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How Does Noble Energy’s Debt Position Look?

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Dec. 4 2020, Updated 10:53 a.m. ET

NBL’s net debt-to-EBITDA

Noble Energy’s (NBL) net debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) rose steadily between 1Q15 and 1Q16.

Since 1Q16, however, this ratio has mostly fallen. The company’s net debt-to-adjusted EBITDA remained mostly above 6x between 1Q16 and 4Q16, but it’s currently well under 5x.

NBL’s net debt was mostly been on the rise from 1Q15 to 3Q15, after which it steadied and eventually started falling. In 1Q17, the company’s net debt rose again over the previous quarter.

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On the other hand, its trailing-12-month adjusted EBITDA mostly fell between 1Q15 and 1Q16. This combination of rising net debt and falling EBITDA caused the company’s net debt-to-EBITDA ratio to rise steadily in the period, as we can see above. Since 1Q16, however, its net debt has fallen. Its adjusted EBITDA since 1Q16 has fluctuated, which has been reflected in its inconsistent net debt-to-EBITDA trend.

In 1Q17, NBL’s net debt fell year-over-year (or YoY) and rose sequentially. Its trailing-12-month adjusted EBITDA rose both YoY and sequentially, which explains its lower net debt-to-EBITDA ratio in the quarter.

NBL’s 1Q17 net debt was ~$6.3 billion, compared to ~$7 billion in 1Q16 and ~$6 billion in 4Q16. Its trailing-12-month adjusted EBITDA in 1Q17 was ~$1.4 billion, compared to its levels of $996 million in 1Q16 and $956 million in 4Q16.

Liquidity and financial position

Noble Energy noted that it had ~$800 billion in cash and cash equivalents on March 31, 2017. It also has $4 billion in an unused credit facility. The company’s total available liquidity is $4.8 billion.

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