Understanding Noble Energy’s Production Volumes



Noble Energy’s production in 3Q15

Noble Energy’s (NBL) total 3Q15 production of 379,000 boepd (barrels of oil equivalent per day) is ahead of its own 3Q15 guidance of 360,000 to 370,000 boepd, which is ~26% higher than the 302,000 boepd from 3Q14. This YoY (year-over-year) production growth of 77,000 boepd includes the production of 42,000 boepd from Eagle Ford Shale and Permian assets following the acquisition of Rosetta Resources in July 2015. Excluding the effect of the acquisitions, Noble Energy’s 3Q15 production rose by ~12% YoY.

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Production trends

As seen in the above chart, Noble Energy’s total quarter-over-quarter production volumes declined in the first two quarters of 2015. In 3Q15, total production was higher by ~7.7 MMboe (million barrels of oil equivalent), or ~28% quarter-over-quarter. This is mainly due to the acquisition of Rosetta Resources in July 2015 as discussed above.

Production guidance

For 4Q15, Noble Energy raised its total production guidance to 385,000–405,000 boepd. The company is expecting 4Q15 production growth to come mainly from the Eagle Ford Shale, Denver Basin, Marcellus Shale, and Israel assets.

EOG Resources (EOG) is also active in Eagle Ford Shale and is expecting strong growth from the area. Pioneer Natural Resources (PXD) and Cimarex Energy (XEC) are also active in the unconventional resource space across the United States. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies. In the next part of this series, we’ll look into Noble Energy’s production mix and realized prices for 3Q15.


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