(Source: PRNewswire-FirstCall)
HOUSTON, July 30 /PRNewswire-FirstCall/ -- Noble Energy, Inc. reported today a second quarter 2009 net loss of $57 million, or $0.33 per share diluted, on revenues of $491 million. The results included an unrealized mark-to-market financial hedging loss, a gain on the completed 2008 Argentina asset sale, and various other items which reduced earnings in total $173 million after-tax. Excluding these items, which are typically not considered by analysts in published estimates, second quarter 2009 adjusted net income(1) was $116 million, or $0.66 per share diluted. For the same period in 2008, the Company reported a net loss of $144 million, or $0.84 per share diluted, on revenues of $1.2 billion. Adjusted net income(1) for the second quarter 2008 was $337 million, or $1.93 per share diluted.
Discretionary cash flow(1) for the second quarter 2009 was $374 million, compared to $685 million for the same period in 2008. Net cash provided by operating activities was $313 million and capital expenditures were $323 million.
Key highlights for the second quarter 2009 include: -- Record Wattenberg production of 282 million cubic feet equivalent per day, including liquid production of over 21 thousand barrels per day -- Awarded 22 of the 24 high bid lease blocks in Central Gulf of Mexico Lease Sale 208 -- Successful Tamar appraisal well offshore Israel increasing the gross mean resource estimate to 6.3 trillion cubic feet of natural gas -- Flow test at Dalit natural gas discovery offshore Israel confirmed deliverability up to 200 million cubic feet per day and gross mean resources of 500 billion cubic feet
"Second quarter 2009 results were very encouraging for Noble Energy, as we benefited from our leverage to strengthening liquid markets, while continuing to move forward our long-term developments. Critical progress was made in each of our three major project areas, which we expect will deliver significant growth for our Company beginning in 2011. We recently sanctioned the Aseng oil development in Equatorial Guinea and announced a very successful appraisal well at Tamar offshore Israel. In the near-term, we continue to see a challenged natural gas market in the U.S.; however, the benefits of our diversified portfolio should show up in the second half of the year with nice volume growth expected from our international assets," said Noble Energy's Chairman and CEO, Charles D. Davidson.
Total sales volumes averaged 206 thousand barrels of oil equivalent per day (MBoe/d) for the quarter, down five percent from the same period in 2008. Production was 207 MBoe/d in the current period. United States volumes were down, primarily in the deepwater Gulf of Mexico, due to the impact of ongoing hurricane shut-ins and natural decline in field production.
International volumes declined versus the second quarter 2008, with the timing of liftings in the North Sea contributing to the decrease. In addition, power plant downtime, overall economic factors, and increased imports resulted in lower volumes in Israel. West Africa volumes were higher due to greater natural gas sales to the third-party liquefied natural gas facility.
Second quarter 2009 commodity price realizations were down significantly from the same quarter last year. Crude oil and condensate averaged $52.05 per barrel and natural gas averaged $2.13 per thousand cubic feet.
Cash costs, including lease operating, production and ad valorem taxes, transportation, and SG&A were $10.08 per barrel of oil equivalent (Boe) for the quarter, down seven percent versus the second quarter of 2008. Lower production taxes more than offset higher lease operating expenses (LOE). Depreciation, depletion, and amortization (DD&A) was up six percent to $10.46 per Boe. DD&A unit costs were impacted by higher rates, primarily onshore in the United States, as well as changes in the Company's volume mix.
(1) A Non-GAAP measure, see attached Reconciliation Schedules CONFERENCE CALL
Noble Energy's second quarter 2009 conference call will be available today via live audio webcast at 9:00 a.m. Central Time. To listen, log on to http://www.nobleenergyinc.com/ and click on the Investors tab and go to the Investors Events link. Dial in numbers are (877) 856-1965 or (719) 325-4810. The conference call replay will be available until August 31, 2009. To access the replay, go to http://www.nobleenergyinc.com/ and click on the Investors tab and go to the Investors Events link. You can also access the replay by dialing (888) 203-1112 or (719) 457-0820. The pin code is 2546931.
Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The Company operates primarily in the Rocky Mountains, Mid-Continent, and deepwater Gulf of Mexico areas in the United States, with significant international operations offshore Israel, UK and West Africa. Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL. Visit Noble Energy online at http://www.nobleenergyinc.com/.
This news release may include projections and other "forward-looking statements" within the meaning of the federal securities laws. Any such projections or statements reflect Noble Energy's current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected, and actual results may differ materially from those projected. Risks, uncertainties and assumptions that could cause actual results to differ materially from those projected include, without limitation, the volatility in commodity prices for crude oil and natural gas, the presence or recoverability of estimated reserves, the ability to replace reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other action, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's business that are detailed in its Securities and Exchange Commission filings. Words such as "anticipates," "believes," "expects," "intends," "will," "should," "may," and similar expressions may be used to identify forward-looking statements. Noble Energy assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.
This news release may also contain certain forward-looking non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating the company's overall financial performance. These non-GAAP measures are broadly used to value and compare companies in the crude oil and natural gas industry.
Schedule 1 Noble Energy, Inc. Reconciliation of Net Income (Loss) to Adjusted Net Income (in millions, except per share amounts, unaudited) Three Months Six Months Ended Ended June 30, June 30, -------- -------- 2009 2008 2009 2008 ---- ---- ---- ---- Net Income (Loss) $(57) $(144) $(245) $71 Adjustments, net of tax (1) Unrealized losses on commodity derivative instruments 190 481 216 630 Gain on sale of Argentina assets (16) - (14) - Asset impairments (2) - - 263 - Other adjustments, net (1) - (1) - --- --- --- --- Adjusted Net Income (3) $116 $337 $219 $701 ---- ---- ---- ---- Adjusted Earnings Per Share Basic $0.67 $1.96 $1.27 $4.08 Diluted 0.66 1.93 1.25 4.01 Weighted average number of shares outstanding Basic 173 172 173 172 Diluted (4) 175 175 175 175 (1) The net of tax amounts 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 Net Income, 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 are different.
