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Noble (NBL) Misses Q2 Earnings Estimates, Beats Revenues

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Noble Energy, Inc. (NBL - Free Report) reported adjusted earnings of 17 cents per share in the second quarter of 2018, lagging the Zacks Consensus Estimate of 24 cents by 29.2%.

On a GAAP basis, the company reported a loss of 5 cents per share compared with the year-ago quarter’s figure of $3.20.

Noble Energy Inc. Price, Consensus and EPS Surprise
 

Noble Energy Inc. Price, Consensus and EPS Surprise | Noble Energy Inc. Quote

 Total Revenues

Noble Energy's total revenues increased around 16.1% year over year to $1,230 million in the second quarter. Reported revenues also surpassed the Zacks Consensus Estimate of $1,135 million by 8.4%.

Improvement in the realized prices of crude oil and natural gas liquids helped the company beat revenue expectation, despite a 15.2% year-over-year fall in sales volume.

Operational Results

In the quarter under review, sales volume averaged 346 thousand barrels of oil equivalent per day (MBoe/d), which is within the guided range of 340-350 MBoe/d.  U.S. onshore assets are a major contributor to the total sales volume, contributing nearly 244 MBoe/d in the second quarter.

Operating income was $343 million versus a loss of $2,300 million in the year-ago quarter.

During the quarter, the company repurchased 1.8 million shares, bringing the total year-to-date repurchase to 4 million shares, or 17% of the authorized $750 million share repurchase program.

Realized Prices

U.S. onshore realized crude oil and condensate prices in the quarter increased 41.6% to $64.62 per barrel from the year-ago level of $45.63.

U.S. onshore natural gas prices decreased 28.2% to $2.29 per thousand cubic feet from $3.19 in the year-ago period.

U.S. onshore realized prices for natural gas liquids were up 29.9% to $24.39 per barrel.

Financial Highlights

Noble Energy's cash and cash equivalents as of Jun 30, 2018 were $621 million, down from $675 million on Dec 31, 2017.

Long-term debt was $6,555 million as of Jun 30, 2018 compared with $6,746 million on Dec 31, 2017.

Cash flow from operating activities in the quarter was $496 million, up from $341 million in the prior-year quarter.

Guidance

Noble Energy now expects its 2018 sales volume at the lower end of the guided range of 350-360 MBoe/d, due to deferred completion activity in the Delaware and Eagle Ford declines. Third-quarter sales volumes are anticipated between 335 MBoe/d and 345 MBoe/d.

Noble Energy raised its 2018 capital expenditure to $3 billion (versus earlier expectation between $2.7 billion and $2.9 billion) due to increased U.S. onshore activity.

Zacks Rank

Currently, Noble Energy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

EQT Corporation (EQT - Free Report) posted second-quarter 2018 operating earnings of 44 cents per share, beating the Zacks Consensus Estimate of 37 cents by 18.9%.

Antero Resources Corporation (AR - Free Report) posted second-quarter 2018 operating earnings of 2 cents per share, lagging the Zacks Consensus Estimate of 18 cents by 88.9%.

Southwestern Energy Company (SWN - Free Report) posted second-quarter 2018 operating earnings of 18 cents per share, beating the Zacks Consensus Estimate of 16 cents by 12.5%.

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