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Noble (NBL) Q1 Earnings & Revenues Beat Estimates, View Up

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Noble Energy, Inc. reported adjusted earnings of 35 cents per share in the first quarter of 2018, beating the Zacks Consensus Estimate of 28 cents by 25%.

On a GAAP basis, the company reported earnings of $1.14 per share compared with 8 cents in the year-ago quarter.
 
The difference between adjusted and GAAP figures was caused by the combined effect of gain on divestiture, charges including asset impairment, loss on investment in Tamar Petroleum Ltd., loss on Commodity Derivative Instruments, and income tax adjustments.

Total Revenues

Noble Energy's total revenues increased around 24.1% year over year to $1,286 million in the first quarter. Reported revenues also surpassed the Zacks Consensus Estimate of $1,199 million by 7.3%.

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 volume averaged 370 thousand barrels of oil equivalent per day (MBoe/d), exceeding the guided range of 358-368 MBoe/d. Prior to the implementation of ASC 606, total company sales volumes in the first quarter of 2018 were 361 MBoe/d.

U.S. onshore assets are a major contributor to the total sales volume, contributing nearly 246 MBoe/d in the first quarter. Onshore sales volume was up 30% year over year, primarily due to solid contribution from Delaware Basin assets.

Operating expenses in the quarter were $578 million compared with $1,001 million in the year-ago quarter. Operating income was $708 million versus $35 million in the year-ago quarter.

The company announced $750 million of share repurchase program and repurchased nearly $67.5 million shares during the quarter.

Realized Prices

U.S. Onshore realized crude oil and condensate prices (Post ASC 606 adoption) in the quarter increased 25.8% to $61.50 per barrel from the year-ago level of $48.88.

U.S. Onshore Natural gas prices decreased 24.6% to $2.60 per thousand cubic feet from $3.45 in the year-ago period.

U.S. Onshore Realized prices for natural gas liquids were up 6.8% to $25.47 per barrel.

Financial Highlights

Noble Energy's cash and cash equivalents as of Mar 31, 2018 were $992 million, down from $675 million as of Dec 31, 2017.

Long-term debt was $6,858 million as of Mar 31, 2018 compared with $6,746 million as of Dec 31, 2017.

Cash flow from operating activities in the quarter was $583 million, up from $536 million in the prior-year quarter.

Guidance

Noble Energy updated its guidance to reflect the adoption of ASC 606 and the timing of closing the Gulf of Mexico transaction.

Noble Energy’s 2018 sales volume has been increased to the range of 350-360 MBoe/d, up from the prior range of 343-353 MBoe/d. Second-quarter sales volumes are anticipated to be between 340 MBoe/d and 350 MBoe/d.

Noble Energy reiterates its 2018 capital expenditure to be between $2.7 billion and $2.9 billion, with second-quarter expenses to come in within $750-$850 million.

Zacks Rank

Noble Energy 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 expected to report first-quarter 2018 earnings on May 2, 2018. The Zacks Consensus Estimate for the quarter is pegged at 24 cents.

CNX Resources Corporation (CNX - Free Report) is anticipated to report first-quarter 2018 earnings on May 8, 2018. The Zacks Consensus Estimate for the quarter is pegged at 12 cents.

Occidental Petroleum Corp. (OXY - Free Report) is expected to report first-quarter 2018 earnings on May 8, 2018. The Zacks Consensus Estimate for the quarter is pegged at 71 cents.

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