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Noble Energy (NBL) Posts Narrower-than-Expected Q3 Loss
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Noble Energy, Inc. reported adjusted loss of 7 cents per share for the third quarter of 2016, narrower than both the Zacks Consensus Estimate of a loss of 22 cents and the third-quarter 2015 loss of 21 cents.
On a GAAP basis, the company incurred a loss of 33 cents per share, compared with the year-ago loss of 67 cents. The variance between adjusted and GAAP figures was due to the combined effect of a loss related to commodity derivative instruments, undeveloped leasehold impairment, loss on sale of other assets, stacked drilling rig charges, and deferred compensation plan. These losses were partially offset by a gain on asset due to a terminated contract.
Noble Energy's total revenue increased around 11.1% year over year to $910 million in the third quarter. However, reported revenues missed the Zacks Consensus Estimate of $999 million by 8.9%.
Operational Results
In the quarter under review, sales volumes averaged 425 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 12.1% year-over-year surge. As far as sales components are concerned, liquids comprised 43% of the sales volume, while natural gas accounted for the rest.
U.S. sales accounted for 70.4% of the total volume, while international sales accounted for the rest.
Lease operating expenses (LOE) were significantly lower at $3.37 per barrel of oil equivalent (BOE), representing a 14% decline from the third-quarter 2015 level.
Interest expenses in the quarter were $86 million, up 21.1%.
Realized crude oil and condensate prices in the quarter decreased 3.8% to $41.67 per barrel from the year-ago level of $43.30.
Natural gas realizations increased to $2.61 per thousand cubic feet (Mcf) from $2.50 in the year-ago period.
Realized prices for natural gas liquids were up 29.3% to $14.70 per barrel.
Financial Highlights
Noble Energy's cash and cash equivalents as of Sep 30, 2016 were $1,819 million, up from $1,028 million as of Dec 31, 2015.
Long-term debt was $7,854 million as of Sep 30, 2016, down from $7,976 million as of Dec 31, 2015.
Cash flow from operating activities in the quarter was $614 million, up 18.1% from $520 million last year.
Capital expenditure in the quarter was $302 million, down 56.4%.
Guidance
For the fourth quarter, Noble Energy expects capital expenditure in the range of $425–$475 million and total sales volumes in the range of 400–410 MBoe/d. Nearly 70% of the planned fourth-quarter expenditures will be directed toward the U.S. onshore assets.
Peer Releases
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2016 adjusted earnings per share of 9 cents, beating the Zacks Consensus Estimate of 5 cents by 80%.
Anadarko Petroleum Corporation reported third-quarter 2016 adjusted loss of 89 cents per share, wider than the Zacks Consensus Estimate of a loss of 57 cents.
Murphy Oil Corporation (MUR - Free Report) reported third-quarter 2016 loss of 18 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents.
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Noble Energy (NBL) Posts Narrower-than-Expected Q3 Loss
Noble Energy, Inc. reported adjusted loss of 7 cents per share for the third quarter of 2016, narrower than both the Zacks Consensus Estimate of a loss of 22 cents and the third-quarter 2015 loss of 21 cents.
On a GAAP basis, the company incurred a loss of 33 cents per share, compared with the year-ago loss of 67 cents. The variance between adjusted and GAAP figures was due to the combined effect of a loss related to commodity derivative instruments, undeveloped leasehold impairment, loss on sale of other assets, stacked drilling rig charges, and deferred compensation plan. These losses were partially offset by a gain on asset due to a terminated contract.
Total Revenue
Noble Energy's total revenue increased around 11.1% year over year to $910 million in the third quarter. However, reported revenues missed the Zacks Consensus Estimate of $999 million by 8.9%.
Operational Results
In the quarter under review, sales volumes averaged 425 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 12.1% year-over-year surge. As far as sales components are concerned, liquids comprised 43% of the sales volume, while natural gas accounted for the rest.
U.S. sales accounted for 70.4% of the total volume, while international sales accounted for the rest.
Lease operating expenses (LOE) were significantly lower at $3.37 per barrel of oil equivalent (BOE), representing a 14% decline from the third-quarter 2015 level.
Interest expenses in the quarter were $86 million, up 21.1%.
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 3.8% to $41.67 per barrel from the year-ago level of $43.30.
Natural gas realizations increased to $2.61 per thousand cubic feet (Mcf) from $2.50 in the year-ago period.
Realized prices for natural gas liquids were up 29.3% to $14.70 per barrel.
Financial Highlights
Noble Energy's cash and cash equivalents as of Sep 30, 2016 were $1,819 million, up from $1,028 million as of Dec 31, 2015.
Long-term debt was $7,854 million as of Sep 30, 2016, down from $7,976 million as of Dec 31, 2015.
Cash flow from operating activities in the quarter was $614 million, up 18.1% from $520 million last year.
Capital expenditure in the quarter was $302 million, down 56.4%.
Guidance
For the fourth quarter, Noble Energy expects capital expenditure in the range of $425–$475 million and total sales volumes in the range of 400–410 MBoe/d. Nearly 70% of the planned fourth-quarter expenditures will be directed toward the U.S. onshore assets.
Peer Releases
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2016 adjusted earnings per share of 9 cents, beating the Zacks Consensus Estimate of 5 cents by 80%.
Anadarko Petroleum Corporation reported third-quarter 2016 adjusted loss of 89 cents per share, wider than the Zacks Consensus Estimate of a loss of 57 cents.
Murphy Oil Corporation (MUR - Free Report) reported third-quarter 2016 loss of 18 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents.
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.
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