NBL’s long-term operating plan
According to the company’s November 16, 2016, press release, the outlook “includes a forward base plan utilizing $50 per barrel WTI and Brent and $3 per thousand cubic feet Henry Hub natural gas for 2017, with modest oil price acceleration through 2020. An upside plan is also provided which adds $10 per barrel in commodity price to all periods.”
Key 2016–2020 forecasts
Noble Energy expects its US onshore oil (USO) volumes to increase at a CAGR (compound annual growth rate) of 28% in its base plan and 34% in its upside plan between 2016 and 2020.
Total US onshore production is expected to grow at a CAGR of 16% in its base plan and 20% in its upside plan through 2020. Total Delaware basin production volumes are expected to rise 73% to 83% by 2020 compared to 2016.
Adjusted for divestitures, Noble Energy’s total production is expected to grow at CAGRs of 11% and 15% in its base and upside plans, respectively, from 2016 to 2020. The company’s 2020 production volumes include a year of volumes from the Leviathan Gas Field. Read The Leviathan Gas Field: Noble Energy’s Key Discovery for more information.
Noble’s total operating cash flow is expected to rise at a CAGR of 33% in its base plan and 34% in its upside plan from 2016 to 2020.
Next, let’s discuss Noble Energy’s stock performance.