2000 - Consolidated Balance She
2000 - Consolidated Balance Sheets (USD $) | ||
In Millions, except Per Share data | Jun. 30, 2009
| Dec. 31, 2008
|
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash and Cash Equivalents | $956 | $1,140 |
Accounts Receivable, Net, Current [Abstract] | ||
Accounts Receivable, Net | 450 | 423 |
Commodity Derivative Assets, Current | 203 | 437 |
Inventory, Net [Abstract] | ||
Inventories, Current | 107 | 105 |
Assets Held-for-sale, Current [Abstract] | ||
Asset Held for Sale | 0 | 26 |
Prepaid Expense, Current [Abstract] | ||
Prepaid Expenses and Other Assets, Current | 21 | 27 |
Assets, Current, Total | 1,737 | 2,158 |
Assets, Noncurrent [Abstract] | ||
Goodwill | 758 | 759 |
Commodity Derivative Assets, Noncurrent | 7 | 33 |
Property, Plant and Equipment, Gross [Abstract] | ||
Oil and Gas Properties (Successful Efforts Method of Accounting) | 12,161 | 11,963 |
Property, Plant and Equipment, Other | 224 | 175 |
Property, Plant and Equipment, Gross, Total | 12,385 | 12,138 |
Accumulated Depreciation, Depletion and Amortization | (3,504) | (3,134) |
Property, Plant and Equipment, Net, Total | 8,881 | 9,004 |
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||
Equity Method Investments | 335 | 311 |
Mutual Fund Investments | 90 | 84 |
Other Assets, Noncurrent | 43 | 35 |
Assets, Total | 11,851 | 12,384 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts Payable - Trade | 493 | 579 |
Taxes Payable [Abstract] | ||
Income Taxes Payable | 69 | 130 |
Deferred Income Taxes, Net, Current | 25 | 142 |
Interest Payable | 38 | 9 |
Short-term Borrowings [Abstract] | ||
Short-term Borrowings, Total | 0 | 25 |
Deferred Revenue and Credits, Current [Abstract] | ||
Deferred Gain on Asset Sale, Current | 0 | 24 |
Commodity Derivative Liabilities, Current | 39 | 23 |
Asset Retirement Obligations, Current | 44 | 27 |
Accrued and Other Liabilities, Current | 182 | 215 |
Liabilities, Current, Total | 890 | 1,174 |
Long-term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt | 2,416 | 2,241 |
Deferred Compensation Liabilities, Noncurrent | 182 | 159 |
Asset Retirement Obligations, Noncurrent [Abstract] | ||
Asset Retirement Obligations, Noncurrent, Total | 187 | 184 |
Deferred Income Taxes, Noncurrent | 1,947 | 2,174 |
Accrued Benefit Costs, Noncurrent | 83 | 81 |
Commodity Derivative Liabilities - Noncurrent | 53 | 2 |
Other Liabilities, Noncurrent | 34 | 60 |
Liabilities, Total | 5,792 | 6,075 |
Stockholders' Equity [Abstract] | ||
Common Stock, Value | 645 | 641 |
Additional Paid in Capital [Abstract] | ||
Additional Paid in Capital, Total | 2,229 | 2,193 |
Treasury Stock, Value | (615) | (614) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Accumulated Other Comprehensive Loss | (91) | (110) |
Retained Earnings (Accumulated Deficit) [Abstract] | ||
Retained Earnings | 3,891 | 4,199 |
Total Shareholders' Equity | 6,059 | 6,309 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $1 | $1 |
Preferred Stock, Shares Authorized | 4 | 4 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common Stock, Par or Stated Value Per Share | 3.333 | 3.333 |
Common Stock, Shares Authorized | 250 | 250 |
Common Stock, Shares Issued | 193 | 192 |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | ||
Treasury Stock, Shares | 19 | 19 |
Total Liabilities and Shareholders' Equity | $11,851 | $12,384 |
3000 - Consolidated Statements
3000 - Consolidated Statements of Cash Flows (USD $) | ||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Income (Loss) from Continuing Operations [Abstract] | ||
Net Income (Loss) | ($245) | $71 |
Depreciation and Amortization [Abstract] | ||
Depreciation, Depletion and Amortization | 396 | 399 |
Gain (Loss) on Sale of Oil and Gas Property [Abstract] | ||
Gain (Loss) on Sale of Oil and Gas Property, Total | (24) | 0 |
Asset Impairments | 437 | 0 |
Deferred Income Taxes | (359) | 10 |
Income from Equity Method Investees | (27) | (118) |
Dividends from Equity Method Investees | 5 | 121 |
Unrealized Loss on Commodity Derivative Instruments | 358 | 934 |
Settlement of Previously Recognized Hedge Losses | 0 | (101) |
Allowance for Doubtful Accounts | (38) | 6 |
Other Adjustments for Noncash Items Included in Income | 46 | 122 |
Increase (Decrease) in Receivables [Abstract] | ||
(Increase) Decrease in Accounts Receivable | 7 | (276) |
(Increase) Decrease in Other Current Assets | 17 | (28) |
Increase (Decrease) in Accounts Payable [Abstract] | ||
Increase (Decrease) in Accounts Payable, Total | 10 | 64 |
Increase (Decrease) in Other Current Liabilities | (47) | (41) |
Other Assets and Liabilities, Net | (38) | (9) |
Net Cash Provided by Operating Activities | 498 | 1,154 |
Payments to Acquire Oil and Gas Property and Equipment [Abstract] | ||
Additions to Property, Plant and Equipment | (777) | (932) |
Proceeds from Sale of Property, Plant, and Equipment [Abstract] | ||
Proceeds from Sale of Property, Plant and Equipment | 0 | 109 |
Net Cash Used in Investing Activities | (777) | (823) |
Repayments of Short-term Debt [Abstract] | ||
Repayment of Installment Note | (25) | (25) |
Exercise of Stock Options | 13 | 24 |
Excess Tax Benefits from Stock-Based Awards | 3 | 23 |
Dividends Paid, Common Stock | (63) | (53) |
Purchase of Treasury Stock | (1) | (2) |
Proceeds from Credit Facilities | 340 | 450 |
Repayment of Credit Facilities | (1,161) | (425) |
Proceeds from Issuance of 8 1/4% Senior Notes | 989 | 0 |
Net Cash Provided by (Used in) Financing Activities, Total | 95 | (8) |
Increase (Decrease) in Cash and Cash Equivalents | (184) | 323 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 1,140 | 660 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $956 | $983 |
1_3000 - Consolidated Statement
3000 - Consolidated Statements of Operations (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Revenues [Abstract] | ||||
Oil, Gas and NGL Sales | $460 | $1,130 | $866 | $2,074 |
Income from Equity Method Investees | 16 | 56 | 27 | 118 |
Electricity Sales | 11 | 14 | 32 | 29 |
Gathering, Marketing and Processing Revenues | 4 | 5 | 7 | 9 |
Revenues, Total | 491 | 1,205 | 932 | 2,230 |
Other Nonrecurring (Income) Expense [Abstract] | ||||
Gain on Involuntary Conversion | (3) | 0 | (3) | 0 |
Settlement of Legal Proceedings | 4 | 0 | 9 | 0 |
Gain (Loss) on Disposition of Assets [Abstract] | ||||
Gain on Sale of Assets | (24) | 0 | (24) | 0 |
Lease Operating Expense | 93 | 88 | 193 | 170 |
Production and Ad Valorem Taxes | 23 | 51 | 42 | 94 |
Transportation Expense | 13 | 16 | 25 | 29 |
Exploration Expense | 33 | 103 | 75 | 143 |
Depreciation, Depletion and Amortization | 196 | 196 | 396 | 399 |
General and Administrative | 60 | 61 | 119 | 121 |
Asset Impairments | 0 | 0 | 437 | 0 |
Gathering, Marketing and Processing Expense | 5 | 4 | 10 | 8 |
Electricity Generation Expense | 11 | 13 | (19) | 28 |
Other Operating (Income) Expense, Net | 4 | 3 | 16 | 10 |
Operating Expenses, Total | 415 | 535 | 1,276 | 1,002 |
Operating Income (Loss), Total | 76 | 670 | (344) | 1,228 |
Gain (Loss) on Investments [Abstract] | ||||
Deferred Compensation Expense (Income) | 5 | 29 | 10 | 22 |
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||||
(Gain) Loss on Commodity Derivative Instruments | 139 | 828 | 66 | 1,065 |
Investment Income, Interest and Dividend [Abstract] | ||||
Interest Income | (1) | (6) | (1) | (12) |
Interest Expense [Abstract] | ||||
Interest, Net of Amount Capitalized | 23 | 17 | 41 | 34 |
Other Nonoperating Income (Expense) [Abstract] | ||||
Other Non-Operating (Income) Expense, Net | 0 | 0 | 3 | 0 |
Total Non-Operating Income (Loss) | 166 | 868 | 119 | 1,109 |
Income (Loss) Before Income Taxes | (90) | (198) | (463) | 119 |
Current Income Tax Expense (Benefit) [Abstract] | ||||
Current Income Tax Provision (Benefit) | 25 | (28) | 141 | 38 |
Deferred Income Tax Expense (Benefit) [Abstract] | ||||
Deferred Income Tax Expense (Benefit), Total | (58) | (26) | (359) | 10 |
Net Income | ($57) | ($144) | ($245) | $71 |
Earnings Per Share [Abstract] | ||||
Dividends Per Share, Common Stock | 0.18 | 0.18 | 0.36 | 0.3 |
Earnings (Loss) Per Share, Basic | -0.33 | -0.84 | -1.42 | 0.41 |
Earnings (Loss) Per Share, Diluted | -0.33 | -0.84 | -1.42 | 0.41 |
Weighted Average Number of Basic Shares Outstanding | 173 | 172 | 173 | 172 |
Weighted Average Number of Diluted Shares Outstanding | 173 | 172 | 173 | 175 |
4000 - Consolidated Statements
4000 - Consolidated Statements of Shareholders' Equity (USD $) | ||
In Millions, except Per Share data | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Stockholders' Equity, Beginning Balance | $6,309 | $4,809 |
Stock-based compensation expense | 24 | 20 |
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures [Abstract] | ||
Restricted Stock Awards, Net | 0 | 0 |
Exercise of stock options | 13 | 24 |
Rabbi Trust Shares Sold | 0 | 4 |
Purchases of treasury stock | (1) | (2) |
Adjustments to Additional Paid in Capital [Abstract] | ||
Tax benefits related to exercise of stock options | 3 | 23 |
Other Comprehensive Income, Derivatives Qualifying as Hedges, Net of Tax, Period Increase (Decrease) [Abstract] | ||
Oil and Gas Cash Flow Hedges, Realized Amounts Reclassified into Earnings | 20 | 97 |
Interest Rate Cash Flow Hedges, Unrealized Change in Fair Value | 0 | (7) |
Other Comprehensive Income, Defined Benefit Plans Adjustment, Net of Tax, Period Increase (Decrease) [Abstract] | ||
Other Comprehensive Income / Loss, Defined Benefit Plans and Other Adjustments | (1) | (1) |
Net Income (Loss) [Abstract] | ||
Net Income | (245) | 71 |
Dividends, Common Stock | (63) | (53) |
Retained Earnings (Accumulated Deficit), Dividend, Per Share, Declared, Common Stock, Parenthetical Disclosure [Abstract] | ||
Dividends Per Share, Common Stock | 0.36 | 0.3 |
Stockholders' Equity, Ending Balance | $6,059 | $4,985 |
6000 - Organization and Nature
6000 - Organization and Nature of Operations | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Organization and Nature of Operations | |
Organization and Nature of Operations | Note 1 Organization and Nature of Operations Noble Energy,Inc. (Noble Energy, we or us) is an independent energy company engaged in worldwide crude oil,natural gas and natural gas liquids (NGL)acquisition, exploration and production. We operate primarily in the Rocky Mountains, Mid-continent, and deepwater Gulf of Mexico areas in the US, with significant international operations offshore Israel, UK and West Africa. |
6010 - Basis of Presentation
6010 - Basis of Presentation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Basis of Presentation | |
Basis of Presentation | Note 2 Basis of Presentation Presentation Our consolidated accounts include our accounts and the accounts of our wholly-owned subsidiaries. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the US for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US generally accepted accounting principles (GAAP) for complete financial statements. The accompanying consolidated financial statements at June 30, 2009 and December31,2008 and for the three months and six months ended June 30, 2009 and 2008 contain all normally recurring adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows for such periods. Operating results for the three-month and six-month periods ended June 30, 2009 are not necessarily indicative of the results that may be expected for the year ended December 31, 2009. Certain reclassifications of amounts previously reported have been made to conform to current year presentations. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in ourannual report on Form10-K for the year ended December31,2008. Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Current credit market conditions combined with volatile commodity prices have resulted in increased uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined accurately, actual results could differ significantly from our estimates. Statements of Operations Information Other statements of operations information is as follows: Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 (in millions) Other Revenues Electricity Sales (1) $ 11 $ 14 $ 32 $ 29 Gathering, Marketing and Processing Revenues 4 5 7 9 Total $ 15 $ 19 $ 39 $ 38 Other Operating (Income) Expense, Net Gain on Asset Sale (2) $ (24 ) $ - $ (24 ) $ - Electricity Generation Expense (1) 11 13 (19 ) 28 Gathering, Marketing and Processing Expense 5 4 10 8 Settlement of Legal Proceedings (3) 4 - 9 - Gain on Involuntary Conversion (4) (3 ) - (3 ) - Other Operating (Income) Expense, Net 4 3 16 10 Total $ (3 ) $ 20 $ (11 ) $ 46 Other Non-Operating (Income) Expense, Net Deferred Compensation Expense $ 5 $ 29 $ 10 $ 22 Interest Income (1 ) |
6020 - Debt
6020 - Debt | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Debt | |
Debt | Note 3 Debt On February 27, 2009, we closed an offering of $1 billion senior unsecured notes receiving net proceeds of $989 million, after deducting the discount and underwriting fees. The notes are due March 1, 2019, and pay interest semi-annually at 8%. Debt issuance costs of approximately $2million were incurred and are being amortized to expense over the life of the debt issue. Substantially all of the net proceeds from the offering were used to repay outstanding indebtedness under our revolving credit facility maturing 2012. The notes are senior unsecured debt and will rank pari passu with any of our other senior unsecured indebtedness with respect to the payment of both principal and interest. On May 11, 2009, we made the final $25 million installment payment to the seller of properties we purchased in 2007. Interest on the unpaid amount was due quarterly and accrued at a LIBOR rate plus .30%.The interest rate was 1.51% at the date of payment. Our debt consists of the following: June 30, December 31, 2009 2008 Debt Interest Rate Debt Interest Rate (in millions, except percentages) Credit Facility $ 785 0.62 % $ 1,606 0.80 % 5 % Senior Notes, due April 15, 2014 200 5.25 % 200 5.25 % 8 % Senior Notes, due March 1, 2019 1,000 8.25 % - - 7 % Notes, due October 15, 2023 100 7.25 % 100 7.25 % 8% Senior Notes, due April 1, 2027 250 8.00 % 250 8.00 % 7 % Senior Debentures, due August 1, 2097 89 7.25 % 89 7.25 % Long-term Debt 2,424 2,245 Installment Payment, due May 11, 2009 - - 25 4.18 % Total Debt 2,424 2,270 Unamortized Discount (8 ) (4 ) Total Debt, Net of Discount $ 2,416 $ 2,266 |
6030 - Derivative Instruments a
6030 - Derivative Instruments and Hedging Activities | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 4 Derivative Instruments and Hedging Activities Objectives and Strategies for Using Derivative Instruments We are exposed to certain risks relating to our ongoing business operations. The primary risk managed by using derivative instruments is commodity price risk. We use various commodity derivative instruments in connection withforecasted crude oil and natural gas sales to minimize the impact of commodity price fluctuations. Such instruments include variable to fixed price swaps, collars and basis swaps. We may also use derivative instruments to manage interest rate risk by entering into forward contracts or swap agreements to minimize the impact of interest rate fluctuations associated with fixed or floating rate borrowings. We may designate these as cash flow hedges. In accordance with US GAAP for derivative instruments and hedging activities, all of our derivative instruments are reflected as either assets or liabilities at fair value in our consolidated balance sheets. See Note 5 Fair Value Measurements for a discussion of methods and assumptions used to estimate the fair values of our commodity derivative instruments and gross amounts of commodity derivative assets and liabilities. Derivative instruments expose us to counterparty credit risk. Our commodity derivative instruments are currently with a diversified group of financial institutions, a majority of which are lenders under our credit facility arrangement.Certain of these financial institutions have received capital injections and other forms of support from government sources, and may require additional financial assistance in the future to remain viable.Discontinuance of government support to these institutions could have an adverse impact on the collectibility of our derivative receivables. We generally execute commodity derivative instruments under master agreements which allow us, in the event of default, to elect early termination of all contracts with the defaulting counterparty. If we choose to elect early termination, all asset and liability positions with the defaulting counterparty would be net cash settled at the time of election. We monitor the creditworthiness of our counterparties. However, we are not able to predict sudden changes in counterparties creditworthiness. In addition, even if such changes are not sudden, we may be limited in our ability to mitigate an increase in counterparty credit risk. Possible actions would be to transfer our position to another counterparty or request a voluntary termination of the derivative contracts resulting in a cash settlement. Should one of these financial counterparties not perform, we may not realize the benefit of some of our derivative instruments under lower commodity prices as well as incur a loss.See also Note 5 Fair Value Measurements. Commodity Derivative Instruments During 2009 and 2008 we accounted for our commodity derivative instruments using mark-to-market accounting, and we recognize all gains and losses on such instruments in earnings during the period in which they occur.Prior to January 1, 2008, we elected to designate certain of our commodity derivative instruments as cash flow |
6040 - Fair Value Measurements
6040 - Fair Value Measurements | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Fair Value Measurements | |
Fair Value Measurements | Note 5 Fair Value Measurements US GAAP for fair value measurements establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to quoted market prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).Level 2 inputs are inputs, other than quoted prices included within Level 1,which are observable for the asset or liability, either directly or indirectly. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value. Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are reported at fair value on a recurring basis in our consolidated balance sheets.The following methods and assumptions were used to estimate the fair values: Cash, Cash Equivalents, Accounts Receivable and Accounts Payable The carrying amounts approximate fair value due to the short-term nature or maturity of the instruments. Mutual Fund Investments Our mutual fund investments, which primarily include assets held in a rabbi trust, consist of various publicly-traded mutual funds that include investments ranging from equities to money market instruments. The fair values are based on quoted market prices for identical assets. Commodity Derivative Instruments Our commodity derivative instruments consist of variable to fixed price commodity swaps, collars and basis swaps. We estimate the fair values of these instruments based on published commodity futures price strips for the underlying commodities as of the date of the estimate. The discount rate used in the discounted cash flow projections is based on published LIBOR rates, Eurodollar futures rates and interest swap rates. The fair values of commodity derivative instruments in an asset position include a measure of counterparty credit risk, and the fair values of commodity derivative instruments in a liability position include a measure of our own nonperformance risk, each based on the current published credit default swap rates. In addition, for collars, we estimate the option value of the contract floors and ceilings using an option pricing model which takes into account market volatility, market prices and contract terms. See Note 4 Derivative Instruments and Hedging Activities. Patina Deferred Compensation Liability - The value is dependant upon the fair values of mutual fund investments and shares of Noble Energy common stock held in a rabbi trust. See Mutual Fund Investments above. Measurement information for assets and liabilities that are measured at fair value on a recurring basis was as follows: Fair Value Measurements Using Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Adjustment (1) Fair Value Measurement (in millions) As of June 30, 2009 Financial Assets: Mutual Fund Investments $ 90 $ - $ - $ - $ |
6050 - Capitalized Exploratory
6050 - Capitalized Exploratory Well Costs | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Capitalized Exploratory Well Costs | |
Capitalized Exploratory Well Costs | Note 6 Capitalized Exploratory Well Costs Changes in capitalized exploratory well costs are as follows and exclude amounts that were capitalized and subsequently expensed in the same period: Six Months Ended June 30, (in millions) Capitalized Exploratory Well Costs, Beginning of Period $ 501 Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves 96 Reclassified to Property, Plant and Equipment Based on Determination of Proved Reserves (88 ) Capitalized Exploratory Well Costs Charged to Expense (9 ) Capitalized Exploratory Well Costs, End of Period $ 500 The following table provides an aging of capitalized exploratory well costs (suspended well costs) based on the date the drilling was completed and the number of projects for which exploratory well costs have been capitalized for a period greater than one year since the completion of drilling: June 30, December 31, 2009 2008 (in millions) Exploratory Well Costs Capitalized for a Period of One Year or Less $ 225 $ 256 Exploratory Well Costs Capitalized for a Period Greater Than One Year After Completion of Drilling 275 245 Balance at End of Period $ 500 $ 501 Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year After Completion of Drilling 4 6 The following table provides a further aging of those exploratory well costs that have been capitalized for a period greater than one year since the completion of drilling as of June 30, 2009: Suspended Since Total 2008 2007 2006 Prior (in millions) Project West Africa $ 221 $ 61 $ 140 $ 20 Redrock (deepwater Gulf of Mexico) 17 - - 17 Flyndre (North Sea) 15 - 12 3 Selkirk (North Sea) 22 - 22 - Total Exploratory Well Costs Capitalized for a Period Greater Than One Year After Completion of Drilling $ 275 $ 61 $ 174 $ 40 West Africa The West Africa project includes Blocks O and I offshore Equatorial Guinea and the YoYo concession and Tilapia production sharing contract offshore Cameroon. Since drilling the initial well for this project, additional seismic work has been completed and exploration and appraisal wells have been drilled to further evaluate our discoveries. The West Africa development team is proceeding with a program to further define the resources in this area such that an optimal development program may be designed. Accordingly, a development plan for the Aseng (formerly Benita) discovery on Block I was submitted to the Equatorial Guinean government in December 2008, and has been approved.In addition to the exploratory well costs that have been capitalized for a period greater than one year for the West Africa project, we have incurred $43 million in suspended costs related to additional drilling activity in West Africa through June 30, 2009. Redrock (Deepwater Gulf of Mexico) Redrock (Mississippi Canyon Block 204) was a 2006 natural gas/condensate discovery and is currently considere |
6060 - Asset Retirement Obligat
6060 - Asset Retirement Obligations | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Asset Retirement Obligations | |
Asset Retirement Obligations | Note 7 Asset Retirement Obligations Asset retirement obligations consist primarily of estimated costs of dismantlement, removal, site reclamation and similar activities associated with our oil and gas properties. See Note 5 Fair Value Measurements for a discussion of the methods and assumptions used to estimate the fair values of asset retirement obligations. Changes in asset retirement obligations were as follows: Six Months Ended June 30, 2009 2008 (in millions) Asset Retirement Obligations, Beginning of Period $ 211 $ 144 Liabilities Incurred in Current Period 4 14 Liabilities Settled in Current Period (8 ) (7 ) Revisions 17 6 Accretion Expense 7 4 Asset Retirement Obligations, End of Period $ 231 $ 161 Liabilities settled and revisions in 2009 relate primarily to the Main Pass asset. Accretion expense is included in DDAexpense in the consolidated statements ofoperations. |
6070 - Employee Benefit Plans
6070 - Employee Benefit Plans | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 8 Employee Benefit Plans We have a noncontributory, tax-qualified defined benefit pension plan covering employees who were hired prior to May 1, 2006. We also have an unfunded, nonqualified restoration plan that provides the pension plan formula benefits that cannot be provided by the qualified pension plan because of pay deferrals and the compensation and benefit limitations imposed on the pension plan by the Internal Revenue Code of 1986, as amended. Net periodic benefit cost related to the retirement and restoration plans was as follows: Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 (in millions) Service Cost $ 3 $ 3 $ 6 $ 6 Interest Cost 3 3 6 6 Expected Return on Plan Assets (3 ) (3 ) (7 ) (6 ) Other - 1 1 1 Net Periodic Benefit Cost $ 3 $ 4 $ 6 $ 7 |
Based Compensation
Based Compensation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 9 Stock-Based Compensation We recognized stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 (in millions) Stock-Based Compensation Expense $ 12 $ 11 $ 24 $ 20 Tax Benefit Recognized (4 ) (4 ) (8 ) (8 ) During the six months ended June 30, 2009, we granted 1.5 million stock options with a weighted-average grant-date fair value of $18.76 per share and awarded 0.6 million shares of restricted stock subject to service conditions with a weighted-average grant-date fair value of $50.33 per share. In 2009, we began making grants of restricted stockunder the Noble Energy, Inc. 1992 Stock Option and Restricted Stock Plan that will time-vest 20% after year one, an additional 30% after year two and the remaining 50% after year three. On April28, 2009, our stockholders approved an amendment to the 1992 Stock Option and Restricted Stock Plan (the Plan) that increased the number of shares of our common stock authorized for issuance under the Plan from 22 million to 24 million. |
6090 - Basic and Diluted Earnin
6090 - Basic and Diluted Earnings (Loss) Per Share | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Basic and Diluted Earnings (Loss) Per Share | |
Basic and Diluted Earnings (Loss) Per Share | Note 10 Basic and Diluted Earnings (Loss) Per Share Basic earnings (loss) per share of common stock is computed using the weighted average number of shares of common stock outstanding during each period. The diluted earnings per share of common stock may include the effect of Noble Energy shares held in a rabbi trust, outstanding stock options or shares of restricted stock, except in periods in which there is a net loss. The following table summarizes the calculation of basic and diluted earnings (loss) per share: Net Income (Loss) Weighted Average Shares Net Income (Loss) Weighted Average Shares 2009 2008 (in millions, except per share amounts) Three Months Ended June 30: Net Income (Loss) $ (57 ) 173 $ (144 ) 172 Basic Earnings (Loss) Per Share $ (0.33 ) $ (0.84 ) Net Income (Loss) $ (57 ) 173 $ (144 ) 172 Plus Incremental Shares from Assumed Conversions: Dilutive Options, Restricted Stock and Shares of Common Stock in Rabbi Trust - - - - Net Income (Loss) Available to Common Shareholders $ (57 ) 173 $ (144 ) 172 Diluted Earnings (Loss) Per Share $ (0.33 ) $ (0.84 ) Six Months Ended June 30: Net Income (Loss) $ (245 ) 173 $ 71 172 Basic Earnings (Loss) Per Share $ (1.42 ) $ 0.41 Net Income (Loss) $ (245 ) 173 $ 71 172 Plus Incremental Shares from Assumed Conversions: Dilutive Options, Restricted Stock and Shares of Common Stock in Rabbi Trust - - - 3 Net Income (Loss) Available to Common Shareholders $ (245 ) 173 $ 71 175 Diluted Earnings (Loss) Per Share $ (1.42 ) $ 0.41 The effect of stock options and unvested restricted stock outstanding has not been included in the calculation of weighted average shares outstanding for diluted earnings per share for the second quarter 2009, the first six months of 2009 and the second quarter 2008 as their effect would have been antidilutive. Had we recognized net income for these periods, incremental shares attributable to the assumed exercise of outstanding options and restricted stock would have increased diluted weighted average shares outstanding by 1.9 million shares for the three months ended June 30, 2009, 1.8 million shares for the six months ended June 30, 2009 and 2.5 million shares for the three months ended June 30, 2008. A total of 4.2 million and 4.4 million weighted average stock options, restricted shares and common shares held in a rabbi trust were antidilutive for the second quarter and first six months of 2009, respectively, and were excluded from the calculation of diluted earnings per share.A total of 1.1 million weighted average stock options, restricted shares and common sharesheld in a rabbi trust were antidilutive for the second quarter and first six months of 2008 and were excluded from the calculation of diluted earnings per s |
6100 - Income Taxes
6100 - Income Taxes | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Income Taxes | |
Income Taxes | Note 11 Income Taxes The income tax provision (benefit) consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 (in millions) Current $ 25 $ (28 ) $ 141 $ 38 Deferred (58 ) (26 ) (359 ) 10 Total Income Tax Provision (Benefit) $ (33 ) $ (54 ) $ (218 ) $ 48 The deferred tax benefit for the six months ended June 30, 2009 was the result of the reversal of a deferred tax liability recorded in 2008 with respect to unrealized mark-to-market gains which were realized in 2009.In addition, we recorded a deferred tax asset with respect to impairment losses on our US oil and gas properties. Our effective tax rate increased to 47% for the first six months of 2009 as compared with 40% for the first six months of 2008 and is the result of a tax benefit divided by a pre-tax loss.In the case of a loss, our favorable permanent differences, such as income from equity method investees, have the effect of increasing the tax benefit which, in turn, increases the effective rate. During first quarter 2009, we repatriated $180 million of accumulated earnings of foreign subsidiariesand used the proceeds for debt repayment and general corporate purposes.The repatriation increased US tax expense by $9 million, which was recorded in 2008. Repatriation of additional earnings in the future could result in a decrease in our net income and cash flows. Unrecognized Tax Positions We do not have significant unrecognized tax benefits as of June 30, 2009. Our policy is to recognize any interest and penalties related to unrecognized tax benefits in income tax expense. We did not accrue interest or penalties at June 30, 2009, because the jurisdiction in which we have unrecognized tax benefits does not currently impose interest on underpayments of tax, and we believe that we are below the minimum statutory threshold for imposition of penalties. In our major tax jurisdictions, the earliest years remaining open to examination are as follows: US 2005, Equatorial Guinea 2007, China 2006, Israel 2000, UK 2007 and the Netherlands 2005. |
6110 - Comprehensive Income
6110 - Comprehensive Income (Loss) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Comprehensive Income (Loss) | |
Comprehensive Income (Loss) | Note 12 Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and certain items recorded directly to shareholders equity and classified as AOCL. Comprehensive income (loss) was calculated as follows: Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 (in millions) Net Income (Loss) $ (57 ) $ (144 ) $ (245 ) $ 71 Other Items of Comprehensive Income (Loss) Oil and Gas Cash Flow Hedges Realized Losses Reclassified Into Earnings 15 95 32 155 Less Tax Provision (6 ) (36 ) (12 ) (58 ) Interest Rate Cash Flow Hedges Unrealized Change in Fair Value (Gain / (Loss)) - 32 - (11 ) Less Tax Provision - (12 ) - 4 Net Change in Other - - (1 ) (1 ) Other Comprehensive Income 9 79 19 89 Comprehensive Income (Loss) $ (48 ) $ (65 ) $ (226 ) $ 160 |
6120 - Segment Information
6120 - Segment Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Segment Information | |
Segment Information | Note 13 Segment Information We have operations throughout the world and manage our operations by country. The following information is grouped into five components that are all primarily in the business of crude oil and natural gas acquisition, exploration and production:the United States; West Africa (Equatorial Guinea and Cameroon); the North Sea (UK and the Netherlands); Eastern Mediterranean (Israel and Cyprus); and Other International, Corporate and Marketing. Other International includes primarily Argentina (through February 2008), China, Ecuador and Suriname. The following data was prepared on the same basis as our consolidated financial statements and excludes the effects of income taxes. Consolidated United States West Africa North Sea Eastern Mediter-ranean Other Int'l, Corporate, Marketing (in millions) Three Months Ended June 30, 2009 Revenues from Third Parties $ 490 $ 275 $ 85 $ 35 $ 24 $ 71 Reclassification from AOCL (1) (15 ) (8 ) (7 ) - - - Intersegment Revenue - 36 - - - (36 ) Income from Equity Method Investees 16 - 16 - - - Total Revenues 491 303 94 35 24 35 DDA 196 164 9 9 5 9 Loss on Commodity Derivative Instruments 139 109 30 - - - Income (Loss) Before Income Taxes (90 ) (72 ) 40 13 14 (85 ) Three Months Ended June 30, 2008 Revenues from Third Parties $ 1,244 $ 752 $ 163 $ 99 $ 30 $ 200 Reclassification from AOCL (1) (95 ) (84 ) (11 ) - - - Intersegment Revenue - 144 - - - (144 ) Income from Equity Method Investees 56 - 56 - - - Total Revenues 1,205 812 208 99 30 56 DDA 196 165 9 12 5 5 Loss on Commodity Derivative Instruments 828 677 151 - - - Income (Loss) Before Income Taxes (198 ) (214 ) 38 72 23 (117 ) Consolidated United States West Africa North Sea Eastern Mediter-ranean Other Int'l, Corporate, Marketing (in millions) Six Months Ended June 30, 2009 Revenues from Third Parties $ 937 $ 511 $ 144 $ 69 $ 52 $ 161 Reclassification from AOCL (1) (32 ) (16 ) (16 ) - - - Intersegment Revenue - 88 - - - (88 ) Income from Equity Method Investees 27 - 27 - - - Total Revenues 932 583 155 69 52 73 DDA 396 333 18 18 10 17 Asset Impairments 437 437 - - - - Loss on Commodity Derivative Instruments 66 42 24 - - - Income (L |
6130 - Commitments and Continge
6130 - Commitments and Contingencies | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 14 Commitments and Contingencies Purchaser Bankruptcy We have an exposure from crude oil sales for the months of June and July 2008 to SemCrude, L.P. (SemCrude), a subsidiary of SemGroup, L.P. (SemGroup).On July 22, 2008, SemGroup, including SemCrude, filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code under Case Number 08-11525 (BLS) in the United States Bankruptcy Court for the District of Delaware. Bankrupcty proceedings are ongoing as of June 30, 2009. We have a receivable of approximately $70 million from SemCrude. During 2008, we determined that it was probable that a portion of the receivable was uncollectible and reduced the carrying value of the SemCrude receivable by $38 million for the probable loss. We are pursuing various legal remedies to protect our interests. We believe that ultimate disposition of this matter will not have a material adverse affect on ourfinancial position, results of operations, or cash flows. Legal Proceedings We were named in a lawsuit filed August 23, 2002 by Dore Energy Corporation under Docket Number 10-16202 in the 38th Judicial District Court, Cameron Parish, Louisiana. The lawsuit alleged damage to property owned by Dore resulting from oil and gas activities. Trial began on April 27, 2009; however, we reached a confidential settlement with Dore on May 7, 2009. The amount of the settlement did not have a material adverse effect on our financial position or cash flows. We are involved in various other legal proceedings in the ordinary course of business.These proceedings are subject to the uncertainties inherent in any litigation.We are defending ourselves vigorously in all such matters and we believe that the ultimate disposition of such proceedings will not have a material adverse effect on our financial position, results of operations or cash flows. |
6140 - Recently Issued Pronounc
6140 - Recently Issued Pronouncements | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Recently Issued Pronouncements | |
Recently Issued Pronouncements | Note 15 Recently Issued Pronouncements Recent SEC Rule-Making Activity In December 2008, the SEC announced that it had approved revisions designed to modernize the oil and gas company reserve reporting requirements. The most significant amendments to the requirements include the following: Commodity Prices Economic producibility of reserves and discounted cash flows will be based on a 12-month average commodity price unless contractual arrangements designate the price to be used. Disclosure of Unproved Reserves Probable and possible reserves may be disclosed separately on a voluntary basis. Proved Undeveloped Reserve Guidelines Reserves may be classified as proved undeveloped if there is a high degree of confidence that the quantities will be recovered. Reserve Estimation Using New Technologies Reserves may be estimated through the use of reliable technology in addition to flow tests and production history. Reserve Personnel and Estimation Process Additional disclosure is required regarding the qualifications of the chief technical person who oversees our reserves estimation process.We will also be required to provide a general discussion of our internal controls used to assure the objectivity of the reserves estimate. Disclosure by Geographic Area Reserves in foreign countries or continents must be presented separately if they represent more than 15% of our total oil and gas proved reserves. Non-Traditional Resources The definition of oil and gas producing activities will expand and focus on the marketable product rather than the method of extraction. The rules are effective for fiscal years ending on or after December 31, 2009, and early adoption is not permitted.We are currently evaluating the new rules and assessing the impact they will have on our reported oil and gas reserves.The SEC is coordinating with the Financial Accounting Standards Board (FASB) to obtain the revisions necessary to US GAAP concerning financial accounting and reporting by oil and gas producing companies and disclosures about oil and gas producing activities to provide consistency with the new rules. The FASB expects to issue both a Proposed Accounting Standards Update and a Final Accounting Standards Update for SEC Oil and Gas Disclosures during third quarter 2009. |
Document Information
Document Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Amendment Description | No |
Document Period End Date | 2009-06-30 |
Entity Information
Entity Information (USD $) | |||
6 Months Ended
Jun. 30, 2009 | Jul. 13, 2009
| Jun. 30, 2008
| |
Entity Information [Line Items] | |||
Entity Registrant Name | Noble Energy, Inc. | ||
Entity Central Index Key | 0000072207 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $17,200,000,000 | ||
Entity Common Stock, Shares Outstanding | 173,394,620 |