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Noble (NBL) Q2 Loss Narrower Than Expected, Revenues Miss

Noble Energy, Inc. NBL reported second-quarter adjusted loss of 24 cents per share, narrower than the Zacks Consensus Estimate of a loss of 39 cents. The company reported a loss of 10 cents per share in the year-ago quarter.

GAAP loss for the reported quarter was 85 cents compared with a loss of 2 cents per share in the year-ago period.

Total Revenues

Noble's total revenues were $571 million, lagging the Zacks Consensus Estimate of $642 million by 11%. Revenues also declined 47.8% from the year-ago quarter’s $1,093 million. This year-over-year decline was due to lower contribution from oil, NGL and gas sales, along with weak commodity prices.

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

Highlights of the Release

In the quarter under review, sales volume averaged 350 thousand barrels of oil equivalent per day (MBoe/d), in line with the year-ago level. U.S. onshore volumes averaged 248 MBoe/d in the second quarter, down 5.7% from the prior-year period. The startup of Leviathan boosted volumes from the Eastern Mediterranean region.

Operating expenses for the reported quarter were $799 million, down 24.7% from the year-ago period. The decline was due to lower lease operating expenses, depreciation, depletion and amortization costs, as well as general and administrative expenses.

Interest expenses for the reported quarter were $87 million, up 38.1% from the year-ago period.

The company entered into a definite agreement to be acquired by Chevron Corporation. Chevron is set to acquire all outstanding shares of Noble in an all-stock transaction valued at $10.38 per share or nearly $5 billion.

Realized Prices

U.S. onshore realized crude oil and condensate prices (including derivatives) for the reported quarter decreased 44.5% to $32.28 per barrel from the year-ago level of $58.13.

U.S. onshore natural gas prices were $1.16 per thousand cubic feet, down 34.5% year over year.

U.S. onshore realized prices for natural gas liquids also declined 44.5% from the year-ago quarter to $8.07 per barrel.

Financial Highlights

Noble's cash and cash equivalents as of Jun 30, 2020 were $324 million compared with $484 million on Dec 31, 2019.

Long-term debt was $7,936 million as of Jun 30, 2020 compared with $7,477 million on Dec 31, 2019.

Cash flow from operating activities for first-half 2020 was $400 million, down from $1,092 million in first-half 2019.

Zacks Rank

Currently, Noble carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Releases

Devon Energy Corporation DVN is slated to report second-quarter 2020 earnings on Aug 4. The Zacks Consensus Estimate for the bottom line for the quarter is pegged at a loss of 26 cents.

Murphy Oil Corporation MUR is slated to report second-quarter 2020 earnings on Aug 6. The Zacks Consensus Estimate for the to-be-reported quarter’s bottom line is pegged at a loss of $1.05.

Occidental Petroleum Corp. OXY is slated to report second-quarter 2020 earnings on Aug 10. The Zacks Consensus Estimate for the bottom line is pegged at a loss of $1.66.

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