How Have NBL’s Portfolio and Capital Spending Changed since 2014?



NBL’s portfolio transformation

Since 2014, Noble Energy’s (NBL) focus has shifted to US onshore liquids plays and the Eastern Mediterranean. Let’s consider the changes in NBL’s capital allocation.

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Key portfolio amendments

To reach this stage of liquids-focus, Noble has made a variety of strategic decisions, two of which it implemented this year. First, the company acquired Clayton Williams Energy. Second, the company exited its Marcellus upstream and downstream operations in May 2017. Its divested assets included production of 415 million cubic feet of natural gas equivalent per day and a 100% working interest in ~385,000 acres.

Earlier in 2015, the company merged with Rosetta Resources to expand its operations in the Eagle Ford and Permian (Delaware) Shales. In late 2016, Noble Energy announced its initial public offering of Noble Midstream Partners (NBLX).

2017 capital allocation

As we can see in the image above, US onshore liquids make up the lion’s share of the company’s 2017 capital allocation. According to its capital guidance provided in February this year, the company plans to spend $850 million in the DJ Basin, $500 million in the Delaware Basin, and $325 million in the Eagle Ford Shale.

The company will also spend $120 million related to midstream facility infrastructure buildouts in the DJ and Delaware Basins. The 2017 organic capital program for Noble Midstream Partners is $155 million–$175 million.

We’ll discuss NBL’s Leviathan capital allocation in a later part of this series. Next, we’ll talk about NBL’s key goals and objectives for 2017.


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