Noble Energy, a U. S.-based independent oil and gas company saw its net profit for the second quarter of 2015 tumble, as it reported a net loss of $109 million.
To remind, Noble had reported a net profit of $192 million in the same period of 2014. The company’s 2Q 2015 revenues fell to $730 million from $1.38 billion a year ago.
Excluding the impact of certain items second quarter 2015 adjusted income was $101 million. Adjustments to the net loss for the second quarter of 2015 included non-cash commodity derivative losses of $274 million, as a result of the value change of the Company’s existing crude oil and natural gas hedge positions as of the end of the quarter, Noble Energy said.
The company said that total sales volumes for the quarter averaged 299 thousand barrels of oil equivalent per day (MBoe/d), an increase of three percent compared to the second quarter of 2014, or seven percent after adjusting for non-core assets divested during 2014. Liquids comprised 43 percent (33 percent crude oil and condensate and 10 percent natural gas liquids) of second quarter 2015 sales volumes, with natural gas the remaining 57 percent.
According to Noble Energy, higher sales volumes versus the 2014 period were primarily a result of continued development of the DJ Basin and Marcellus Shale plays, where combined production was up 28 percent. Horizontal production in these plays increased 45 percent compared to the second quarter of last year.
Offshore sales volumes were lower than the 2014 period and were impacted by planned downtime and maintenance in the Gulf of Mexico and Equatorial Guinea. Assets sold in 2014, including production from the Piceance Basin and China, accounted for a 10 MBoe/d decrease from the second quarter of 2014 to 2015.