Noble Energy Inc
) reported operating earnings of 87 cents per share for the second
quarter of 2014, surpassing the Zacks Consensus Estimate by 10.1%.
Earnings also increased 26.1% from 69 cents per share in the
The out performance reflects better sales volume and higher
realized prices of products sold.
Noble Energy Inc - Earnings Surprise |
On a GAAP basis, Noble Energy's earnings were 52 cents per share
versus $1.04 per share in the prior-year quarter. The variance
between GAAP and pro forma earnings was due to a 52 cent loss from
commodity derivatives, a 9 cent loss from asset impairments, a 12
cent gain from divestures and a 14 cent gain from income tax
Noble Energy's total revenues shot up 20.4% year over year to $1.38
billion in the second quarter. Quarterly revenues however lagged
the Zacks Consensus Estimate by 1.5%.
The year-over-year upswing was attributable to a 18.9% and 17.4%
increase in crude oil and condensate and natural gas sales,
Sales volumes in the second quarter averaged 290 thousand barrels
of oil equivalent per day (MBoe/d), an increase of 14% compared to
the second quarter of 2013, after adjusting for divested assets.
U.S. sales volume constituted 57% of the total, while international
volumes accounted for the balance.
In the U.S., Marcellus and Denver/Julesburg ("DJ") basins were yet
again the prime volume drivers. Total domestic volumes in the
second quarter 2014 expanded 25% year over year to 166 MBoe/d.
Noble Energy's total operating expenses during the quarter
increased 8.4% year over year to $854 million due to a substantial
22.1% rise in general and administrative expenses. Operating income
increased 46.5% year over year to $529 million on the back strong
in the quarter increased to $102.53 per barrel from $96.84 per
barrel in the year-ago period owing to higher prices in domestic
and international markets.
Natural gas realizations increased 10.1% year over year to $3.50
per thousand cubic feet (Mcf) due to strong gas prices in the U.S.
Realized prices for natural gas liquids upped 15.3% to $34.66 per
barrel from the year-ago quarter.
Noble Energy's cash and cash equivalents as of Jun 30, 2014 were
$958 million versus $1,117 million as of Dec 31, 2013.
Long-term debts as of Jun 30, 2014 were $5,160 million versus
$4,566 million as of Dec 31, 2013.
Discretionary cash flow for the second quarter was $887 million
versus $765 million in the prior-year quarter.
Noble Energy projects third quarter volumes in the band of 290 to
305 MBoe/d and fourth quarter volumes in the 310 to 330 MBoe/d
range. The company expects second half volumes to be lower
primarily due to more conservative assumptions in the DJ Basin for
infrastructure capacity and timing of well tie-ins. In addition,
underlifting in Equatorial Guinea and assets divesture in China
will also lead to lower volumes.
Devon Energy Corporation
) is slated to release its second-quarter 2014 earnings on Aug 6.
The Zacks Consensus Estimate is $1.40.
Pioneer Natural Resources Co.
) is slated to release its second-quarter 2014 earnings on Aug 4.
The Zacks Consensus Estimate is $1.25.
EOG Resources, Inc.
) is slated to release its second-quarter 2014 results on Aug 5.
The Zacks Consensus Estimate is $1.33.
We believe the long-term agreement signed by Noble Energy during
the reported quarter to supply natural gas from its Leviathan and
Tamar fields will further strengthen its position in the Eastern
Noble Energy currently has a Zacks Rank #3 (Hold).
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