Document
false0000072207 0000072207 2020-05-08 2020-05-08


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 8, 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 May 8, 2020 Noble Energy, Inc. (the “Company”) issued a press release announcing results for the fiscal quarter ended March 31, 2020. A copy of the press release issued by the Company is furnished as Exhibit 99.1 to this Current Report and will be published on the Company’s website at www.nblenergy.com.
The Company’s press release announcing its financial results for its fiscal quarter ended March 31, 2020 contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles, or GAAP. The Company has provided quantitative reconciliations within the press release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
In accordance with General Instruction B.2. of Form 8-K, the information set forth herein and in the press release is deemed to be “furnished” and shall not be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Item 7.01. Regulation FD Disclosure.
On May 8, 2020, 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:
May 8, 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 FIRST QUARTER RESULTS

HOUSTON (May 8, 2020) -- Noble Energy, Inc. (NASDAQ: NBL) (“Noble Energy” or the “Company”) today provided first quarter financial and operating results. First quarter highlights include:

Financial liquidity of $4.4 Bn including $1.4 Bn of cash and $3.0 Bn of available capacity on the Company’s unsecured revolver.

Consolidated cash flow from operations totaled $482 MM, benefiting from strong sales volumes, hedging gains and reduced cash costs.
Prior to working capital changes, consolidated cash flow from operations was $636 MM.

Organic capital expenditures for Noble Energy totaled $399 MM, more than 20% below the midpoint of guidance, due to U.S. onshore capital efficiencies and lower international spend.

Sales volumes of 390 MBoe/d were in the upper half of guidance.
Oil volumes of 139 MBbl/d were at the top of guidance, led by well productivity and completion acceleration onshore, along with strong liftings in Equatorial Guinea.

Leviathan, offshore Israel, commenced domestic sales on December 31, 2019 and export sales to Jordan and Egypt at the beginning of 2020.

Unit production expense of $7.77 per BOE was significantly below the low end of guidance.


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“Our first quarter results highlight the Company’s ability to execute, evidenced by strong operational and financial outcomes. However, the momentum we have built in our business has been overshadowed by the external events of early 2020. As we navigate through this uncertain time, our first priority is the health and safety of our employees, support staff, and the communities we touch," stated David L. Stover, Noble Energy’s Chairman and CEO. "The current macroeconomic and commodity environment require rapid and significant adjustments to industry activity levels. In response to the global COVID-19 pandemic and the oversupplied crude oil market, Noble Energy is prioritizing strong financial liquidity and resilience over development at less than acceptable returns. Looking forward, our unique asset portfolio and financial strength position the Company well for substantial value creation as we come through this current down-cycle to the other side.”


Noble Energy's Response in Current Environment
Lowered full-year expected 2020 capital expenditures more than 50% from original plan to a range of $750 to $850 million.
Identified $225 million in cash cost savings (from lease operating, production taxes, gathering and transportation, general and administrative, and asset retirement) versus original expectations.
Lowered executive leadership salaries and decreased cash retainer to directors through year-end 2020.
Voluntarily curtailing net oil production of 5-10 MBbl/d in May and 30-40 MBbl/d in June from the Company's U.S. onshore assets.
Cash-settled certain 2020 crude oil hedges that had reached maximum value, generating an additional $160 million in realized gains in the first quarter, and added new downside oil hedge protection through the remainder of 2020.
Reduced the Company's annualized dividend to $0.08 per share, prioritizing financial liquidity and the balance sheet.


First Quarter 2020 Results
The Company reported first quarter net loss attributable to Noble Energy of $4.0 billion, or $8.27 per diluted share. Excluding items impacting comparability, the Company generated adjusted net income and adjusted net income per share(1) attributable to Noble Energy for the quarter of $85 million and $0.18 per diluted


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share. Adjusted EBITDAX(1) was $715 million, and cash provided by operating activities was $482 million. Prior to working capital changes, operating cash flow was $636 million for the quarter.

First quarter capital expenditures funded by Noble Energy were $399 million, more than $75 million below the low end of guidance due to lower U.S. Onshore well costs and the deferral of offshore spend. Organic capital expenditures attributable to Noble Energy included $332 million related to U.S. onshore activities, $34 million of which was line-fill for the EPIC Crude Oil Pipeline which recently commenced full service. Noble Energy also invested $31 million in the Eastern Mediterranean, primarily for Leviathan infrastructure, and $19 million in West Africa for the Alen Gas Monetization project.

Noble Midstream Partners LP’s (NASDAQ: NBLX) capital expenditures totaled $196 million for the quarter, including $43 million for build out of gathering systems in the DJ and Delaware Basins, $66 million related to EPIC and Delaware Crossing pipeline investments, and $87 million related to the acquisition of interest in the Saddlehorn pipeline.

Oil, gas and natural gas liquid (NGL) revenues for the quarter benefited from strong production performance. Sales volumes for the quarter averaged 390 thousand barrels of oil equivalent per day (MBoe/d), with the U.S. onshore assets averaging 269 MBoe/d, West Africa sales of 55 MBoe/d and Israel averaging 393 million cubic feet equivalent per day (MMcfe/d). Oil sales volumes were at the high end of guidance, totaling 139 thousand barrels of oil per day (MBbl/d), with U.S. onshore oil volumes of 117 MBbl/d.

Unit production expenses for the first quarter 2020 were $7.77 per barrel of oil equivalent (BOE), including lease operating expenses (LOE), production taxes, gathering, transportation and processing expenses, and other royalty costs. These costs were below the low end of guidance as the Company continued to optimize workover, rental compression, and labor costs. In addition, production taxes were below original plan as a result of the lower commodity realizations in March.



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Marketing and other, including sales and costs of purchased oil and gas, netted to $23 million of expense for the quarter, primarily reflecting mitigation of firm transportation costs. Depreciation, depletion and amortization was $13.87 per BOE and general and administrative expenses totaled $85 million for the quarter, reflecting continued focus on reducing the Company's corporate cost structure.

Losses from equity method investments totaled $24 million for the first quarter, primarily impacted by the acceleration of turnaround maintenance expenditures into the first quarter at the AMPCO Methanol Plant in Equatorial Guinea, along with weakness in global commodity pricing.

The Company’s effective tax rate on adjusted earnings was approximately 20%. On this basis, current tax expense was $35 million, resulting from the income generated in West Africa and Israel. Deferred taxes were a benefit of $25 million on this same basis.

Included in the Company’s results for the quarter were $4.2 billion of impairments associated with the Company’s Texas proved and unproved properties, resulting from a decline in commodity prices. The Company's consolidated financials also included a $110 million goodwill impairment ($38 million to Noble Energy's interest) related to Noble Midstream Partners Saddle Butte Pipeline system in the DJ Basin.

U.S. Onshore
Sales volumes from the Company’s U.S. onshore assets totaled 269 MBoe/d in the first quarter, with the DJ Basin contributing 156 MBoe/d, the Delaware averaging 67 MBoe/d, and Eagle Ford of 46 MBoe/d. During the quarter, the Company operated 4.5 rigs (2.5 DJ and 2 Delaware) and drilled 56 wells (42 DJ and 14 Delaware) onshore. Noble Energy completed 59 wells (36 DJ and 23 Delaware) and commenced production on 51 new wells (29 DJ and 22 Delaware). The number of wells commencing production was higher than anticipated as the Company continued to reduce drilling and completion cycle times through operational efficiencies.



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In the DJ Basin, total sales volumes and oil were higher than planned, benefitting from strong well performance in Mustang, Wells Ranch and East Pony. First quarter 2020 activity was focused in Wells Ranch and Mustang where 20 wells from Row 2 were turned to production. Recent Mustang wells utilize a revised tankless facility, contributing to a smaller surface footprint, decreased emissions and improved well costs. LOE for the quarter reflected continuous improvement initiatives, including compression optimization and reduced labor costs, resulting in LOE of $3.36 per BOE. During the quarter, the Company received approval for the Wells Ranch Comprehensive Drilling Plan (CDP). This CDP encompasses 41,000 acres, with the potential for an additional 250 drilling permits to be approved.

Delaware Basin sales volumes were higher than plan due to strong base well performance and accelerated turn-in-lines. Of the 22 wells commencing production in the quarter, 20 were Wolfcamp A wells focused in the northern and central portion of the Company’s acreage, with the remaining two wells being 3rd Bone Spring. Record low LOE of $6.67 per BOE benefitted from artificial lift optimization, lower workover expense, and reliability improvements provided by the Company's electrical substations. Full service on the EPIC crude oil pipeline began April 1, 2020.

The Company's Eagle Ford operations continue to focus on cash flow optimization.

Eastern Mediterranean
First quarter 2020 sales volumes from the Company’s Israel assets totaled 393 MMcfe/d, an increase of 80% from the fourth quarter of 2019, due to the startup of Leviathan. Gross daily sales averaged 785 and 636 MMcfe/d for the Tamar and Leviathan fields, respectively, in the quarter, for a total of 1.42 billion cubic feet of natural gas equivalent per day. Gross sales to Israel averaged 1,052 MMcfe/d, while exports averaged 370 MMcfe/d. Beginning in March 2020, demand in the region began to be negatively impacted by the regional and global economic slowdown resulting from the COVID-19 pandemic.



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The Leviathan project experienced approximately 95% runtime during its first quarter after startup, with export systems to Jordan and Egypt being successfully brought online. Commissioning activities for Leviathan continued during the quarter, and all four wells are now capable of producing over 350 MMcfe/d each.

West Africa
Sales volumes for Equatorial Guinea averaged 55 MBoe/d, including 21 MBbl/d of crude oil. Liquid sales volumes for the quarter were higher than production volumes by approximately 3 MBbl/d. Strong performance from the Aseng 6P oil development well contributed to higher than planned liftings.

The Alen Gas Monetization project continues to progress towards an early 2021 start-up. All equipment and material deliveries remain on track to achieve this outcome in the face of COVID-19 induced global supply chain challenges. During the quarter, the Company finalized its Alen LNG offtake arrangement with sales to a large multi-national LNG trader.

Capital and Cost Guidance
As a result of the current macroeconomic and commodity environment, the Company has further lowered its planned full year capital expenditures by $50 million to a range of $750 to $850 million, which represents a reduction of 53% from the midpoint of its original guidance. Approximately 50% of the updated capital expenditure amount was spent in the first quarter.

U.S. onshore capital expenditures are now estimated to be $575 million for full-year 2020. The Company is currently operating one drilling rig (in the DJ Basin) and has temporarily halted all completion activity. The remaining capital is expected to be allocated towards major project developments and necessary pipeline infrastructure in Equatorial Guinea and Israel. The Company’s exploration activity offshore Colombia has been deferred beyond 2020.



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Reflecting continued cost reduction initiatives and changes in the Company's anticipated production, an additional $50 million in cash cost savings (from lease operating, general and administrative, and asset retirement) has been identified for a total reduction of $225 million for 2020. Combined with reduced capital and dividend payments, the Company has reduced its cash outlays for 2020 on these items by approximately $1.3 billion.

Given the uncertainty of COVID-19 impact and the pace of oil demand recovery, the Company is not providing detailed volume or cost guidance for 2020 at this time.

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

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

Webcast and Conference Call Information
Noble Energy, Inc. will host a live audio webcast and conference call at 8 a.m. Central Standard Time on Friday, May 8, 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: 2226527


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,


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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


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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, the potential adverse impact of the COVID-19 pandemic on the Company's business, financial condition and results of operations, and the markets and communities in which the Company operates, 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.


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Schedule 1
Noble Energy, Inc.
Summary Statement of Operations
(in millions, except per share amounts, unaudited) 
 
Three Months Ended March 31,
 
2020
 
2019
Revenues
 
 
 
Oil, NGL and Gas Sales
$
894

 
$
937

Sales of Purchased Oil and Gas
125

 
74

(Loss) Income from Equity Method Investments and Other
(24
)
 
17

Midstream Services Revenues – Third Party
25

 
24

Total Revenues
1,020

 
1,052

Operating Expenses
 
 
 
Lease Operating Expense
138

 
151

Production and Ad Valorem Taxes
39

 
49

Gathering, Transportation and Processing Expense
95

 
102

Other Royalty Expense
4

 
3

Exploration Expense (1)
1,504

 
24

Depreciation, Depletion and Amortization
492

 
508

General and Administrative
85

 
102

Cost of Purchased Oil and Gas
139

 
87

Marketing Expense
9

 
5

Asset Impairments
2,703

 

Goodwill Impairment
110

 

Other Operating Expense, Net
35

 
112

Total Operating Expenses
5,353

 
1,143

Operating Loss
(4,333
)
 
(91
)
Other (Income) Expense
 
 
 
(Gain) Loss on Commodity Derivative Instruments
(389
)
 
212

Interest, Net of Amount Capitalized
81

 
66

Other Non-Operating (Income) Expense, Net
(7
)
 
4

Total Other (Income) Expense
(315
)
 
282

Loss Before Income Taxes
(4,018
)
 
(373
)
Income Tax Benefit
(11
)
 
(84
)
Net Loss and Comprehensive Loss Including Noncontrolling Interests
(4,007
)
 
(289
)
Less: Net (Loss) Income and Comprehensive Income Attributable to Noncontrolling Interests (2)
(44
)
 
24

Net Loss and Comprehensive Loss Attributable to Noble Energy
$
(3,963
)
 
$
(313
)
Net Loss Attributable to Noble Energy Per Share of Common Stock
 
 
 
Loss Per Share, Basic and Diluted
$
(8.27
)
 
$
(0.65
)
Weighted Average Number of Shares Outstanding - Basic and Diluted
479

 
478


(1) 
$1,485 million of the $1,504 million of exploration expense relates to leasehold asset impairment recorded in first quarter 2020.
(2) 
The Company consolidates Noble Midstream Partners LP (NBLX), a publicly traded subsidiary of Noble Energy, as a variable interest entity for financial reporting purposes. The public's ownership interest in NBLX is reflected as a noncontrolling interest in the financial statements.

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on May 8, 2020.

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Schedule 2
Noble Energy, Inc.
Condensed Statement of Cash Flows
(in millions, unaudited)
 
Three Months Ended March 31,
 
2020
 
2019
Cash Flows From Operating Activities
 
 
 
Net Loss Including Noncontrolling Interests (1)
$
(4,007
)
 
$
(289
)
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities
 
 
 
Depreciation, Depletion and Amortization
492

 
508

Leasehold Impairment
1,485

 

Asset Impairments
2,703

 

Goodwill Impairment
110

 

Firm Transportation Exit Cost

 
92

Deferred Income Tax Benefit
(48
)
 
(100
)
(Gain) Loss on Commodity Derivative Instruments
(389
)
 
212

Net Cash Received in Settlement of Commodity Derivative Instruments
208

 
14

Other Adjustments for Noncash Items Included in Income
82


28

Net Changes in Working Capital
(154
)
 
63

Net Cash Provided by Operating Activities
482

 
528

Cash Flows From Investing Activities
 
 
 
Additions to Property, Plant and Equipment
(479
)
 
(763
)
Additions to Equity Method Investments (2)
(226
)
 
(271
)
Net Proceeds from Divestitures (3)
17

 
123

Other
(8
)
 

Net Cash Used in Investing Activities
(696
)
 
(911
)
Cash Flows From Financing Activities
 
 
 
Dividends Paid, Common Stock
(58
)
 
(53
)
Noble Midstream Services Revolving Credit Facility, Net
155

 
170

Revolving Credit Facility, Net
1,000

 

Contributions from Noncontrolling Interest Owners (4)
78

 
10

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

 
99

Other
(48
)

(32
)
Net Cash Provided by Financing Activities
1,127

 
194

Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
913


(189
)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period (6)
484

 
719

Cash, Cash Equivalents, and Restricted Cash at End of Period (7)
$
1,397

 
$
530


(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 (loss) income attributable to noncontrolling interests in NBLX.
(2) 
Additions include NBLX's investments in EPIC Y-Grade, LP, EPIC Crude Holdings, LP, EPIC Propane and Delaware Crossing LLC. Additionally, $160 million of the investments in 2020 relates to NBLX's investment in Saddlehorn Pipeline, which includes $73 million of externally funded capital. NBLX's investment in Saddlehorn Pipeline, net of externally funded capital, was $87 million.
(3) 
For the three months ended March 31, 2019, proceeds related to the SW Reeves County, Texas asset divestiture.
(4) 
$73 million represents externally funded capital for NBLX's investment in Saddlehorn Pipeline.
(5) 
Proceeds relate to the issuance of preferred equity by NBLX, which is redeemable and therefore presented within the mezzanine section of our consolidated balance sheets. The preferred equity is held by a third party; thus it is considered a redeemable noncontrolling interest.
(6) 
As of the beginning of the periods presented, amounts include $0 million and $3 million of restricted cash, respectively.

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(7) 
As of March 31, 2020 and March 31, 2019, amounts include $0 million and $2 million of restricted cash, respectively.


These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on May 8, 2020.

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Schedule 3
Noble Energy, Inc.
Condensed Balance Sheets
(in millions, unaudited)
 
March 31, 2020
 
December 31, 2019
Assets
 
 
 
Current Assets
 
 
 
Cash and Cash Equivalents
$
1,397

 
$
484

Accounts Receivable, Net
562

 
730

Other Current Assets
353

 
148

Total Current Assets
2,312

 
1,362

Property, Plant and Equipment, Net
13,221

 
17,451

Other Noncurrent Assets
1,925

 
1,834

Total Assets
$
17,458

 
$
20,647

Liabilities, Mezzanine Equity and Shareholders' Equity
 
 
 
Current Liabilities
 
 
 
Accounts Payable - Trade
$
1,099

 
$
1,250

Other Current Liabilities
651

 
719

Total Current Liabilities
1,750

 
1,969

Long-Term Debt
 
 
 
Long-Term Debt - Noble Energy
6,982

 
5,982

Long-Term Debt - NBLX
1,650

 
1,495

Total Debt
8,632

 
7,477

Deferred Income Taxes
615

 
662

Other Noncurrent Liabilities
1,306

 
1,378

Total Liabilities
12,303

 
11,486

Total Mezzanine Equity (1)
109

 
106

Total Shareholders' Equity
4,397

 
8,410

Noncontrolling Interests (2)
649

 
645

Total Equity
5,046

 
9,055

Total Liabilities and Equity
$
17,458

 
$
20,647


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


These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on May 8, 2020.

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Schedule 4
Noble Energy, Inc.
Volume and Price Statistics
(unaudited)
 
Three Months Ended March 31,
Sales Volumes
2020
 
2019
Crude Oil and Condensate (MBbl/d)
 
 
 
United States Onshore
117

 
113

Equatorial Guinea
20

 
12

Equity Method Investments - Equatorial Guinea
1

 
1

Total (1)
139

 
127

Natural Gas Liquids (MBbl/d)
 
 
 
United States Onshore
66

 
59

Equity Method Investments - Equatorial Guinea
4

 
4

Total
70

 
63

Natural Gas (MMcf/d)
 
 
 
United States Onshore
516

 
483

Israel
390

 
233

Equatorial Guinea
178

 
168

Total
1,084

 
884

Total Sales Volumes (MBoe/d)
 
 
 
United States Onshore
269

 
253

Israel
66

 
39

Equatorial Guinea
50

 
40

Total Consolidated Operations
385

 
332

Equity Method Investments - Equatorial Guinea
5

 
5

Total Sales Volumes (MBoe/d)
390

 
337

 
 
 
 
Total Sales Volumes (MBoe)
35,462

 
30,375

 
 
 
 
Price Statistics - Realized Prices (2)
 
 
 
Crude Oil and Condensate ($/Bbl)
 
 
 
United States Onshore
$
46.10

 
$
53.46

Equatorial Guinea
47.35

 
61.01

Natural Gas Liquids ($/Bbl)
 
 
 
United States Onshore
$
10.30

 
$
17.86

Natural Gas ($/Mcf)
 
 
 
United States Onshore
$
1.27

 
$
2.49

Israel
5.36

 
5.57

Equatorial Guinea
0.27

 
0.27


(1) 
Amounts include a small amount of condensate from the Company’s offshore Israel assets.
(2) 
Average realized prices do not include gains or losses on commodity derivative instruments. For the three months ended March 31, 2020 and 2019, including the impact of hedges settled (while excluding the impact of early terminated hedges) in the period, the Company's U.S. onshore oil price was $49.85 and $54.59 per Bbl, respectively, Equatorial Guinea oil price was $47.35 and $58.22 per Bbl, respectively, and U.S. onshore gas price was $1.23 and $2.61 per Mcf, respectively.

14


Schedule 5
Noble Energy, Inc.
Reconciliation of Net Loss Attributable to Noble Energy and Per Share (GAAP) to
Adjusted Net Income (Loss) Attributable to Noble Energy and Per Share (Non-GAAP)
(in millions, except per share amounts, unaudited)

Adjusted net income (loss) 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 income (loss) 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 income (loss) 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 income (loss) attributable to Noble Energy and per share (Non-GAAP), may not be comparable to similar measures of other companies in our industry.
 
Three Months Ended March 31,
 
2020
 
2019
Net Loss Attributable to Noble Energy (GAAP)
$
(3,963
)
 
$
(313
)
Adjustments to Net Loss
 
 
 
Firm Transportation Exit Cost

 
92

Leasehold Impairment
1,485

 

Asset Impairments
2,703

 

Goodwill Impairment (1)
38

 

Finance Lease Impairment
40

 

(Gain) Loss on Commodity Derivative Instruments, Net of Cash Settlements
(181
)
 
226

Other Adjustments
(16
)
 
19

Total Adjustments Before Tax
4,069

 
337

Current Income Tax Effect of Adjustments (2)
2

 
(3
)
Deferred Income Tax Effect of Adjustments (2)
(23
)
 
(65
)
Adjusted Net Income (Loss) Attributable to Noble Energy (Non-GAAP)
$
85

 
$
(44
)
 
 
 
 
Net Loss Attributable to Noble Energy Per Share, Basic and Diluted (GAAP)
$
(8.27
)
 
$
(0.65
)
Firm Transportation Exit Cost

 
0.19

Leasehold Impairment
3.10

 

Asset Impairments
5.64

 

Goodwill Impairment
0.08

 

Finance Lease Impairment
0.08

 

(Gain) Loss on Commodity Derivative Instruments, Net of Cash Settlements
(0.37
)
 
0.47

Other Adjustments
(0.03
)
 
0.04

Deferred Income Tax Effect of Adjustments (2)
(0.05
)
 
(0.14
)
Adjusted Net Income (Loss) Attributable to Noble Energy per Share, Diluted (Non-GAAP)
$
0.18

 
$
(0.09
)
 
 
 
 
Weighted Average Number of Shares Outstanding, Basic
479

 
478

Weighted Average Number of Shares Outstanding, Diluted
482

 
478


(1) 
Noble Midstream Partners, LP (NBLX) recorded goodwill impairment expense of $110 million during first quarter 2020. Goodwill impairment expense attributable to Noble Energy of $38 million represents Noble Energy's portion of the impairment relating to our ownership interests in Black Diamond and is reflected as an adjustment to net income (loss) attributable to Noble Energy (Non-GAAP). The portion of impairment expense attributable to noncontrolling interests of $72 million is appropriately excluded from the above schedule.
(2) 
Amounts represent the income tax effect of adjustments, determined for each major tax jurisdiction for each adjusting item.


15


Schedule 6
Noble Energy, Inc.
Reconciliation of Net 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 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 March 31,
 
2020
 
2019
Net Loss Including Noncontrolling Interests (GAAP)
$
(4,007
)
 
$
(289
)
Adjustments to Net Loss, After Tax (1)
4,048

 
269

Goodwill Impairment (2)
72

 

Depreciation, Depletion and Amortization
492

 
508

Exploration Expense (3)
19

 
24

Interest, Net of Amount Capitalized
81

 
66

Current Income Tax Expense (4)
35

 
19

Deferred Income Tax Benefit (4)
(25
)
 
(35
)
Adjusted EBITDAX (Non-GAAP)
$
715

 
$
562


(1) 
See Reconciliation of Net Loss Attributable to Noble Energy (GAAP) to Adjusted Net Income (Loss) Attributable to Noble Energy (Non-GAAP).
(2) 
Represents remaining goodwill impairment expense attributable to noncontrolling interest after reversal of Adjustments to Net Loss, After Tax, above.
(3) 
Represents remaining exploration expense after reversal of Leasehold Impairment expense Adjustments to Net Loss, After Tax, above.
(4) 
Represents remaining Income Tax Benefit after reversal of "Adjustments to Net Loss, After Tax", above.


16


Schedule 7
Noble Energy, Inc.
Capital Expenditures
(in millions, unaudited)
 
Three Months Ended March 31,
 
2020
 
2019
Noble Energy Capital Expenditures
 
 
 
Organic Capital Expenditures Attributable to Noble Energy (1)
$
399

 
$
683

Acquisition Capital Attributable to Noble Energy
6

 
39

Total Capital Expenditures Attributable to Noble Energy (Accrual Based)
$
405

 
$
722

 
 
 
 
Noble Midstream Partners Capital Expenditures
 
 
 
Organic Capital Expenditures Attributable to Noble Midstream Partners
$
43

 
$
29

Additions to Equity Method Investments Attributable to Noble Midstream Partners (2)
153

 
271

Total Capital Expenditures Attributable to Noble Midstream Partners (Accrual Based)
$
196

 
$
300

 
 
 
 
Increase in Finance Lease Obligations
8

 
2


(1) 
The months ended March 31, 2019 includes $37 million of midstream capital not funded by Noble Midstream Partners, LP (NBLX).
(2) 
Additions to equity method investments for 2019 and 2020 primarily include NBLX's investments in EPIC Y-Grade, LP, EPIC Crude Holdings, LP, EPIC Propane, and Delaware Crossing LLC. Additionally, investments in 2020 includes NBLX's investment in Saddlehorn of $87 million, which excludes $73 million of externally funded capital.

17
a1q20earningsslides
1Q 2020 Results May 8, 2020


 
Strong 1Q Execution and Delivery www.nblenergy.com NASDAQ: NBL Better than plan on capital, costs and volumes Financial & Operating Metrics 1Q Guide 1Q Actuals ∆ Guide First Quarter Performance Organic Capital ($MM) 475 – 550 399 (113) Total Sales Volumes (MBoe/d) 378 – 398 390 2 Oil (MBbl/d) 129 – 139 139 5 Capital Expenditures Significantly Below 1Q Guide Total U.S. Oil (MBbl/d) 109 – 119 117 3 Israel Natural Gas (MMcfe/d) 410 – 440 393 (32) Strong 1Q Liquidity of $4.4 Bn, including $1.4 Bn in Unit Production Expenses ($/BOE) 8.50 – 9.25 7.77 (0.73) Cash Lease Operating Expense 3.91 GT&P 2.66 Well Productivity and Accelerated Completions Led to Production Taxes 1.10 U.S. Onshore Volumes Ahead of Plan Other Royalty 0.10 Marketing and Other(1) ($MM) 25 – 30 23 (4) Leviathan Commenced Production on December 31, DD&A ($/BOE) 13.75 – 14.75 13.87 (0.38) (2) 2019; Exports Commenced in January 2020 Exploration ($MM) 22 – 30 19 (7) G&A ($MM) 88 – 98 85 (8) Interest, net ($MM) 78 – 88 81 (2) Cost Performance Significantly Better than Plan Equity Investment Income ($MM) 0 – 10 (24) (29) Across All Areas Midstream Services Revenue ($MM) 30 – 38 25 (9) NCI – NBLX Public Unitholders(3) ($MM) 22 – 30 28 2 (1) Represents marketing costs and mitigation of firm transportation through 3rd party commodity purchases/sales. (2) Excluding exploration impairment related to unproved leasehold. 2 (3) Excludes NCI loss of $72 million related to NBLX goodwill impairment. Adjusted from earnings on Non-GAAP reconciliations in 1Q earnings release.


 
U.S. Onshore – 1Q Results www.nblenergy.com NASDAQ: NBL Production toward high end on lower than expected capital USO Net Production and Capex MBoe/d $MM 1Q20 Key Highlights 350 600 300 500 U.S. Onshore Efficiencies Exceeding Expectation 250 400 • Well costs reductions driven by shorter cycle times and 200 300 efficiency improvements 150 100 200 • Unit operating costs significantly below expectation with 50 100 LOE of $4.31 / BOE 0 0 1Q19 2Q19 3Q19 4Q19 1Q20 DJ Basin Momentum Continues Oil NGL Gas CAPEX • Well costs down an additional ~$200 K; LOE down 15% y/y 1Q20 Activity DJ Basin Delaware Eagle Ford Total • New econode design removes produced water and oil tanks Oil (MBbl/d) 69 41 7 117 reducing surface footprint, emissions, and well costs NGL (MBbl/d) 34 14 18 66 Gas (MMcf/d) 318 73 125 516 • Wells Ranch CDP approved with potential to add an Total Sales (MBoe/d) 156 67 46 269 additional 250 drilling permits Organic Capital ($MM) 186 141 5 332 Delaware Basin Execution Enhancements Operated Rigs (1) 2.5 2 0 4.5 Wells Drilled (1) 42 14 0 56 • Well costs down an additional ~$700 K Wells Completed (1) 36 23 0 59 Wells Brought Online (1) 29 22 0 51 • Avg. drilling days reduced to ~13, >15% improvement Avg. Working Interest 99% 88% - sequentially Avg. Lateral Length (ft) 9,708 8,088 - • Record low LOE at $6.67 / BOE; down >30% year over year (1) Activity represents NBL operated only 3


 
Offshore – 1Q Results www.nblenergy.com NASDAQ: NBL Strong base performance with major project catalysts Eastern Mediterranean Gross Sales Volumes MMcfe/d 1Q20 Key Highlights 1,600 Leviathan contributes substantial growth YoY Leviathan Commissioning Near Complete Israel Exports • Start-up and 1Q20 operations safely completed without a 1,200 recordable incident • Exports to Jordan and Egypt underway early in 1Q20 800 • ~95% runtime at the Leviathan platform during 1Q20 400 Eastern Mediterranean Unit Production Costs Lower 0 than Anticipated at ~$0.45 / Mcfe 1Q18 1Q19 1Q20 Equatorial Guinea Net Sales Volumes Aseng 6P Outperformance Contributes to Additional Oil MBoe/d Oil volumes benefittedFully constructed by Aseng Leviathan6P platform Lifting Volumes in EG 60 Oil NGL Gas Alen Gas Monetization Progresses with Offtake 45 Contracts Finalized • Line pipe began arriving in EG in early March 30 • Offtake sales agreement finalized • Project on track for an early 2021 start-up 15 0 1Q18 1Q19 1Q20 4


 
Financial Position www.nblenergy.com NASDAQ: NBL Continued focus on financial strength and flexibility $ Bn No Near-term Upcoming NBL Debt Maturities Robust Liquidity of $4.4 Bn at end of 1Q 4 • $1.4 Bn cash on hand; $3.0 Bn available from unsecured, committed credit facility, held by ~25 banks 3 ▪ Proactive 1Q20 draw an abundance of caution Expect to repay 2 $1 Bn revolver draw as • NBL credit facility contains only one financial covenant – normalcy returns to debt to total capitalization(1) less than 65% market ▪ Ended 1Q20 at ~35% 1 - Actions to Reduce Cash Outflows and Preserve 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2040+ Note: NBLX debt is non-recourse to NBL and is not depicted Liquidity • ~$1.3 Bn in savings through capital reductions, cost Advantageous Bond Maturity Profile 10.0% Median improvements and adjusted dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0% Peer Leading Bond Maturity Profile at Competitive 6.0% Rates Coupon Avg Median • No significant maturities through 2024 4.0% NBL Wtd 2.0% Investment Grade Credit Rating Across All Agencies 4 6 8 10 12 14 16 18 20 Wtd Avg Years to Maturity Note: Peers include APA, CHK, CLR, DVN, EOG, HES, MRO, MUR, OVV, WPX, XEC (1) As defined by the revolving credit facility agreement. 5


 
Hedge Book www.nblenergy.com NASDAQ: NBL Maximizing cash flows; protecting near-term downside 2020 WTI Hedged Volumes MBbl/d Weighted Avg Floor Weighted Average Cap Price 1Q Cash Received from Hedges Totaled $208 MM 140 $50 • Settled FY 2020 hedges (swaps, puts, 3-way collars) that had 120 reached maximum value below $48 WTI $40 100 80 $30 Rebuilt 2020 Crude Oil Hedge Protection With Fixed 60 $20 Price Swaps in 2Q and Swaps/Collars in 2H 40 $10 • 2Q oil swaps materially above current strip pricing 20 • 2H hedges providing upside in recovery scenario 0 $0 Q2 Q3 Q4 MMcf/d 2020 U.S. Gas Hedges Significant Basis Swap Positions for WTI Roll, 160 Delaware Crude and DJ Basin Natural Gas 120 Wtd Avg Go-Forward Hedge Book as of March 31, 2020 Valued at Wtd Avg 80 Floor: $2.63 Price: $(0.56) ~$235 MM at Current Strip Prices Cap: $2.68 40 Wtd Avg Price: $(1.05) 0 Henry Hub Hedges CIG Basis Waha Basis Note: see April 20, 2020 8K filing for full hedge position 6


 
2020 Updated Outlook www.nblenergy.com NASDAQ: NBL Capital discipline; focus on balance sheet and returns 2020 Capex Guidance $MM Capital Reduced 53% from Original Plan to $750 - $850 MM 2,500 $900 MM in capital reductions USO Israel WA • Deferring U.S. Onshore activity for more favorable environment 2,000 Capital • Major project spend on high-return projects in Israel and E.G. moving ahead; deferring exploration spend beyond 2020 1,500 1,000 500 Cash Expenses Decreased ~$225 MM 0 • Operating expenses anticipated to decrease by >10% 2019 2020E Original 2020E Updated • Cost initiatives, including executive compensation changes, 2020 Cash Cost Expectations Expense anticipated to reduce G&A by $50 MM $MM ~$225 MM in savings 1,800 Production Expenses G&A 1,500 Proactive in Preserving Financial Strength; $4.4 Bn in 1,200 Liquidity 900 • $1.4 Bn in cash as of 1Q20, no near-term maturities 600 300 Strength Financial • Collected $208 MM of cash proceeds from 1Q20 hedges; added additional protection for 2Q-4Q at attractive prices 0 2020E Original 2020E Updated 7


 
2020 Updated Outlook www.nblenergy.com NASDAQ: NBL Operational flexibility provides value preservation Positioning for the Future Value over Volume Capital Efficiency Improving with Sustainable Deferring Near-term Completion Activity Changes • Reduced U.S. onshore well costs through cycle time Voluntarily Curtailing Volumes in Q2 improvements • Curtailment decisions based on: • Exiting 2020 with >100 DUCs • Lower productivity wells and workover 1 deferrals where variable costs exceed netback pricing Anticipate U.S. Onshore Maintenance Capital of $600 - $700 MM in 2021 • 2 Deferral of high-rate production to a • Holding 4Q20 oil / BOE volumes flat to FY 2021 higher value time Supporting Margins Through Cash Cost Conventional Assets Anticipated to Generate Reductions Growth in 2021 with Minimal Capital • • Supply chain management and reduced Alen Gas Monetization contributing to growing cash workover expense improving LOE flow in 2021 • Eastern Mediterranean production capacity of 2.3 • Reduced G&A equates to $50 MM+ in annual Bcfe/d provides cash flow growth opportunity with savings no capital spend 8


 
U.S. Onshore – Updated 2020 Plans www.nblenergy.com NASDAQ: NBL Minimizing activity; maintaining flexibility for future 2020 Outlook U.S. Onshore Capital Reduced to ~$575 MM • >55% of the 2020 total was spent in 1Q20; remaining amount weighted towards DJ activity Whitecliffs & • TIL activity finished in April; suspended all completion Saddlehorn Pipelines activity, reserving $75-$100 MM for potential 4Q activity • Implementing voluntary curtailments beginning in May • 5-10 MBbl/d in May • 30-40 MBbl/d in June DJ Basin Building DUC Inventory • 1 rig retained for the remainder of the year, drilling low cost, Mustang Row 3 wells (~5 wells drilled per month) Delaware Basin Activity Deferred For More Favorable Price Environment • No current activity • EPIC Crude Pipeline commenced full service early in 2Q 9


 
Eastern Mediterranean – Updated 2020 Plans www.nblenergy.com NASDAQ: NBL Differentiated asset base with long-term free cash flow Aphrodite Leviathan Tamar Strong Initial 2020 Performance – January / February Sales 39.7% WI 25% WI 35% WI Avg. ~1.5 Bcfe/d, 1Q20 Avg. 1.42 Bcfe/d Dalit 25% WI • Leviathan per well deliveries proven to >350 MMcfe/d; facility Dor Tamar SW runtime last month avg. ~100% 25% WI Tel Aviv • COVID-19 pandemic began impacting regional gas demand late 1Q Ashdod Ashkelon Beginning to see Economic Recovery in Israel and EMed El Arish Jordan Israel Region Following COVID-19 Impacts • 2Q volumes anticipated lowest for 2020 due to weather seasonality Egypt 2H 2020 Anticipated Sales Volume Increase Reflects Egypt Leviathan Platform Volume Uplift and Seasonal Demand • Pipeline expansion work for EMG remains on schedule • 3Q anticipated to be highest demand for 2020 Combined Installed Capacity of 2.3 Bcfe/d Supports Future Demand Growth with Minimal Capital Spend Tamar Platform 10


 
West Africa – Updated 2020 Plans www.nblenergy.com NASDAQ: NBL Strong base reservoir performance; continuing forward with Alen gas NBL Interests Higher Planned Oil Liftings (Brent Pricing) Expected in 2020, Alba Discoveries 33% WI Aseng FPSO Driven by Strong Base Performance and Aseng 6P Impact Alen Gas Monetization Future Pipeline • 4Q20 West Africa volumes to be impacted by planned maintenance at Existing Pipeline Equity Method Aseng and construction at Alen Investments Equatorial Alen Unaffiliated Party Guinea Punta 45% WI Alen Gas Monetization Project ~30% Complete; Still on Europa Bioko BLOCK O Island YoYo Schedule for Early 2021 Startup BLOCK I 75% WI AMPCO Alba Plant • Delivered and offloaded all line pipe in EG (Methanol Plant) (LPG Plant) Aseng • Managing all equipment deliveries and project installation in light of 38% WI Yolanda EG LNG 40% WI global COVID-19 pandemic (LNG Plant) Cameroon • Initial net production rate 75-115 MMcfe/d, including condensate and LPGs Alen line pipe offload in EG during 1Q Finalized Alen Gas Marketing Contract with Large Global LNG Trader • Sales point FOB LNG plant • Anticipate ~2 year payout of capital based on current global pricing and toll arrangement • Approximately $230 MM expected cash flow swing from 2020 to 2021 11


 
Environmental, Social, and Governance www.nblenergy.com NASDAQ: NBL Committed to our people and the environment Metric Tons Record- Low 2019 Greenhouse Gas Emissions Intensity: >15% CO2e/MBoeGlobal Greenhouse Gas Emissions Reduction from 2017 16 Intensity • 2019 US Onshore production facilities constructed tankless 12 • Permian production reduced flaring by 50% in 2019 over 2018 • Delivered significant emissions reductions through the installation 8 of emission controls on Tamar MEG system 4 0 Keeping Products in The Pipe: 2019 Hydrocarbon Spill Volume 2017 2018 2019 Reduced by 70% from 2018 Incidents per • Ongoing focus on process safety 200,000 man-hours • Tankless production facility design and pipeline sales of oil 0.75 Record TRIR Safety Performance minimizes spills through decreased trucking and handling 0.50 “No Harm” Culture Integrates Safety in All Operations • Focus on safe and efficient operations, cascading the message in 0.25 one voice through all levels of the organization 0.00 • 2019 – US Onshore record TRIR performance 2010 2014 2019 12


 
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, the potential adverse impact of the COVID-19 pandemic on the Company’s business, financial condition and results of operations, and the markets and communities in which the Company operates 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. 13


 
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