Noble Energy’s production mix
Noble Energy (NBL) leans toward natural gas production.
As shown in the graph above, Noble Energy’s 3Q15 production mix was 56% natural gas, 30% crude oil, and 14% natural gas liquids. Its total liquid production is at 44%. Typically, upstream companies with more liquid production have better operating margins.
Production mix trends
Over the last five years, Noble Energy’s quarterly natural gas as a percentage of its production mix oscillated between ~68% and ~51%, with an average of ~56%. Between 3Q15 and 3Q14, the percentage of production mix declined by ~1%.
Noble Energy’s average worldwide realized crude oil price in 3Q15 was $43.30 per barrel, down by ~55% from $95.55 per barrel in 3Q14. In 3Q15, the company’s US average realized price for natural gas production fell by ~41%, from $3.41 per thousand cubic feet for the same period in 2014 to $2.01 per thousand cubic feet. In 3Q15, the company’s Israel average realized price for natural gas production decreased by only ~4%, to $5.39 per thousand cubic feet from $5.59 per thousand cubic feet in the same period in 2014.
For 3Q15, Noble Energy’s average realized price for natural gas liquid production in the United States fell by ~75% to $7.49 per barrel, compared with $29.53 for the same period in 2014. The lower realized prices were compensated partially by gains on commodity hedges. We’ll look at the company’s hedges in next part.