Delaware | 001-07964 | 73-0785597 | ||
(State or other jurisdiction of incorporation or organization) |
Commission File Number |
(I.R.S. Employer Identification No.) |
||
100 Glenborough, Suite 100 Houston, Texas |
77067 | |||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits. The following exhibit is furnished as part of this current report on Form 8-K: |
99.1 | Press Release dated April 28, 2011 announcing results for the
fiscal quarter ended March 31, 2011. |
NOBLE ENERGY, INC. |
||||
Date: April 28, 2011 | By: | /s/ Arnold J. Johnson | ||
Arnold J. Johnson | ||||
Senior Vice President, General Counsel & Secretary |
Exhibit No. | Description | |||
99.1 | Press Release dated April 28, 2011 announcing results for the
fiscal quarter ended March 31, 2011. |
NEWS RELEASE |
| Increased sales volumes 9 percent versus the first quarter 2010 to 215 thousand barrels of oil equivalent per day (MBoe/d) | ||
| Drilled 12 additional horizontal Niobrara wells in the DJ basin, 9 of which were located in the Wattenberg field | ||
| Received industrys first drilling permit post-moratorium to resume deepwater Gulf of Mexico drilling at the Santiago prospect | ||
| Finalized field development drilling and well completions at the Aseng oil project offshore Equatorial Guinea | ||
| Completed seismic acquisition of 3D data offshore Nicaragua and 2D data offshore France | ||
| Issued $850 million of 30-year unsecured notes and enhanced liquidity position to over $3.5 billion between cash and available credit |
2
(1) | A Non-GAAP measure, see attached Reconciliation Schedules |
3
(2) | Capital expenditures exclude a non-cash accrual related to construction progress to-date on the Aseng FPSO |
4
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Net Income |
$ | 14 | $ | 237 | ||||
Unrealized
(gains) losses on commodity derivative instruments |
303 | (147 | ) | |||||
Standby Rig expense [1] |
18 | | ||||||
Other adjustments |
8 | | ||||||
Total Adjustments before tax |
329 | (147 | ) | |||||
Income Tax Effect of Adjustments [2] |
(103 | ) | 48 | |||||
Adjusted Earnings [3] |
$ | 240 | $ | 138 | ||||
Adjusted Earnings Per Share |
||||||||
Basic |
$ | 1.37 | $ | 0.79 | ||||
Diluted |
1.35 | 0.78 | ||||||
Weighted average number of shares outstanding |
||||||||
Basic |
176 | 174 | ||||||
Diluted |
178 | 177 |
[1] | Amount represents stand-by rig expense incurred prior to receiving permit to resume drilling activities in the deepwater Gulf of Mexico. | |
[2] | The net tax effects are determined by calculating the tax provision for GAAP Net Income (Loss), which includes the adjusting items, and comparing the results to the tax provision for Adjusted Earnings, which excludes the adjusting items. The difference in the tax provision calculations represents the tax impact of the adjusting items listed here. The calculation is performed at the end of each quarter and, as a result, the tax rates for each discrete period may be different. | |
[3] | Adjusted earnings should not be considered a substitute for net income (loss) as reported in accordance with GAAP. Adjusted earnings is provided for comparison to earnings forecasts prepared by analysts and other third parties. Our management believes, and certain investors may find, that adjusted earnings is beneficial in evaluating our financial performance as it excludes the impact of significant non-cash items. We believe such measures can facilitate comparisons of operating performance between periods and with our peers. |
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Revenues |
||||||||
Crude oil and condensate |
$ | 569 | $ | 407 | ||||
Natural gas |
203 | 229 | ||||||
NGLs |
58 | 52 | ||||||
Income from equity method investees |
48 | 26 | ||||||
Other revenues |
21 | 19 | ||||||
Total revenues |
899 | 733 | ||||||
Operating Expenses |
||||||||
Lease operating expense |
92 | 88 | ||||||
Production and ad valorem taxes |
32 | 34 | ||||||
Transportation expense |
18 | 17 | ||||||
Exploration expense |
70 | 80 | ||||||
Depreciation, depletion and amortization |
221 | 216 | ||||||
General and administrative |
83 | 66 | ||||||
Other operating (income) expense, net |
36 | 14 | ||||||
Total operating expenses |
552 | 515 | ||||||
Operating Income |
347 | 218 | ||||||
Other (Income) Expense |
||||||||
(Gain) loss on commodity derivative instruments |
286 | (145 | ) | |||||
Interest, net of amount capitalized |
16 | 20 | ||||||
Other (income) expense, net |
8 | | ||||||
Total other (income) expense |
310 | (125 | ) | |||||
Income Before Taxes |
37 | 343 | ||||||
Income Tax Provision (Benefit) |
23 | 106 | ||||||
Net Income |
$ | 14 | $ | 237 | ||||
Earnings Per Share |
||||||||
Basic |
$ | 0.08 | $ | 1.36 | ||||
Diluted |
0.08 | 1.34 | ||||||
Weighted average number of shares outstanding |
||||||||
Basic |
176 | 174 | ||||||
Diluted |
178 | 177 |
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Crude Oil and Condensate Sales Volumes
(MBbl/d) |
||||||||
United States |
37 | 40 | ||||||
Equatorial Guinea |
13 | 8 | ||||||
North Sea |
11 | 9 | ||||||
China |
4 | 4 | ||||||
Total consolidated operations |
65 | 61 | ||||||
Equity method investee |
2 | 2 | ||||||
Total sales volumes |
67 | 63 | ||||||
Crude Oil and Condensate Realized
Prices ($/Bbl) |
||||||||
United States |
$ | 92.25 | $ | 73.80 | ||||
Equatorial Guinea |
103.49 | 73.34 | ||||||
North Sea |
106.26 | 77.06 | ||||||
China |
95.28 | 72.34 | ||||||
Consolidated average realized prices |
$ | 97.15 | $ | 74.12 | ||||
Natural Gas Sales Volumes (MMcf/d) |
||||||||
United States |
382 | 384 | ||||||
Equatorial Guinea |
248 | 194 | ||||||
Israel |
140 | 87 | ||||||
North Sea |
8 | 7 | ||||||
Ecuador |
| 30 | ||||||
Total sales volumes |
778 | 702 | ||||||
Natural Gas Realized Prices ($/Mcf) |
||||||||
United States |
$ | 4.07 | $ | 5.46 | ||||
Equatorial Guinea |
0.27 | 0.27 | ||||||
Israel |
4.19 | 4.20 | ||||||
North Sea |
7.30 | 5.42 | ||||||
Consolidated average realized prices |
$ | 2.91 | $ | 3.79 | ||||
Natural Gas Liquids (NGL) Sales
Volumes (MBbl/d) |
||||||||
United States |
14 | 13 | ||||||
Equity method investee |
5 | 4 | ||||||
Total sales volumes |
19 | 17 | ||||||
Natural Gas Liquids Realized Prices ($/Bbl) |
||||||||
United States |
$ | 47.80 | $ | 44.98 | ||||
Barrels of Oil Equivalent Volumes (MBoe/d) |
||||||||
United States |
114 | 116 | ||||||
Equatorial Guinea |
55 | 41 | ||||||
Israel |
23 | 15 | ||||||
North Sea |
12 | 10 | ||||||
Other International |
4 | 9 | ||||||
Total consolidated operations |
208 | 191 | ||||||
Equity method investee |
7 | 6 | ||||||
Total barrels of oil equivalent (MBoe/d) |
215 | 197 | ||||||
Barrels of oil equivalent volumes (MMBoe) |
19 | 18 | ||||||
(unaudited) | ||||||||
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 1,419 | $ | 1,081 | ||||
Accounts receivable, net |
565 | 556 | ||||||
Other current assets |
207 | 201 | ||||||
Total current assets |
2,191 | 1,838 | ||||||
Net property, plant and equipment |
10,561 | 10,264 | ||||||
Goodwill |
696 | 696 | ||||||
Other noncurrent assets |
519 | 484 | ||||||
Total Assets |
$ | 13,967 | $ | 13,282 | ||||
Liabilities and Shareholders Equity |
||||||||
Current Liabilities |
||||||||
Accounts payable trade |
$ | 897 | $ | 927 | ||||
Other current liabilities |
403 | 495 | ||||||
Total current liabilities |
1,300 | 1,422 | ||||||
Long-term debt |
2,801 | 2,272 | ||||||
Deferred income taxes |
2,175 | 2,110 | ||||||
Other noncurrent liabilities |
815 | 630 | ||||||
Total Liabilities |
7,091 | 6,434 | ||||||
Total Shareholders Equity |
6,876 | 6,848 | ||||||
Total Liabilities and Shareholders Equity |
$ | 13,967 | $ | 13,282 | ||||
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Adjusted Earnings [1] |
$ | 240 | $ | 138 | ||||
Adjustments to reconcile adjusted earnings to discretionary cash flow: |
||||||||
Depreciation, depletion and amortization |
221 | 216 | ||||||
Exploration expense |
70 | 80 | ||||||
(Income)/distributions from equity method investments, net |
(23 | ) | (13 | ) | ||||
Deferred compensation expense |
10 | 2 | ||||||
Deferred income taxes |
43 | 8 | ||||||
Stock-based compensation expense |
14 | 14 | ||||||
Other |
1 | 2 | ||||||
Discretionary Cash Flow [2] |
$ | 576 | $ | 447 | ||||
Reconciliation to Operating Cash Flows |
||||||||
Net changes in working capital |
(100 | ) | 208 | |||||
Cash exploration costs |
(48 | ) | (41 | ) | ||||
Current tax expense of earnings adjustments |
70 | (28 | ) | |||||
Standy-by rig expense [3] |
(18 | ) | | |||||
Other adjustments |
4 | 2 | ||||||
Net Cash Provided by Operating Activities |
$ | 484 | $ | 588 | ||||
Capital expenditures (accrual based) |
$ | 545 | $ | 409 | ||||
DJ Basin asset acquisition |
| 509 | ||||||
Increase in FPSO lease obligation |
34 | 40 | ||||||
Total Capital Expenditures (Accrual Based) |
$ | 579 | $ | 958 | ||||
[1] | See Schedule 1, Reconciliation of Net Income to Adjusted Earnings. | |
[2] | The table above reconciles discretionary cash flow to net cash provided by operating activities. Adjustments for capitalized interest were retrospectively removed from our discretionary cash flow calculation as of March 31, 2011. While discretionary cash flow is not a GAAP measure of financial performance, our management believes it is a useful tool for evaluating our overall financial performance. Among our management, research analysts, portfolio managers and investors, discretionary cash flow is broadly used as an indicator of a companys ability to fund exploration and production activities and meet financial obligations. Discretionary cash flow is also commonly used as a basis to value and compare companies in the oil and gas industry. | |
[3] | Amount represents stand-by rig expense incurred prior to receiving permit to resume drilling activities in the deepwater Gulf of Mexico. |
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Reclassification from Accumulated Other |
||||||||
Comprehensive Loss (AOCL) to Revenue [1] |
||||||||
Crude Oil |
$ | | $ | (5 | ) | |||
Natural Gas |
(1 | ) | ||||||
Total Revenue Decrease |
$ | | $ | (6 | ) | |||
Gain (Loss) on Commodity Derivative Instruments |
||||||||
Crude oil |
||||||||
Realized |
$ | (9 | ) | $ | (3 | ) | ||
Unrealized |
(273 | ) | 3 | |||||
Total crude oil |
$ | (282 | ) | $ | | |||
Natural gas |
||||||||
Realized |
26 | 1 | ||||||
Unrealized |
(30 | ) | 144 | |||||
Total natural gas |
(4 | ) | 145 | |||||
Total Gain (Loss) on Commodity Derivative Instruments |
$ | (286 | ) | $ | 145 | |||
Summary of Cash Settlements |
||||||||
Realized gain on commodity derivative instruments |
$ | 17 | $ | (2 | ) | |||
Amounts reclassified from AOCL |
| (6 | ) | |||||
Cash settlements received (paid) |
$ | 17 | $ | (8 | ) | |||
[1] | The amounts reclassified from AOCL represented deferred unrealized hedge gains and losses. All hedge gains or losses had been reclassified to revenues by December 31, 2010. |