Noble Energy Reports 4Q 2012 Net Income of $251 Mln

Noble Energy, Inc. reported today fourth quarter 2012 net income of $251 million, or $1.39 per share diluted, and net income from continuing operations of $277 million, or $1.54 per share diluted.

Excluding the impact of an unrealized commodity derivatives gain and an asset impairment charge, fourth quarter 2012 adjusted net income from continuing operations was $296 million, or $1.65 per share diluted. During the fourth quarter 2011, the Company had a net loss from continuing operations of $314 million, or $1.77 per share diluted, and adjusted net income from continuing operations of $277 million, or $1.55 per share diluted.

Discretionary cash flow from continuing operations  for the fourth quarter 2012 was a record $824 million compared to $710 million for the same quarter in 2011. Net cash provided by operating activities was $762 million and capital expenditures for the quarter were $1.1 billion.

Noble Energy reported full year 2012 net income of $1.0 billion, or $5.71 per share diluted, compared to net income of $453 million, or $2.54 per share diluted, in 2011. Adjusted net income from continuing operations(1) for 2012 was $889 million, or $4.95 per share diluted, compared to $904 million, or $5.06 per share diluted, in 2011. Discretionary cash flow from continuing operations(1) was $2.9 billion for the year, up 21 percent from 2011, and net cash provided by operating activities for the year was $2.9 billion, up 32 percent from 2011. Total year capital expenditures were $3.6 billion.

Charles D. Davidson, Noble Energy’s Chairman and CEO, commented, “Delivering record quarterly cash flow of more than $800 million in the fourth quarter was an excellent culmination to an exciting year of growth for Noble Energy and has set the stage for an even better year in 2013. Record sales, with liquids accounting for 47 percent of the volumes, were a strong contributor to the quarterly results. In particular, crude and condensate sales grew more than 17 percent from the previous quarter. In 2013, we anticipate another exciting year of growth as we deliver 20 percent production growth over 2012 after adjusting for our 2012 property sales. We plan to bring Tamar and Alen to first production while continuing to grow our U.S. production from the DJ Basin and Marcellus. To support future growth, we intend to sanction this year another wave of major projects that will likely include a Phase 2 of Tamar in Israel, a Phase 1 of Leviathan also in Israel, Carla offshore West Africa, and Gunflint and Big Bend in the Gulf of Mexico. While we move these projects into development, we will also be testing significant exploration prospects including the Paraiso well offshore Nicaragua, Leviathan deep offshore Israel, and multiple prospects in the Gulf of Mexico.”

2013

The full year volume guidance range for 2013 remains unchanged at 270 to 282 MBoe/d. First quarter 2013 volumes are expected to average 238 to 242 MBoe/d. The volume forecast for the first quarter includes over 4 thousand barrels of oil per day underliftings in West Africa and the impact of maintenance at Swordfish in the Gulf of Mexico. Volumes will ramp up throughout the year with the initiation of production at Tamar in April and at Alen in the third quarter, as well as from the continued acceleration of activity in the DJ Basin and the Marcellus Shale wet gas area.

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February 7, 2013