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Noble Energy (NBL) Q3 Loss Narrower Than Expected, Sales Lag

Zacks Equity Research

Noble Energy, Inc. NBL incurred an adjusted loss of 10 cents per share in third-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 11 cents.

Total Revenues

Noble Energy's total revenues were $1,119 million, lagging the Zacks Consensus Estimate of $1,122 million by 0.3%. Revenues also declined 12.1% from the year-ago quarter’s $1,273 million.

Operational Results

In the quarter under review, sales volume averaged 385 thousand barrels of oil equivalent per day (MBoe/d), up 12% from the year-ago level. U.S. onshore volumes averaged 293 MBoe/d in the third quarter.

Operating expenses in the reported quarter were $1,128 million, up 45.5% from the year-ago period.
 
Interest expenses in the reported quarter were $67 million, up 4.3% from the year-ago period. During the quarter, the company refinanced debts, which will help it to lower interest expenses by $4 million annually.

Notably, the offshore Leviathan project is 96% complete. First production from Leviathan is now expected in December 2019. Total gross capital for the project has been reduced $150 million to $3.6 billion.

Noble Energy Inc. Price, Consensus and EPS Surprise

Noble Energy Inc. Price, Consensus and EPS Surprise

Noble Energy Inc. price-consensus-eps-surprise-chart | Noble Energy Inc. Quote

Realized Prices

U.S. onshore realized crude oil and condensate prices in the reported quarter dropped 15.9% to $55.13 per barrel from the year-ago level of $65.54.

U.S. onshore natural gas prices were $1.57 per thousand cubic feet, down 32% year over year.

U.S. onshore realized prices for natural gas liquids also declined 60.9% to $11.18 per barrel.

Financial Highlights

Noble Energy's cash and cash equivalents as of Sep 30, 2019 were $473 million compared with $716 million on Dec 31, 2018.

Long-term debt was $6,941 million as of Sep 30, 2019 compared with $6,574 million on Dec 31, 2018.

Cash flow from operating activities in the quarter under review was $437 million, down from $697 million in the prior-year quarter.

Guidance

Noble Energy lowered its 2019 capital expenditure view by $200 million to $2.3 billion.

For fourth-quarter 2019, Noble Energy expects U.S. onshore oil volumes in the range of 276-288 MBoe/d. The company anticipates total fourth-quarter volumes in the range of 364-376 MBoe/d.

Furthermore, the company intends to make organic capital expenditures worth $425-$475 million in the fourth quarter.

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

Devon Energy Corp. DVN reported third-quarter 2019 adjusted earnings per share of 26 cents, which surpassed the Zacks Consensus Estimate of 19 cents by 36.8%.

WPX Energy Inc.’s WPX third-quarter 2019 earnings of 9 cents per share missed the Zacks Consensus Estimate of 11 cents by 18.2%.

Occidental Petroleum Corporation OXY reported third-quarter 2019 earnings of 11 cents per share, lagging the Zacks Consensus Estimate of 41 cents by 73.2%.

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