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Noble Energy (NBL) Beats Q3 Earnings, Retains Sales View

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Noble Energy, Inc.  incurred adjusted loss of 2 cents per share for the third quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 13 cents.

On a GAAP basis, the company reported a loss of 28 cents per share compared with a loss of 33 cents in the year-ago quarter.  

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

Total Revenues

Noble Energy's total revenues increased around 5.5% year over year to $960 million in the third quarter. Reported revenues also surpassed the Zacks Consensus Estimate of $937 million by 2.5%.

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 355 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 10 MBoe/d increase from the midpoint of the guided range of 340-350 MBoe/d.

U.S. onshore assets are major contributor to the total sales volume, contributing nearly 219 MBoe/d in the third quarter. The heavy storms during the quarter lowered production volumes by nearly 5 MBoe/d.

Operating expenses in the reported quarter was $958 million compared with $1,160 million in the year-ago quarter reflecting a decline of 17.4%, primarily due to lower exploration expenses and Gathering, Transportation and Processing expenses.

Interest expenses in the quarter were $88 million, up 2.3% year over year.

Nearly 78% of the capital expenditure in third quarter was utilized to strengthen operation of its U.S. onshore plays and 20% was spent in Israel primarily for the Leviathan development.

Realized Prices

U.S. Onshore Realized crude oil and condensate prices in the quarter increased 12.7% to $46.39 per barrel from the year-ago level of $41.15.

U.S. Onshore Natural gas prices increased 26.2% to $2.99 per thousand cubic feet from $2.37 in the year-ago period.

U.S. Onshore Realized prices for natural gas liquids were up 56.9% to $22.91 per barrel.

Financial Highlights

Noble Energy's cash and cash equivalents as of Sep 30, 2017 were $564 million, down from $1,180 million as of Dec 31, 2016.

Long-term debt was $7,487 million as of Sep 30, 2017 compared with $7,011 million as of Dec 31, 2016.

Cash flow from operating activities in the quarter was $541 million, down from $614 million last year.

Guidance

For the fourth quarter of 2017, Noble Energy reiterated total sales volume in the range of 380-390 MBoe/d. U.S. onshore volumes are anticipated to be 15% higher than the third quarter and U.S. oil volumes are expected in the range of 102-108 MBbl/d.

Noble Energy expects organic capital expenditure for fourth quarter in the range of $600-$700 million.

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 Corp. (MUR - Free Report) is scheduled to report third-quarter 2017 earnings on Nov 1, 2017. The Zacks Consensus Estimate of a loss of 14 cents has narrowed by a penny over the last seven days.

WPX Energy Inc. is scheduled to report third-quarter 2017 earnings on Nov 1, 2017. The Zacks Consensus Estimate of a loss of 13 cents has narrowed by a penny over the last seven days.

Apache Corporation (APA - Free Report) is scheduled to report third-quarter 2017 earnings on Nov 2, 2017. The Zacks Consensus Estimate of a loss of 2 cents has remained stable over the last seven days.

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