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How Will Noble Energy Fare in Q2 2018?

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Noble Energy’s Q2 2018 revenue estimates

Noble Energy (NBL) plans to report its second-quarter earnings on August 3. The company’s revenue estimates for the second quarter stand at $1.13 billion, compared to revenues of ~$1.06 billion reported in the second quarter of 2017.

As we can see above, Noble’s quarterly revenue expectations for the second quarter are slightly higher on a year-over-year basis. This could be due to higher crude oil prices (UCO) in the second quarter. 

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Oil and natural gas liquids combined made up 56.5% of NBL’s total production in the first quarter. Higher expected crude oil price realizations are expected to be offset by a forecast decline in NBL’s production volumes both on a sequential and annual basis. Revenues could also be offset by weak natural gas prices (UGAZ).

Noble Energy’s Q2 2018 earnings estimates

The estimates for Noble Energy’s second-quarter earnings are $0.22 per share. In the second quarter of 2017, Noble Energy reported EPS of $0.05 on an adjusted basis. The year-over-year improvement in its second-quarter earnings is expected to be supported by lower operating expenses compared to the second quarter of 2017. 

Gathering, transportation, and processing expenses in the second quarter are expected to be $3.45 per boe (barrels of oil equivalent) at the midpoint compared to $3.89 per boe in the second quarter of 2017.

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Like its revenues, NBL’s earnings are expected to drop sequentially. Notably, adjustments to NBL’s earnings in the fourth quarter of 2017 had included the exclusion of the gain on sales of its mineral interests, unrealized mark-to-market loss on hedges, as well as the net impact from the Tax Cuts and Jobs Act.

Peer comparisons

NBL’s peers Cabot Oil & Gas (COG) and Antero Resources (AR) are expected to report second-quarter EPS of $0.19 and $0.18, respectively, compared to their respective 2017 second-quarter EPS of $0.14 and -$0.04.

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