Noble Energy Announces Fourth Quarter And Year-End 2014 Results

david l.stover

HOUSTON, Feb. 19, 2015 /PRNewswire/ -- Noble Energy, Inc. (NYSE:NBL) announced today fourth quarter 2014 net income of $402 million, or $1.05 per diluted share.  Excluding the impact of certain items, which would typically not be considered by analysts in published earnings estimates, fourth quarter 2014 adjusted income(1) was $156 million, or $0.38 per diluted share.  Discretionary cash flow(1)  was $754 million and net cash provided by operating activities was $803 million. Capital expenditures for the final quarter of 2014 totaled $1.35 billion.
Total sales volumes for the quarter averaged a record 315 thousand barrels of oil equivalent per day (MBoe/d).  This represents an increase of eight percent compared to the fourth quarter of 2013, or 14 percent after adjusting for divested assets.  Versus the final quarter of last year, total sales volumes were up primarily as a result of the Company's continued horizontal development of the DJ Basin and Marcellus Shale resource plays.  Noble Energy's onshore horizontal production was 50 percent higher in the fourth quarter of 2014 versus the same period in 2013.
Liquids comprised 44 percent (35 percent crude oil and condensate and 9 percent natural gas liquids) of total Company fourth quarter 2014 volumes, with natural gas the remaining 56 percent.  U.S. volumes for the quarter totaled 192 MBoe/d, while International sales volumes were 123 MBoe/d.  Total sales volumes were higher than produced volumes by more than three thousand barrels per day (MBbl/d) due to the timing of liftings in Equatorial Guinea, primarily at the Alba field.
 

Noble Energy reported full year 2014 net income of $1.21 billion, or $3.27 per diluted share, and adjusted income(1) was $881 million, or $2.36 per diluted share.  Discretionary cash flow(1)  for 2014 was $3.32 billion and net cash provided by operating activities was $3.51 billion.  Total capital expenditures for the year were $4.88 billion.  The Company sold average volumes for the year of 298 MBoe/d, an increase of 16 percent over 2013 volumes after adjusting for divested assets.
David L. Stover, Noble Energy's President and CEO, commented, "Despite the dramatic commodity price volatility over the last several months, Noble Energy exited 2014 with a substantially increased operational capacity and a solid liquidity position. Our operational momentum was highlighted by the DJ Basin and Marcellus Shale programs, where each asset ended the year at record production levels and above our fourth quarter averages. As we move into 2015, we are responding swiftly and materially to the current environment, focused on maintaining our financial and operational flexibility, while also preserving the long-term value of our business."
Fourth quarter 2014 total production costs, including lease operating expense, production and ad valorem taxes, and transportation and gathering averaged $9.01 per barrel of oil equivalent (Boe), and depreciation, depletion, and amortization totaled $15.94 per Boe.  Exploration expense was $147 million, including $63 million related to unsuccessful exploration drilling and $28 million for the write-off of certain non-core U.S. undeveloped leasehold costs.  General and administrative costs were lower than anticipated due primarily to reduced personnel costs.  Included in other non-operating income for the fourth quarter 2014 was a $26 million gain related to the value change of Noble Energy stock held in a deferred compensation program.
Adjustments to net income for the final quarter of 2014 included non-cash commodity derivative gains of approximately $778 million, as a result of the value change of the Company's existing crude oil and natural gas hedge positions as of the end of the year.  In addition, the Company adjusted from net income certain proved property asset impairment charges of $336 million, which primarily related to properties in the Gulf of Mexico.  The effective tax rate on adjusted income for the quarter was 15 percent, with 57 percent of the adjusted tax provision being deferred.

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