Noble Energy Inc.
Aug 3, 2016

Noble Energy Announces Strong Second Quarter Results, Raises Full-Year 2016 Volumes to Average 415 MBoe/d, While Maintaining Full-Year Capital Under $1.5 Billion

HOUSTON, Aug. 03, 2016 (GLOBE NEWSWIRE) -- Noble Energy, Inc. (NYSE:NBL) ("Noble Energy" or "the Company") today announced results for the second quarter of 2016, including a reported net loss of $315 million, or $0.73 per diluted share.  The adjusted net loss(1) for the quarter was $103 million, or $0.24 per diluted share, which excludes the impact of certain items typically not considered by analysts in formulating estimates.  EBITDAX(1) (earnings before interest expense, income taxes, depreciation, depletion, and amortization, and exploration expenses) and Adjusted EBITDAX(1) were $291 million and $597 million, respectively. 

Capital expenditures for the quarter were $262 million, down approximately 70 percent from the second quarter of last year pro-forma for the Rosetta Resources Inc. merger.  For the second quarter of 2016, approximately 65 percent of the capital was allocated to U.S. onshore and approximately 35 percent to global offshore (including Gulf of Mexico and International). 

The Company sold record quarterly volumes of 427 thousand barrels of oil equivalent per day (MBoe/d) during the second quarter of 2016, with crude oil, natural gas and natural gas liquids (NGLs) all above original expectations.   Total sales volumes were higher by 43 percent compared to the second quarter of 2015, or 18 percent on a pro-forma basis.  Each core area was higher period over period, with U.S. oil volumes up 31 thousand barrels per day.  U.S. onshore sales volumes for the quarter were a record 282 MBoe/d, up 15 percent compared to the second quarter of 2015 pro-forma.  Global offshore sales volumes were 145 MBoe/d, an increase of 25 percent compared to the second quarter of 2015.  Liquids comprised 44 percent of second quarter 2016 volumes, with 29 percent being crude oil and condensate and 15 percent NGLs.  Natural gas accounted for the remaining 56 percent. 

David L. Stover, Noble Energy's Chairman, President and CEO, commented, "Our strong asset base and operational execution set a number of records in the second quarter.  These results were supported by additional capital efficiencies generated across our business, both onshore in the U.S., through enhanced completions, and offshore, with the delivery of new major projects.  Recent performance of the Texas assets has been particularly encouraging and continues to demonstrate the high-quality of our positions in both the Eagle Ford and the Delaware. We are delivering ahead of our original expectations for the year, having enhanced both our operating capabilities and our financial strength through the first half of the year.  Our performance sets us up for a strong finish this year leading into 2017."

All cost items for the quarter were in line with or below the Company's expectations.  Lease operating expenses (LOE) in the quarter were significantly lower at $3.07 per barrel of oil equivalent (BOE), a reduction of 30 percent compared to the second quarter of 2015 pro-forma.  LOE per BOE benefited from record sales volumes and lower than normal workover activity.  Transportation and gathering expenses totaled $2.97 per BOE while depreciation, depletion and amortization expenses for the quarter were $15.99 per BOE.  General and Administrative costs for the quarter were $107 million, down $25 million from the second quarter of last year pro-forma.  The Company's income tax rate for the quarter was 37 percent.

Adjustments to the Company's net loss for the second quarter of 2016 included unrealized commodity derivative losses, primarily related to existing crude oil hedging positions, as well as a loss on sale from the divestiture of non-core properties in Montana.  Also included was a tax adjustment related to the purchase price allocation for the Rosetta Resources Inc. merger completed in the third quarter of 2015, as well as well costs associated with the 2011 drilling of the Dolphin well offshore Israel due to the expiration of the associated exploration license.

OPERATIONS UPDATE
TEXAS (EAGLE FORD AND PERMIAN)
Record quarterly sales volumes of 74 MBoe/d were achieved in the second quarter of 2016, an increase of 17 percent from the second quarter of 2015 on a pro-forma basis and up 23 percent from the first quarter of 2016.  Liquids represented 62 percent of the total (25 percent crude oil and condensate and 37 percent NGLs), while natural gas accounted for the remaining 38 percent.  Eagle Ford production made up 90 percent of the volumes with the Permian delivering the remaining 10 percent.

Highlights include:

DJ BASIN
Sales volumes averaged 113 MBoe/d in the second quarter of 2016, an increase of nearly 5 percent from the second quarter of 2015.  Liquids represented 66 percent of DJ Basin volumes (46 percent crude oil and condensate and 20 percent NGLs) and 34 percent was natural gas.  Combined volumes for Wells Ranch and East Pony averaged 57 MBoe/d during the quarter, up 23 percent compared to the second quarter of 2015.  Volumes in the second quarter were impacted by a planned turn-around at the Wells Ranch central processing facility as well as unplanned third-party processing facility downtime.

Highlights include:

MARCELLUS SHALE
Sales volumes in the Marcellus Shale averaged 546 million cubic feet of natural gas equivalent per day (MMcfe/d) in the second quarter of 2016, an increase of 28 percent over the same quarter of last year and down approximately 5 percent versus the first quarter of 2016.  Natural gas represented 91 percent of the volumes sold, with the majority of the remainder composed of NGLs.

Highlights include:

GULF OF MEXICO
Sales volumes in the Gulf of Mexico averaged nearly 27 MBoe/d, an increase of 125 percent compared to the same quarter of last year.  Crude oil and condensate represented 84 percent of second quarter 2016 volumes, with 5 percent NGLs and 11 percent natural gas.

Highlights include:

EASTERN MEDITERRANEAN
Israel natural gas sales volumes averaged 276 MMcf/d, a second quarter record for the Company and an increase of 28 percent versus the second quarter of last year.  The higher volumes were primarily driven by greater displacement of coal for natural gas in the power generation sector and growth from industrial customers, as well as warmer weather in the quarter.

Highlights include:

WEST AFRICA
Sales volumes in West Africa averaged 72 MBoe/d, containing 40 percent crude oil and condensate, six percent NGLs, and 54 percent natural gas.

Highlights include:

UPDATED GUIDANCE
Driven by continued performance improvement and capital efficiency momentum achieved within the first half of 2016, Noble Energy has raised its full-year sales volume guidance while maintaining its existing capital expenditure outlook.  The Company anticipates full-year 2016 capital expenditures to be less than $1.5 billion while full-year 2016 sales volumes have been increased to an average of 415 MBoe/d.  On a divestment adjusted basis, (accounting for 3 MBoe/d in asset sales), the increase represents 28 MBoe/d, or a total of 10 million barrels of oil equivalent.  This equates to more than a 7 percent raise from the Company's original full-year expectation.    

Noble Energy expects third quarter capital expenditures between $400 million and $450 million, with approximately 80 percent of the amount targeted to the U.S. onshore assets.  For the majority of the third quarter and the remainder of the year, the Company will be operating a total of four rigs onshore in the U.S., including two within the DJ Basin, and one in each of the Eagle Ford and the Delaware. 

Sales volumes for the third quarter are anticipated to be between 405 MBoe/d and 415 MBoe/d, with the difference in volumes compared to the second quarter driven primarily by the timing of wells commencing production in the Eagle Ford.  Volumes in the Marcellus business unit are estimated to increase versus the second quarter.  In the DJ Basin, vertical production is expected to be lower, while horizontal production is anticipated to hold relatively flat.  In addition, the sale of the Company's Montana assets and Greeley Crescent areas will lower volumes by approximately two MBoe/d compared to the second quarter of this year.  Volumes in the Gulf of Mexico are anticipated to be equivalent with second quarter levels, while West Africa volumes will be lower as sales liftings are expected to be less than production.  Israel volumes are expected to be higher than the second quarter due to seasonal and underlying demand.

Additional detailed guidance for the remainder of the year is provided in the Company's supplemental slides for the quarterly webcast.  The slides are available on the Company's website.

(1) A Non-GAAP measure, see attached Reconciliation Schedules

WEBCAST INFORMATION

Noble Energy, Inc. will host a live audio webcast at 9:00 a.m. Central time today.  The webcast link is accessible on the ‘Investors' page at www.nobleenergyinc.com.  A replay will be available on the website.

Noble Energy (NYSE:NBL) is an independent oil and natural gas exploration and production company with a diversified high-quality portfolio of both U.S. unconventional and global offshore conventional assets spanning three continents.  Founded more than 80 years ago, the company is committed to safely and responsibly delivering our purpose: Energizing the World, Bettering People's Lives®. For more information, visit www.nobleenergyinc.com.

This news release contains certain "forward-looking statements" within the meaning of federal securities law.  Words such as "anticipates", "believes", "expects", "intends", "will", "should", "may", "estimates", 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.  They may include estimates of oil and natural gas reserves, 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 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 business that are discussed in its most recent annual report on Form 10-K and in other reports on file with the Securities and Exchange Commission ("SEC"). These reports are also available from Noble Energy's offices or website, http://www.nobleenergyinc.com.  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 forward-looking statements should circumstances, management's estimates, or opinions change.

This news release also contains certain 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 the attached schedules for reconciliations of the differences between any historical non-GAAP measures used in this news release and the most directly comparable GAAP financial measures.

The Securities and Exchange Commission 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 the Company's probable and possible reserves in our filings with the SEC. We use certain terms in this news release, such as "MBoe type curve", "MMBoe type curve" and "type curve", which are by their nature 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 annual report on Form 10-K and in other reports on file with the SEC, available from Noble Energy's offices or website, http://www.nobleenergyinc.com.  

 
Schedule 1
Noble Energy, Inc.
Summary Statement of Operations
(in millions, except per share amounts, unaudited)
 
 Three Months Ended
June 30,
 Six Months Ended
June 30,
 2016 2015 2016 2015
Revenues       
Crude Oil and Condensate$465  $483  $829  $914 
Natural Gas282  215  569  492 
Natural Gas Liquids (1)76  34  130  75 
Income from Equity Method Investees24   6  43  24 
Total Revenues847   738  1,571  1,505 
Operating Expenses       
Lease Operating Expense119  129  281   286 
Production and Ad Valorem Taxes40  28  43  61 
Transportation and Gathering Expense (1)115  61  222  122 
Marketing and Processing Expense, Net15  12  37  22 
Exploration Expense89  41  252  106 
Depreciation, Depletion and Amortization622  451  1,239  905 
General and Administrative107  104  198  198 
Other Operating (Income) Expense, Net2  73  (17) 99 
Total Operating Expenses1,109  899  2,255  1,799 
Operating Loss(262) (161) (684) (294)
Other Expense       
Loss (Gain) on Commodity Derivative Instruments151  87  107  (63)
Interest, Net of Amount Capitalized 78  54  157  112 
Other Non-Operating Expense (Income), Net7  (9) 3  (9)
Total Other Expense236  132  267  40 
Loss Before Income Taxes(498) (293) (951) (334)
Income Tax Benefit(183) (184) (349) (203)
Net Loss$(315) $(109) $(602) $(131)
Loss Per Share       
Loss Per Share, Basic$(0.73) $(0.28) $(1.40) $(0.35)
Loss Per Share, Diluted$(0.73) $(0.28) $(1.40) $(0.35 )
        
Weighted Average Number of Shares Outstanding       
Basic430  387  429  378 
Diluted430  387  429  378 
            
(1) Certain of our revenue received from purchasers was historically presented with deductions for transportation, gathering, fractionation or processing costs. Beginning in 2016, we have changed our presentation to no longer include these expenses as deductions from revenue. These costs are now included within transportation and gathering expense and prior year amounts have been reclassified to conform to the current presentation.
 
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on August 3, 2016
 
On July 20, 2015, we completed the merger with Rosetta Resources Inc. (Rosetta or Rosetta Merger) and the results of operations attributable to Rosetta are included in our consolidated statement of operations beginning on July 21, 2015. The results of these operations attributable to Rosetta will affect the comparability of our financial results to prior periods. 
 


 
Schedule 2
Noble Energy, Inc.
Condensed Balance Sheets
(in millions, unaudited)
 
 June 30,
2016
 December 31,
2015
ASSETS   
Current Assets   
Cash and Cash Equivalents$1,300  $1,028 
Accounts Receivable, Net476  450 
Commodity Derivative Assets229  582 
Other Current Assets184  216 
Total Current Assets2,189  2,276 
Net Property, Plant and Equipment19,734  21,300 
Other Noncurrent Assets593   620 
Total Assets$22,516  $24,196 
LIABILITIES AND SHAREHOLDERS' EQUITY   
Current Liabilities   
Accounts Payable - Trade$780   $1,128 
Other Current Liabilities595  677 
Total Current Liabilities1,375  1,805 
Long-Term Debt7,868  7,976 
Deferred Income Taxes, Noncurrent2,387  2,826 
Other Noncurrent Liabilities1,173  1,219 
Total Liabilities12,803  13,826 
Total Shareholders' Equity9,713  10,370 
Total Liabilities and Shareholders' Equity$22,516  $24,196 
 
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on August 3, 2016
 


 
Schedule 3
Noble Energy, Inc.
Condensed Statement of Cash Flows
(in millions, unaudited)
 
 Three Months Ended
June 30,
 Six Months Ended
June 30,
 2016 2015 2016 2015
Cash Flows From Operating Activities       
Net Loss$(315) $(109) $(602) $(131)
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities       
Depreciation, Depletion and Amortization622  451  1,239  905 
Asset Impairments  15    43 
Dry Hole Cost27    114  19 
Gain on Extinguishment of Debt    (80)  
Purchase Price Allocation Adjustment(25)    (25)  
Loss on Asset Due to Terminated Contract5    47   
Deferred Income Tax Benefit(228) (283) (414) (312)
(Income) Loss from Equity Method Investees, Net of Dividends(6) 22  (9) 4 
Loss (Gain) on Commodity Derivative Instruments151  87  107  (63)
Net Cash Received in Settlement of Commodity Derivative Instruments144  187  322  397 
Loss on Divestitures23  (1) 23   
Stock Based Compensation20  17  40  38 
Other Adjustments for Noncash Items Included in Net Loss16  22  59  32 
Net Changes in Working Capital(245) 17  (381 ) 34 
Net Cash Provided by Operating Activities189  425  440  966 
Cash Flows From Investing Activities       
Additions to Property, Plant and Equipment(316) (787) (812) (1,898)
Additions to Equity Method Investments  (21) (6) (65)
Proceeds from Divestitures and Other529  32  767  151 
Net Cash Provided by (Used in) Investing Activities213  (776) (51) (1,812)
Cash Flows From Financing Activities       
Dividends Paid, Common Stock(45) (70) (86) (134)
Proceeds from Issuance of Shares of Common Stock to Public, Net of Offering Costs      1,112 
Proceeds From Long-Term Debt, Net     17   
Repayment of Capital Lease Obligation(14) (10)  (27) (29)
Other4    (21) (8)
Net Cash (Used in) Provided by Financing Activities(55) (80) (117) 941 
Increase (Decrease) in Cash and Cash Equivalents347  (431) 272  95 
Cash and Cash Equivalents at Beginning of Period953   1,709  1,028  1,183 
Cash and Cash Equivalents at End of Period$1,300  $1,278  $1,300  $1,278 
 
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on August 3, 2016
 
On July 20, 2015, we completed the merger with Rosetta and the associated cash flows are included in our operations beginning on July 21, 2015. The results of these cash flows attributable to Rosetta will affect the comparability of our results to prior periods.
 


 
Schedule 4
Noble Energy, Inc.
Volume and Price Statistics
(unaudited)
 
 Three Months Ended
June 30,
 Six Months Ended
June 30,
Sales Volumes2016 2015 2016 2015
Crude Oil and Condensate (MBbl/d)       
United States96  65  99  69 
Equatorial Guinea27  31  27  30 
Other International      1 
Total consolidated operations123  96  126  100 
Equity method investee - Equatorial Guinea1  1  1  1 
Total124  97  127  101 
Natural Gas Liquids (MBbl/d)       
United States59  27  56  26 
Equity method investee - Equatorial Guinea5  3  4   4 
Total64  30  60  30 
Natural Gas (MMcf/d)       
United States924  613  917  616 
Israel276  215  271  229 
Equatorial Guinea233  202  214  216 
Total1,433  1,030  1,402  1,061 
Total Sales Volumes (MBoe/d)       
United States309  194  308  198 
Israel46  36  45  38 
Equatorial Guinea66  65  63  66 
Other International      1 
Total consolidated operations421  295  416  303 
Equity method investee - Equatorial Guinea6  4  6  6 
Total sales volumes (MBoe/d)427  299  422  309 
        
Total sales volumes (MBoe)38,867  27,233  76,721  55,897 
        
Price Statistics - Realized Prices       
Crude Oil and Condensate ($/Bbl)(1)       
United States$40.64  $52.44  $35.22  $48.20 
Equatorial Guinea44.55  60.02  39.53  54.97 
Other International      55.52 
Total$41.51  $54.91  $36.14  $50.29 
Natural Gas Liquids ($/Bbl)(1)       
United States$14.10   $13.71  $12.73  $16.11 
Natural Gas ($/Mcf)(1)       
United States$1.75  $1.90  $ 1.82  $2.31 
Israel5.15  5.34  5.17  5.40 
Equatorial Guinea0.27  0.27  0.27  0.27 
Total$2.16  $2.30  $2.23  $2.56 
 
(1) Average realized prices do not include gains or losses on commodity derivative instruments.

On July 20, 2015, we completed the merger with Rosetta and the associated volumes and price statistics are included in our operations beginning on July 21, 2015. The results of these volumes and prices attributable to Rosetta will affect the comparability of our results to prior periods. 
 


 
Schedule 5
Noble Energy, Inc.
Reconciliation of Net Loss (GAAP) to Adjusted (Loss) Income (Non-GAAP)
(in millions, except per share amounts, unaudited)
 
Adjusted (loss) income (Non- GAAP) should not be considered an alternative to, or more meaningful than, net loss (GAAP) or any other measure as reported in accordance with GAAP. Our management believes, and certain investors may find, that adjusted (loss) income is beneficial in evaluating our operating and financial performance because it eliminates the impact of certain 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 (loss) income may be useful for comparison of earnings to forecasts prepared by analysts and other third parties. However, our presentation of adjusted (loss) income may not be comparable to similar measures of other companies in our industry.
 
 Three Months Ended
June 30,
 Six Months Ended
June 30,
 2016 2015 2016 2015
Net Loss (GAAP)$(315) $(109 ) $(602) $(131)
Adjustments to Net Loss       
Loss on Commodity Derivative Instruments, Net of Cash Settlements [1]295  274  429  334 
Loss on Asset Due to Terminated Contract5    47   
Purchase Price Allocation Adjustment [2](25)   (25)  
Gain on Debt Extinguishment [3]    (80)  
Well Cost Related to Expiration of Exploration License [4]27    27   
Loss (Gain) on Divestitures23  (1) 23   
Asset Impairments  15     43 
Other Adjustments [5]8  46  23  49 
Total Adjustments Before Tax333  334  444  426 
Current Income Tax Effect of Adjustments [6](13) (9)   (9)
Deferred Income Tax Effect of Adjustments [6](108) (115) (173) (175)
Adjusted (Loss) Income (Non-GAAP)$(103) $101  $(331) $111 
        
Net Loss Per Share, Diluted (GAAP)$(0.73) $(0.28) $(1.40) $(0.35)
Adjusted (Loss) Income Per Share, Diluted (Non-GAAP)$(0.24) $0.26  $(0.77)  $0.29 
        
Weighted Average Number of Shares Outstanding, Diluted430  390  429  382 


   
NOTE: On July 20, 2015, we completed the merger with Rosetta and the results of operations attributable to Rosetta are included in our consolidated statement of operations beginning on July 21, 2015. The results of these operations attributable to Rosetta will affect the comparability of our financial results to prior periods.
   
[1] Many factors impact our gain or loss on commodity derivative instruments, net of cash settlements, including: increases and decreases in the commodity forward price curves compared to our executed hedging arrangements; increases in hedged future revenues; and the mix of hedge arrangements between NYMEX WTI, Dated Brent and NYMEX HH commodities. These gains or losses on commodity derivative instruments, net of cash settlements, recognized in the current period, will be realized in the future when cash settlement occurs.
   
[2] Amount relates to a tax adjustment recorded to the purchase price allocation related to the Rosetta Merger.
   
[3] Amount relates to the early tendering of senior notes assumed in the Rosetta Merger.
   
[4] Amount relates to the license from our 2011 Dolphin discovery in Eastern Mediterranean.
   
[5] Amount for 2016 relates to loss on sale of other assets, stacked drilling rig charges, and deferred compensation plan; amount for 2015 relates to deferred compensation plan, stacked drilling rig charges, corporate restructuring, and pension plan termination.
   
[6] Amount represents the income tax effect of adjustments, determined for each major tax jurisdiction for each adjusting item, as well as the change in the indefinite reinvestment assertion related to accumulated undistributed earnings of foreign subsidiaries.
   


 
Schedule 6
Noble Energy, Inc.
Reconciliation of Net Loss (GAAP) to EBITDAX (Non-GAAP) and Adjusted EBITDAX (Non-GAAP)
(in millions, unaudited)
 
Earnings Before Interest Expense, Income Taxes, Depreciation, Depletion and Amortization, and Exploration Expenses (EBITDAX) (Non-GAAP) and Adjusted EBITDAX (Non- GAAP) should not be considered an alternative to, or more meaningful than, net loss (GAAP) or any other measure as reported in accordance with GAAP. Our management believes, and certain investors may find, that EBITDAX and Adjusted EBITDAX is beneficial in evaluating our operating and financial performance because it eliminates the impact of certain 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, EBITDAX and Adjusted EBITDAX may be useful for comparison of earnings to forecasts prepared by analysts and other third parties. However, our presentation of EBITDAX and Adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.
 
 Three Months Ended
June 30,
 Six Months Ended
June 30,
 2016  2015 2016 2015
Net Loss (GAAP)$(315) $(109) $(602) $(131)
Adjustments to Net Loss       
Depreciation, Depletion, and Amortization622  451  1,239  905 
Exploration Expense89  41  252  106 
Interest, Net of Amount Capitalized78  54  157  112 
Current Income Tax Expense45  99   65  109 
Deferred Income Tax Benefit(228) (283)  (414) (312)
EBITDAX (Non-GAAP)$291  $253  $697  $789 
        
Earnings Adjustments, Before Tax [1]306  334  417  426 
Adjusted EBITDAX (Non-GAAP)$597   $587  $1,114  $1,215 


NOTE:On July 20, 2015, we completed the merger with Rosetta and the results of operations attributable to Rosetta are included in our consolidated income statement of operations beginning on July 21, 2015. The results of these operations attributable to Rosetta will affect the comparability of our financial results to prior periods.
  
[1]See Schedule 5: Reconciliation of Net Loss (GAAP) to Adjusted (Loss) Income (Non-GAAP) for calculation. Adjustment herein excludes the impact related to the license from our 2011 Dolphin discovery in Eastern Mediterranean as the impact is reflected in Exploration Expense above.


Capital Expenditures
(in millions, unaudited)
    
 Three Months Ended
June 30,
 Six Months Ended
June 30,
 2016 2015 2016 2015
Capital Expenditures (Accrual Based)$262   $799   $638   $1,663 
Increase in Capital Lease Obligations [2]  8    31 
Total Capital Expenditures (Accrual Based)$ 262  $807  $638  $1,694 


[2]Represents estimated construction in progress to date on US operating assets and corporate buildings
  
Investor Contacts

Brad Whitmarsh

(281) 943-1670

Brad.Whitmarsh@nblenergy.com



Megan Repine

(832) 639-7380

Megan.Repine@nblenergy.com



Media Contacts:

Reba Reid

(713) 412-8441

media@nblenergy.com



Paula Beasley

(281) 876-6133

media@nblenergy.com

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