On May 13, we have issued an updated research report on
Noble Energy, Inc.
). The oil & gas operator continues to advance with its
exploration and production activities in the U.S. and other
international locations. The company's constant efforts at
exploiting new exploration prospects will enrich its reserves'
However, disruption of operations on account of accidents and
natural disaster remain a matter of concern. Moreover, oil and gas
price volatilities might continue to act as headwinds.
Noble Energy, a Zacks Rank #3 (Hold) stock, posted strong
results in first-quarter 2014. Quarterly earnings as well as
revenue outpaced the Zacks Consensus Estimates. On a year-over-year
basis, top and bottom line also outperformed on the back of the
rising production volumes in the U.S. and overseas.
Going forward, operations at the company's resource-rich
Denver/Julesburg (DJ) and Marcellus Shale formations will likely
expand by 25% in the latter half of 2014 as more wells are
anticipated to be operational. The start-up of several pipeline and
gas processing facilities will further spur Noble Energy's growth
momentum in these domestic prospects.
Besides its onshore assets, Noble Energy's offshore projects are
shaping up well with additional discoveries in the deepwater Gulf
of Mexico. On the international front, capacity installations at
Tamar and excellent progress of the Leviathan prospect in the
Eastern Mediterranean will enable the company to continue its
supply in the natural gas hungry market of Israel. Noble Energy's
large-scale gas development operations have attracted potential
customers from other Middle East countries like Jordan and
So better days lie ahead for the company as this wide spectrum
of exploration and production options will help it to attain its
targeted production of 629 thousand barrels of oil equivalent per
day (Mboe/d) in the next five years.
On the flip side, proposed fracking regulations by the US
Department of Interiors, which are likely to be finalized by the
end of 2014, could create cost challenges for Noble Energy's key
Key Picks from the Sector
Other better-ranked stocks in this sector include
Athlon Energy Inc.
RSP Permian, Inc.
). All the above oil and gas stocks currently carry a Zacks Rank #1
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ATHLON ENERGY (ATHL): Free Stock Analysis
NOBLE ENERGY (NBL): Free Stock Analysis Report
RSP PERMIAN INC (RSPP): Free Stock Analysis
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