uploads///NBL Production Mix

Noble Energy’s Production Mix and Realized Prices


Jan. 12 2016, Updated 6:06 p.m. ET

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.

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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%.

Realized prices

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.

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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.

Oil and gas producers

Other upstream companies from the S&P 500 (SPY) that have a similar production mix to Noble Energy are Cimarex Energy (XEC) and Range Resources (RRC). Southwestern Energy (SWN) is a pure natural gas producer.


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