Noble Energy (NBL - Free Report) updated outlook for the third quarter of 2017 owing to solid production from itsorganic and inorganic assets.
Details of the Update
On the production side, the total oil volumes for the third quarter have been raised to 126-130 thousand barrels per day (MBbl/d), reflecting 4% increase from prior expectation. The company’s natural gas volumes are anticipated have been raised to 965-990 million cubic feet of natural gas per day, while natural gas liquids (NGLs) are expected between 63 and 65 MBbl/d for the quarter.
On the sales end, volumes for the third quarter have been raised to range between 352-358 thousand barrels of oil equivalent per day (MBoe/d), reflecting 3% rise from the previous expectation.
However, the company has maintained original capital expectation of $625-$725 million for the quarter.
Reason for Update?
The company updated outlook on the back of several favorable factors. Better-than-expected rise in DJ Basin volumes due to robust performance in Wells Ranch and East Pony have led to an increased oil production. Along with this, its first central gathering facility came online in July andhasbeen connected to the Advantage Pipeline taking crude volumes to Crane County, TX.
Robust performance in Eagle Ford due to increase in South Gates Ranch activityas well as inAlba field reflect an overall increase in the company’s production volumes.
Factor to Drive Peer Performance
The Houston, TX-based company has been engaged in making the most of its well placed organic and inorganic assets. As such it has been gravitating toward expansion techniques for exploring and producing more crude oil, natural gas and natural gas liquids (NGLs) globally. The company has a diversified basket of short and long-term projects, both onshore and offshore, in domestic and international locations.
With robust productions from its existing assets, the company is well poised to benefit and further aid the company to achieve better results. Noble Energy is also currently benefiting from a number of asset divestments that are driving overall production. Consequently,it is important for peers like Devon Energy Corporation (DVN - Free Report) , WPX Energy Inc. (WPX - Free Report) and Anadarko Petroleum Corporation (APC - Free Report) to undertake initiatives and strategies that will aid their production volumes further, as Noble Energy.
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