USA: Noble Energy’s CEO Highlights Record 4Q Production

Noble Energy, Inc. reported today a fourth quarter 2011 net loss of $296 million, or $1.67 per share diluted, on revenues of $985 million. Results for the quarter included an asset impairment charge and an unrealized commodity derivatives loss.

Excluding these items, fourth quarter adjusted net income was $211 million, or $1.18 per share diluted. The Company reported net income of $52 million during the final quarter of 2010, or $0.29 per share diluted, on revenues of $783 million. Adjusted net income for the fourth quarter of 2010 was $185 million, or $1.04 per share diluted.

Discretionary cash flow(1) for the fourth quarter 2011 was $677 million compared to $538 million for the similar quarter in 2010. Net cash provided by operating activities was $385 million, compared to $494 million, and capital expenditures were $1.0 billion.

Key highlights for the fourth quarter of 2011 include:

• Record sales volume of 233 thousand barrels of oil equivalent per day (MBoe/d) and 222 MBoe/d for the year
• Increased DJ Basin volumes to 66 MBoe/d with horizontal production exiting the quarter at 17 MBoe/d, a 48 percent increase over the prior quarter exit rate
• Produced 74 million cubic feet per day (MMcf/d) net in the Marcellus Joint Venture (JV)
• Started up the Aseng oil project offshore Equatorial Guinea, and exited the year producing 19 thousand barrels of oil per day (MBbl/d) net
• Announced a world-class discovery offshore Cyprus with a gross mean resource estimate of seven trillion cubic feet (Tcf)
• Successfully appraised the Leviathan discovery offshore Israel resulting in an increase in the gross mean resource estimate to 17 Tcf or 6 Tcf net
• Recorded year-end proved reserves of 1.2 billion barrels of oil equivalent (BBoe), up 11 percent from 2010
• Further strengthened the balance sheet through an upsized $3 billion credit facility and issuance of $1 billion 10-year bonds resulting in year-end liquidity of approximately $4.5 billion

Noble Energy reported full year 2011 net income of $453 million, or $2.54 per share diluted, compared to net income of $725 million, or $4.10 per share diluted, in 2010. Adjusted net income(1) for 2011 was $947 million, or $5.31 per share diluted, up from $746 million, or $4.22 per share diluted, in 2010. Discretionary cash flow was $2.5 billion for the year, up 26 percent from 2010, and net cash provided by operating activities for the year was $2.2 billion, up 12 percent from 2010. Total year capital expenditures were $3.0 billion.

Charles D. Davidson, Noble Energy’s Chairman and CEO, commented, “Noble Energy closed out 2011 with record production for the fourth quarter while significantly progressing our inventory of major projects. First production was reached at Aseng offshore Equatorial Guinea seven months ahead of schedule and 13 percent below budget. We are positioned to deliver production from Galapagos and South Raton in the Gulf of Mexico in the first half of 2012. We continue to mature our Eastern Mediterranean portfolio, where the development at Tamar is progressing on schedule and on budget and the recent appraisal drilling at Leviathan has increased the estimated resources of the field.”

Davidson continues: “The discovery at Cyprus, along with the Tanin discovery announced this week, increased gross estimated mean resources discovered in the Levant Basin to approximately 35 Tcf. Balancing our growing international portfolio are two lower-risk onshore U.S. developments. Production out of the DJ Basin continues to grow led by the horizontal program which completed 25 wells in the fourth quarter. The Marcellus JV is growing production, and we began to operate our first rig in early 2012 in the wet gas portion of the acreage. Financially, we have increased our liquidity position to support our major project developments. We are exceptionally well positioned for continued growth and delivery of value to our shareholders.”

[mappress]
Offshore Energy Today Staff, February 9, 2012