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Noble Energy (NBL) Q3 Earnings, Revenues Beat Estimates

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Noble Energy, Inc. (NBL - Free Report) delivered adjusted earnings of 27 cents per share in third-quarter 2018, surpassing the Zacks Consensus Estimate of 16 cents by 68.8%.

On a GAAP basis, the company reported earnings of 47 cents per share versus the year-ago quarter’s loss of 28 cents.

Total Revenues

Noble Energy's total revenues surged around 32.6% year over year to $1,273 million in the third quarter. Also, the top line exceeded the Zacks Consensus Estimate of $1,152 million by 10.5%.

Improvement was driven by a higher sales volume, which increased 8% compared with the previous year’s tally. The volumes were up owing to higher volumes from Delaware and DJ Basin assets.

Noble Energy Inc. Price, Consensus and EPS Surprise

Operational Results

In the quarter under review, sales volume averaged 345 thousand barrels of oil equivalent per day (MBoe/d), which was at the upper end of the guided range.  U.S. onshore assets are a major contributor to the total sales volume, contributing nearly 72% in the third quarter.

Operating income was $498 million compared with $2 million in the year-ago period.

During the quarter under consideration, the company repurchased 3.4 million shares by deploying $103 million. The total year-to-date repurchase stood at 7.4 million shares at the cost of $233 million or 31.1% of the authorized $750 million share repurchase program.

Realized Prices

U.S. onshore realized crude oil and condensate prices in the reported quarter surged 41.3% to $65.54 per barrel from the year-ago level of $46.39.

U.S. onshore natural gas prices decreased 22.7% to $2.31 per thousand cubic feet from $2.99 in the year-ago period.

U.S. onshore realized prices for natural gas liquids were up 24.8% to $28.58 per barrel.

Financial Highlights

Noble Energy's cash and cash equivalents as of Sep 30, 2018 were $720 million, up from $675 million on Dec 31, 2017.

Long-term debt was $6,571 million as of Sep 30, 2018 compared with $6,746 million on Dec 31, 2017.

Cash flow from operating activities in the quarter was $697 million, up from $541 million in the prior-year quarter.

Guidance

Noble Energy reaffirms 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. The company raised its fourth-quarter sales volumes to the range of 337-349 MBoe/d.

Noble Energy reiterates its 2018 capital expenditure of $3 billion while the fourth-quarter capex is anticipated at $625-$700 million.

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.

Upcoming Releases

Northern Oil and Gas, Inc. (NOG - Free Report) is expected to report third-quarter 2018 earnings on Nov 8. It has an Earnings ESP of +10.30% and a Zacks Rank of 2.

Penn Virginia Corporation (PVAC - Free Report) has an Earnings ESP of +6.38% and is a Zacks #2 Ranked stock. It is slated to report third-quarter 2018 earnings on Nov 14.

Parsley Energy, Inc. (PE - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #1. It is scheduled to report third-quarter 2018 earnings on Nov 1.

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