Noble Energy Inc.
Nov 1, 2016

Noble Energy Announces Strong Outperformance With Third Quarter Results

Company also adds two rigs to its U.S. onshore program in fourth quarter

HOUSTON, Nov. 01, 2016 (GLOBE NEWSWIRE) -- Noble Energy, Inc. (NYSE:NBL) ("Noble Energy" or "the Company") today announced results for the third quarter of 2016, including a reported net loss attributable to Noble Energy of $144 million, or $0.33 per diluted share.  The adjusted net loss(1) attributable to Noble Energy for the quarter was $30 million, or $0.07 per diluted share, which excludes the impact of certain items typically not considered by analysts in formulating estimates.  Adjusted EBITDAX(1) was $645 million

David L. Stover, Noble Energy's Chairman, President and CEO, commented, "Once again, the strength of our high-quality asset base and operational execution was on display in the third quarter.  This was demonstrated by our continued outstanding production performance and cost control. Other recent strategically significant highlights include the successful IPO of the Noble Midstream business, the separation of our Marcellus Joint Venture, and the signing of the first sizable export contract to support Leviathan development.  Year to date, we have operated our business within organic cash flows while also monetizing nearly $1.5 billion in assets.  Improving our balance sheet has positioned our business for activity acceleration and allowed us to pay down debt.  We have already added an additional two rigs to our Texas assets in the fourth quarter and I would expect that we will further increase activity in the near future.  Tremendous performance has ensured a bright future for Noble Energy."

The Company sold quarterly volumes of 425 thousand barrels of oil equivalent per day (MBoe/d) during the third quarter of 2016.   Total sales volumes were higher by 12 percent compared to the third quarter of 2015, or 8 percent pro-forma for the Rosetta Resources Inc. merger (completed in late July 2015).  Production volumes for the third quarter were 427 MBoe/d, which differed from sales volumes due largely to the timing of liftings in West Africa.

Liquids comprised 43 percent of third quarter 2016 volumes, with 29 percent being crude oil and condensate and 14 percent natural gas liquids (NGLs).  Natural gas accounted for the remaining 57 percent.  Total oil volumes of 123 thousand barrels per day were meaningfully above expectation and were primarily driven by outperformance in the DJ Basin, Gulf of Mexico, and West Africa business units.  U.S. onshore sales volumes for the quarter were 270 MBoe/d, up 5 percent compared to the third quarter of 2015 pro-forma. Global offshore sales volumes, including the Gulf of Mexico and West Africa, totaled 103 MBoe/d, an increase of 21 percent compared to the third quarter of 2015.  This increase was primarily driven in the Gulf of Mexico by major project contributions from Big Bend, Dantzler and Gunflint, all of which came online in the last 12 months.   Sales volumes in Israel were 313 MMcfe/d, establishing a new quarterly record for the Company.

Nearly all cost items for the quarter were below the Company's expectations.  Lease operating expenses (LOE) were significantly lower at $3.37 per barrel of oil equivalent (BOE), a reduction of 14 percent compared to the third quarter of 2015 pro-forma.  LOE per BOE benefited from strong third quarter sales volumes and lower than normal workover activity.  Transportation and gathering expenses totaled $2.88 per BOE while depreciation, depletion and amortization expenses for the quarter were $15.87 per BOE.  General and Administrative costs for the quarter were $95 million, down $15 million from the third quarter of last year pro-forma. 

Exploration expense for the quarter was $125 million and included $81 million of leasehold impairment due to the write-off of certain leases in the Gulf of Mexico and the Falkland Islands.  These items were adjustments to the Company's net loss for the third quarter of 2016.  Additional adjustments to net loss included unrealized commodity derivative losses, primarily related to existing crude oil hedging positions, and the tax effect of the gain to be recorded on the sell-down of Tamar working-interest.

The Company's overall reported income tax rate for the quarter was 49 percent.   Following removal of the adjustment items to the Company's net loss, the adjusted effective tax rate was 72 percent, reflecting current tax expense of $37 million and a deferred benefit of $113 million

Third quarter capital expenditures were $297 million, substantially below expectation and reflecting continued operational efficiencies across the business.  Nearly 85 percent of the Company's capital program was allocated to U.S. onshore development activities.  Included in Noble Energy's capital was $8 million related to capital expenditures for Noble Midstream Partners LP (NBLX). Following the successful IPO of NBLX, Noble Energy holds approximately 55 percent of NBLX's limited partnership units.  Financial results for NBLX are fully consolidated into Noble Energy's financial statements, with adjustments for the non-controlling interest (reflecting public ownership of approximately 45%) made on the income statement and balance sheet.

OPERATIONS UPDATE
DJ BASIN
Sales volumes averaged 113 MBoe/d in the third quarter of 2016.  Liquids represented 68 percent of DJ Basin volumes (49 percent crude oil and condensate and 19 percent NGLs) and 32 percent was natural gas.  Horizontal production represented 97 MBoe/d, up 6 percent from the third quarter of 2015.  Combined volumes for Wells Ranch and East Pony averaged 59 MBoe/d during the quarter, up 11 percent from the third quarter of last year. 

Highlights include:

TEXAS (EAGLE FORD AND PERMIAN)
Sales volumes of 61 MBoe/d were achieved in the third quarter of 2016, an increase of 11 percent from the third quarter of 2015 on a pro-forma basis.  Liquids represented 64 percent of the total (26 percent crude oil and condensate and 38 percent NGLs), while natural gas accounted for the remaining 36 percent.  Eagle Ford production made up 84 percent of the volumes with the Permian delivering the remaining 16 percent.  During the third quarter, 33 Eagle Ford wells were shut-in for up to one month to perform offset fracs.

In the fourth quarter 2016, Noble Energy added two rigs to its Texas development programs.  One rig was added to each of the Delaware and Eagle Ford areas, increasing the total Texas rig count to 4 (2 in the Delaware and 2 in the Eagle Ford).

Highlights include:

MARCELLUS SHALE
Sales volumes in the Marcellus Shale averaged 557 million cubic feet of natural gas equivalent per day (MMcfe/d) in the third quarter of 2016, an increase of 13 percent over the same quarter of last year.  Natural gas represented 89 percent of the volumes sold, with the majority of the remainder composed of NGLs.

Highlights include:

EASTERN MEDITERRANEAN
Israel sales volumes averaged 313 MMcfe/d, a record for the Company and an increase of 3 percent versus the third quarter of last year.  The higher volumes were primarily driven by greater displacement of coal for natural gas in Israel's power generation sector and growth from industrial customers, as well as strong seasonal weather demand.

Highlights include:

GULF OF MEXICO
Sales volumes in the Gulf of Mexico averaged 29 MBoe/d, an increase of 143 percent compared to the same quarter of last year.  Crude oil and condensate represented 84 percent of third quarter 2016 volumes, with 5 percent NGLs and 11 percent natural gas.

Highlights include:

WEST AFRICA
Sales volumes in West Africa averaged 74 MBoe/d, containing 32 percent crude oil and condensate, 9 percent NGLs, and 59 percent natural gas.  Production volumes for the third quarter were 76 MBoe/d, higher than sales volumes due largely to the timing of liftings.

Highlights include:

GUIDANCE
Driven primarily by accelerated onshore drilling programs, Noble Energy has raised fourth quarter capital expenditures to be $425 to $475 million.  More than 70 percent of the fourth quarter spend will be allocated to the U.S. onshore assets, where the Company is now running 6 rigs, including 2 each in the Delaware, DJ Basin, and Eagle Ford.  The remaining capital is primarily related to development drilling for a new well at Tamar in Israel, which will provide additional production reliability.

Noble Energy has maintained its prior fourth quarter guidance of between 400 and 410 MBoe/d, with an increase in the oil percentage.  This reflects underlying enhanced production from the DJ and Gulf of Mexico assets versus prior expectation, as well as the impact of certain asset divestitures not previously anticipated.  Fourth quarter guidance reflects lower volumes of approximately 7 MBoe/d as the result of the following: 

The Company lowered LOE and G&A guidance for the fourth quarter, as reflected in the supplemental slides for the quarterly webcast which 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 8:00 a.m. Central time tomorrow, November 2, 2016.  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.

Noble Energy, Inc.
Summary Statement of Operations
(in millions, except per share amounts, unaudited)

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
 2016  2015 2016 2015
Revenues       
Crude Oil and Condensate$461  $438  $1,291  $1,352 
Natural Gas347  293  916  785 
Natural Gas Liquids (1)74  52  204  127 
Income from Equity Method Investees28  36  70  60 
Total Revenues910   819  2,481  2,324 
Operating Expenses       
Lease Operating Expense131  133  412  419 
Production and Ad Valorem Taxes30  28  73  89 
Transportation and Gathering Expense (1)113  86  335  207 
Marketing and Processing Expense, Net20  10  58  25 
Exploration Expense125  203  376  308 
Depreciation, Depletion and Amortization621  539  1,859  1,444 
General and Administrative95  109  293  308 
Other Operating Expense, Net25  178  8  285 
Total Operating Expenses1,160  1,286  3,414  3,085 
Operating Loss(250) (467) (933) (761)
Other Expense (Income)       
(Gain) Loss on Commodity Derivative Instruments(55) (267) 53  (331)
Interest, Net of Amount Capitalized86  71  242  183 
Other Non-Operating (Income) Expense, Net(1) (12) 3  (20)
Total Other Expense (Income)30  (208) 298  (168)
Loss Before Income Taxes(280)  (259) (1,231) (593)
Income Tax (Benefit) Provision(137) 24  (486) (180)
Net Loss Including Noncontrolling Interests$(143) $(283) $(745) $(413)
Less: Net Income Attributable to Noncontrolling Interests (2)1    1   
Net Loss Attributable to Noble Energy$(144) $(283) $(746) $(413)
        
Net Loss Attributable to Noble Energy Per Share of Common Stock       
Loss Per Share, Basic$(0.33)  $(0.67) $(1.73) $(1.05)
Loss Per Share, Diluted$(0.33) $(0.67) $(1.73) $(1.05)
        
Weighted Average Number of Shares Outstanding       
Basic430  420  430  392 
Diluted430  420  430  392 
            
(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.
 
(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 November 2, 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)

 September 30,
2016
 December 31,
2015
ASSETS   
Current Assets   
Cash and Cash Equivalents$1,819  $1,028 
Accounts Receivable, Net486  450 
Commodity Derivative Assets120  582 
Other Current Assets352  216 
Total Current Assets2,777  2,276 
Net Property, Plant and Equipment19,105  21,300 
Other Noncurrent Assets587  620 
Total Assets$22,469  $24,196 
LIABILITIES AND SHAREHOLDERS' EQUITY   
Current Liabilities   
Accounts Payable - Trade$786  $1,128 
Other Current Liabilities742  677 
Total Current Liabilities1,528  1,805 
Long-Term Debt7,854  7,976 
Deferred Income Taxes2,103  2,826 
Other Noncurrent Liabilities1,139  1,219 
Total Liabilities12,624  13,826 
Total Shareholders' Equity 9,545  10,370 
Noncontrolling Interests (1)300   
Total Equity9,845  10,370 
Total Liabilities and Equity$22,469  $24,196 
 
(1)  The Company consolidates Noble Midstream Partners LP (NBLX), a publicly traded subsidiary of Noble Energy, as a variable interest
entity for financial reporting purposes. The public's ownership interest in NBLX is reflected as a noncontrolling interest in the financial
statements.
 
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information
included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on November 2, 2016.


Schedule 3
Noble Energy, Inc.
Condensed Statement of Cash Flows
(in millions, unaudited)

 Three Months
Ended
September 30,
 Nine Months
Ended
September 30,
 2016 2015 2016 2015
Cash Flows From Operating Activities       
Net Loss(1)$(143) $(283) $(745) $(413)
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities       
Depreciation, Depletion and Amortization621  539  1,859  1,444 
Asset Impairments      43 
Dry Hole Cost(9) 135  105  154 
Undeveloped Leasehold Impairment81    81   
Gain on Extinguishment of Debt    (80)  
Loss on Asset Due to Terminated Contract(3)   44   
Deferred Income Tax (Benefit) Provision(285) 68  (699) (244)
Loss (Gain) on Commodity Derivative Instruments(55) (267) 53  (331)
Net Cash Received in Settlement of Commodity Derivative Instruments132  284  454  683 
Stock Based Compensation21  31  61  69 
Non-cash Pension Termination Expense  60    81 
Other Adjustments for Noncash Items Included in Income44  63  92  74 
Net Changes in Working Capital210  (110) (171) (74)
Net Cash Provided by Operating Activities614  520  1,054  1,486 
Cash Flows From Investing Activities       
Additions to Property, Plant and Equipment(352) (621) (1,164) (2,519)
Cash Acquired in Rosetta Merger  61    61 
Additions to Equity Method Investments(2) (21) (8) (86)
Proceeds from Divestitures and Other19    786  151 
Net Cash Used in Investing Activities(335) (581) (386) (2,393)
Cash Flows From Financing Activities       
Dividends Paid, Common Stock(43) (80) (129) (214)
Proceeds from Issuance of Noble Energy Common Stock, Net of Offering Costs      1,112 
Proceeds from Issuance of Noble Midstream Common Units, Net of Offering Costs299    299   
Repayment of Credit Facility  (74)   (74)
(Repayment) Proceeds from Long Term Debt, Net  (12) 17  (12)
Repayment of Capital Lease Obligation(12) (20) (39) (49)
Other(4) (3) (25) (11)
Net Cash Provided by (Used In) Financing Activities240  (189) 123  752 
Increase (Decrease) in Cash and Cash Equivalents519  (250) 791   (155)
Cash and Cash Equivalents at Beginning of Period1,300  1,278  1,028  1,183 
Cash and Cash Equivalents at End of Period$1,819  $1,028  $1,819  $1,028 
 
(1)  The Company consolidates Noble Midstream Partners LP (NBLX), a publicly traded subsidiary of Noble Energy, as a variable interest
entity for financial reporting purposes. For the three and nine months ended September 30, 2016, Net Loss includes Net Income Attributable
to Noncontrolling Interests in NBLX.
 
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information
included in Noble Energy's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on November 2, 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
September 30,
 Nine Months Ended
September 30,
Sales Volumes2016 2015 2016 2015
Crude Oil and Condensate (MBbl/d)       
United States99  83  99  73 
Equatorial Guinea 22  27  25  29 
Other International       1 
Total consolidated operations121  110  124  103 
Equity method investee - Equatorial Guinea2  2  2  2 
Total 123  112  126  105 
Natural Gas Liquids (MBbl/d)       
United States55  49  56  34 
Equity method investee - Equatorial Guinea7  6  5  5 
Total62  55  61  39 
Natural Gas (MMcf/d)       
United States874  741  902  658 
Israel310  303  284  254 
Equatorial Guinea261  231  230  221 
Total1,445  1,275  1,416  1,133 
Total Sales Volumes (MBoe/d)       
United States299  255  304  217 
Israel52  51   48  43 
Equatorial Guinea65  65   64  66 
Other International      1 
Total consolidated operations416  371  416  327 
Equity method investee - Equatorial Guinea9  8  7  6 
Total sales volumes (MBoe/d)425  379  423  333 
        
Total sales volumes (MBoe)39,095  34,907  115,816  90,804 
         
Price Statistics - Realized Prices       
Crude Oil and Condensate ($/Bbl)(1)        
United States$41.23  $42.42  $37.23  $46.02 
Equatorial Guinea43.73  45.99  40.74  52.15 
Other International      55.52 
Total$41.67   $43.30  $37.94  $47.79 
Natural Gas Liquids ($/Bbl)(1)        
United States$14.70  $11.37  $13.38  $13.77 
Natural Gas ($/Mcf)(1)       
United States$2.38  $2.01  $2.00  $2.20 
Israel5.22  5.39  5.19  5.39 
Equatorial Guinea0.27  0.27  0.27  0.27 
Total$2.61  $2.50  $2.36  $2.54 
 
(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 Attributable to Noble Energy (GAAP) to
Adjusted (Loss) Income Attributable to Noble Energy (Non-GAAP)
(in millions, except per share amounts, unaudited)

Adjusted (loss) income attributable to Noble Energy (Non-GAAP) should not be considered an alternative to, or more meaningful than, net loss attributable to Noble Energy (GAAP) or any other measure as reported in accordance with GAAP. Our management believes, and certain investors may find, that adjusted (loss) income attributable to Noble Energy 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 attributable to Noble Energy may be useful for comparison of earnings to forecasts prepared by analysts and other third parties. However, our presentation of adjusted (loss) income attributable to Noble Energy may not be comparable to similar measures of other companies in our industry.

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
 2016 2015 2016 2015
Net Loss Attributable to Noble Energy (GAAP)$(144) $(283) $(746) $(413)
Adjustments to Net Loss        
Loss on Commodity Derivative Instruments, Net of Cash Settlements77  17  507  352 
Loss on Asset Due to Terminated Contract(3)   44   
Purchase Price Allocation Adjustment [1]    (25)  
Gain on Debt Extinguishment [2]    (80)  
Well Cost Related to Expiration of Exploration License [3]    26   
Loss on Divestitures    23   
Undeveloped Leasehold Impairment [4]81    81   
Other Adjustments [5]20  160  43  251 
Total Adjustments Before Tax175  177  619  603 
Current Income Tax Effect of Adjustments [6]111  (11) 111  (20)
Deferred Income Tax Effect of Adjustments [6](172) 27  (345)  (149)
Adjustments to Net Loss, After Tax$114  $193  $385  $434 
Adjusted (Loss) Income Attributable to Noble Energy (Non-GAAP)$(30) $(90) $(361) $21 
        
Net Loss Attributable to Noble Energy Per Share, Diluted (GAAP)$(0.33) $(0.67) $(1.73) $(1.05)
Adjusted (Loss) Income Attributable to Noble Energy Per Share, Diluted (Non-GAAP)$(0.07) $(0.21) $(0.84) $0.05 
        
Weighted Average Number of Shares Outstanding, Diluted430  420  430  395 
 
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] Amount relates to a tax adjustment recorded to the purchase price allocation related to the Rosetta Merger.
 
[2] Amount relates to the early tendering of senior notes assumed in the Rosetta Merger.
 
[3] Amount relates to the license from our 2011 Dolphin discovery in Eastern Mediterranean.
 
[4] Amount relates to the write-off of several leases in deepwater Gulf of Mexico and offshore Falkland Islands of $56 million and $25 million, respectively.
 
[5] Amount for 2016 primarily relates to loss on sale of other assets, stacked drilling rig charges, and deferred compensation plan. Amount for the three months ended September 30, 2015 primarily relates to Rosetta merger expenses of $71 million, pension plan expense of $67 million, corporate restructuring of $21 million, stacked drilling rig of $13 million, by offset by deferred compensation plan of $12 million. Amount for the nine months ended September 30, 2015 primarily relates to pension plan expense of $88 million, Rosetta merger expenses of $73 million, asset impairments of $43 million, corporate restructuring of $39 million, stacked drilling rig of $20 million, offset by deferred compensation plan of $12 million.
 
[6] 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 (such as the recognition of a gain on our 3% Tamar divestiture in Eastern Mediterranean) and the change in the indefinite reinvestment assertion related to accumulated undistributed earnings of foreign subsidiaries.


Schedule 6
Noble Energy, Inc.
Reconciliation of Net Loss Attributable to Noble Energy (GAAP) to Adjusted (Loss) Income Attributable to Noble Energy (Non-GAAP) and 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 attributable to Noble Energy (GAAP) or any other measure as reported in accordance with GAAP. Our management believes, and certain investors may find, that 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. Adjusted EBITDAX may be useful for comparison of earnings to forecasts prepared by analysts and other third parties. However, our presentation of Adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
 2016 2015 2016 2015
Net Loss Attributable to Noble Energy (GAAP)$(144) $(283) $(746) $(413)
Adjustments to Net Loss, After Tax [1]114  193  385  434 
Adjusted (Loss) Income Attributable to Noble Energy (Non-GAAP)(30) (90) (361) 21 
        
Adjustments to Adjusted Net Loss (Income) Attributable to Noble Energy       
Depreciation, Depletion, and Amortization621  539  1,859   1,444 
Exploration Expense [2]44  203  269  308 
Interest, Net of Amount Capitalized86  71  242  183 
Current Income Tax Expense [3]37  (34) 102  84 
Deferred Income Tax Benefit [3](113 ) 42  (354) (95)
Adjusted EBITDAX (Non-GAAP)$645  $731  $1,757  $1,945 
 
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 Attributable to Noble Energy (GAAP) to Adjusted (Loss) Income Attributable to Noble Energy (Non-GAAP) for calculation.
 
[2] Represents remaining Exploration Expense after reversal of Adjustments to Net Loss, After Tax, above.
 
[3] Represents remaining Income Taxes after reversal of Adjustments to Net Loss, After Tax, above.

Capital Expenditures
(in millions, unaudited)

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
 2016 2015 2016 2015
Capital Expenditures (Accrual Based)$297   $664   $935   $2,325  
Increase in Capital Lease Obligations [4]5  29  5  60 
Total Capital Expenditures (Accrual Based) [5]$302  $693  $940  $2,385 


[4]Represents estimated construction in progress to date on US operating assets and corporate buildings.


[5]Includes capital expenditures from our publicly traded subsidiary, Noble Midstream Partners LP, of $8 million for the three months ended September 30, 2016.


 

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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Source: Noble Energy Inc.

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