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Noble Energy’s 4Q16 Earnings and Revenues Beat Expectations

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Feb. 14 2017, Published 11:27 a.m. ET

Noble Energy’s 4Q16 revenue

Noble Energy (NBL) reported its 4Q16 earnings on February 13, 2017. Its revenue for the quarter was ~$1 billion—compared to the estimate of $784 million. Its revenue in 4Q15 was ~$860.0 million. In 3Q16, it was $910.0 million.

As you can see in the above chart, Noble Energy’s 4Q16 revenues were better than expected—a first in 2016. We’ll look at one of the major reasons in the following part of this series.

For Noble Energy, it was the highest quarterly revenue reported in 2016. For fiscal 2016, the company reported revenue of ~$3.5 billion compared to revenue of ~$3.2 billion in fiscal 2015.

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Noble’s 4Q16 earnings

Noble Energy reported an adjusted net income of ~$113.0 million in 4Q16. The adjusted net income in the same period in 2015 was $191.0 million. In the previous quarter, Noble Energy reported a net loss of $30.0 million.

Noble Energy’s adjusted EPS (earnings per share) in 4Q16 was $0.26. Wall Street analysts’ consensus EPS estimate was about -$0.10. While its earnings were better than expected, they were lower compared to the same quarter in 2015. In 4Q15, its EPS was $0.44. In 3Q16, Noble Energy reported an EPS of -$0.07.

As you can see in the above chart, like its 4Q16 revenues, Noble Energy’s 4Q16 EPS was better than anticipated. The EPS was positive for the first time since 4Q15.

Peer comparison

Cabot Oil & Gas (COG) is expected to announce 4Q16 earnings of $0.02 per share. Chesapeake Energy (CHK) is expected to report 4Q16 earnings of -$0.09 per share. Read Can Positive 4Q16 Earnings Boost Chesapeake Energy Stock? for more insights into Chesapeake Energy’s 4Q16 earnings expectations.

2016 highlights

Noble Energy received over $1.5 billion in 2016 from asset divestitures including proceeds from Noble Midstream Partners LP’s initial public offering. The company also received approvals for its pending Leviathan gas field project in May 2016. It executed the gas sales and purchase agreement with Jordan’s National Electric Power Company in September 2016.

A recent development for Noble Energy is its $2.7 billion acquisition of Clayton Williams (CWEI) announced at the beginning of the year.

Noble Energy finished the year at 1.44 billion barrels of oil equivalent—compared to 1.42 billion barrels of oil equivalent at the end of 2015.

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