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Noble's (NBL) Q1 Loss Narrower than Expected, Revenues Beat

Noble Energy, Inc.NBL reported adjusted loss of 5 cents per share for the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 13 cents. The quarterly loss was also narrower than the year-ago quarter loss of 53 cents.

On a GAAP basis, the company reported earnings of 8 cents per share against a loss of 67 cents in the year-ago quarter.

The difference between adjusted and GAAP figures was due to the combined effect of a gain from commodity derivative instruments and other adjustments. These gains were partially offset by undeveloped leasehold impairments and loss on assets due to the termination of a contract.

Total Revenue

Noble Energy's total revenue increased around 43.1% year over year to $1,036 million in the first quarter. Reported revenues beat the Zacks Consensus Estimate of $974 million by 6.4%.

Noble Energy Inc. Price, Consensus and EPS Surprise

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

Operational Results

In the quarter under review, sales volumes averaged 382 thousand barrels of oil equivalent per day (MBoe/d), reflecting an 8.2% year-over-year drop. U.S. sales accounted for 70.7% of the total volume, while international sales accounted for the rest.

Operating expenses in the reported quarter was $8.83 per barrel of oil equivalent (BOE), representing a 5% decline from the first-quarter 2016 level.

Interest expenses in the quarter were $87 million, up 10.1%.

Realized Prices

U.S. Onshore Realized crude oil and condensate prices in the quarter increased 61.5% to $48.88 per barrel from the year-ago level of $30.27.

U.S. Onshore Natural gas prices increased 82.5% to $3.45 per thousand cubic feet (Mcf) from $1.89 in the year-ago period.

U.S. Onshore Realized prices for natural gas liquids were up 114.9% to $23.85 per barrel.

Financial Highlights

Noble Energy's cash and cash equivalents as of Mar 31, 2017 were $787 million, down from $1,180 million as of Dec 31, 2016.

Long-term debt was $6,995 million as of Mar 31, 2017, down from $7,011 million as of Dec 31, 2016.

Cash flow from operating activities in the quarter was $536 million, up 113.5% from $251 million last year.

Capital expenditure in the quarter was $616 million.

Guidance

For the second quarter of 2017, Noble Energy expects organic capital expenditure in the range of $650-$750 million and total sales volumes in the range of 405-415 MBoe/d.

For 2017, Noble Energy reiterated organic capital expenditure in the range of $2,300-$2,600 million and total sales volumes in the range of 415-425 MBoe/d.

Zacks Rank

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

Upcoming Peer Releases

Murphy Oil Corporation MUR is slated to report first-quarter earnings on May 3. The Zacks Consensus Estimate is pegged at a loss of 2 cents per share.

Concho Resources Inc. CXO is also slated to report first-quarter earnings on May 3. The Zacks Consensus Estimate stands at 31 cents.

WPX Energy WPX will report first-quarter earnings on May 3. The Zacks Consensus Estimate is pegged at a loss of 17 cents.

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

Concho Resources Inc. (CXO): 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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