By Angela Chen
Noble Energy Inc. said the sharp drop in oil prices dented its
revenue in the fourth quarter, offsetting higher sales volumes.
The company also outlined a 40% reduction in planned capital
investments for 2015 to $2.9 billion, following a number of other
energy companies that have slashed their spending in the wake of
sharply lower oil prices.
Noble Energy has been selling its noncore assets, positioning
itself to focus on horizontal drilling operations in the U.S. and
offshore projects in the Gulf of Mexico, the Mediterranean and west
Africa. Major initiatives have included projects in Israel and
Equatorial Guinea.
It has instead been focusing on developing the DJ Basin and
Marcellus Shale. Chief Executive David Stover said this development
has been crucial in helping grow volume and stabilize the company
during "the dramatic commodity-price volatility over the last
several months."
Additionally, the company has suspended nearly all investment in
Israel due to antitrust issues related to two natural-gas
reservoirs.
Chief Executive David Stover said on a call with analysts that
the company would wait to make further investments in Israel and
that "a predictable and stable regulatory environment is a critical
requirement."
For the most recently ended quarter, Noble Energy reported a
profit of $402 million, or $1.05 a share, up from $134 million, or
37 cents a share, a year earlier. Excluding special items such as
write-downs, earnings were 38 cents a share in the quarter, down
from 53 cents.
Revenue fell to $1.07 billion from $1.33 billion.
Analysts polled by Thomson Reuters had expected earnings of 34
cents a share and revenue of $1.25 billion.
Total sales volume grew 8%, due mostly to the company's
development of the Basin and Marcellus Shale resource plays.
However, average realized prices for crude oil and condensates
fell 29%, while prices increased about 2.4% for natural gas.
Shares of Noble, which were inactive premarket, have risen about
7% this year through Wednesday's close.
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