Document
false0000072207 0000072207 2020-02-12 2020-02-12


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): February 12, 2020

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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
 
The Nasdaq Stock Market LLC
 
 
 
 
(NASDAQ Global Select Market)
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 February 12, 2020, Noble Energy, Inc. (the “Company”) issued a press release announcing results for the fiscal year and fiscal quarter ended December 31, 2019. A copy of the press release issued by the Company is furnished as Exhibit 99.1 to this Current Report and will be published on the Company's website at www.nblenergy.com.
The Company’s press release announcing its financial results for its fiscal year and fiscal quarter ended December 31, 2019 contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles, or GAAP. The Company has provided quantitative reconciliations within the press release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
In accordance with General Instruction B.2. of Form 8-K, the information set forth herein and in the press release as Exhibit 99.1 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 February 12, 2020, we will present certain information in connection with our call with shareholders, analysts and others relating to our results of operations, discussed above, and 2020 guidance.
On February 12, 2020, the Company issued a press release with respect to its 2020 capital budget and operational and financial guidance.
Attached hereto as Exhibit 99.2 are the fourth quarter 2019 year-end results and 2020 capital budget and operation and financial guidance supplemental slides that will be presented at that time.
The information included in this Current Report under Item 7.01, including Exhibits 99.2, and 99.3, 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 exhibit is furnished as part of this Current Report on Form 8-K:






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:
February 12, 2020
 
 
By: 
 
/s/ Kenneth M. Fisher
 
 
 
 
 
 
Kenneth M. Fisher
 
 
 
 
 
 
Executive Vice President, Chief Financial Officer



Exhibit


Exhibit 99.1
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NEWS RELEASE
 
 
 
 
 
 
 

NOBLE ENERGY ANNOUNCES STRONG FOURTH QUARTER PERFORMANCE
ONSHORE CAPITAL EFFICIENCY GAINS AND MAJOR PROJECT DELIVERY IN 2019
TRANSFORM NOBLE ENERGY'S FUTURE

HOUSTON (February 12, 2020) -- Noble Energy, Inc. (NASDAQ: NBL) (“Noble Energy” or the "Company”) today provided fourth quarter financial and operating results. Fourth quarter highlights include:

Organic capital expenditures funded by Noble Energy of $406 million were below the low end of guidance.

Sales volumes of 373 MBoe/d were near the top end of guidance.
Produced 285 MBoe/d from the U.S. onshore, led by record quarterly production in the DJ Basin.
Sold over 1 Bcfe/d of natural gas, gross, from the Company’s Israel fields.
Commenced production from the Leviathan field ahead of schedule and more than $200 million under budget.

Started production from the Aseng 6P oil well in Equatorial Guinea, which has ramped up to more than 15 MBbl/d, gross.

Proved reserves increased 6% to 2.05 BBoe, with significant additions in the DJ Basin and Israel. Reserves replacement totaled 233% (excluding price revisions).

Completed a simplification of the General Partner of Noble Midstream Partners LP and an asset sale at a total valuation of $1.6 billion, including $670 million of cash proceeds to Noble Energy.

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David L. Stover, Noble Energy’s Chairman and CEO, commented, “Our performance in the fourth quarter completed a remarkable year for Noble Energy. We made important strides in our U.S. onshore business during 2019, significantly improving our capital efficiency and cost structure. Our row development execution in both the DJ and Delaware Basins contributed to improved drilling and completion cycle times and lower well costs, which allowed Noble Energy to accomplish our activity on substantially less capital than planned. In our offshore business, we commenced production at Leviathan, once again illustrating our world-class major project execution, and we sanctioned the development of the Alen Gas Monetization. These accomplishments solidified our ability to deliver sustainable organic free cash flow in 2020 and beyond.”

Full year 2019 Highlights
Finished the year with record-low Total Recordable Incident Rate in the U.S. onshore.

Enhanced ESG disclosures with publication of the Company’s eighth annual Sustainability Report and first Climate Resilience Report (using the TCFD Framework).

Increased return of capital to shareholders with a nine percent dividend raise.

Organic capital expenditures totaled $2.26 billion, down nearly $240 million from initial guidance as a result of well cost reductions in the U.S. onshore and Leviathan project execution.

Reduced cash costs (production expense, marketing costs, and G&A) approximately $120 million from original guidance.

Delivered sales volumes of 361 MBoe/d, up nearly two percent from the midpoint of original guidance.
Grew U.S. onshore total volumes and oil production 10 percent as compared to 2018.

Increased firm gas sales agreements into Egypt from 1.15 Tcf to 3 Tcf of natural gas, gross, from the Company’s operated Israel fields.

Completed the acquisition of interest in the EMG Pipeline.

Sanctioned the Alen Gas Monetization project in Equatorial Guinea.

Farmed into a significant exploration opportunity, offshore Colombia, with drilling planned in 2020.

Fourth Quarter 2019 Results
The Company reported fourth quarter net loss attributable to Noble Energy of $1.2 billion, or $2.52 per diluted share. Excluding items impacting comparability, the Company generated adjusted net loss(1) and adjusted net loss per share(1) attributable to Noble Energy for the quarter of $26 million, or $0.05 per diluted share. Adjusted EBITDAX(1) was


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$640 million, and cash provided by operating activities was $469 million. Prior to working capital changes, operating cash flow was $541 million for the quarter.

Fourth quarter capital expenditures were below the low end of guidance, primarily driven by delivery of the Leviathan project, along with incremental cost reductions in U.S. onshore drilling and completions. Organic capital investments attributable to Noble Energy included $262 million related to U.S. onshore activities. Noble Energy also invested $125 million in the Eastern Mediterranean, primarily for continued development of the Leviathan project, and $5 million in West Africa for the Alen Gas Monetization project.

Sales volumes for the quarter averaged 373 thousand barrels of oil equivalent per day (MBoe/d), an increase of more than six percent from the fourth quarter 2018. The Company’s U.S. onshore assets averaged 285 MBoe/d in the fourth quarter 2019, with oil volumes of 123 thousand barrels per day (MBbl/d). The international portfolio contributed 88 MBoe/d in the quarter with 21 MBbl/d of liquids volume.

Unit production expenses for the fourth quarter 2019 were $8.01 per barrel of oil equivalent (BOE), including lease operating expenses, production taxes, gathering and transportation and processing expenses, and other royalty costs. These costs were below the low end of guidance, benefitted by continuous cost management and prior year refunds on production taxes in the U.S. onshore.

Marketing and other expenses, including sales and costs of purchased oil and gas, netted to $18 million in the quarter, primarily reflecting mitigation of firm transportation costs. Depreciation, depletion and amortization was $16.84 per BOE and general and administrative expenses (G&A) totaled $118 million for the quarter. G&A expenses for the quarter included 2019 incentive compensation awards, which reflected strong operating performance and major project execution. Full-year 2019 G&A expense was at the midpoint of original guidance.

Income from equity method investees for the fourth quarter totaled $3 million. Equity income generated in West Africa (Alba LPG Plant and Methanol Plant) was offset by losses incurred on Noble Midstream Partners LP’s (NASDAQ: NBLX) equity pipeline investments prior to full-service commencement.


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The Company’s effective tax rate on adjusted earnings was 60%. On this basis, current tax expense was $27 million for the quarter, primarily resulting from income generated in Israel and West Africa. Deferred taxes were a benefit of $41 million on this same basis.

During the quarter, the Company concluded a drop down and simplification transaction with the General Partner of NBLX, selling its incentive distribution rights and remaining U.S. onshore midstream interests to NBLX. Noble Energy received approximately $670 million in cash and 38.5 million units of NBLX in the transaction for a total valuation of $1.6 billion. Cash proceeds were used to repay the Company's commercial paper borrowings, contributing to increased liquidity of $4.5 billion at year-end.

Included in the Company’s results for the quarter was a $1.16 billion asset impairment, which was associated with the Company’s Eagle Ford asset, primarily resulting from a decline in natural gas and natural gas liquids prices. Additionally, the Company expensed approximately $100 million in suspended exploration costs associated with the Leviathan deep oil prospect.

During the quarter, the Company operated 5 rigs (2 DJ and 3 Delaware) and drilled 42 wells (27 DJ and 15 Delaware) onshore. Noble Energy completed 25 wells (16 DJ and 9 Delaware) and commenced production on 38 new wells (25 DJ and 13 Delaware).

Denver-Julesburg Basin
The DJ Basin averaged a record 163 MBoe/d in the fourth quarter, up 18% from the similar quarter in 2018, while continuing to generate strong operating cash flow in excess of capital expenditures. Total liquids volumes of 108 thousand barrels per day (MBbl/d) were also a record. Production growth for the quarter stemmed from the Wells Ranch area which established a quarterly record of over 68 MBoe/d, with 10 wells turned-in-line. An additional 15 wells commenced production in East Pony, resulting in moderate growth for the development area.

Delaware Basin



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Sales volumes from the Company's Delaware Basin assets totaled 70 MBoe/d, up 17% from the fourth quarter 2018. Oil volumes averaged 44 MBbl/d. During the quarter, the Company brought online 13 wells, 12 of which were Wolfcamp A wells with one 3rd Bone Spring well. Four of the wells were located in the Company’s Southern acreage position, were completed utilizing tighter stage spacing and increased fluid loading, and are delivering very strong results.

Eagle Ford
Sales volumes from the Eagle Ford totaled 52 MBoe/d for the fourth quarter 2019, down five percent from the fourth quarter 2018 resulting from base declines. The Company's Eagle Ford operations continue to focus on maximizing cash flows through optimizing base production.

Israel
Fourth quarter 2019 sales volumes from the Company’s Israel assets totaled 220 million cubic feet of natural gas equivalent per day, essentially all from the Tamar asset. Production commenced from the Leviathan field ahead of schedule and under budget. Four subsea production wells are online with sales to Israel, Jordan, and Egypt underway.

Equatorial Guinea
Sales volumes for Equatorial Guinea averaged 51 MBoe/d, including 16 MBbl/d of crude oil. Production volumes for the quarter were higher than sales volumes by approximately 2 MBbl/d. During the quarter, production commenced from the Aseng 6P oil well, which is currently exceeding expectations at over 15,000 Bbl/d, gross.

2019 Reserves
Total proved reserves at the end of 2019 were 2.05 billion barrels of oil equivalent representing a six percent increase from the end of 2018.  Reserves additions, comprised of extensions, discoveries and revisions (excluding price), totaled 308 million barrels of oil equivalent (MMBoe).  Price revisions were a reduction of 53 MMBoe, entirely in the U.S. onshore from lower 2019 oil, natural gas, and NGL prices. Total Company reserve replacement was 233% (excluding price impacts) at a cost of $7.29 per BOE. U.S. onshore proved developed reserves were added at a cost of $7.99 per BOE.

DJ Basin reserves were up more than 13% year over year resulting primarily from extensions in the Mustang and Wells Ranch areas and positive performance revisions in the Mustang development area. In West Africa, the Company booked 205 billion cubic feet of natural gas equivalent (Bcfe) reserve additions resulting from the sanction of the Alen


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natural gas project.  In addition, the Alen gas sales enable the extension of the Alba field economic life yielding positive revisions of nearly 18 MMBoe. Performance from the Tamar field, offshore Israel, resulted in positive revisions of 231 Bcfe, or over one trillion cubic feet equivalent (Tcfe) on a gross basis.  Securing additional export transportation and marketing arrangements in Egypt facilitated reserve additions in the Leviathan field of 526 Bcfe. First production at the Leviathan project led to 3.3 Tcfe of transfers from proved undeveloped to proved developed.

Approximately 48% of the Company’s reserves are in U.S. onshore assets, with 52% offshore in Israel and Equatorial Guinea. The commodity breakdown of total reserves at the end of 2019 was 50% international gas, 34% liquids, and 16% U.S. onshore natural gas. Proved developed reserves increased to approximately 73% of total proved reserves at the end of the year, driven by the Leviathan reserve transfers at commencement of production.

Additional details for the fourth quarter and year-end results can be found in the Company’s latest presentation on the Company’s website, www.nblenergy.com.

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


Webcast and Conference Call Information
Noble Energy, Inc. will host a live audio webcast and conference call at 8 a.m. Central Standard Time on February 12, 2020. 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: 4164277


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Noble Energy (NASDAQ: 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

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 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.


7




Schedule 1
Noble Energy, Inc.
Summary Statement of Operations
(in millions, except per share amounts, unaudited)
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2019
 
2018
 
2019
 
2018
Revenues
 
 
 
 
 
 
 
Oil, NGL and Gas Sales
$
1,010

 
$
1,052

 
$
3,904

 
$
4,461

Sales of Purchased Oil and Gas
125

 
84

 
389

 
275

Income from Equity Method Investments and Other
8

 
32

 
51

 
172

Midstream Services Revenue - Third Party
31

 
29

 
94

 
78

Total Revenues
1,174

 
1,197

 
4,438

 
4,986

Operating Expenses
 
 
 
 
 
 
 
Lease Operating Expense
127

 
165

 
532

 
576

Production and Ad Valorem Taxes
33

 
39

 
175

 
190

Gathering, Transportation and Processing Expense
111

 
101

 
417

 
393

Other Royalty Expense
4

 
6

 
13

 
38

Exploration Expense
120

 
40

 
202

 
129

Depreciation, Depletion and Amortization
578

 
516

 
2,197

 
1,934

General and Administrative
118

 
69

 
416

 
385

Cost of Purchased Oil and Gas
135

 
92

 
431

 
296

Loss (Gain) on Divestitures, Net

 
16

 

 
(843
)
Asset Impairments
1,160

 
38

 
1,160

 
206

Goodwill Impairment

 
1,281

 

 
1,281

Marketing Expense
8

 
19

 
34

 
40

Firm Transportation Exit Cost
(4
)
 

 
88

 

Other Operating Expense, Net
35

 
13

 
92

 
10

Total Operating Expenses
2,425

 
2,395

 
5,757

 
4,635

Operating (Loss) Income
(1,251
)
 
(1,198
)
 
(1,319
)
 
351

Other Expense (Income)
 
 
 
 
 
 
 
Loss (Gain) on Commodity Derivative Instruments
120

 
(546
)
 
143

 
(63
)
Loss on Extinguishment of Debt or Facility
44

 
11

 
44

 
8

Interest, Net of Amount Capitalized
64

 
66

 
260

 
282

Other Non-Operating Expense (Income), Net
3

 
(9
)
 
10

 
(16
)
Total Other Expense (Income)
231

 
(478
)
 
457

 
211

(Loss) Income Before Income Taxes
(1,482
)
 
(720
)
 
(1,776
)
 
140

Income Tax (Benefit) Expense
(294
)
 
82

 
(343
)
 
126

Net (Loss) Income and Comprehensive (Loss) Income Including Noncontrolling Interests
(1,188
)
 
(802
)
 
(1,433
)
 
14

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

 
22

 
79

 
80

Net Loss and Comprehensive Loss Attributable to Noble Energy
$
(1,206
)
 
$
(824
)
 
$
(1,512
)
 
$
(66
)
 
 
 
 
 
 
 
 
Net Loss Attributable to Noble Energy Per Common Share
Basic and Diluted
$
(2.52
)
 
$
(1.72
)
 
$
(3.16
)
 
$
(0.14
)
 
 
 
 
 
 
 
 
Weighted Average Number of Shares Outstanding
 
 
 
 
 
 
 
Basic and Diluted
478


479


478


483


8



(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 Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 12, 2020.

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Schedule 2
Noble Energy, Inc.
Condensed Statement of Cash Flows
(in millions, unaudited)
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2019
 
2018
 
2019
 
2018
Cash Flows From Operating Activities
 
 
 
 
 
 
 
Net (Loss) Income Including Noncontrolling Interests(1)
$
(1,188
)
 
$
(802
)
 
$
(1,433
)
 
$
14

Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities
 
 
 
 
 
 
 
Depreciation, Depletion and Amortization
578

 
516

 
2,197

 
1,934

Loss (Gain) on Divestitures, Net

 
16

 

 
(843
)
Asset Impairments
1,160

 
38

 
1,160

 
206

Goodwill Impairment

 
1,281

 

 
1,281

Deferred Income Tax (Benefit) Expense
(324
)
 
80

 
(434
)
 
(70
)
Loss (Gain) on Commodity Derivative Instruments
120

 
(546
)
 
143

 
(63
)
Firm Transportation Exit Cost
(4
)
 

 
88

 

Noncash Exploration Expense
100

 
1

 
100

 
2

Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments
4

 
(1
)
 
32

 
(161
)
Other Adjustments for Noncash Items Included in (Loss) Income
95

 
39

 
210

 
83

Net Changes in Working Capital
(72
)
 
(62
)
 
(65
)
 
(47
)
Net Cash Provided by Operating Activities
469

 
560

 
1,998

 
2,336

Cash Flows From Investing Activities
 
 
 
 
 
 
 
Additions to Property, Plant and Equipment
(526
)
 
(690
)
 
(2,524
)
 
(3,279
)
Additions to Equity Method Investments(2)
(113
)
 

 
(799
)
 

Acquisitions, Net of Cash Received(3)

 

 

 
(653
)
Net Proceeds from Divestitures(4)
42

 
259

 
173

 
1,999

Other
(13
)
 
2

 
12

 
2

Net Cash Used in Investing Activities
(610
)
 
(429
)
 
(3,138
)
 
(1,931
)
Cash Flows From Financing Activities
 
 
 
 
 
 
 
Revolving Credit Facility, Net

 

 

 
(230
)
Noble Midstream Services Revolving Credit Facility, Net
545

 
10

 
535

 
(25
)
Proceeds from Noble Midstream Services Term Loan Credit Facilities

 

 
400

 
500

Senior Notes, Net
(44
)
 

 
(53
)
 
(384
)
Dividends Paid, Common Stock
(59
)
 
(52
)
 
(227
)
 
(208
)
Purchase and Retirement of Common Stock

 
(72
)
 

 
(295
)
Proceeds from Issuance of Mezzanine Equity, Net of Offering Costs(5)

 

 
97

 

Issuance of Noble Midstream Partners Common Units, Net of Offering Costs(6)
243

 

 
243

 

Commercial Paper Borrowings, Net
(511
)
 

 

 

Contributions from Noncontrolling Interest Owners
10

 
5

 
37

 
353

Other
(32
)
 
(24
)
 
(127
)
 
(110
)
Net Cash Provided by (Used in) Financing Activities
152

 
(133
)
 
905

 
(399
)
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
11

 
(2
)
 
(235
)
 
6

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

 
721

 
719

 
713

Cash, Cash Equivalents and Restricted Cash at End of Period(8)
$
484

 
$
719

 
$
484

 
$
719


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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 loss includes net income attributable to noncontrolling interests in NBLX.
(2) 
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.
(3) 
Amount relates to the acquisition of Saddle Butte Rockies Midstream, LLC by NBLX.
(4) 
For the year ended December 31, 2019, proceeds relate to the divestiture of SW Reeves County, Texas assets. For the year ended December 31, 2018, proceeds include $484 million from the sale of our 7.5% interest in Tamar field, $696 million from the sale of CONE Gathering LLC and CNX Midstream Partners common units and $384 million from the sale of our Gulf of Mexico assets.
(5) 
Proceeds relate 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) 
Amounts relate Noble Energy's midstream asset sale to NBLX.
(7) 
As of the beginning of the periods presented, amounts include $0 million, $1 million, $3 million and $38 million of restricted cash, respectively.
(8) 
As of December 31, 2019 and December 31, 2018, amounts include $0 million and $3 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 Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 12, 2020.







11



Schedule 3
Noble Energy, Inc.
Condensed Balance Sheets
(in millions, unaudited) 
 
December 31, 2019
 
December 31, 2018
Assets
 
 
 
Current Assets
 
 
 
Cash and Cash Equivalents
$
484

 
$
716

Accounts Receivable, Net
730

 
616

Other Current Assets
148

 
418

Total Current Assets
1,362

 
1,750

Property, Plant and Equipment, Net
17,451

 
18,419

Other Noncurrent Assets
1,834

 
841

Total Assets
$
20,647

 
$
21,010

Liabilities, Mezzanine Equity and Shareholders' Equity
 
 
 
Current Liabilities
 
 
 
Accounts Payable - Trade
$
1,250

 
$
1,207

Other Current Liabilities
719

 
519

Total Current Liabilities
1,969

 
1,726

Long-Term Debt
7,477

 
6,574

Deferred Income Taxes
662

 
1,061

Other Noncurrent Liabilities
1,378

 
1,165

Total Liabilities
11,486

 
10,526

Total Mezzanine Equity (1)
106

 

Total Shareholders' Equity
8,410

 
9,426

Noncontrolling Interests (2)
645

 
1,058

Total Equity
9,055

 
10,484

Total Liabilities, Mezzanine Equity and Shareholders' Equity
$
20,647

 
$
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 Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 12, 2020.

12



Schedule 4
Noble Energy, Inc.
Volume and Price Statistics
(unaudited)
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
Sales Volumes
2019
 
2018
 
2019
 
2018
Crude Oil and Condensate (MBbl/d)
 
 
 
 
 
 
 
United States Onshore
123

 
118

 
120

 
109

United States Gulf of Mexico

 

 

 
5

Equatorial Guinea
15

 
18

 
13

 
16

Equity Method Investment - Equatorial Guinea
1

 
2

 
2

 
2

Total
139

 
138

 
135

 
132

Natural Gas Liquids (MBbl/d)
 
 
 
 
 
 
 
United States Onshore
72

 
60

 
68

 
62

United States Gulf of Mexico

 

 

 

Equity Method Investment - Equatorial Guinea
5

 
7

 
4

 
5

Total
77

 
67

 
72

 
67

Natural Gas (MMcf/d)
 
 
 
 
 
 
 
United States Onshore
542

 
451

 
516

 
466

United States Gulf of Mexico

 

 

 
6

Israel
218

 
222

 
223

 
237

Equatorial Guinea
184

 
203

 
186

 
213

Total
944

 
876

 
925

 
922

Total Sales Volumes (MBoe/d)
 
 
 
 
 
 
 
United States Onshore
285

 
253

 
274

 
248

United States Gulf of Mexico

 

 

 
7

Israel
37

 
37

 
37

 
40

Equatorial Guinea
45

 
51

 
44

 
51

Equity Method Investment - Equatorial Guinea
6

 
9

 
6

 
7

Total Sales Volumes (MBoe/d)
373

 
350

 
361

 
353

 
 
 
 
 
 
 
 
Total Sales Volumes (MBoe)
34,312

 
32,219

 
131,801

 
128,714

 
 
 
 
 
 
 
 
Price Statistics - Realized Prices(1)

 
 
 
 
 
 
Crude Oil and Condensate ($/Bbl)
 
 
 
 
 
 
 
United States Onshore
$
55.90


$
52.98

 
$
55.68

 
$
60.93

United States Gulf of Mexico

 

 

 
64.84

Equatorial Guinea
59.18

 
61.23

 
61.03

 
68.53

Natural Gas Liquids ($/Bbl)
 
 
 
 
 
 
 
United States Onshore
$
14.61

 
$
24.84

 
$
14.32

 
$
25.86

United States Gulf of Mexico

 

 

 
30.00

Natural Gas ($/Mcf)
 
 
 
 
 
 
 
United States Onshore
$
1.72

 
$
2.87

 
$
1.83

 
$
2.51

United States Gulf of Mexico

 

 

 
3.48

Israel
5.55

 
5.44

 
5.55

 
5.47

Equatorial Guinea
0.27

 
0.27

 
0.27

 
0.27


(1) 
Average realized prices do not include gains or losses on commodity derivative instruments. For fourth quarter 2019 and 2018, including the impact of hedges settled in the period, the Company's U.S. onshore oil price was $56.34 and $54.09 per Bbl, Equatorial

13



Guinea oil price was $56.95 and $65.83 per Bbl, and U.S. onshore gas price was $1.76 and $2.80 per Mcf, respectively. For the year ended 2019 and 2018, including the impact of hedges settled in the period, the Company's U.S. onshore oil price was $56.25 and $58.03 per Bbl, Equatorial Guinea oil price was $57.84 and $59.10 per Bbl, and U.S. onshore gas price was $1.97 and $2.54 per Mcf, respectively.





14



Schedule 5
Noble Energy, Inc.
Reconciliation of Net 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 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 non-cash 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 December 31,
 
Twelve Months Ended December 31,
 
2019
 
2018
 
2019
 
2018
Net Loss Attributable to Noble Energy (GAAP)
$
(1,206
)
 
$
(824
)
 
$
(1,512
)
 
$
(66
)
Adjustments to Net Loss
 
 
 
 
 
 
 
Firm Transportation Exit Costs
(4
)
 

 
88

 

Loss (Gain) on Divestitures, Net

 
16

 

 
(843
)
Asset Impairments
1,160

 
38

 
1,160

 
206

Goodwill Impairment

 
1,281

 

 
1,281

Loss (Gain) on Commodity Derivative Instruments, Net of Cash Settlements
124

 
(547
)
 
175

 
(224
)
Exploration Write-off(1)
100

 

 
100

 

Legal Settlement
22

 
5

 
31

 
5

Loss on Extinguishment of Debt or Facility
44

 
11

 
44

 
8

Other Adjustments(2)
14

 
27

 
51

 
76

Total Adjustments Before Tax
1,460

 
831

 
1,649

 
509

Current Income Tax Effect of Adjustments(3)
(3
)
 
(29
)
 
(3
)
 
64

Deferred Income Tax Effect of Adjustments(3)
(277
)
 
73

 
(300
)
 
71

Tax Reform Impact(4)

 
5

 

 
(140
)
Adjusted Net (Loss) Income Attributable to Noble Energy (Non-GAAP)
$
(26
)
 
$
56

 
$
(166
)
 
$
438

 
 
 
 
 
 
 
 
Net Loss Attributable to Noble Energy Per Share, Basic and Diluted (GAAP)
$
(2.52
)
 
$
(1.72
)
 
$
(3.16
)
 
$
(0.14
)
Firm Transportation Exit Costs
(0.01
)
 

 
0.18

 

Loss (Gain) on Divestitures, Net

 
0.04

 

 
(1.74
)
Asset Impairments
2.43

 
0.08

 
2.43

 
0.42

Goodwill Impairment

 
2.66

 

 
2.64

Loss (Gain) on Commodity Derivative Instruments, Net of Cash Settlements
0.26

 
(1.14
)
 
0.37

 
(0.46
)
Exploration Write-off(1)
0.21

 

 
0.21

 

Legal Settlement
0.05

 
0.01

 
0.06

 
0.01

Loss on Extinguishment of Debt or Facility
0.09

 
0.02

 
0.09

 
0.02

Other Adjustments(2)
0.03

 
0.06

 
0.11

 
0.16

Current Income Tax Effect of Adjustments(3)
(0.01
)
 
(0.06
)
 
(0.01
)
 
0.13

Deferred Income Tax Effect of Adjustments(3)
(0.58
)
 
0.16

 
(0.63
)
 
0.15

Tax Reform Impact(4)

 
0.01



 
(0.29
)
Adjusted Net (Loss) Income Attributable to Noble Energy Per Share, Diluted (Non-GAAP)
(0.05
)
 
0.12

 
(0.35
)
 
0.90

 
 
 
 
 
 
 
 
Weighted Average Number of Shares Outstanding, Basic
478

 
479

 
478

 
483

Weighted Average Number of Shares Outstanding, Diluted
478


481


478


485



15



(1) 
Amount relates to the write-off of suspended costs associated with the Leviathan deep oil prospect.
(2) 
For the year ended December 31, 2019, amount 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. For the year ended December 31, 2018, amount includes a loss on investment in shares of Tamar Petroleum Ltd.
(3) 
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.
(4) 
In 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).

16



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 non-cash 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 December 31,
 
Twelve Months Ended December 31,
 
2019
 
2018
 
2019
 
2018
Net (Loss) Income Including Noncontrolling Interests (GAAP)
$
(1,188
)
 
$
(802
)
 
$
(1,433
)
 
$
14

Adjustments to Net (Loss) Income, After Tax(1)
1,180

 
880

 
1,346

 
504

Depreciation, Depletion, and Amortization
578

 
516

 
2,197

 
1,934

Exploration Expense(2)
20

 
40

 
102

 
129

Interest, Net of Amount Capitalized
64

 
66

 
260

 
282

Current Income Tax Expense(3)
27

 
31

 
88

 
121

Deferred Income Tax (Benefit) Expense(3)
(41
)
 
2

 
(128
)
 
10

Adjusted EBITDAX (Non-GAAP)
$
640

 
$
733

 
$
2,432

 
$
2,994


(1) 
See Reconciliation of Net (Loss) Income Attributable to Noble Energy (GAAP) to Adjusted Income (Loss) Attributable to Noble Energy (Non-GAAP).
(2) 
Represents remaining Exploration Expense after reversal of Adjustments to Net Income (Loss), After Tax, above.
(3) 
Represents remaining Income Tax (Benefit) Expense after reversal of Adjustments to Net Income (Loss), After Tax, above.

Schedule 7
Noble Energy, Inc.
Capital Expenditures
(in millions, unaudited)
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2019
 
2018
 
2019
 
2018
Organic Capital Expenditures Attributable to Noble Energy (Accrual Based)(1)
$
406

 
$
643

 
$
2,263

 
$
2,988

Acquisition Capital Attributable to Noble Energy
2

 
20

 
41

 
41

Noble Midstream Partners Capital Expenditures(2)
48

 
37

 
145

 
482

Additions to Equity Method Investments(3)
113

 

 
799

 

Increase in Finance Lease Obligations
3

 
5

 
7

 
14

Total Reported Capital Expenditures (Accrual Based)
$
572

 
$
705

 
$
3,255

 
$
3,525


(1) 
Organic capital expenditures include $8 million, $24 million, $85 million and $245 million for midstream capital not funded by Noble Midstream Partners LP (NBLX) for the periods presented.
(2) 
For the year ended December 31, 2018, amount includes $206 million related to the acquisition of Saddle Butte Rockies Midstream, LLC.
(3) 
For the year ended December 31, 2019, amount includes primarily Noble Energy's investment of $189 million in Eastern Mediterranean Pipeline B.V. and NBLX investments of $532 million in EPIC Y-Grade, LP and EPIC Crude Holdings, LP and $72 million in Delaware Crossing LLC.


17



Schedule 8
Noble Energy, Inc.
Supplemental Data
(unaudited)
2019 Costs Incurred in Oil and Gas Activities (millions)
United States
 
Int’l(1)
 
Total
Proved Property Acquisition Costs
$
4

 
$

 
$
4

Unproved Property Acquisition Costs
37

 

 
37

Exploration Costs(2)
67

 
73

 
140

Development Costs(3)
1,483

 
582

 
2,065

Total Costs Incurred
$
1,591

 
$
655

 
$
2,246

 
 
 
 
 
 
Reconciliation to Capital Spending (Accrual Basis)
 
 
 
 
 
Total Costs Incurred
 
 
 
 
$
2,246

Exploration Overhead and Other(2)
 
 
 
 
(102
)
Asset Retirement Obligations
 
 
 
 
9

Total Oil and Gas Spending
 
 
 
 
2,153

Midstream Capital Spending(4)
 
 
 
 
230

Additions to Equity Method Investments(5)
 
 
 
 
799

Corporate and Other Capital
 
 
 
 
73

Total Capital Spending (Accrual Basis)
 
 
 
 
$
3,255

 
 
 
 
 
 
Proved Reserves (MMBoe)(6)
United States
 
Int’l(1)
 
Total
Total Reserves, Beginning of Year
1,002

 
927

 
1,929

Revisions of Previous Estimates
(107
)
 
57

 
(50
)
Extensions, Discoveries and Other Additions
183

 
122

 
305

Sale of Minerals in Place
(2
)
 

 
(2
)
Production
(100
)
 
(32
)
 
(132
)
Total Reserves, End of Year
976

 
1,074

 
2,050

Proved Developed Reserves

 

 

December 31, 2018
442

 
312

 
754

December 31, 2019
490

 
1,014

 
1,504


(1) 
International includes Israel, Equatorial Guinea and other international locations, including foreign new ventures.
(2) 
Amounts exclude $100 million related to the write-off of suspended costs associated with the Leviathan deep oil prospect.
(3) 
Includes a decrease in asset retirement obligations (ARO) of $57 million for U.S. onshore primarily related to revisions and an increase in ARO of $48 million for International primarily related to additions.
(4) 
Midstream spending includes $85 million of Noble Energy funded capital and $145 million of Noble Midstream Partners LP (NBLX) funded capital.
(5) 
Amount includes primarily Noble Energy's investment of $189 million in Eastern Mediterranean Pipeline B.V. and NBLX investments of $532 million in EPIC Y-Grade, LP and EPIC Crude Holdings, LP and $72 million in Delaware Crossing LLC.
(6) 
Netherland, Sewell & Associates, Inc. performed a reserves audit for 2019 and concluded that the Company's estimates of proved reserves were, in the aggregate, reasonable and have been prepared in accordance with Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers.




18
a4q19earningsslidesfinal
4Q19 Results / 2020 Outlook February 12, 2020


 
4Q19 & FY19 Actuals vs. Guidance Midpoint www.nblenergy.com NASDAQ: NBL Outperformance on volumes on lower capital and costs 4Q 4Q ∆ FY19 FY19 ∆ Financial & Operating Metrics Adjusted Net Earnings 4Q ($MM) Guide Actuals Guide Guide Actuals Guide Net Loss Attributable to NBL (GAAP) (1,206) Organic Capital(1) ($MM) 450 406 (44) 2,500 2,263 (237) Adjustments to Net Loss, Before Tax 1,460 Total Sales Volumes (MBoe/d) 370 373 3 355 361 6 Oil (MBbl/d) 139 139 - 136 135 (1) Current Income Tax Effect of Adjustments (3) Total U.S. Onshore (MBoe/d) 282 285 3 270 274 4 Deferred Income Tax Effect of Adjustments (277) Oil (MBbl/d) 123 123 - 122 120 (2) Adjusted Net Loss Attributable to NBL(5) (Non-GAAP) (26) Unit Production Expenses ($/BOE) 9.00 8.01 (0.99) 9.50 8.62 (0.88) Lease Operating Expense 3.70 4.04 GT&P 3.24 3.16 Adjusted EBITDAX 4Q ($MM) Production Taxes 0.96 1.33 Net Loss Including Noncontrolling Interest (GAAP) (1,188) Other Royalty 0.12 0.10 Marketing and Other(2) ($MM) 15 18 3 100 76 (24) Adjustments to Net Loss, After Tax 1,180 DD&A ($/BOE) 17.13 16.84 (0.29) 17.40 16.67 (0.73) DD&A 578 Exploration(3) ($MM) 30 20 (10) 163 102 (61) Exploration 20 (4) G&A ($MM) 95 118 23 415 416 1 Interest, net 64 Interest, net ($MM) 63 64 1 255 260 5 Current Income Tax Expense, Adjusted 27 Equity Investment Income ($MM) 0 3 3 105 44 (61) Deferred Income Tax Benefit, Adjusted (41) Midstream Services Revenue ($MM) 35 31 (4) 130 94 (36) Adjusted EBITDAX(5) (Non-GAAP) 640 NCI – NBLX Public Unitholders ($MM) 25 18 (7) 93 79 (14) (1) Represents NBL organic capital expenditures, including NBL-funded midstream capital. (4) Fourth quarter G&A includes incentive comp, which reflects strong operating performance and (2) Represents marketing costs and mitigation of firm transportation through 3rd party commodity purchases/sales. major project delivery. 2 (3) After one-time exploration write-off of suspended costs. (5) Non-GAAP reconciliation to GAAP measure available in 4Q19 earnings release.


 
Delivering Key Outcomes For 2019 www.nblenergy.com NASDAQ: NBL Setting the stage for sustainable long-term FCF(1) Goals Accomplishments Further Enhance Capital / Cost Efficiency • 5% Proforma production growth on 17% less • 7% Proforma production growth on 25% less capital; 10% U.S. onshore oil growth capital as compared to 2018 • Capital reduced nearly $240 MM vs. 2019 guide; operating costs reduced $120 MM ✔ Top – Tier Onshore / Offshore Execution • Accelerate onshore development efficiencies • ~$2 MM per well savings in the DJ and Delaware Basins • First gas from Leviathan by YE 2019 • Leviathan first gas by YE 2019; capital budget more than $200 MM below sanction plan ✔ • Sanction Alen gas monetization project • Alen gas monetization project sanctioned with first production expected by early 2021 Ensure Financial Strength • Increased quarterly dividend 9% in 2019 • Increase return of capital to shareholders • Maintained investment grade across all agencies; upgrade from Fitch to BBB ✔ • Generate $500 MM - $1 B in portfolio proceeds • Non-core asset sale and midstream simplification generated >$800 MM in proceeds; ✔ exited 4Q19 with $4.5 B in liquidity Advance ESG Initiatives • Further improvement on safety performance • Record-low U.S. onshore recordable incident rate of 0.35 (per 200,000 hours worked) • Issue first Climate Resilience Report using TCFD • Climate Resilience Report issued in October, followed by extensive stakeholder engagement ✔ • Continue Board refreshment • Added 1 new member to the BOD; 3 new members in the last 2.5 years (1) Non-GAAP measure. Term defined in appendix. 3


 
Environmental, Social, and Governance www.nblenergy.com NASDAQ: NBL Protecting the environment and our people Metric Tons Greenhouse Gas Emissions Intensity: ~60% Reduction Since 2010 CO2e/MBoe Greenhouse Gas Emissions Intensity(1) 40 • Enhanced design and control equipment technology reducing emissions across operations 30 20 • Reduction across company primarily due to increased use of 10 Environmental infrared cameras to detect and repair leaks 0 2010 2014 2018 Incidents per 200,000 man-hours “No Harm” Culture Integrates Safety in All Operations 0.75 Record TRIR Safety Performance • Safety of our people and communities is our top priority 0.50 Social • Reduced total recordable incident rate (TRIR) by more than 0.25 45% since 2010 0.00 2010 2014 2019 Years Average Director Tenure Strong Governance From the Top 12 • Increased Board and executive-level oversight of climate and other ESG initiatives 8 • Board refreshment focused on diversity and independence; 4 Governance 30% diverse 0 2018 2019 2020 For more information on NBL’s environmental performance data, please visit www.nblenergy.com/sustainability. (1) Noble Midstream intensity reported independently beginning in 2015. 4


 
2019 Proved Reserves www.nblenergy.com NASDAQ: NBL Grew reserves, strong organic reserve replacement Total Proved Reserves Increased 6% to 2.05 BBOE • Reserve additions(1) replaced FY19 production by 233% • 728 MMBoe PUD conversions in 2019 – Leviathan (3.3 2.05 Tcfe) and U.S. onshore BBoe Reserves Additions Led by DJ Basin, Israel and West Africa U.S. Onshore • DJ Basin reserves up 13% from increased Mustang and Israel Equatorial Guinea Wells Ranch recoveries 15 year Company reserve life at 2019 production • Israel up 14% led by reservoir uplift from Tamar Year-end NBL Reserves performance and increases at Leviathan Proved Developed up to 73% of total • West Africa up 36% driven by Alen gas monetization MMBoe sanction and tail recoverable reserves at Alba 2,100 1,750 U.S. Onshore Proved Developed(2) F&D Cost of 1,400 $7.99/BOE 1,050 700 • Total Company proved developed F&D cost of $2.23/BOE 350 0 2016 2017 2018 2019 Undeveloped Developed (1) Represents additions, extensions, and revisions (excluding price). (2) Includes additions, revisions (excluding price), and transfer from PUDs 5


 
U.S. Onshore www.nblenergy.com NASDAQ: NBL Production toward high end on lower than expected capital USO Net Production and Capex 4Q19 Key Highlights MBoe/d $MM 300 600 U.S. Onshore Efficiencies Exceeding 3Q19 Performance 250 500 • Well costs reductions driven by shorter cycle times and 200 400 150 300 efficiency improvements 100 200 • Unit operating costs significantly below guidance, LOE of 50 100 $4.23 / BOE 0 0 4Q18 1Q19 2Q19 3Q19 4Q19 DJ Basin Continues Exceptional Performance Oil NGL Gas CAPEX • 4Q19 record production of 163 MBoe/d driven by Wells Ranch 4Q19 Activity DJ Basin Delaware Eagle Ford Total growth and strong base production • Record low LOE of ~$3.25 / BOE Oil (MBbl/d) 71 44 8 123 NGL (MBbl/d) 37 14 21 72 Gas (MMcf/d) 332 72 139 543 Delaware Basin Cycle Times and Well Performance Total Sales (MBoe/d) 163 70 52 285 Improvements Continue Organic Capital(1) ($MM) 154 100 2 256 • Avg. drilling days reduced to ~15; pump hours per day improved Operated Rigs (2) 2 3 0 5 30% from 4Q18 Wells Drilled (2) 27 15 0 42 Wells Completed (2) 16 9 0 25 • Strong 4Q19 well results, including southern wells Wells Brought Online (2) 25 13 0 38 Avg. Working Interest 94% 99% - Avg. Lateral Length (ft) 9,309 7,736 - (1) Excludes NBL funded midstream of $6 MM (2) Activity represents NBL operated only 6


 
Offshore www.nblenergy.com NASDAQ: NBL Strong base performance with major project catalysts MMcfe/d Israel Gross Sales Volumes 4Q19 Key Highlights 1,200 Nearly sold out Tamar capacity NBL Offshore Assets Average 99% Uptime, Demonstrating 900 Reliability of Production and Cash Flow 600 Tamar Production Above ~1 Bcfe/d Gross in 4Q 300 Leviathan First Gas in December 2019 0 • 4 subsea production wells online with substantial gas sales to Israel, 4Q17 4Q18 4Q19 Jordan and Egypt underway Africa Business Unit Maximizing Cash Flows from Existing MBoe/d Equatorial Guinea Sales Volumes Fully constructed Leviathan platform Production 75 Decline primarily from Alba natural gas • Improved volumes at Aseng and Alen via reservoir and base 50 production management • Development well at Aseng oil field commenced first production in 25 Oct. 2019 – performing better than expected at ~ 15 MBbl/d, gross 0 4Q17 4Q18 4Q19 Oil NGL Gas 7


 
Leviathan Production Online www.nblenergy.com NASDAQ: NBL World-class field and execution: project more than $200 MM under budget Largest Private Infrastructure Project In Israel’s History and for NBL • Doubles Israel’s total production capacity to ~2.3 Bcfe/d • Enables further reduction of coal usage for electricity generation, significantly improving air quality and reducing electricity cost First Gas to Israel Commenced December 31, 2019; Jordan and Egypt Exports Began January 2020 2010 Discovery – 17 TCF recoverable resource >22 TCF Recoverable Leviathan Field With Resource appraisal Production Less than 3 Years from Sanction 2011 - 2013 4 wells drilled Recoverable resource revised to 22 TCF • NBL operator with 39.66% WI Natural gas framework implemented • Largest natural gas field in the Eastern Med with >35 Tcfe 2015 - 2016 Plan of Development approved by government gas resource in place. 2017 Project sanction 2018 Development drilling and completions Leviathan Startup – VIEW VIDEO Platform jacket installed 2019 Topside installation and commissioning First Gas 8


 
Portfolio Combination Provides Competitive Advantage www.nblenergy.com NASDAQ: NBL Step change in sustainable production profile with Leviathan start-up Eastern Mediterranean World-class natural gas reservoirs with low decline profile Leviathan driving material 2020 cash flow and production increase NBL vs. Onshore Basin Base Decline Rates High-margin, capital-efficient growth opportunities Annual Diverse Portfolio Drives Lower Corporate Decline Rate Decline 50% U.S. Onshore 40% Generating free cash flow and moderate oil growth DJ Basin: Significant cash flow in 30% excess of capital; increasing volumes Delaware: Driving capital and operating efficiencies through row development 20% Eagle Ford: Cash generation 10% West Africa Delivering substantial cash flow from 0% oil and condensate Alen gas monetization (early 2021) Eagle Delaware DJ Bakken Scoop Appalachia NBL Prior NBL drives high-margin growth linked to Ford Stack Current global LNG markets Source: RS Energy Group, Inc. analysis of aggregate basin-level base production declines from 2019 to 2020, as of January 2020. NBL data based on company estimates. 9


 
Multi-Year Capital Allocation Framework www.nblenergy.com NASDAQ: NBL Low maintenance capital allows for sustainable free cash flow(1) 2020 Plan $200-300 MM Prioritizing FCF (1) Target of At Least $500 MM U.S. Onshore Growth Capital(2) Growth driven by Leviathan (10%) $200-300 MM Return to investors - dividend growth and balance sheet Growth Major Projects and ~$300 MM Major Project and Exploration Capital Exploration Capital Alen Gas Monetization and Colombia exploration well Israel pipeline expansion ~$1.4 B Maintenance Capital U.S. Onshore ~$1.6 B $1.4 B ~$800 MM DJ Basin; driving ~10% growth Total ~$500 MM Delaware Basin; maintaining 2019 production Production Maintenance Capital(2) ~3-5% U.S. Onshore oil growth ~$100 MM International/corporate International $2.0-2.2 B $1.8-2.0 B $1.6 – 1.8 B Long-term Capital(2) Outlook 2020 Capital Outlook (1) Non-GAAP measure. Term defined in appendix. (2) Represents NBL organic capital expenditures. Maintenance capital term defined in appendix. 10


 
2020 Priorities www.nblenergy.com NASDAQ: NBL Differentially positioned for sustainable returns to investors Generate At Least $500 MM Organic Free Cash Flow(1) to 2020E Organic Capital(2): $1,600-$1,800 MM Increase Shareholder Return and Improve Leverage Position • Anticipate dividend increasing as cash flow grows in 2020 USO • Long-term upstream leverage target of 1.5X net debt/EBITDA Israel EG Deliver Material Cash Flow and Volume Growth Through Major Project Delivery in Israel (2020) and West Africa (2021) • Low-decline, conventional production more than 30% of 2020 volumes • Maximize gross Israel sales; Alen gas monetization online early 2021 2020E Sales Volumes ~10% Growth Driven by Leviathan MBoe/d Moderate U.S. Onshore Oil Growth; Increase Margins and 450 385-405 Returns 375 361 • U.S. onshore oil growth of 3-5%, led by DJ Basin offsetting Eagle Ford 300 225 • Continuous improvement in capital efficiency and operating costs 150 75 Continue to Build Long-term Portfolio Value With Exploration 0 2019 2020E Catalysts – Colombia Drilling in 2H 2020 USO EG Israel (1) Non-GAAP measure. Term defined in appendix. (2) Represents NBL organic capital expenditures. 11


 
Continuous Improvement in 2020 www.nblenergy.com NASDAQ: NBL Enhancing capital efficiency, reducing costs, improving profitability Decreasing Capital Spend Growing Production $ MM MBoe/d 2,800 Capital efficiency 400 2,400 ~10% annual and moderate 300 2,000 growth reducing production growth 1,600 capital needs both 200 in 2020 – primarily 1,200 onshore and from international 800 offshore 100 offshore assets 400 0 0 2018 2019 2020E 2018 2019 2020E Reducing Cost Structure Lowering F&D Costs $/BOE Unit Production Costs and G&A(1) / BOE $/BOE DD&A / BOE $16 $18 Reductions in G&A $15 DD&A rate down $12 ~$2.40/BOE in and GTP lead $12 continued 2020, led by $8 downward trend $9 Leviathan impact and improving $6 and lower onshore $4 cost structure margins $3 $0 $0 2018 2019 2020E 2018 2019 2020E (1) Unit production costs (LOE, production taxes, gathering and transport, plus other royalty) shown net of GTP costs eliminated in consolidation with NBLX. 12


 
U.S. Onshore www.nblenergy.com NASDAQ: NBL Focused on continuous improvement $MM USO Capital Allocation 2020 Key Focus 2,500 Lowering capital, focused on oil-rich basins Cash Flow Generation 2,000 • All 3 basins expected to generate asset level free cash flow 1,500 • USO oil production up 3-5% FY and 5-7% 4Q over similar period 1,000 in 2019 500 Capital Efficiency Continues to Improve 0 2018 2019 2020E • Well costs down ~30% in 2019, with gains continuing into 2020 DJ Delaware Eagle Ford USO Production Activity Concentrated in High Return Areas MBoe/d Oil Mix • DJ Basin activity focused ~75% in Mustang, ~25% in Wells Ranch 300 3-5% USO oil growth in 2020 46% • Delaware Basin activity focused in north and central areas 250 200 44% Operational Execution Remains Priority in 2020 150 • Anticipate 4 rigs (2 DJ, 2 Delaware) and 3 crews (2 DJ, 1 100 42% Delaware) in 2020 50 • 110-120 TILs in the DJ, 50-60 TILs in the Delaware 0 40% 2018 2019 2020E Oil NGL Gas Oil Mix 13


 
DJ Basin www.nblenergy.com NASDAQ: NBL Long-term planning and execution continues to pay dividends Continued Outperformance in DJ Basin NBL Acreage Municipalities GOR: Low Mid High East Pony • Nearly $800 MM in asset level free cash flow generated 2016-2019 Weld • Record 4Q19 production of 163 MBoe/d driven by strong base and new well performance Wells Ranch • LOE down ~15% year over year with a record low of $3.25/BOE in 4Q19 Mustang 349,000 net acres Reduced Capital and Cost Structure in 2020 86% avg. WI • Well costs for 2020 budgeted to be ~$0.5 MM under 2019 average; down ~20% from 4Q ‘18 • 2020 activity primarily in Mustang, utilizing shared Frac facilities for increased efficiency Mustang Row 2 Shared • ~20 TILs anticipated in 1Q (Mustang, Wells Ranch) Facilities Mustang Row 3 Approximately ~400 Permits in Hand; >85% with Drill 6-Year Term • North Wells Ranch CDP anticipated to add an additional 250 permits 2020 Mustang Activity 14


 
Delaware Basin www.nblenergy.com NASDAQ: NBL Improving capital efficiency across the acreage position Capital and Operating Cost Focus NBL Acreage 2020 Development • Well costs continue to decrease, with >$3 MM in savings from Focus 4Q18 • LOE/BOE down 31% from the 4Q18 and 14% year over year Design Modifications Adding Value • Electrical substations decrease downtime and increase productivity Optimized Landing Zone ✔ Modified Completion Design ✔ Improved Cycle Times and Well Results • Modified Wellbore Orientation ✔ 94,000 net acres Strong 4Q19 well results across the acreage position 82% avg. WI • Avg. drilling days reduced to ~15 for 8,430’ lateral well Improved Well Performance ✔ • Completion pump hours per day improved 30% from 4Q18 Feet/Day Delaware Basin Drilling Performance • ~15 TILs anticipated in 1Q20 (WCA, 3BS) 1,400 >45% Improvement in 2019 1,200 1,000 EPIC Crude Line to Startup for Service in 1Q20 800 • NBL barrels benefit from lower transport cost and Gulf Coast 600 pricing 400 • Line fill impacting 1Q capital, approximately $35 MM 200 0 1Q19 2Q19 3Q19 4Q19 15


 
U.S. Onshore www.nblenergy.com NASDAQ: 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’ $7 Down $10 $6 $2.5 MM Down $8 >$3 MM $5 $4 $6 $3 $4 $2 $2 $1 $0 $0 4Q18 1H19 2H19 2020E 4Q18 1H19 2H19 2020E DJ Lease Operating Expense $/BOE $/BOE Delaware Lease Operating Expense $12 $4 Down >15% $10 $3 Down $8 >30% $2 $6 $1 $4 $- $2 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 (1) Includes drilling, completions, and well level facilities, excludes approximately $0.5 MM per well in water handling fees 16


 
Offshore www.nblenergy.com NASDAQ: NBL Conventional, low decline assets provide growing cash flows in 2020 International Capital Allocation 2020 Key Highlights EMed spend rolls off, Alen development starts $MM Israel WA Israel Volumes on Track to Deliver 1.6 - 1.8 Bcfe/d Average 700 in 2020 600 500 • Successful start-up and ramp of Leviathan volumes demonstrates 400 market availability and improves confidence in 2020 sales 300 • January sales averaged 1.6 Bcfe/d gross from Leviathan and Tamar 200 100 0 Leviathan Driving Total Company 2020 Volume Growth of 2018 2019 2020E ~10% MBoe/d Offshore Production 125 West Africa Focused on Next Major Project and Base 100 Decline Management 75 • Capital spend has commenced on the $165 MM net Alen Gas 50 Monetization project with start-up expected early 2021 25 • Aseng 6P production reducing base decline rate at the Aseng field 0 2018 2019 2020E • Maintenance/downtime impacting 2020 volumes by ~2 MBoe/d WA Israel 17


 
Eastern Mediterranean www.nblenergy.com NASDAQ: NBL 2020 begins new era of long-term sustainable growth Aphrodite Leviathan Tamar 35% WI 39.7% WI 25% WI Strong Regional Sales Outlook Dalit 25% WI • Expecting combined regional sales for Tamar and Leviathan Tamar SW Dor to range between 1.6 and 1.8 Bcfe/d for 2020 25% WI Tel Aviv • Substantial cashflow uplift from 2019 to 2020, Ashdod demonstrating critical inflection point for company Ashkelon Jordan Demand Growth to Utilize Installed Capacity El Arish Israel • Israel: Continued coal conversion, industrial usage, and Egypt transportation ▪ Natural gas electricity generation has grown from ~50% in Eastern Mediterranean Sales Outlook 2015 to ~70% in 2019 Bcfe/d Volumes ramping to 2H20 average of 1.8-2.0 Bcfe/d • Jordan: Industrialization leading to commercial and 2.4 Tamar & Leviathan 2.3. Bcfe/d installed capacity residential natural gas consumption 2.0 • Egypt: Growth anticipated in all market segments 1.6 1.2 ▪ Focus on becoming a regional hub for natural gas 0.8 0.4 - 1H 2020E 2H 2020E 18


 
Leviathan www.nblenergy.com NASDAQ: NBL World-class reservoir size and quality Subsurface Quality Similar to Tamar, Larger Scale Tamar: 100 km2 • Leviathan, similar to Tamar, produces dry natural gas (~99% methane) • Largest natural gas discovery in the region at >35 Tcfe in place and >22 Tcfe recoverable Well Deliverability Greater than Initial Leviathan net pay map ranging from Expectations 45-180 meters • 7” tubing allows for single well rates exceeding 400 Reservoir Facts: MMcfe/d Permeability 400-1200 mD Leviathan: Porosity 21% - 25% 325 km2 ▪ Single well max rate of 340 MMcfe/d to date Recovery Factor 60%-70% • Wells designed for long life and cumulative production of 1 Leviathan Well Equals 1-2 Tcf The resource of 210 DJ Basin wells • Extensive lateral connectivity demonstrated with The daily rate of 66 Appalachian Basin wells pressure communication The energy to heat 23 million American homes for one year 19


 
West Africa www.nblenergy.com NASDAQ: NBL Strong cash flow profile from existing production and project developments 4Q20 Volumes Impacted by Field Downtime/Maintenance NBL Interests Alba Discoveries 33% WI • Alba downtime for LNG plant maintenance and readiness for Alen gas Aseng FPSO Alen Gas Monetization Future Pipeline ▪ 4Q impact 50-60 MMcf/d, FY impact 12-15 MMcf/d Existing Pipeline Equity Method • Aseng shut-in for maintenance and upgrades (~2 weeks) Investments Equatorial Alen Unaffiliated Party Guinea Punta 45% WI • Alen shut-in for platform modifications in preparation for gas Europa monetization start-up (~8 weeks) Bioko BLOCK O Island YoYo BLOCK I 75% WI AMPCO Alba Plant Alen Gas Monetization Provides Significant Cash Flow (Methanol Plant) (LPG Plant) Aseng • Start up early 2021 (initial production rate 200 – 300 MMcfe/d, gross); 38% WI Yolanda EG LNG 40% WI anticipated to pay-out in less than two years (LNG Plant) Cameroon • Backfill available capacity at E.G. LNG plant due to Alba declines • Opportunities for additional tie-ins beyond Alen include ~2.5 Tcfe of MMcfe/d Punta Europa Gas Outlook NBL discovered resources (pipeline sized for 950 MMcfe/d) 1,000 Alen Gas Monetization Overview 750 Capital Expenditure, net $165 MM 500 2021 – 2023 Average Annual Rates, Gross 250 Sales Gas 260 MMcf/d Condensate ~3 MBbl/d 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 LPGs ~7 MBbl/d Alba Alen Regional Discoveries Pipeline & Onshore Facility Capacity Note: Regional discoveries are NBL-operated fields yet to be sanctioned as development 20


 
Colombia Exploration Catalyst in 2020 www.nblenergy.com NASDAQ: NBL Material resource opportunity in frontier basin NBL 40% Operated WI in 2 MM acres Offshore Colombia • Colombia-3 and Guajira Offshore-3 blocks contain in excess of 2 BBoe gross unrisked resource potential • Shell is our co-venturer with 60% working interest BlockBlock GUAGUA OFFOFF--33 NBL/ShellNBL/Shell • Extensive 3D seismic data over nearly all of position ExplorationExploration Blocks Blocks StructuresStructures mappedmapped • Geochemical data provides outlook for both oil and/or liquids-rich gas onon 3D 3D seismicseismic • Tertiary-aged structures with potential direct hydrocarbon indicators BlockBlock GUAGUA--33 Cumbia #1 BlockBlock COLCOL--33 NW Cumbia #1 SE BlockBlock COLCOL--33 8,500 ft. ColombiaColombia ColombiaColombia Cumbia Exploration Prospect Drilling Est. to Commence 3Q20 • Substantial oil and natural gas potential resources • Water depth: 8,500 feet • Rig contracted – 60 to 75 day well Anticipated TD: 16,400 ft. • Potential to de-risk follow on opportunities 21


 
2020 Performance-Based Executive Incentive Plan www.nblenergy.com NASDAQ: NBL Compensation aligned with shareholder interests to drive superior returns Long-term Incentive Plan (LTIP) • LTIP represents approximately 70% of total executive compensation opportunity • PerformanceMetrics share (60%) award weighting represents 50% of total award ▪ Corporate Returns and ESG – 20%, Relative TSR – 30% Short-term Incentive Plan (STIP) Increased weighting to FCF and formalizing ESG metrics for 2020 Strategic Execution / Board Review TargetedTargeted Metrics Metrics 2019 2020 Items Organic Free Cash Flow 15% 30% Weighting decreased to 30% in 2020 Human & Process Safety (Qualitative) 10% Cash Costs 20% 10% • ESG initiatives U.S. Onshore Capital Efficiency 15% 10% • Balance Sheet Strength • Portfolio Sales Volumes 10% 10% Total Weighting 60% 70% 22


 
2020 Guidance www.nblenergy.com NASDAQ: NBL Full-Year and First Quarter Crude Oil and Natural Gas Total Natural Gas First Quarter 2020 Guidance FY 2020 Ancitipated Condensate Liquids Equivalent (MMcf/d) Sales Volumes LOW HIGH Sales Volume (MBbl/d) (MBbl/d) (MBoe/d) Total Company Equivalent (MBoe/d) 378 398 Low High Low High Low High Low High Total Company Oil (MBbl/d) 129 139 United States Onshore 118 130 62 70 480 520 265 283 Israel 1 1 435 480 74 81 Israel Natural Gas (MMcfe/d) 410 440 Equatorial Guinea 11 13 145 165 36 41 U.S. Onshore Oil (MBbl/d) 109 119 Equatorial Guinea – Equity 1 2 4 5 5 6 Capital Expenditures(1) ($MM) Method Investment Total Company Organic Capital $475 - $550 (4) Total Company 131 146 66 75 1,070 1,155 385 405 Cost Metrics LOW HIGH Unit Production Expenses(2) ($/BOE) 8.50 9.25 Full-Year 2020 Capital & Cost Metrics Equity Investment Income ($MM) 0 10 Capital Expenditures(1) ($MM) Total Company Organic Capital $1,600 - $1,800 1Q 2020 Guidance Commentary: Cost Metrics LOW HIGH Unit Production Expenses(2) ($/BOE) 8.25 9.00 • Capital Marketing & Other ($MM) 100 120 ▪ 1H weighted U.S. onshore spending, 2H weighted production ▪ Delaware basin line fill of ~$35 MM DD&A ($/BOE) 13.75 14.75 • Sales volumes Exploration(3) ($MM) 90 120 G&A ($MM) 350 390 ▪ U.S. Onshore – Anticipate declines in all B.U.s from 4Q19, resulting from Interest, net ($MM) 310 350 low TIL count in 4Q and 1Q ▪ Israel – Leviathan project drives volume growth with gas sales to Israel, Other Guidance Items ($MM) Egypt, and Jordan Equity Investment Income 35 55 ▪ E.G. – strong crude oil liftings Income Taxes, Current 150 200 • Unit production expenses – lower U.S. onshore production volumes impacting Midstream Services Revenue – 3rd Party 120 150 unit rate along with West Africa liquid liftings NCI – NBLX Public Unitholders 90 120 ▪ Anticipate unit rate decreasing with volume increase through 2020 (1) Represents NBL organic capital expenditures. (4) Includes $35 MM for linefill for the EPIC Crude pipeline. (2) Includes lease operating expenses, production and ad valorem taxes, gathering , transportation and processing expenses, and other royalty. 23 (3) Does not include risk-weighted costs for potential unsuccessful wells.


 
www.nblenergy.com NASDAQ: 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. 24


 
www.nblenergy.com NASDAQ: NBL Defined Terms and Price Deck Terms Definition Free Cash Flow (FCF) Upstream operating cash flow before working capital changes plus NBLX distribution to Noble Energy less Upstream organic capital Net Debt Total debt less cash on balance sheet EBITDA GAAP earnings before interest, taxes, depreciation, depletion, and amortization Maintenance Capital Capital investments required to hold total company full year average sales volumes flat year over year Benchmark Prices 2020 WTI $55/Bbl Brent $60/Bbl NGL $20.50/Bbl Henry Hub $2.50/Mcf 25


 
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


 
Exhibit


Exhibit 99.3
https://cdn.kscope.io/f545ad3a0afa39aa239bfcc4cba24f06-nbllogoupdated9302014a81.jpg
  
 
NEWS RELEASE
 
 
 
 
 
 
 

NOBLE ENERGY ANNOUNCES 2020 CAPITAL BUDGET AND OUTLOOK HIGHLIGHTING
CAPITAL EFFICIENCY AND MAJOR PROJECT IMPACTS
Capital expenditures anticipated ~25% below 2019 level, volumes higher by ~10%

HOUSTON (February 12, 2020) -- Noble Energy, Inc. (NASDAQ: NBL) (“Noble Energy” or the “Company”) today announced its capital expenditure and production outlook for 2020. Key objectives and priorities for the year include:
Generate at least $500 million in organic free cash flow(1) at the upstream level,
Enhance the return of capital to investors and strengthen the balance sheet,
Further improve U.S. onshore capital efficiency and cost structure, while delivering moderate oil production growth, and
Drive material cash flow and production growth from the Leviathan project.

David L. Stover, Noble Energy’s Chairman and CEO, commented, “Our 2020 capital budget and production outlook illustrates the Company’s commitment to capital discipline, enhanced returns, and long-term sustainable free cash flow. In our onshore business in 2019, we materially lowered maintenance capital needs through sustainable drilling and completion cost reductions, and we anticipate even further capital efficiency gains as we focus 2020 investment in our large contiguous acreage positions in the DJ and Delaware Basins.

With substantial cash flow and volume growth expected from Leviathan, we are prioritizing free cash flow generation over U.S. onshore growth in 2020. Conventional major project developments, where we have a deep lineup of low-cost discovered resources, along with a return to exploration drilling provide significant catalysts for our Company this year as we build long-term value. The combination of our diversified, low cost of supply portfolio and top-tier execution capabilities positions us well to deliver leading returns to our investors in 2020 and strong free cash flow generation.”



1


CAPITAL PLAN
The Company’s 2020 capital program has been established at a range of $1.6 to $1.8 billion, a reduction of approximately $560 million from 2019. This capital range does not include any midstream capital investments funded by Noble Midstream Partners LP (NASDAQ: NBLX).

Capital expenditures within the U.S. program are planned at slightly over $1.3 billion, with approximately 60 percent allocated to the DJ Basin and 40 percent in the Delaware Basin. Similar to 2019, Noble Energy anticipates drilling and completing 110-120 wells in the DJ Basin and 50-60 wells in the Delaware Basin in 2020. No new drilling or completion activity is planned for the Eagle Ford. More than 75 percent of DJ Basin wells online will come from the Mustang IDP with the remainder primarily in Wells Ranch. The Delaware Basin program will focus on Wolfcamp A development in the northern and central parts of the Company’s acreage position. As compared to 2019, average well costs in each of the DJ and Delaware Basins are expected to be down approximately 10%. Included in Delaware Basin capital for 2020 is an estimated $35 million for linefill associated with the EPIC Crude Pipeline startup expected in the first quarter of the year. Approximately 60 percent of the Company’s U.S. onshore capital program is targeted for the first half of the year.

Offshore development capital expenditures are planned at approximately $275 million, significantly lower than 2019 as the Leviathan project concludes. Two-thirds of this amount is planned to be deployed in West Africa to progress the natural gas monetization project at Alen in Equatorial Guinea. The remaining one third is in Israel primarily for pipeline expansion work related to meeting contracted regional demand growth as well as finalization of Leviathan phase one development.

In addition, the Company anticipates approximately $75 million in exploration capital, with the majority of that amount representing costs associated with an offshore Colombia well planned in the second half of the year.

DOUBLE-DIGIT TOTAL COMPANY VOLUME INCREASE WITH MODERATE U.S. ONSHORE OIL GROWTH
Sales volumes for 2020 are estimated to be approximately 10 percent higher than 2019 at the midpoint of the Company’s range of 385 to 405 thousand barrels of oil equivalent per day (MBoe/d). Growth in 2020 is expected to be primarily a result of the impact of the Company’s Leviathan project, offshore Israel which commenced production at the end of 2019. Noble Energy’s natural gas sales volumes from Israel are estimated to average 445 to 485 million cubic feet equivalent per day in 2020, an anticipated increase of over 100 percent from 2019.

In Equatorial Guinea, sales volumes are anticipated to be down 10 to 15 percent from 2019 due to natural field decline, as well as fourth quarter planned maintenance at Alba. Natural gas represents more than half of the year on year decrease. Although benefitting from the Aseng 6P oil well which commenced production in late 2019, crude oil for 2020 will decline slightly. Fourth quarter 2020 downtime, primarily from the Alba field, will impact full

2


year average production by approximately 12 to 15 million cubic feet per day of natural gas (MMcf/d), or 50 to 60 MMcf/d for the fourth quarter.

In the United States, 2020 sales volumes are designed to be consistent with the 2019 average, with onshore oil volumes expected to be three to five percent higher than the full year 2019 average. Based upon the Company’s expected production profile, fourth quarter 2020 U.S. onshore oil volumes are expected to be five to seven percent higher than fourth quarter 2019. This hydrocarbon mix shift reflects the Company’s capital focus in the higher-return DJ and Delaware Basins, improving per barrel margins year on year and contributing cash flow growth. DJ Basin volumes are expected to be nearly 10 percent higher year on year with the Delaware consistent with 2019 levels and the Eagle Ford declining.

Total Company volumes will grow from the first to the second half of the year. Natural gas sales from the Company’s Israel assets will be higher in the second half of the year based on contracted volumes to Egypt and Jordan. Additionally, U.S. onshore volumes will be substantially higher in the second half of the year, reflecting the timing of wells commencing production. The second quarter is anticipated to be the highest quarterly turn-in-line count for the year, with peak U.S. onshore production in the third quarter.

FY 2020 Anticipated
Sales Volume
Crude Oil and Condensate (MBbl/d)
Natural Gas Liquids (MBbl/d)
Natural Gas (MMcf/d)
Total Equivalent (MBoe/d)
Low
High
Low
High
Low
High
Low
High
United States Onshore
118
130
62
70
480
520
265
283
Israel
1
1
 
 
435
480
74
81
Equatorial Guinea
11
13
 
 
145
165
36
41
Equatorial Guinea - Equity
Method Investment
1
2
4
5
 
 
5
6
Total Company
131
146
66
75
1,070
1,155
385
405

COST GUIDANCE
Unit production expenses are guided relatively flat to the 2019 average, as low-cost production from Leviathan benefits the rate, while volume declines in Equatorial Guinea and the Eagle Ford negatively impact the year on year change. G&A expenses are expected down significantly, with the Company’s unit rate expected to be down almost 20 percent from 2019. The reduction is driven in part by the impact of Leviathan production, as well as the Company’s efforts to reduce cost structure across all line items. Depreciation, depletion, and amortization is expected to be nearly 15 percent lower than 2019, or more than $2 per BOE, reflecting the Company’s U.S. onshore capital efficiency improvements and Leviathan’s impact. Net interest expense is anticipated to be higher as a result of lower capitalized interest, while gross interest cost is expected to be consistent with 2019 levels. Current income taxes are anticipated

3


to be higher than 2019 as a result of income taxes incurred on Leviathan and the commencement of additional profits taxes on Tamar (Sheshinsky tax) late in 2020.

FY 2020 Anticipated Capital & Cost Metrics
Capital Expenditures(2) ($MM)
 
   Total Company Organic Capital
$1,600 - $1,800
Cost Metrics
LOW
HIGH
   Unit Production Expenses(3) ($/BOE)
8.25
9.00
   Marketing and Other ($MM)
100
120
   DD&A ($/BOE)
13.75
14.75
   Exploration(4)  ($MM)
90
120
   G&A ($MM)
350
390
   Interest, net ($MM)
310
350
Other Guidance Items ($MM)
 
 
   Equity Investment Income
35
55
   Income taxes, current
150
200
   Midstream Services Revenue - 3rd Party
120
150
   NCI - NBLX Public Unitholders
90
120
Note: All guidance items are consolidated to include Noble Midstream Partners LP results, except for capital expenditures.

Noble Energy (NASDAQ: 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.

(1)
Non-GAAP measure. Calculated as Upstream operating cash flows before working capital changes plus NBLX distribution to Noble Energy less Upstream organic capital
(2)
Represents organic NBL-funded expenditures
(3)
Includes lease operating expenses, production and ad valorem taxes, gathering, transportation and processing expenses, and other royalty
(4)
Does not include risk-weighted costs for any potential unsuccessful wells statused in 2020

4



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


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 reports 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

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