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Noble (NBL) Q2 Loss Narrower than Expected; '16 View Up
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Noble Energy, Inc. reported an adjusted loss of 24 cents per share for the second quarter of 2016, which was narrower than the Zacks Consensus Estimate of a loss of 31 cents. In the second quarter of 2015, the company had reported earnings of 26 cents.
On a GAAP basis, the company incurred a loss of 73 cents per share, compared with the year-ago loss of 28 cents. The variance between adjusted and GAAP figures was due to the combined effect of a loss on each of the following: commodity derivative instruments, divestitures, terminated contracts, and Expiration of Exploration License costs of oil wells. These losses were partially offset by a gain on Purchase Price Allocation.
Noble Energy's total revenue increased around 14.8% year over year to $847 million in the second quarter. However, reported revenues missed the Zacks Consensus Estimate of $891 million by 4.9%.
Operational Results
In the quarter under review, sales volumes averaged 427 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 43% year-over-year surge. As far as sales components are concerned, liquids comprised 44% of the sales volume, while natural gas accounted for the rest.
U.S. sales accounted for 72.4% of the total volume, while international sales accounted for the rest. In the U.S., the Denver/Julesburg (DJ) Basin and Marcellus Shale continued to be the prime volume drivers.
Lease operating expenses (LOE) were significantly lower at $3.07 per barrel of oil equivalent (BOE), a reduction of 30% compared with the second quarter of 2015.
Interest expenses in the quarter were $78 million, up 44.5% year over year.
Realized crude oil and condensate prices in the quarter decreased to $41.51 per barrel from the year-ago level of $54.91.
Natural gas realizations decreased to $2.16 per thousand cubic feet (Mcf) from $2.30 in the year-ago period.
Realized prices for natural gas liquids were up 2.8% year over year to $14.10 per barrel.
Financial Highlights
Noble Energy's cash and cash equivalents as of Jun 30, 2016, were $1,300 million, up from $1,028 million as of Dec 31, 2015.
Long-term debt was $7,868 million as of Jun 30, 2016, down from $7,976 million as of Dec 31, 2015.
Cash flow from operating activities in the quarter was $189 million, which is significantly down from $425 million last year.
Capital expenditure in the quarter was $262 million, down nearly 70% from the year-ago quarter.
Guidance
Noble Energy raised its total sales volume guidance for 2016 to 415MBoe/d from the earlier expectation of 405 MBoe/d .
2016 capital expenditure guidance remain unchanged as the company still expects to invest less than $1.5 billion in 2016.
For the third quarter, Noble Energy expects capital expenditure in the range of $400–$450 million and total sales volumes in the range of 405–415 MBoe/d. Nearly 80% of the planned third quarter expenditures will be directed toward its U.S. onshore assets.
Peer Releases
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2016 adjusted earnings per share of 6 cents, while the Zacks Consensus Estimate was a loss of 22 cents.
Anadarko Petroleum Corporation reported second-quarter 2016 adjusted loss of 60 cents per share, narrower than the Zacks Consensus Estimate of a loss of 77 cents.
Murphy Oil Corporation (MUR - Free Report) reported second-quarter 2016 loss of 36 cents per share, narrower than the Zacks Consensus Estimate of a loss of 41 cents.
Zacks Rank
Noble Energy currently carries a Zacks Rank #2 (Buy).
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Noble (NBL) Q2 Loss Narrower than Expected; '16 View Up
Noble Energy, Inc. reported an adjusted loss of 24 cents per share for the second quarter of 2016, which was narrower than the Zacks Consensus Estimate of a loss of 31 cents. In the second quarter of 2015, the company had reported earnings of 26 cents.
On a GAAP basis, the company incurred a loss of 73 cents per share, compared with the year-ago loss of 28 cents. The variance between adjusted and GAAP figures was due to the combined effect of a loss on each of the following: commodity derivative instruments, divestitures, terminated contracts, and Expiration of Exploration License costs of oil wells. These losses were partially offset by a gain on Purchase Price Allocation.
Total Revenue
Noble Energy's total revenue increased around 14.8% year over year to $847 million in the second quarter. However, reported revenues missed the Zacks Consensus Estimate of $891 million by 4.9%.
Operational Results
In the quarter under review, sales volumes averaged 427 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 43% year-over-year surge. As far as sales components are concerned, liquids comprised 44% of the sales volume, while natural gas accounted for the rest.
U.S. sales accounted for 72.4% of the total volume, while international sales accounted for the rest. In the U.S., the Denver/Julesburg (DJ) Basin and Marcellus Shale continued to be the prime volume drivers.
Lease operating expenses (LOE) were significantly lower at $3.07 per barrel of oil equivalent (BOE), a reduction of 30% compared with the second quarter of 2015.
Interest expenses in the quarter were $78 million, up 44.5% year over year.
NOBLE ENERGY Price, Consensus and EPS Surprise
NOBLE ENERGY Price, Consensus and EPS Surprise | NOBLE ENERGY Quote
Realized Prices
Realized crude oil and condensate prices in the quarter decreased to $41.51 per barrel from the year-ago level of $54.91.
Natural gas realizations decreased to $2.16 per thousand cubic feet (Mcf) from $2.30 in the year-ago period.
Realized prices for natural gas liquids were up 2.8% year over year to $14.10 per barrel.
Financial Highlights
Noble Energy's cash and cash equivalents as of Jun 30, 2016, were $1,300 million, up from $1,028 million as of Dec 31, 2015.
Long-term debt was $7,868 million as of Jun 30, 2016, down from $7,976 million as of Dec 31, 2015.
Cash flow from operating activities in the quarter was $189 million, which is significantly down from $425 million last year.
Capital expenditure in the quarter was $262 million, down nearly 70% from the year-ago quarter.
Guidance
Noble Energy raised its total sales volume guidance for 2016 to 415MBoe/d from the earlier expectation of 405 MBoe/d .
2016 capital expenditure guidance remain unchanged as the company still expects to invest less than $1.5 billion in 2016.
For the third quarter, Noble Energy expects capital expenditure in the range of $400–$450 million and total sales volumes in the range of 405–415 MBoe/d. Nearly 80% of the planned third quarter expenditures will be directed toward its U.S. onshore assets.
Peer Releases
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2016 adjusted earnings per share of 6 cents, while the Zacks Consensus Estimate was a loss of 22 cents.
Anadarko Petroleum Corporation reported second-quarter 2016 adjusted loss of 60 cents per share, narrower than the Zacks Consensus Estimate of a loss of 77 cents.
Murphy Oil Corporation (MUR - Free Report) reported second-quarter 2016 loss of 36 cents per share, narrower than the Zacks Consensus Estimate of a loss of 41 cents.
Zacks Rank
Noble Energy currently carries a Zacks Rank #2 (Buy).
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