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Will Noble Energy Meet Its 4Q16 Production Target?

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2016 and 4Q16 production guidances

Noble Energy’s (NBL) 4Q16 production guidance range is 400 Mboepd–410 Mboepd (thousand barrels of oil equivalent per day). This range represents a fall of 4% at the midpoint compared to 4Q15 levels.

NBL’s production volumes in the previous quarter were 425 Mboepd. NBL’s 3Q16 press release noted that the fall in its 4Q16 production would be on account of its Marcellus joint venture separation, its non-core asset sale in the Eagle Ford Shale, and the timing of its Tamar transaction.

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.

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Rig activity

Noble Energy started 2017 with three rigs in the Southern Delaware Basin. With its Clayton Williams (CWEI) acquisition, it will have four rigs operational in that basin, one of which will be in the CWEI acreage. Following the acquisition, NBL plans to add a second rig to the new acreage in the basin in 2Q17.

A third rig is planned for later in the year. The objective is to end 2017 with six running rigs. The company plans to grow production in its newly acquired acreage from its current 10.0 Mboepd–60.0 Mboepd to 70.0 Mboepd by 2020.

 3Q16 production highlights

Noble Energy’s 3Q16 production volumes totaled 425 Mboepd. In comparison, its 3Q15 production volumes were 379 Mboepd, and its 2Q16 production volumes were 427 Mboepd. 

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

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