Noble Energy Q4 Profit Triples, To Cut 2015 Capex By 40%

(RTTNews) - Noble Energy Inc. (NBL) on Thursday reported a profit for the fourth quarter that tripled from last year, as lower revenues were more than offset by commodity derivative gains.

Revenues for the quarter missed analysts' expectations as higher production was offset by lower crude oil prices. Looking ahead to fiscal 2015, the company projected a 40 percent reduction in its capital budget from the preceding year amid the fall in crude oil prices.

The Houston, Texas-based independent energy company's net income for the fourth quarter was $402 million or $1.05 per share, up from $134 million or $0.37 per share in the same quarter last year.

The latest quarter's results include commodity derivative gains of about $778 million or $2.12 per share and certain proved property asset impairment charges of $336 million or $0.91 per share.

Excluding items, adjusted income for the latest quarter was $156 million or $0.38 per share, compared to $192 million or $0.53 per share in the year-ago period.

On average, 32 analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter declined 20 percent to $1.07 billion from $1.33 billion in the previous-year quarter. Analysts had a consensus revenue estimate of $1.25 billion for the quarter.

Total operating expenses for the quarter rose 34 percent from last year to $1.32 billion.

Total sales volumes for the quarter averaged 315 thousand barrels of oil equivalent per day or Mboe/d, up from 293 Mboe/d in the year-ago period. This represents an increase of 8 percent compared to the prior year, or 14 percent after adjusting for divested assets.

The increase in sales volumes were due to 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 quarter compared to the year-ago period.

Consolidated average realized prices for crude oil and condensate declined 29 percent from last year to $69.54/Bbl, while average realized prices for natural gas rose 2 percent to $3.00/Mcf.

For fiscal 2014, Noble Energy's net income increased to $1.21 billion or $3.27 per share from $978 million or $2.69 per share in the prior year. Adjusted net income was $881 million or $2.36 per share, compared to $1.06 billion or $2.93 per share in the previous year.

Total revenues for the year grew 2 percent to $5.10 billion from $5.02 billion in the previous year.

Street expected the company to earn $2.36 per share for the year on revenues of $5.26 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.

Looking ahead to fiscal 2015, Noble forecasts capital investments of $2.9 billion and total sales volumes of between 295 and 315 thousand barrels of oil equivalent or MBoe/d.

The outlook represents an approximate 40 percent reduction in capital expenditures of $4.88 billion from 2014 and volume growth of 5 percent at the midpoint of the range, after adjusting for assets divested in 2014.

NBL closed Wednesday's trading at $50.69, down $0.12 or 0.24 percent on a volume of 4.66 million shares.