USA: Noble Energy Posts Q3 2011 Results

Noble Energy, Inc. reported today third quarter 2011 net income of $441 million, or $2.39 per share diluted, on revenues of $924 million.

The Company’s third quarter 2010 net income was $232 million, or $1.31 per share diluted, on revenues of $755 million.  Net income for the third quarter 2011 includes unrealized commodity derivative gains and other items.  Excluding these items, third quarter 2011 adjusted net income(1) was $234 million, or $1.24 per share diluted.  Adjusted net income for the third quarter of 2010 was $225 million, or $1.27 per share diluted.

Discretionary cash flow for the third quarter 2011 was $588 million, compared to $500 million for the similar quarter in 2010.  Net cash provided by operating activities was $556 million, and capital expenditures(2) were $738 million.

Key highlights for the third quarter 2011 include:

• Total sales volumes of 224 thousand barrels oil equivalent per day (MBoe/d), up 4 percent from the previous quarter 2011
• Produced a record 65 MBoe/d in the DJ basin with horizontal production exiting the quarter at over 11 MBoe/d, a 64 percent increase over the prior quarter exit rate
• Completed 25 new horizontal Niobrara wells and added a fifth rig to the program
• Established a new significant position in the Marcellus shale with the acquisition of 314,000 net acres and 50 million cubic feet per day (MMcf/d) of existing net production
• Record natural gas sales in Israel of 228 MMcf/d, an increase of 28 percent from third quarter last year
• Drilled two wells at the Noa development project offshore Israel, ahead of schedule and below anticipated costs
• The Aseng floating production, storage and offloading (FPSO) vessel departed the shipyard for Equatorial Guinea
• Spud the Cyprus A prospect on Block 12 offshore Cyprus

Charles D. Davidson, Noble Energy’s Chairman and CEO, commented, “It was an outstanding quarter for Noble Energy as we reported record volumes from the DJ basin, along with record natural gas sales in Israel .  We expect a strong finish to 2011 as our activity continues to accelerate in the horizontal Niobrara play, and we integrate our newly established core position in the Marcellus shale.  The fourth quarter should also see first oil production from the Aseng project in Equatorial Guinea and the Raton South development in the Gulf of Mexico.  In addition, we anticipate well results from several impactful exploration opportunities.  This positive outlook for the fourth quarter together with performance to date has led us to raise production guidance for the second time this year, which now is expected to exceed the top end of our original guidance range.”

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Source: Noble Energy, October 20, 2011