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Noble Energy’s 3Q16 Earnings Were Better Than Analysts Expected

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Noble Energy’s 3Q16 revenue

Noble Energy (NBL) reported its 3Q16 earnings on November 1, 2016. Its revenue for the quarter was ~$910.0 million compared to the estimate of $1.0 billion. Revenue in 3Q15 was ~$819.0 million. In 2Q16, it was $847.0 million.

Noble Energy reported an adjusted net loss of ~$30.0 million in 3Q16. Adjusted net loss in the corresponding period in 2015 was $90.0 million.

The company reported adjusted EPS (earnings per share) of -$0.07. Wall Street analysts’ consensus estimate for EPS was about -$0.23.

As you can see in the above graph, Noble Energy’s 3Q16 loss per share was better than anticipated. Its 3Q16 revenue, however, was lower than analysts’ expectations.

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Peer comparison

Cabot Oil & Gas (COG) announced 3Q16 earnings of -$0.04 per share. EQT (EQT) reported 3Q16 earnings of -$0.26 per share.

Key management comments in 3Q16

Speaking about Noble Energy’s achievements in 2016, David Stover, its CEO (chief executive officer), said in the 3Q16 earnings release, “Significant highlights include the successful IPO of the Noble Midstream business, the separation of our Marcellus Joint Venture, and the signing of the first sizable export contract to support Leviathan development.”

Stover added, “Year to date, we have operated our business within organic cash flows while also monetizing nearly $1.5 billion in assets. Improving our balance sheet has positioned our business for activity acceleration and allowed us to pay down debt. We have already added an additional two rigs to our Texas assets in the fourth quarter and I would expect that we will further increase activity in the near future.”

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