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Noble Energy (NBL) Q2 Earnings Beat Estimates, Revenues Lag

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Noble Energy, Inc. reported adjusted earnings of 5 cents per share for the second quarter of 2017, beating the Zacks Consensus Estimate of a loss of 13 cents.

On a GAAP basis, the company reported a loss of $3.20 per share against a loss of 73 cents in the year-ago quarter.  

The difference between adjusted and GAAP figures was due to the combined effect of a loss on divestiture, acquisition expenses, other charges, offset by a gain from tax adjustment.

Total Revenue

Noble Energy's total revenue increased around 25.1% year over year to $1,059 million in the second quarter. However, reported revenues marginally lagged the Zacks Consensus Estimate of $1,065 million by 0.6%.

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 408 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 7.0% sequential growth. The sales volumes were within the guided range of 405–415 MBoe/d.

Operating expenses in the reported quarter was $3,359 million compared with $1,109 million in the year-ago quarter. However, excluding the loss on Marcellus Shale upstream divestiture, operating expenses were down 6.5% year over year.

Interest expenses in the quarter were $96 million, up 23.1%.

Realized Prices

U.S. Onshore Realized crude oil and condensate prices in the quarter increased 13.9% to $45.63 per barrel from the year-ago level of $40.06.

U.S. Onshore Natural gas prices increased 82.3% to $3.19 per thousand cubic feet (Mcf) from $1.75 in the year-ago period.

U.S. Onshore Realized prices for natural gas liquids were up 33.9% to $18.77 per barrel.

Financial Highlights

Noble Energy's cash and cash equivalents as of Jun 30, 2017 were $540 million, down from $1,180 million as of Dec 31, 2016.

Long-term debt was $7,133 million as of Jun 30, 2017 compared with $7,011 million as of Dec 31, 2016.

Cash flow from operating activities in the quarter was $341 million, up from $189 million last year.

Guidance

For the third and fourth quarter of 2017, Noble Energy expects total sales volumes in the range of 340–350 MBoe/d and 380–390 MBoe/d, respectively.

For 2017, Noble Energy reiterated organic capital expenditure in the range of $2,300–$2,600 million.

Excluding nearly 75 MBoe/d of full-year 2017 volumes related to the Marcellus and other asset divestments, Noble Energy’s original annual volume guidance was 340–350 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

Anadarko Petroleum Corp. reported second-quarter 2017 adjusted loss of 77 cents per share, far wider than the Zacks Consensus Estimate of a loss of 37 cents.

Murphy Oil Corp. (MUR - Free Report) reported second-quarter 2017 loss of 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 15 cents.

WPX Energy Inc. reported a loss of 14 cents per share in the second quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 16 cents.

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