A month has gone by since the last earnings report for Noble Energy Inc. . Shares have lost about 7.8% in that time frame, underperforming the market .
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Noble's Q1 Loss Narrower than Expected, Revenues Beat
Noble Energy reported adjusted loss of $0.05 per share for the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $0.13. The quarterly loss was also narrower than the year-ago quarter loss of $0.53.
On a GAAP basis, the company reported earnings of $0.08 per share against a loss of $0.67 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%.
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.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter compared to three lower. In the past month, the consensus estimate has shifted lower by 11.2% due to these changes.
Noble Energy Inc. Price and Consensus
VGM Scores
Currently, Noble Energy's stock has a great Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is primarily suitable for growth investors while also being suitable for those looking for momentum and to a lesser degree value.
Outlook
While estimates have been broadly trending upward for the stock, the magnitude of these revisions indicates a downward shift. The stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
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Nobel Energy (NBL) Down 7.8% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Noble Energy Inc. . Shares have lost about 7.8% in that time frame, underperforming the market .
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Noble's Q1 Loss Narrower than Expected, Revenues Beat
Noble Energy reported adjusted loss of $0.05 per share for the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $0.13. The quarterly loss was also narrower than the year-ago quarter loss of $0.53.
On a GAAP basis, the company reported earnings of $0.08 per share against a loss of $0.67 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%.
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.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter compared to three lower. In the past month, the consensus estimate has shifted lower by 11.2% due to these changes.
Noble Energy Inc. Price and Consensus
Noble Energy Inc. Price and Consensus | Noble Energy Inc. Quote
VGM Scores
Currently, Noble Energy's stock has a great Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is primarily suitable for growth investors while also being suitable for those looking for momentum and to a lesser degree value.
Outlook
While estimates have been broadly trending upward for the stock, the magnitude of these revisions indicates a downward shift. The stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.