.5X(2) at than $100 MM from 2019 expectations the upstream level • Opportunistic share repurchases Significant Growth From . Project startup in December 2019, substantial Improve Corporate Returns Leviathan cash flow swing in 2020 . • High-return, high-margin production Double digit production growth growth (1) Free cash flow defined as GAAP cash flow from operations less consolidated capital investments. (2) Net debt to EBITDA ratio. Net debt defined as total debt less cash on balance sheet. EBITDA defined as GAAP earnings before interest, taxes, depreciation, depletion, and amortization. 16


 
4Q19 Guidance www.nblenergy.com NYSE: NBL Continuing ahead of plan in 2019; Maintaining capital discipline Crude Oil and Natural Gas Total FY ’19 Delivering Ahead of Plan Natural Gas Condensate Liquids Equivalent 4Q 2019 (MMcf/d) Sales Volume (MBbl/d) (MBbl/d) (MBoe/d) Low High Low High Low High Low High United States Onshore 120 126 70 74 515 540 276 288 Israel - - - - 205 225 35 37 Equatorial Guinea 14 15 - - 175 195 45 48 Equatorial Guinea – Equity 1 1 4 5 - - 5 6 Capital Down Cash Costs Down Total company Method Investment $200 MM from $100 MM from production up ~ 1% Total Company 135 143 74 78 910 940 364 376 Original Guide Original Guide from Original Guide Note: Production uplift from Leviathan startup (anticipated in December 2019) not yet included in guidance numbers. 4Q 2019 Capital & Cost Metrics 4Q Guidance Commentary Capital Expenditures(1) ($MM) • Capital – reflects planned lower U.S. onshore activities and reduced Leviathan spend Total Company Organic Capital $425 - $475 • Unit production expenses – anticipated higher than 3Q rate due to lower production, Cost Metrics LOW HIGH primarily Eagle Ford decline Unit Production Expenses(2) ($/BOE) 8.75 9.25 • Equity investment income – impacted by low global liquids pricing (LPG and Marketing and Other(3) ($MM) 10 20 methanol) and losses on midstream pipeline startups DD&A ($/BOE) 16.75 17.50 • Sales volumes – in line with expectation Exploration ($MM) 25 35 . U.S. Onshore –Eagle Ford decline and unplanned downtime impacting total G&A ($MM) 90 100 BOE and oil volumes Interest, net ($MM) 60 65 . Israel – anticipated lower seasonal demand; Leviathan production not Other Guidance Items ($MM) included in current estimate Equity Investment Income (5) 5 . E.G. – natural gas declines from Alba Midstream Services Revenue – Third Party 30 40 Non-Controlling Interest – NBLX Public Unitholders 20 30 (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 Kim Hendrix 281.943.1670 281.943.2197 brad.whitmarsh@nblenergy.com kim.hendrix@nblenergy.com Visit us on the Investor Relations Homepage at www.nblenergy.com