Noble Energy narrows quarterly loss

Noble Energy narrowed its net loss and increased revenues during the fourth quarter of 2016. The company also said it plans to spend more in 2017.

In its report on Monday, Noble Energy reported a net loss of $252 million for the fourth quarter of 2016, compared to the net loss of $2.03 billion in the corresponding period of 2015.

The adjusted income attributable to Noble Energy for the quarter was $113 million, which excludes the impact of certain items typically not considered by analysts in formulating estimates.

Further, the company’s fourth quarter adjustments to net loss attributable to Noble Energy included an accounting gain from the divestiture of a 3.5 percent working interest in the producing Tamar asset in Israel. The company also recorded non-cash impairments of $484 million, which were primarily related to certain West Africa exploration costs recorded to dry hole expenses.

In addition, approximately $92 million was impaired primarily for alternative development concept costs for Leviathan which are no longer part of the company’s plan. The company also had unrealized commodity derivative losses of $201 million, resulting from the value change of existing crude oil and natural gas hedge positions.

The company’s revenues increased to $1.01 billion during the fourth quarter 2016 from $860 million in the prior-year quarter.

Total company sales volumes for the fourth quarter of 2016 were 410 thousand barrels of oil equivalent per day (MBoe/d). Liquids comprised 46 percent of fourth quarter 2016 volumes, with natural gas the remaining 54 percent. Total company oil volumes were above expectations at 131 thousand barrels of oil per day (MBbl/d), with the outperformance driven by the DJ Basin and Gulf of Mexico.

Noble Energy noted the company reduced its outstanding debt by $850 million and exited the fourth quarter of 2016 with $5.2 billion in liquidity, including cash on hand and an undrawn credit facility.

Noble’s organic capital expenditures of $1.3 billion for 2016 were below guidance of $1.5 billion.

 

Capex for 2017

 

At the midpoint of the annual capital range of $2.3 to $2.6 billion for 2017, Noble Energy expects to invest approximately $1.8 billion in the U.S. onshore (75 percent of total) and $625 million (25 percent of total) in offshore and other activities.

Eastern Mediterranean capital expenditures, including development costs associated with the Leviathan project, represent over 20 percent of the company’s total. Capital expenditures in the Eastern Mediterranean for the initial development of the Leviathan project include drilling one production well, long-lead investment items, and ramp up of construction activities.

The company will also complete an additional production well at Tamar, which was drilled in the fourth quarter of 2016.

The remainder of the capital program is planned for offshore and corporate, including the Gulf of Mexico and West Africa, as well as other exploration activities.

Late in 2017, Noble Energy anticipates participating in the drilling of the Araku exploration prospect offshore Suriname where the company holds a 20 percent non-operated working interest, with total gross unrisked resources in excess of 500 million barrels of oil equivalent.

Offshore Energy Today Staff

 

Share this article

Follow Offshore Energy Today

Events>

<< Jul 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

Executive Oil Conference & Expo 2019

Executive Oil Conference and Exhibition is a unique opportunity to meet with all of the region’s…

read more >

Oil & Gas Vietnam 2019

Oil & Gas Vietnam (OGAV) 2019 is the only specialized oil & gas event in Vietnam that brings together an international congregation of both upstream and downstream oil and gas companies and also its supporting industries gathered in the heart of Vietnam’s oil and gas industry in Vung Tau, to showcase the latest developments in the oil and gas industry.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply