In third-quarter 2014, Noble Energy's earnings and revenues missed
the Zacks Consensus Estimate and also declined year over year.
Lower total sales volumes and average realized prices adversely
impacted the top line and consequently the bottom line. The
company's steady focus on new discovery, operations at the
Denver-Julesburg (DJ) as well as the Marcellus basins and addition
of service capacity mainly in the Eastern Mediterranean operations
are expected to boost its future performance. However, concerns
arising from oil and gas price volatilities and operational
disruption due to accidents and natural disaster are potential
risks. Thus, we are maintaining our Neutral recommendation on the
Houston, TX-based Noble Energy Inc. is an independent oil and
gas exploration and production (E&P) company, having high-grade
hydrocarbon assets across the U.S. and several international
Noble Energy chiefly focuses on organic growth from exploration
and development drilling activities. This is further strengthened
by strategic mergers and acquisitions. The company is actively
engaged in periodic divestments to upgrade its portfolio. Noble
Energy gains from the strategic competitive advantage of selected
basin sites for superior yield on returns.
Noble Energy has operations in five core areas the
Denver/Julesburg (DJ) Basin in onshore U.S., the Marcellus Shale
also in onshore U.S., the deepwater Gulf of Mexico (GoM) in
offshore U.S., West Africa and Eastern Mediterranean.
The operations are spread over the deepwater Gulf of Mexico
(GoM), the Rocky Mountains region (Powder River Basins, Bowdoin,
Tri-State, Haynesville and Comanche Plains fields), the offshore
Equatorial Guinea, Cameroon, Sierra Leone, Israel and Cyprus. Other
international operations are spread across the North Sea, China,
Falkland Islands and Nicaragua
At the end of 2013, Noble Energy had total proved reserves of
1,406 million barrels of oil equivalent (MMboe). In the domestic
operations, DJ Basin had proved reserves of 450 MMboe. On the
international front, Israel had total crude oil, condensate,
natural gas liquids (NGL) and natural gas reserves of 416
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