HOUSTON, May 5, 2015 /PRNewswire/ -- Noble Energy,
Inc. (NYSE:NBL) announced today a first quarter 2015 net loss of
$22 million, or $0.06 per diluted share. Excluding the
impact of certain items, which would typically not be considered by
analysts in published earnings estimates, first quarter 2015
adjusted income(1) was $10
million, or $0.03 per diluted
share. Discretionary cash flow(1) was
$555 million and net cash provided by
operating activities was $541
million. Capital expenditures for the initial quarter
of 2015 totaled $919 million.
Total sales volumes for the quarter averaged a record 318
thousand barrels of oil equivalent per day (MBoe/d), an increase of
11 percent compared to the first quarter of 2014, or 17 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 first quarter 2015 sales
volumes, with natural gas the remaining 57 percent.
Total Company sales volumes were higher primarily as a result of
continued development of the DJ Basin and Marcellus Shale resource
plays, where combined production was up more than 35 percent from
the first quarter of last year. Horizontal production in
these core plays increased more than 60 percent versus the similar
period. Internationally, sales volumes in the first quarter
of 2015 were lower than the first quarter of last year, primarily
as a result of the timing of liftings and facility maintenance in
Equatorial Guinea, as well as the
impact of the sale of the China
asset in 2014. Israel
natural gas sales were up approximately 10 percent versus the
initial quarter of 2014.
David L. Stover, Noble Energy's
Chairman and CEO, commented, "Noble Energy's strong operational and
financial capacity delivered a very positive start to 2015, and we
are increasing our full year volume expectations following on the
outperformance in the first quarter. Our teams have also made
substantial progress in bringing costs down, reflecting continued
improvement in operating efficiencies, leverage from existing core
area infrastructure, and new pricing arrangements with our service
partners. The trends of increasing capital efficiency and
decreasing operating costs are expected to continue throughout the
year."
Mr. Stover added, "Our diversified portfolio of opportunities
provides tremendous investment optionality and the ability to
continuously review capital allocation. In the near-term, we
are further reducing our investment in the Marcellus Shale and
shifting more capital in the second half of the year towards high
value areas within the DJ Basin. Offshore, there are a number
of exciting opportunities ahead of us, including commencing
production at Big Bend and Dantzler by the end of the year in the
Gulf of Mexico and material
exploration wells to be drilled in Cameroon and the Falkland Islands."
First quarter 2015 total production costs, including lease
operating expense, production and ad valorem taxes, and
transportation and gathering averaged $8.56 per barrel of oil equivalent (Boe), and
depreciation, depletion, and amortization totaled $15.86 per Boe. Lease operating expense of
$5.49 per Boe is down three percent
versus the first quarter of last year and eight percent from the
fourth quarter of 2014. General and administrative costs were
$94 million in the quarter, down
substantially from prior quarters as a result of lower major
project spending and reduced incentive compensation.
Adjustments to the net loss for the first quarter of 2015
included non-cash commodity derivative losses of approximately
$60 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. The Company also
adjusted for certain asset impairment charges totaling $27 million pre-tax, which primarily related to
changes in abandonment cost expectations for the Noa and Pinnacles
fields offshore Israel. The effective tax rate on adjusted
income for the quarter was 82 percent, with 76 percent of the
adjusted tax provision being deferred.
OPERATIONS UPDATE
DJ BASIN
In the DJ Basin, sales volumes averaged a
record 116 MBoe/d in the first quarter of 2015, up 22 percent
versus the first quarter of 2014 and eight percent from the fourth
quarter of 2014. Liquids made up 64 percent of DJ Basin
volumes (50 percent crude oil and condensate and 14 percent natural
gas liquids) and 36 percent was natural gas. Total liquids
volumes in the DJ Basin were up 12 thousand barrels per day
(MBbl/d) versus the first quarter of last year, with more than 80
percent of the liquids growth being crude oil.
The average spud to rig release time for an operated standard
length well (4,500 lateral feet) in the DJ Basin during the first
quarter of 2015 was 7 days, or 23 percent lower than the average
drilling time in the first quarter of 2014. Reduced drilling
times are resulting in a higher well count to be drilled in 2015
versus original plans. Noble Energy is supplementing its one
full-time completion unit with a second completion team, on an as
needed basis, in the second half of the year. The Company
exited the first quarter with 4 drilling rigs operated in the DJ
Basin.
Highlights for the quarter included:
- Record horizontal volumes, which totaled 96 MBoe/d, up more
than 50 percent from the same quarter of last year.
- Drilled 57 wells at an average lateral length of more than
5,200 feet. Included in the wells drilled was a 9,280 foot
horizontal well drilled in Wells Ranch in just 7 days.
- Commenced production on 48 wells, including 17 extended reach
lateral wells (equivalent to 60 standard length wells).
- Third-party gathering and compression capacity continues to be
expanded. The 70 Ranch Compressor Station commenced operation
in early February 2015, adding 45
million cubic feet of natural gas per day (MMcf/d) of compression
in the Wells Ranch area. Additional compression projects,
including the Rocky Compressor Station (100 MMcf/d) and Troudt (45
MMcf/d) are anticipated to be operational by the end of the second
quarter of 2015. Gas processing is also expanding with the
Lucerne-2 gas processing plant (200 MMcf/d), anticipated to startup
by the end of the second quarter of 2015.
- The Northern Colorado Oil Pipeline, which connects East Pony to
the Wattenberg Oil Trunkline, commenced operation in the first
quarter of 2015, in conjunction with the startup of the Company's
East Pony oil gathering system. In addition, the Tallgrass
lateral, connecting East Pony production to the Pony Express
pipeline, has begun line fill for startup in the second quarter of
2015. Following the startup of the Tallgrass lateral, Noble
Energy is anticipated to export approximately 85 percent of gross
oil produced out of the basin via pipeline or rail.
- Completed the sale of 38,500 net acres in Boulder County for
proceeds of $120 MM. The
acreage sits outside of the Company's identified Integrated
Development Plans areas and had approximately one thousand barrels
of oil equivalent per day of production at the time of sale.
MARCELLUS SHALE
Production volumes in the Marcellus
Shale averaged a record 393 million cubic feet of natural gas
equivalent per day (MMcfe/d), a 73 percent increase versus the same
quarter of last year. Natural gas represented 86 percent of
first quarter 2015 volumes, with the remaining 14 percent being
condensate and natural gas liquids (NGLs).
Continued operational improvement and drilling time reductions
are resulting in a more efficient drilling program in both the
operated and non-operated areas. Noble Energy and its JV
partner are aligned to further reduce drilling activity to 1
operated rig and an average of 2 to 3 non-operated rigs in the
second half of the year. These activity levels are down from
2 operated and 4 non-operated rigs drilling at the end of the first
quarter. The Company still expects to complete its original
planned number of wells for 2015, with no changes to the Marcellus
Shale volume outlook.
Highlights for the quarter included:
- Operated wet gas production increased to approximately 50
percent of total Joint Venture volume.
- Drilled 15 operated wells at an average lateral length of 8,700
feet. Included in the wells drilled was the Shirley 3D, with
the lateral of approximately 8,900 feet drilled in just two
days.
- Commenced production on 3 operated wells, having an average
lateral length of 7,200 feet. One of the three wells was
located on the Moundsville-9 pad, which includes a total of six
wells in Marshall County, West Virginia. Combined, the six
wells are producing approximately 2.5 MBbl/d of condensate and 20
MMcf/d, gross, and have been limited by third-party facility
constraints.
- Joint Venture partner CONSOL Energy drilled 25 wells (6,850
foot average lateral length), and 29 dry gas wells commenced
production.
GULF OF MEXICO
In the
Gulf of Mexico, sales volumes
averaged 15 MBoe/d, which were comprised of 83 percent crude oil
and condensate, six percent NGLs, and 11 percent natural
gas.
Highlights for the quarter included:
- Successfully executed the completion work on the Dantzler-1
production well. All drilling and completion activities for
the Rio Grande project (Big Bend and Dantzler) are completed.
Tie back of the two fields to the Thunderhawk facility remains on
schedule, with pipeline installation scheduled to commence in the
second quarter of 2015. Big Bend (1 well) is planned to
commence production in the fourth quarter of 2015, with Dantzler (2
wells) startup around the end of the year.
- The drilling rig is currently performing development work at
the Gunflint field. First production from Gunflint is
projected in mid-2016 as a two-well tieback to the Gulfstar 1
facility. Offshore installation at Gunflint will commence
following the Rio Grande installation.
WEST
AFRICA
Hydrocarbon sales in West Africa averaged 76 MBoe/d, which were
comprised of 42 percent crude oil and condensate, eight percent
NGLs, and 50 percent natural gas. Sales volumes for the
quarter were less than production volumes by one thousand barrels
per day as a result of the timing of liquid liftings, primarily at
the Alba field.
Highlights for the quarter included:
- Scheduled facility maintenance at the AMPCO Methanol Project
was completed, and methanol plant production has resumed to full
capacity. Natural gas sales from the Alba field were reduced
approximately 20 MMcf/d, net, during the first quarter of 2015 as a
result of the AMPCO plant maintenance.
- Compressor upgrades at the Alen field enhanced gross production
to more than 32 MBbl/d of condensate. The field averaged
approximately 28 MBbl/d of condensate production for the first
quarter.
- Active production management, strong reservoir performance, and
record facility run-time was exhibited at the Aseng oil field,
which averaged 35 MBbl/d gross.
- Executed a rig contract to drill the Cheetah exploration well
on the Tilapia PSC, offshore Cameroon. Cheetah, with unrisked
gross mean resources of more than 100 million barrels of oil
equivalent gross, is a four-way structure and represents the
Company's first Cretaceous oil prospect in Cameroon. Drilling
is anticipated to commence early in the third quarter of
2015. Noble Energy operates the Cheetah prospect with a 47
percent interest.
EASTERN MEDITERRANEAN
In the Eastern Mediterranean,
Israel natural gas sales volumes
averaged 246 MMcfe/d, up approximately 10 percent versus the first
quarter of last year.
Highlights for the quarter included:
- Tamar continued to exhibit exceptional reservoir and facility
reliability. A record weekly sales volume of over 1 billion
cubic feet of natural gas equivalent per day (Bcfe/d) gross was
reached in January 2015, driven by
increased electricity demand due to cold weather and coal plant
maintenance.
- The Ashdod Onshore Terminal compression project, which will
increase peak natural gas deliverability at Tamar to more than 1.2
Bcfe/d, is nearing completion.
- Signed a gas sale and purchase agreement for gross
interruptible sales of up to 250 MMcf/d of natural gas for 7 years
from the Tamar field to Dolphinus Holdings Ltd., for supply to
Egypt's domestic market.
Initial sales of natural gas could commence later in 2015 utilizing
existing production capacity and currently available pipeline
infrastructure. Commencement of natural gas sales are
dependent upon full regulatory approvals and finalization of
pipeline transport agreements.
- Received regulatory approval for the sale of natural gas from
Tamar to the Arab Potash Company and the Jordan Bromine Company in
Jordan, representing the first
finalized gas export arrangement. Natural gas sales are
anticipated to commence in the second half of 2016, following
completion of required pipeline construction. Total volumes
under the 15-year agreement are approximately 66 billion cubic feet
of natural gas, gross.
OTHER
- Exited the first quarter of 2015 with $5.7 billion in financial liquidity, including
$1.7 billion in cash and $4 billion of an unused credit facility.
Liquidity was enhanced during the quarter with the issuance of 24.2
million shares of Noble Energy common stock, which raised over
$1 billion for the
Company.
- Recently acquired a 75 percent interest and operatorship of the
PL001 License, offshore in the north of the Falkland Islands.
The Rhea prospect, with unrisked gross mean resources in excess of
250 million barrels of oil, is anticipated to be Noble Energy's
second operated exploration prospect in the Falkland Islands in 2015. The Company's
initial prospect, Humpback (NBL operated with a 35 percent
interest), also with more than 250 million barrels of gross
unrisked oil resources, is anticipated to commence drilling by the
end of the second quarter of 2015.
GUIDANCE
Following the Company's strong volume
performance in the first quarter, Noble Energy is raising its full
year 2015 sales guidance to range between 300 and 315 MBoe/d.
The Company anticipates the remaining quarters of 2015 to be
consistent with prior expectations.
Total Company capital for 2015 remains $2.9 billion. All other guidance, including
annual average expense guidance, remains unchanged.
(1)
|
A Non-GAAP measure,
see attached Reconciliation Schedules
|
WEBCAST AND CONFERENCE CALL INFORMATION
Noble Energy,
Inc. will host a webcast and conference call at 9:00 a.m. Central time today. The webcast
is accessible on the 'Investors' page at
www.nobleenergyinc.com. Conference call numbers for
participation are 888-334-3032 and 719-325-2384. The pass code
number is 7709233. A replay will be available on the
website.
Noble Energy is a leading independent energy company engaged in
worldwide oil and gas exploration and production. The Company
has core operations onshore in the U.S., primarily in the DJ Basin
and Marcellus Shale, in the Gulf of
Mexico, offshore Eastern Mediterranean, and offshore West
Africa. Noble Energy is listed on the New York Stock Exchange
and is traded under the ticker symbol NBL. Further
information is available at 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", 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 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. 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.
The Securities and Exchange Commission requires oil and gas
companies, in their filings with the SEC, to disclose proved
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. The
SEC permits the optional disclosure of probable and possible
reserves, however, we have not disclosed the Company's probable and
possible reserves in our filings with the SEC. We use certain terms
in this news release, such as "unrisked gross mean resources,"
which are by their nature more speculative than estimates of
proved, probable and possible reserves and accordingly are subject
to substantially greater risk of being actually realized. The SEC
guidelines strictly prohibit us from including these estimates in
filings with the SEC. Investors are urged to consider closely the
disclosures and risk factors in our most recent annual report on
Form 10-K and in other reports on file with the SEC, available from
Noble Energy's offices or website,
http://www.nobleenergyinc.com.
This news release also contains certain historical 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.
Schedule
1
Noble Energy,
Inc.
Reconciliation of
Net Income (Loss) to Adjusted Income
(in millions,
except per share amounts, unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2015
|
|
Per Diluted
Share
|
|
2014
|
|
Per Diluted
Share
|
Net Income
(Loss)
|
|
$
|
(22)
|
|
$
|
(0.06)
|
|
$
|
200
|
|
$
|
0.55
|
(Gain) loss on
commodity derivative instruments, net of cash settlements
[1]
|
|
60
|
|
0.16
|
|
42
|
|
0.11
|
Asset impairments
[2]
|
|
27
|
|
0.07
|
|
97
|
|
0.27
|
Deferred compensation
[3]
|
|
2
|
|
0.01
|
|
4
|
|
0.01
|
Other
adjustments
|
|
4
|
|
0.01
|
|
1
|
|
—
|
Total adjustments
before tax
|
|
93
|
|
0.25
|
|
144
|
|
0.39
|
Income tax effect of
adjustments [4]
|
|
(61)
|
|
(0.16)
|
|
(44)
|
|
(0.12)
|
Adjusted
Income
|
|
$
|
10
|
|
$
|
0.03
|
|
$
|
300
|
|
$
|
0.82
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
|
Diluted
|
|
373
|
|
|
|
|
365
|
|
|
|
|
|
NOTE:
|
Adjusted income
should not be considered a substitute for net income (loss) as
reported in accordance with GAAP. Adjusted income is provided for
comparison to earnings forecasts prepared by analysts and other
third parties. Our management believes, and certain investors may
find, that adjusted income is beneficial in evaluating our
financial performance. We believe such measures can facilitate
comparisons of operating performance between periods and with our
peers. See Schedule 2: Summary Statement of Operations.
|
|
|
[1]
|
Many factors impact
our gain or loss on commodity derivative instruments, net of cash
settlements, including: increases and decreases in the commodity
forward price curves compared to our executed hedging arrangements;
increases in hedged future volumes; and the mix of hedge
arrangements between NYMEX WTI, Dated Brent and NYMEX HH
commodities. These gains or losses on commodity derivative
instruments, net of cash settlements, recognized in the current
period, will be realized in the future when cash settlement
occurs.
|
|
|
[2]
|
Amount for 2015
relates primarily to Eastern Mediterranean and Gulf of Mexico
properties and amount for 2014 relates primarily to North Sea
properties.
|
|
|
[3]
|
Amounts represent
increases in the fair value of shares of our common stock held in a
rabbi trust.
|
|
|
[4]
|
The income tax effect
of adjustments is determined for each major tax jurisdiction for
each adjusting item.
|
Schedule
2
Noble Energy,
Inc.
Summary Statement
of Operations
(in millions,
except per share amounts, unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
Crude oil and
condensate
|
|
$
|
431
|
|
$
|
928
|
Natural
gas
|
|
276
|
|
325
|
Natural gas
liquids
|
|
33
|
|
74
|
Income from equity
method investees
|
|
18
|
|
52
|
Other
|
|
1
|
|
—
|
Total
revenues
|
|
759
|
|
1,379
|
Operating
Expenses
|
|
|
|
|
Lease operating
expense
|
|
157
|
|
142
|
Production and ad
valorem taxes
|
|
32
|
|
49
|
Transportation and
gathering expense
|
|
56
|
|
38
|
Exploration
expense
|
|
65
|
|
74
|
Depreciation,
depletion and amortization
|
|
454
|
|
425
|
General and
administrative
|
|
94
|
|
140
|
Asset
impairments
|
|
27
|
|
97
|
Other operating
expense, net
|
|
8
|
|
10
|
Total operating
expenses
|
|
893
|
|
975
|
Operating Income
(Loss)
|
|
(134)
|
|
404
|
Other (Income)
Expense
|
|
|
|
|
(Gain) loss on
commodity derivative instruments
|
|
(150)
|
|
75
|
Interest, net of
amount capitalized
|
|
57
|
|
47
|
Other non-operating
(income) expense, net
|
|
1
|
|
5
|
Total other (income)
expense
|
|
(92)
|
|
127
|
Income (Loss) Before
Income Taxes
|
|
(42)
|
|
277
|
Income Tax (Benefit)
Provision
|
|
(20)
|
|
77
|
Net Income
(Loss)
|
|
$
|
(22)
|
|
$
|
200
|
Earnings (Loss)
Per Share
|
|
|
|
|
Earnings (Loss) Per
Share, Basic
|
|
$
|
(0.06)
|
|
$
|
0.56
|
Earnings (Loss) Per
Share, Diluted
|
|
$
|
(0.06)
|
|
$
|
0.55
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
Basic
|
|
370
|
|
360
|
Diluted
|
|
370
|
|
365
|
Schedule
3
Noble Energy,
Inc.
Volume and Price
Statistics
(unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2015
|
|
2014
|
Crude Oil and
Condensate Sales Volumes (MBbl/d)
|
|
|
|
|
United
States
|
|
73
|
|
64
|
Equatorial
Guinea
|
|
30
|
|
34
|
Other
International
|
|
1
|
|
5
|
Total consolidated
operations
|
|
104
|
|
103
|
Equity method
investee - Equatorial Guinea
|
|
2
|
|
2
|
Total sales
volumes
|
|
106
|
|
105
|
Crude Oil and
Condensate Realized Prices ($/Bbl)
|
|
|
|
|
United
States
|
|
$
|
44.39
|
|
$
|
97.02
|
Equatorial
Guinea
|
|
49.65
|
|
105.73
|
Other
International
|
|
—
|
|
104.28
|
Consolidated average
realized prices
|
|
$
|
45.96
|
|
$
|
100.23
|
Natural Gas Sales
Volumes (MMcf/d)
|
|
|
|
|
United
States
|
|
619
|
|
483
|
Equatorial
Guinea
|
|
231
|
|
242
|
Israel
|
|
242
|
|
218
|
Total sales
volumes
|
|
1,092
|
|
943
|
Natural Gas
Realized Prices ($/Mcf)
|
|
|
|
|
United
States
|
|
$
|
2.72
|
|
$
|
4.81
|
Equatorial
Guinea
|
|
0.27
|
|
0.27
|
Israel
|
|
5.45
|
|
5.60
|
Consolidated average
realized prices
|
|
$
|
2.81
|
|
$
|
3.83
|
Natural Gas
Liquids Sales Volumes (MBbl/d)
|
|
|
|
|
United
States
|
|
25
|
|
18
|
Equity method
investee - Equatorial Guinea
|
|
6
|
|
5
|
Total sales
volumes
|
|
31
|
|
23
|
Natural Gas
Liquids Realized Prices ($/Bbl)
|
|
|
|
|
United
States
|
|
$
|
14.65
|
|
$
|
44.50
|
Barrels of Oil
Equivalent Volumes (MBoe/d)
|
|
|
|
|
United
States
|
|
201
|
|
163
|
Equatorial
Guinea
|
|
68
|
|
74
|
Israel
|
|
40
|
|
37
|
Other
International
|
|
1
|
|
5
|
Total consolidated
operations
|
|
310
|
|
279
|
Equity method
investee - Equatorial Guinea
|
|
8
|
|
7
|
Total sales
volumes
|
|
318
|
|
286
|
Schedule
4
Noble Energy,
Inc.
Condensed Balance
Sheets
(in millions,
unaudited)
|
|
|
|
March 31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,709
|
|
$
|
1,183
|
Accounts receivable,
net
|
|
769
|
|
857
|
Commodity derivative
assets, current
|
|
661
|
|
710
|
Other current
assets
|
|
259
|
|
325
|
Total current
assets
|
|
3,398
|
|
3,075
|
Net property, plant
and equipment
|
|
18,462
|
|
18,143
|
Goodwill
|
|
617
|
|
620
|
Other noncurrent
assets
|
|
784
|
|
715
|
Total
Assets
|
|
$
|
23,261
|
|
$
|
22,553
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts payable -
trade
|
|
$
|
1,269
|
|
$
|
1,578
|
Other current
liabilities
|
|
874
|
|
944
|
Total current
liabilities
|
|
2,143
|
|
2,522
|
Long-term
debt
|
|
6,113
|
|
6,103
|
Deferred income
taxes
|
|
2,491
|
|
2,516
|
Other noncurrent
liabilities
|
|
1,157
|
|
1,087
|
Total
Liabilities
|
|
11,904
|
|
12,228
|
Total Shareholders'
Equity
|
|
11,357
|
|
10,325
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
23,261
|
|
$
|
22,553
|
Schedule
5
Noble Energy,
Inc.
Discretionary Cash
Flow and Reconciliation to Net Cash Provided by Operating
Activities
(in millions,
unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2015
|
|
2014
|
Adjusted Income
[1]
|
|
$
|
10
|
|
$
|
300
|
Adjustments to
reconcile adjusted income to discretionary cash flow
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
454
|
|
425
|
Exploration
expense
|
|
65
|
|
74
|
(Income)/Dividends
from equity method investments, net
|
|
(18)
|
|
(13)
|
Deferred income
taxes
|
|
31
|
|
61
|
Stock-based
compensation expense
|
|
21
|
|
23
|
Other
|
|
(8)
|
|
—
|
Discretionary Cash
Flow
|
|
$
|
555
|
|
$
|
870
|
Reconciliation to
Operating Cash Flows
|
|
|
|
|
Net changes in
working capital
|
|
18
|
|
117
|
Cash exploration
costs
|
|
(29)
|
|
(60)
|
Other
adjustments
|
|
(3)
|
|
2
|
Net Cash Provided
by Operating Activities
|
|
$
|
541
|
|
$
|
929
|
|
|
|
|
|
Capital expenditures
(accrual based)
|
|
$
|
919
|
|
$
|
951
|
Increase in capital
lease obligations [2]
|
|
20
|
|
5
|
Total Capital
Expenditures (Accrual Based)
|
|
$
|
939
|
|
$
|
956
|
|
|
NOTE:
|
The table above
reconciles discretionary cash flow to net cash provided by
operating activities. While discretionary cash flow is not a GAAP
measure of financial performance, our management believes it is a
useful tool for evaluating our overall financial performance. Among
our management, research analysts, portfolio managers and
investors, discretionary cash flow is broadly used as an indicator
of a company's ability to fund exploration and production
activities and meet financial obligations. Discretionary cash flow
is also commonly used as a basis to value and compare companies in
the oil and gas industry.
|
|
|
[1]
|
See Schedule 1:
Reconciliation of Net Income (Loss) to Adjusted Income.
|
|
|
[2]
|
Increase in capital
lease obligations represents estimated construction in progress to
date on US operating assets and corporate buildings.
|
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SOURCE Noble Energy