Noble Energy Cites 'Encouraging' 2Q Financial Results

Noble Energy has reported a second quarter 2009 net loss of $57 million, or $0.33 per share diluted, on revenues of $491 million. The results included an unrealized mark-to-market financial hedging loss, a gain on the completed 2008 Argentina asset sale, and various other items which reduced earnings in total $173 million after-tax. Excluding these items, which are typically not considered by analysts in published estimates, second quarter 2009 adjusted net income(1) was $116 million, or $0.66 per share diluted. For the same period in 2008, the Company reported a net loss of $144 million, or $0.84 per share diluted, on revenues of $1.2 billion. Adjusted net income(1) for the second quarter 2008 was $337 million, or $1.93 per share diluted.

Discretionary cash flow(1) for the second quarter 2009 was $374 million, compared to $685 million for the same period in 2008. Net cash provided by operating activities was $313 million and capital expenditures were $323 million.

Key highlights for the second quarter 2009 include:

  • Record Wattenberg production of 282 million cubic feet equivalent per day, including liquid production of over 21 thousand barrels per day
  • Awarded 22 of the 24 high bid lease blocks in Central Gulf of Mexico Lease Sale 208
  • Successful Tamar appraisal well offshore Israel increasing the gross mean resource estimate to 6.3 trillion cubic feet of natural gas
  • Flow test at Dalit natural gas discovery offshore Israel confirmed deliverability up to 200 million cubic feet per day and gross mean resources of 500 billion cubic feet

"Second quarter 2009 results were very encouraging for Noble Energy, as we benefited from our leverage to strengthening liquid markets, while continuing to move forward our long-term developments. Critical progress was made in each of our three major project areas, which we expect will deliver significant growth for our Company beginning in 2011. We recently sanctioned the Aseng oil development in Equatorial Guinea and announced a very successful appraisal well at Tamar offshore Israel. In the near-term, we continue to see a challenged natural gas market in the U.S.; however, the benefits of our diversified portfolio should show up in the second half of the year with nice volume growth expected from our international assets," said Noble Energy's Chairman and CEO, Charles D. Davidson.

Total sales volumes averaged 206 thousand barrels of oil equivalent per day (MBoe/d) for the quarter, down five percent from the same period in 2008. Production was 207 MBoe/d in the current period. United States volumes were down, primarily in the deepwater Gulf of Mexico, due to the impact of ongoing hurricane shut-ins and natural decline in field production.

International volumes declined versus the second quarter 2008, with the timing of liftings in the North Sea contributing to the decrease. In addition, power plant downtime, overall economic factors, and increased imports resulted in lower volumes in Israel. West Africa volumes were higher due to greater natural gas sales to the third-party liquefied natural gas facility.

Second quarter 2009 commodity price realizations were down significantly from the same quarter last year. Crude oil and condensate averaged $52.05 per barrel and natural gas averaged $2.13 per thousand cubic feet.