Noble Energy (NBL) 10-Q 29 Oct 09 2009 Q3 Quarterly report Financial data

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Revenues
Oil, Gas and NGL Sales	$573	$1,040	$1,440	$3,115
Income from Equity Method Investees	25	40	52	158
Other Revenues	23	18	61	55
Total Revenues	621	1,098	1,553	3,328
Costs and Expenses
Lease Operating Expense	88	98	281	268
Production and Ad Valorem Taxes	25	47	66	141
Transportation Expense	18	14	43	43
Exploration Expense	27	39	102	181
Depreciation, Depletion and Amortization	205	194	601	593
General and Administrative	53	63	173	184
Asset Impairments	0	38	437	38
Other Operating (Income) Expense, Net	34	60	22	107
Total Operating Expenses	450	553	1,725	1,555
Operating Income (Loss)	171	545	(172)	1,773
Other (Income) Expense
(Gain) Loss on Commodity Derivative Instruments	28	(875)	95	190
Interest, Net of Amount Capitalized	23	18	64	52
Other Non-Operating (Income) Expense, Net	5	(52)	18	(42)
Total Non-Operating (Income) Loss	56	(909)	177	200
Income (Loss) Before Income Taxes	115	1,454	(349)	1,573
Income Tax Provision (Benefit)	8	480	(210)	528
Net Income (Loss)	$107	$974	($139)	$1,045
Earnings (Loss) Per Share, Basic	0.62	5.64	-0.8	6.06
Earnings (Loss) Per Share, Diluted	0.61	5.37	-0.8	5.86
Weighted Average Number of Shares Outstanding, Basic	173	173	173	172
Weighted Average Number of Shares Outstanding, Diluted	175	176	173	176

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Current Assets
Cash and Cash Equivalents	$926	$1,140
Accounts Receivable, Net	348	423
Commodity Derivative Assets, Current	96	437
Other Assets, Current	130	158
Total Assets, Current	1,500	2,158
Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method of Accounting)	12,364	11,963
Property, Plant and Equipment, Other	228	175
Total Property, Plant and Equipment, Gross	12,592	12,138
Accumulated Depreciation, Depletion and Amortization	(3,696)	(3,134)
Total Property, Plant and Equipment, Net	8,896	9,004
Goodwill	758	759
Other Assets, Noncurrent	481	463
Total Assets	11,635	12,384
Current Liabilities
Accounts Payable - Trade	397	579
Income Taxes Payable	137	130
Deferred Income Taxes, Net, Current	1	142
Other Liabilities, Current	311	323
Total Liabilities, Current	846	1,174
Long-Term Debt	2,161	2,241
Deferred Income Taxes, Noncurrent	1,905	2,174
Other Liabilities, Noncurrent	565	486
Total Liabilities	5,477	6,075
Shareholders' Equity
Preferred Stock - Par Value $1.00; 4 million Shares Authorized, None Issued	0	0
Common Stock - Par Value $3.33 1/3; 250 Million Shares Authorized; 193 Million and 192 Million Shares Issued, Respectively	645	641
Additional Paid in Capital	2,244	2,193
Accumulated Other Comprehensive Loss	(82)	(110)
Treasury Stock, at Cost; 19 Million Shares	(615)	(614)
Retained Earnings	3,966	4,199
Total Shareholders' Equity	6,158	6,309
Total Liabilities and Shareholders' Equity	$11,635	$12,384

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $)
Share data in Millions, except Per Share data	Sep. 30, 2009	Dec. 31, 2008
Shareholders' Equity
Preferred Stock, Par Value Per Share	$1	$1
Preferred Stock - Shares Authorized	4	4
Preferred Stock - Shares Issued	0	0
Common Stock, Par Value Per Share	3.333	3.333
Common Stock - Shares Authorized	250	250
Common Stock - Shares Issued	193	192
Treasury Stock, Shares	19	19

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash Flows From Operating Activities
Net Income	($139)	$1,045
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization	601	593
Asset Impairments	437	38
Deferred Income Taxes	(443)	173
Income from Equity Method Investees	(52)	(158)
Dividends from Equity Method Investees	37	192
Unrealized (Gain) Loss on Commodity Derivative Instruments	508	(9)
Settlement of Previously Recognized Hedge Losses	0	(144)
Allowance for Doubtful Accounts	(22)	47
Gain on Asset Sale	(24)	0
Other Adjustments for Noncash Items Included in Income	72	99
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable	92	(94)
(Increase) Decrease in Other Current Assets	25	(19)
Increase (Decrease) in Accounts Payable	(65)	(135)
Increase (Decrease) in Other Current Liabilities	10	235
Other Assets and Liabilities, Net	(51)	4
Net Cash Provided by Operating Activities	986	1,867
Cash Flows From Investing Activities
Additions to Property, Plant and Equipment	(1,012)	(1,852)
Proceeds from Sale of Property, Plant and Equipment	0	131
Net Cash Used in Investing Activities	(1,012)	(1,721)
Cash Flows From Financing Activities
Exercise of Stock Options	15	26
Excess Tax Benefits from Stock-Based Awards	3	23
Dividends Paid, Common Stock	(94)	(84)
Purchase of Treasury Stock	(1)	(2)
Proceeds from Credit Facilities	340	650
Repayment of Credit Facilities	(1,411)	(425)
Net Proceeds from Issuance of 8 1/4% Senior Notes	989	0
Repayment of Installment Note	(25)	(25)
Repurchase of Senior Debentures	(4)	0
Proceeds from Short Term Borrowings	0	23
Net Cash Provided by (Used in) Financing Activities	(188)	186
Increase (Decrease) in Cash and Cash Equivalents	(214)	332
Cash and Cash Equivalents at Beginning of Period	1,140	660
Cash and Cash Equivalents at End of Period	$926	$992

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008	Dec. 31, 2008	Dec. 31, 2007
Balance, Beginning of Period			$6,309	$4,809
Stock-Based Compensation Expense			37	30
Stock Options Exercised			15	26
Tax Benefits Related to Exercise of Stock Options			3	23
Purchases of Treasury Stock			(1)	(2)
Rabbi Trust Shares Sold			0	3
Oil and Gas Cash Flow Hedges, Realized amounts reclassified into earnings			28	155
Net Income (Loss)	107	974	(139)	1,045
Cash Dividends ($0.54 and $0.48 Per Share, Respectively)			(94)	(84)
Balance, End of Period	$6,158	$6,005	$6,158	$6,005	$6,309	$4,809

Organization and Nature of Oper

Organization and Nature of Operations
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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 and West Africa.

Basis of Presentation

Basis of Presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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 September 30, 2009 and December31,2008 and for the three months and nine months ended September 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 nine-month periods ended September 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 our annual 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 September 30, Nine Months Ended September 30, 2009 2008 2009 2008 (in millions) Other Revenues Electricity Sales (1) $ 20 $ 14 $ 51 $ 42 Gathering, Marketing and Processing (GMP) Revenues 3 4 10 13 Total $ 23 $ 18 $ 61 $ 55 Other Operating (Income) Expense, Net Gain on Asset Sale (2) $ - $ (8 ) $ (24 ) $ (8 ) Electricity Generation Expense (1) 19 13 - 41 GMP Expense 5 5 15 14 Settlement of Legal Proceedings (3) - - 9 - (Gain) Loss on Involuntary Conversion (4) - 9 (4 ) 9 Other, Net (5) 10 41 26 51 Total $ 34 $ 60 $ 22 $ 107 Other Non-Operating (Income) Expense, Net Deferred Compensation (Inco

Debt

Debt
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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. On July 22, 2009, we repurchased $5 million of our 7% Senior Debentures due August 1, 2097, recognizing a debt extinguishment gain of $1 million, which is included in other non-operating (income) expense, net. On October 6, 2009, we entered into a lease agreement which will result in the recording of an additional long-term obligation in our balance sheet, as the related asset is constructed.See Note 15 Subsequent Events. Our debt consists of the following: September 30, December 31, 2009 2008 Debt Interest Rate Debt Interest Rate (in millions, except percentages) Credit Facility $ 535 0.56 % $ 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 84 7.25 % 89 7.25 % Long-term Debt 2,169 2,245 Installment Payment, due May 11, 2009 - - 25 4.18 % Total Debt 2,169 2,270 Unamortized Discount (8 ) (4 ) Total Debt, Net of Discount $ 2,161 $ 2,266

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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 with forecasted 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 and Disclosures 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. Counterparty Credit Risk 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. We include a measure of counterparty credit risk in our estimates of the fair values of commodity derivative instruments in an asset position. See also Note 5 Fair Value Measurements and Disclosures. Accounting for Commodity Derivative Instruments During 2009 and 2008 we accounted for our commodity derivative instruments using mark-to-market accounting

Fair Value Measurements

Fair Value Measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Fair Value Measurements	Note 5 Fair Value Measurements and Disclosures 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 measured 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 September 30, 2009 Financial Assets: Mutua

Capitalized Exploratory Well Co

Capitalized Exploratory Well Costs
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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: Nine Months Ended September 30, 2009 (in millions) Capitalized Exploratory Well Costs, Beginning of Period $ 501 Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves 101 Reclassified to Property, Plant and Equipment Based on Determination of Proved Reserves (198 ) Capitalized Exploratory Well Costs Charged to Expense (7 ) Capitalized Exploratory Well Costs, End of Period $ 397 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: September 30, December 31, 2009 2008 (in millions) Exploratory Well Costs Capitalized for a Period of One Year or Less $ 116 $ 256 Exploratory Well Costs Capitalized for a Period Greater Than One Year After Completion of Drilling 281 245 Balance at End of Period $ 397 $ 501 Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year After Completion of Drilling 5 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 September 30, 2009: Suspended Since Total 2008 2007 2006 Prior (in millions) Project West Africa $ 179 $ 69 $ 96 $ 14 Gunflint (deepwater Gulf of Mexico) 48 48 - - 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 $ 281 $ 117 $ 130 $ 34 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. On July 22, 2009, we announced that the Plan of Development for the Aseng field (formerly Benita) on Block I has been sanctioned by us, our partners, and the Ministry of Mines, Industry, and Energy of the Republic of Equatorial Guinea.As a result, we have reclassified $76 million of capitalized costs relating to the Aseng field out of capitalized exploratory well costs. In add

Asset Retirement Obligations

Asset Retirement Obligations
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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.Changes in asset retirement obligations were as follows: Nine Months Ended September 30, 2009 2008 (in millions) Asset Retirement Obligations, Beginning of Period $ 211 $ 144 Liabilities Incurred in Current Period 6 15 Liabilities Settled in Current Period (23 ) (16 ) Revisions 23 10 Accretion Expense 11 7 Asset Retirement Obligations, End of Period $ 228 $ 160 Liabilities settled in 2009 relate primarily to the Main Pass asset. Revisions in 2009 relate to the Main Pass asset and a deepwater Gulf of Mexico property. Accretion expense is included in DDAexpense in the consolidated statements ofoperations.

Employee Benefit Plans

Employee Benefit Plans
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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 September 30, Nine Months Ended September 30, 2009 2008 2009 2008 (in millions) Service Cost $ 3 $ 3 $ 9 $ 9 Interest Cost 3 3 9 9 Expected Return on Plan Assets (3 ) (3 ) (10 ) (9 ) Other - 1 1 2 Net Periodic Benefit Cost $ 3 $ 4 $ 9 $ 11 During the nine months ended September 30, 2009, we made cash contributions to the pension plan totaling $18 million.

Stock Based Compensation

Stock Based Compensation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Stock-Based Compensation	Note 9 Stock-Based Compensation We recognized stock-based compensation expense as follows: Three Months Ended September 30, Nine Months Ended September 30, 2009 2008 2009 2008 (in millions) Stock-Based Compensation Expense $ 13 $ 10 $ 37 $ 30 Tax Benefit Recognized (5 ) (4 ) (13 ) (11 ) During the nine months ended September 30, 2009, we granted 1.5 million stock options with a weighted-average grant-date fair value of $18.77 per share and awarded 0.6 million shares of restricted stock subject to service conditions with a weighted-average grant-date fair value of $50.24 per share. In 2009, we began making grants of restricted stock under the Noble Energy, Inc. 1992 Stock Option and Restricted Stock Plan (the 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 Plan that increased the number of shares of our common stock authorized for issuance under the Plan from 22 million to 24 million.

Basic and Diluted Earnings

Basic and Diluted Earnings (Loss) Per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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: Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 (in millions, except per share amounts) Net Income (Loss) $ 107 $ 974 $ (139 ) $ 1,045 Earnings Adjustment from Assumed Conversion of Dilutive Shares of Common Stock in Rabbi Trust (1) - (29 ) - (16 ) Net Income (Loss) Used for Diluted Earnings Per Share Calculation $ 107 $ 945 $ (139 ) $ 1,029 Weighted Average Number of Shares Outstanding, Basic 173 173 173 172 Incremental Shares from Assumed Conversion of Dilutive Options, Restricted Stock and Shares of Common Stock in Rabbi Trust 2 3 - 4 Weighted Average Number of Shares Outstanding, Diluted 175 176 173 176 Earnings (Loss) Per Share, Basic $ 0.62 $ 5.64 $ (0.80 ) $ 6.06 Earnings (Loss) Per Share, Diluted $ 0.61 $ 5.37 $ (0.80 ) $ 5.86 (1) The diluted earnings per share calculation for the three and nine months ended September 30, 2008 includes decreases to net income of $29 million and $16 million (net of tax), respectively, related to a deferred compensation gain from Noble Energy shares held in a rabbi trust. When dilutive, the deferred compensation gain or loss (net of tax) is excluded from net income while the Noble Energy shares held in the rabbi trust are included in the diluted share count. The effect of stock options and unvested shares of restricted stock outstanding has not been included in the calculation of weighted average shares outstanding for diluted earnings per share for the first nine months of 2009 as their effect would have been antidilutive. Had we recognized net income for this period, incremental shares attributable to the assumed exercise of outstanding options and shares of restricted stock would have increased diluted weighted average shares outstanding by 1.9 million shares for the nine months ended September 30, 2009. A total of 3.1 million and 3.9 million weighted average stock options, shares of restricted stock and shares of common stock held in a rabbi trust were antidilutive for the third quarter and first nine months of 2009, respectively, and were excluded from the calculation of diluted earnings per share.A total of 1.1 million and 0.8 million weighted average stock options, shares of restricted stock and shares of common stock held in a rabbi trust were antidilutive for the third quarter and first nine months of 2008, respectively,

Income Taxes

Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Income Taxes	Note 11 Income Taxes The income tax provision (benefit) consists of the following: Three Months Ended September 30, Nine Months Ended September 30, 2009 2008 2009 2008 (in millions) Current $ 92 $ 316 $ 233 $ 355 Deferred (84 ) 164 (443 ) 173 Total Income Tax Provision (Benefit) $ 8 $ 480 $ (210 ) $ 528 The deferred tax benefit for the nine months ended September 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 60% for the first nine months of 2009 as compared with 34% for the first nine 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 subsidiaries and 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 September 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 September 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 2006, Equatorial Guinea 2007, China 2006, Israel 2000, UK 2007 and the Netherlands 2005.

Comprehensive Income

Comprehensive Income (Loss)
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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 September 30, Nine Months Ended September 30, 2009 2008 2009 2008 (in millions) Net Income (Loss) $ 107 $ 974 $ (139 ) $ 1,045 Other Items of Comprehensive Income (Loss) Oil and Gas Cash Flow Hedges Realized Losses Reclassified Into Earnings 14 93 45 248 Less Tax Provision (5 ) (35 ) (17 ) (93 ) Interest Rate Cash Flow Hedges Unrealized Gain in Fair Value - 12 - 1 Less Tax Provision - (5 ) - - Net Change in Other - - - (1 ) Other Comprehensive Income 9 65 28 155 Comprehensive Income (Loss) $ 116 $ 1,039 $ (111 ) $ 1,200

Segment Information

Segment Information
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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. 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 (1) (in millions) Three Months Ended September 30, 2009 Revenues from Third Parties $ 610 $ 332 $ 95 $ 51 $ 53 $ 79 Reclassification from AOCL (2) (14 ) (7 ) (7 ) - - - Intersegment Revenue - 33 - - - (33 ) Income from Equity Method Investees 25 - 25 - - - Total Revenues 621 358 113 51 53 46 DDA 205 172 9 10 6 8 Loss (gain) on Commodity Derivative Instruments 28 34 (6 ) - - - Income (Loss) Before Income Taxes 115 42 94 25 43 (89 ) Three Months Ended September 30, 2008 Revenues from Third Parties $ 1,151 $ 646 $ 156 $ 136 $ 51 $ 162 Reclassification from AOCL (2) (93 ) (84 ) (9 ) - - - Intersegment Revenue - 112 - - - (112 ) Income from Equity Method Investees 40 - 40 - - - Total Revenues 1,098 674 187 136 51 50 DDA 194 158 8 12 7 9 Asset Impairments 38 38 - - - - (Gain) on Commodity Derivative Instruments (875 ) (749 ) (126 ) - - - Income (Loss) Before Income Taxes 1,454 1,058 303 107 40 (54 ) Consolidated United States West Africa North Sea Eastern Mediter-ranean Other Int'l, Corporate, Marketing (1) (in millions) Nine Months Ended September 30, 2009 Revenues from Third Parties $ 1,546 $ 843 $ 238 $ 120 $ 105 $ 240 Reclassification from AOCL (2) (45 ) (23 ) (22 ) - - - Intersegment Revenue - 121 - - - (121 ) Income from Equity Method Investees 52 - 52 - - - Total Revenues 1,553 941 268 120 105 119 DDA 601 505 27 28 16 25 Asset Impairments 437 437 - - - - Loss on Commodity Derivative Instruments

Commitments and Contingencies

Commitments and Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
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. We previously determined that carrying value of our receivable of $70 million should be reduced by $38 million. Based upon the confirmation of SemCrude's plan for reorganization on October 26, 2009 and further based upon a settlement reached with SemCrude on October 27, 2009, we have further reduced the carrying value of our receivable by $12 million and believe the disposition of this matter to be finally determined. Legal Proceedings We are involved in various 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.

Subsequent Events

Subsequent Events
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Subsequent Events	Note 15 Subsequent Events Recovery of Deepwater Royalties On October 5, 2009, the U.S. Supreme Court denied a petition filed by the U.S. Department of the Interior (DOI) in a case styled Dept. of Interior, et al v. Kerr-McGee Oil and Gas Corp. (09-54).This case involved the payment of royalties attributable to federal leases acquired by Kerr-McGee Oil and Gas Corporation (Kerr-McGee) pursuant to Section 304 of the Outer Continental Shelf Deep Water Royalty Relief Act of 1995 (DWRRA).As a result of the Supreme Courts decision, lower court rulings from the U.S. District Court of the Western District of Louisiana and U.S. Court of Appeals for the Fifth Circuit, which were in favor of Kerr-McGee, were left to stand.Those courts ruled that the DOI did not have the authority to impose price thresholds that required the payment of royalties before minimum royalty suspension volumes imposed by Section 304 of the DWRRA were produced. Based upon our analysis of the Kerr-McGee case, we believe that the Supreme Courts decision will impact other companies, including us, who were not directly involved in the case but, like Kerr-McGee, acquired leases issued pursuant to Section 304 of the DWRRA.As a result, we believe that we are entitled to a refundof approximately $84 million plus interest as of September 30, 2009. The refund is attributable to royalties that we previously paid on production of approximately 900 MBbls of crude oil and 3,000 MMcf of natural gas that was produced from January 1, 2003 through September 30, 2009. We plan to vigorously pursue all means of reimbursement. However, pending the expiration of the period for rehearing and pending clarification from theU.S. Minerals Management Service, a department of the DOI, (the MMS) regarding the position theMMS may take with respect to other similarly situated companies, we have not recorded any income associated with this claim at this time. Lease Obligation On October 6, 2009, we entered into an agreement with an unrelated offshore technology provider for the construction and lease of a floating production, storage and offloading vessel (FPSO) to be used for the development of the Aseng field, offshore Equatorial Guinea. We serve as technical operator of the development project with a 40% working interest. Construction of the FPSO is scheduled to be completed in 2012, at which time the FPSO will be delivered to Block I, offshore Equatorial Guinea, for the start-up of the Aseng field. The initial term of the lease is for a period of 15 years. We expect to account for the lease agreement as a capital lease. As a result, the FPSO will be included in oil and gas properties and the associated long-term obligation will be included in our balance sheet.We expect that the lease obligation will total approximately $340 million, net to our 40% interest.This amount represents our share of the expected present value of the future minimum lease payments, excluding executory costs, and is subject to change based on change orders implemented during the construction period, final accounting treatment and other factors. Once construction has begun and throughout the construction phase, we

Recently Issued Pronouncements

Recently Issued Pronouncements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Recently Issued Pronouncements	Note 16 Recently Issued Pronouncements Accounting Standards Update In August 2009, the FASB issued Accounting Standards Update (Update) 2009-5, Measuring Liabilities at Fair Value in order to provide further guidance on how to measure the fair value of a liability. The Update clarifies that, in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more prescribed techniques. We adopted the new guidance as of October 1, 2009. Adoption had no impact on our financial position or results of operations. 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. The SEC is coordinating with the 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. During September 2009, the FASB issued an exposure draft of a proposed Accounting Standards Update, Oil and Gas Reserves Estimation and Disclosures. The proposed Update would amend existing standards to align the reserves calculation and disclosure requirements under US GAAP with the requirements in the SEC rules. As proposed, theUpdate would be effective for annual reporting periods ending on or after December 31, 2009, and would be applied prospectively as a change in estimate. We are currently evaluating the new SEC rules and proposed FASB Accounting Standards Update and assessing the imp

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 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		173,477,323