Noble Energy (NBL) Tops Q2 EPS by 5c; Updates Outlook

Noble Energy (NYSE: NBL) reported Q2 EPS of ($0.24), $0.05 better than the analyst estimate of ($0.29). Revenue for the quarter came in at $847 million versus the consensus estimate of $909.36 million.

UPDATED GUIDANCE

Driven by continued performance improvement and capital efficiency momentum achieved within the first half of 2016, Noble Energy has raised its full-year sales volume guidance while maintaining its existing capital expenditure outlook. The Company anticipates full-year 2016 capital expenditures to be less than $1.5 billion while full-year 2016 sales volumes have been increased to an average of 415 MBoe/d. On a divestment adjusted basis, (accounting for 3 MBoe/d in asset sales), the increase represents 28 MBoe/d, or a total of 10 million barrels of oil equivalent. This equates to more than a 7 percent raise from the Company’s original full-year expectation.

Noble Energy expects third quarter capital expenditures between $400 million and $450 million, with approximately 80 percent of the amount targeted to the U.S. onshore assets. For the majority of the third quarter and the remainder of the year, the Company will be operating a total of four rigs onshore in the U.S., including two within the DJ Basin, and one in each of the Eagle Ford and the Delaware.

Sales volumes for the third quarter are anticipated to be between 405 MBoe/d and 415 MBoe/d, with the difference in volumes compared to the second quarter driven primarily by the timing of wells commencing production in the Eagle Ford. Volumes in the Marcellus business unit are estimated to increase versus the second quarter. In the DJ Basin, vertical production is expected to be lower, while horizontal production is anticipated to hold relatively flat. In addition, the sale of the Company’s Montana assets and Greeley Crescent areas will lower volumes by approximately two MBoe/d compared to the second quarter of this year. Volumes in the Gulf of Mexico are anticipated to be equivalent with second quarter levels, while West Africa volumes will be lower as sales liftings are expected to be less than production. Israel volumes are expected to be higher than the second quarter due to seasonal and underlying demand.

For earnings history and earnings-related data on Noble Energy (NBL) click here.

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