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Analysts’ Take on Noble Energy’s 4Q16 Results

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4Q16 results

Noble Energy (NE) is scheduled to release its 4Q16 results after the market closes on February 9, 2017. A conference call will follow on February 10, 2017.

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3Q16 recap

  • Noble’s 3Q16 revenue fell 23% compared to its 2Q16 adjusted revenue of $484 million. On a YoY (year-over-year) basis, its 3Q16 revenue fell 37%.
  • The company’s cost-cutting initiatives continued, and it expects its costs to slide further in 4Q16.
  • The company’s debt obligation extends for the next 30 years. For the next five years, the company needs to pay ~$200 million–$300 million each year, following which the repayment for each year will rise to ~$400 million.
  • Analysts slashed their consensus target price for Noble following its 3Q16 results.

Stock performance

Many offshore drillers have been trading in positive territory recently, but Diamond Offshore Drilling (DO), Seadrill (SDRL), and Pacific Drilling (PACD) were trading in negative territory again in January 2017. The following were offshore drillers’ stock returns on January 27, 2017, compared to their prices at the start of the year.

  • Diamond Offshore Drilling fell 2.3%.
  • Ensco (ESV) rose 16.9%.
  • Transocean (RIG) rose 1.1%.
  • Atwood Oceanics (ATW) rose 0.6%.
  • Rowan Companies (RDC) rose 2%.
  • Seadrill fell 16%.
  • Pacific Drilling (PACD) fell 8.8%.
  • Noble Energy rose 13.5%

Series overview

In this series, we’ll take a look at what analysts are expecting for Noble’s 4Q16 results. We’ll look at their estimates for the company’s 4Q16 and 2017 revenues and EBITDA (earnings before interest, tax, depreciation, and amortization).

We’ll also look at analysts’ recommendations and recent upgrades and downgrades for the company. Changes in analysts’ estimates are key drivers of short-term price movements, so it’s a good idea to keep track of estimates, as they provide insight into what the market is expecting from a given company. Finally, we’ll take a look at Noble’s technical indicators.

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