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Noble's (NBL) Q1 Loss Narrower than Expected, Revenues Beat

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Noble Energy, Inc. reported adjusted loss of 5 cents per share for the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 13 cents. The quarterly loss was also narrower than the year-ago quarter loss of 53 cents.

 

 

On a GAAP basis, the company reported earnings of 8 cents per share against a loss of 67 cents in the year-ago quarter.  

The difference between adjusted and GAAP figures was due to the combined effect of a gain from commodity derivative instruments and other adjustments. These gains were partially offset by undeveloped leasehold impairments and loss on assets due to the termination of a contract.

Total Revenue

Noble Energy's total revenue increased around 43.1% year over year to $1,036 million in the first quarter. Reported revenues beat the Zacks Consensus Estimate of $974 million by 6.4%.

Noble Energy Inc. Price, Consensus and EPS Surprise

 

Noble Energy Inc. Price, Consensus and EPS Surprise | Noble Energy Inc. Quote

Operational Results

In the quarter under review, sales volumes averaged 382 thousand barrels of oil equivalent per day (MBoe/d), reflecting an 8.2% year-over-year drop. U.S. sales accounted for 70.7% of the total volume, while international sales accounted for the rest.

Operating expenses in the reported quarter was $8.83 per barrel of oil equivalent (BOE), representing a 5% decline from the first-quarter 2016 level.

Interest expenses in the quarter were $87 million, up 10.1%.

Realized Prices

U.S. Onshore Realized crude oil and condensate prices in the quarter increased 61.5% to $48.88 per barrel from the year-ago level of $30.27.

U.S. Onshore Natural gas prices increased 82.5% to $3.45 per thousand cubic feet (Mcf) from $1.89 in the year-ago period.

U.S. Onshore Realized prices for natural gas liquids were up 114.9% to $23.85 per barrel.

Financial Highlights

Noble Energy's cash and cash equivalents as of Mar 31, 2017 were $787 million, down from $1,180 million as of Dec 31, 2016.

Long-term debt was $6,995 million as of Mar 31, 2017, down from $7,011 million as of Dec 31, 2016.

Cash flow from operating activities in the quarter was $536 million, up 113.5% from $251 million last year.

Capital expenditure in the quarter was $616 million.

Guidance

For the second quarter of 2017, Noble Energy expects organic capital expenditure in the range of $650–$750 million and total sales volumes in the range of 405–415 MBoe/d.

For 2017, Noble Energy reiterated organic capital expenditure in the range of $2,300–$2,600 million and total sales volumes in the range of 415–425 MBoe/d.

Zacks Rank

Noble Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Peer Releases

Murphy Oil Corporation (MUR - Free Report) is slated to report first-quarter earnings on May 3. The Zacks Consensus Estimate is pegged at a loss of 2 cents per share.

Concho Resources Inc. is also slated to report first-quarter earnings on May 3. The Zacks Consensus Estimate stands at 31 cents.

WPX Energy will report first-quarter earnings on May 3. The Zacks Consensus Estimate is pegged at a loss of 17 cents.

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