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Noble Energy (NBL) Posts Earnings in Q4, Misses on Revenues

Highs and Lows Stock Data

Noble Energy, Inc.NBL reported adjusted earnings of 26 cents per share for the fourth quarter of 2016 against the Zacks Consensus Estimate of a loss of 9 cents. Quarterly earnings, however, dropped 40.9% from the year-ago level of 44 cents.

On a GAAP basis, the company incurred a loss of 59 cents per share, much narrower than the year-ago loss of $4.73. The difference between adjusted and GAAP figures was due to the combined effect of a loss related to commodity derivative instruments, exploration expenses and asset impairments. These losses were partially offset by a gain on divestiture.

Full-year 2016 adjusted loss came in at 58 cents, narrower than the Zacks Consensus Estimate of a loss of 94 cents. In 2015, the company had reported earnings of 52 cents.

Total Revenue

Noble Energy's total revenue increased around 17.4% year over year to $1,010 million in the fourth quarter. Reported revenues marginally missed the Zacks Consensus Estimate of $1,048 million.

Full-year 2017 revenues were $3,491 million, missing the Zacks Consensus Estimate of $3,600 million by 3%. However, yearly revenues have risen 9.7% from $3,183 million in the year-ago period.

Operational Results

In the quarter under review, sales volumes averaged 410 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 2.8% year-over-year drop. As far as sales components are concerned, liquids comprised 46% of the sales volume, while natural gas accounted for the rest.

U.S. sales accounted for 70% of the total volume, while international sales accounted for the rest.

Lease operating expenses (LOE) were significantly lower at $3.44 per barrel of oil equivalent (BOE), representing a 9% decline from the fourth-quarter 2015 level.

Interest expenses in the quarter were $86 million, up 7.5%.

Realized Prices

Realized crude oil and condensate prices in the quarter increased 22.4% to $47.41 per barrel from the year-ago level of $38.75.

Natural gas realizations increased to $2.63 per thousand cubic feet (Mcf) from $2.19 in the year-ago period.

Realized prices for natural gas liquids were up 73.5% to $20.04 per barrel.

Noble Energy Inc. Price, Consensus and EPS Surprise

Noble Energy Inc. Price, Consensus and EPS Surprise | Noble Energy Inc. Quote

Financial Highlights

Noble Energy's cash and cash equivalents as of Dec 31, 2016 were $1,180 million, up from $1,028 million as of Dec 31, 2015.

Long-term debt was $7,011 million as of Dec 31, 2016, down from $7,976 million as of Dec 31, 2015.

Cash flow from operating activities in the quarter was $297 million, down 48.4% from $576 million last year.

Capital expenditure in the quarter was $638 million, up 22.2%.

Guidance

For 2017, Noble Energy expects organic capital expenditure in the range of $2,300-$2,600 million and total sales volumes in the range of 415-425 MBoe/d. Nearly 75% of the planned 2017 expenditures will be directed toward the U.S. onshore assets.

Upcoming Peer Release

Concho Resources Inc. CXO has a Zacks Consensus Estimate of a loss of 9 cents and a Zacks Rank #3 (Hold). It is slated to report fourth-quarter earnings on Feb 21.

Peer Releases

Anadarko Petroleum Corporation APC reported fourth-quarter 2016 adjusted loss of 50 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents.

Murphy Oil Corporation MUR reported fourth-quarter 2016 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 19 cents.

Zacks Rank

Noble Energy currently carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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Noble Energy Inc. (NBL): Free Stock Analysis Report

Anadarko Petroleum Corporation (APC): Free Stock Analysis Report

Concho Resources Inc. (CXO): Free Stock Analysis Report

Murphy Oil Corporation (MUR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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