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Noble Energy’s Production Guidance for 4Q16 and 2016

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Noble Energy’s key operational highlights

Noble Energy’s (NBL) 3Q16 production volumes totaled 425 Mboepd (thousand barrels of oil equivalent per day). In comparison, 3Q15 production volumes were 379 Mboepd. Its 2Q16 production volumes were 427 Mboepd.

NBL’s 2Q16 press release noted that higher volumes in 3Q16 were driven by higher US oil volumes, higher US onshore sales volumes, and higher global offshore sales volumes.

Liquids comprised 43.0% of NBL’s 2Q16 production volumes. Of that amount, 29.0% was crude oil and condensates and 14.0% was natural gas liquids. Natural gas made up the remaining 57.0%.

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Noble Energy’s 2Q16 realized prices

Noble Energy’s average realized price of crude oil (OIL) and condensates fell from $43.30 per barrel in 3Q15 to $41.67 per barrel in 3Q16. Its average realized price for natural gas (UNG) rose slightly, from $2.50 per thousand cubic feet in 3Q15 to $2.61 per thousand cubic feet in 3Q16.

NBL’s average realized price for natural gas liquids rose from $11.37 per barrel in 3Q15 to $14.70 per barrel in 3Q16.

Noble Energy’s 2016 production guidance

Noble Energy’s 2016 production growth guidance is 415 Mboepd, which represents a year-over-year rise of ~6.0% compared to its 2015 levels. Its 4Q16 production guidance is 400–410 Mboepd, the same as 2Q16 guidance but with increased oil percentage expectations.

The company’s Marcellus joint venture separation and asset sales in the Eagle Ford shale lowered its production outlook in 4Q16 by 7.0 Mboepd. However, this was offset by more production at the DJ Basin and the Gulf of Mexico.

On October 31, 2016, NBL announced that it has decided to separate from its 50-50 joint venture in the Marcellus shale with Consol Energy (CNX).

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