Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 9 Months Ended | |
Sep. 30, 2015 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NOBLE ENERGY INC | |
Entity Central Index Key | 72,207 | |
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 | $ 16.5 | |
Entity Common Stock, Shares Outstanding | 428,554,158 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Revenues | |||||
Oil, Gas and NGL Sales | $ 765 | $ 1,228 | $ 2,227 | $ 3,893 | |
Income from Equity Method Investees | 36 | 41 | 60 | 138 | |
Total | 801 | 1,269 | 2,287 | 4,031 | |
Costs and Expenses | |||||
Production Expense | 235 | 216 | 693 | 689 | |
Exploration Expense | 203 | 217 | 308 | 350 | |
Depreciation, Depletion and Amortization | 539 | 460 | 1,444 | 1,297 | |
General and Administrative | 109 | 132 | 308 | 399 | |
Asset Impairments | 0 | 33 | 43 | 164 | |
Other Operating (Income) Expense, Net | 182 | (19) | 252 | (31) | |
Total | 1,268 | 1,039 | 3,048 | 2,868 | |
Operating Income (Loss) | (467) | 230 | (761) | 1,163 | |
Other (Income) Expense | |||||
Gain on Commodity Derivative Instruments | (267) | (385) | (331) | (74) | |
Interest, Net of Amount Capitalized | 71 | 52 | 183 | 151 | |
Other Non-Operating (Income) Expense, Net | (12) | (13) | (20) | 1 | |
Total | (208) | (346) | (168) | 78 | |
Income (Loss) Before Income Taxes | (259) | 576 | (593) | 1,085 | |
Income Tax (Benefit) Provision | 24 | 157 | (180) | 274 | |
Net Income (Loss) | $ (283) | $ 419 | $ (413) | $ 811 | |
Earnings Per Share, Basic [Abstract] | |||||
Net Income (in dollars per share) | $ (0.67) | $ 1.16 | $ (1.05) | $ 2.25 | |
Earnings Per Share, Diluted [Abstract] | |||||
Net Income (in dollars per share) | $ (0.67) | $ 1.12 | $ (1.05) | $ 2.21 | |
Weighted Average Number of Shares Outstanding [Abstract] | |||||
Weighted Average Number of Shares Outstanding, Basic (in shares) | [1] | 420 | 362 | 392 | 361 |
Weighted Average Number of Shares Outstanding, Diluted (in shares) | 420 | 367 | 392 | 367 | |
[1] | The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24.15 million shares of Noble Energy common stock in first quarter 2015 and issued in connection with the exchange of approximately 41 million shares for all outstanding shares of Rosetta common stock on July 20, 2015. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (283) | $ 419 | $ (413) | $ 811 |
Other Items of Comprehensive Income | ||||
Net Change in Mutual Fund Investment | 0 | 0 | (11) | 0 |
Less Tax Benefit | 0 | 0 | 3 | 0 |
Net Change in Pension and Other | 69 | 6 | 94 | 16 |
Less Tax Expense | (23) | (2) | (33) | (6) |
Other Comprehensive Income | 46 | 4 | 53 | 10 |
Comprehensive Income (Loss) | $ (237) | $ 423 | $ (360) | $ 821 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and Cash Equivalents | $ 1,028 | $ 1,183 |
Accounts Receivable, Net | 571 | 857 |
Commodity Derivative Assets, Current | 650 | 710 |
Other Current Assets | 281 | 325 |
Total Current Assets | 2,530 | 3,075 |
Property, Plant and Equipment | ||
Oil and Gas Properties (Successful Efforts Method of Accounting) | 30,456 | 25,599 |
Property, Plant and Equipment, Other | 830 | 630 |
Total Property, Plant and Equipment, Gross | 31,286 | 26,229 |
Accumulated Depreciation, Depletion and Amortization | (9,537) | (8,086) |
Total Property, Plant and Equipment, Net | 21,749 | 18,143 |
Goodwill | 945 | 620 |
Other Noncurrent Assets | 741 | 715 |
Total Assets | 25,965 | 22,553 |
Current Liabilities | ||
Accounts Payable - Trade | 1,297 | 1,578 |
Other Current Liabilities | 795 | 944 |
Total Current Liabilities | 2,092 | 2,522 |
Long-Term Debt | 8,033 | 6,103 |
Deferred Income Taxes, Noncurrent | 2,286 | 2,516 |
Other Noncurrent Liabilities | 1,104 | 1,087 |
Total Liabilities | $ 13,515 | $ 12,228 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred Stock - Par Value $1.00 per share; 4 Million Shares Authorized, None Issued | $ 0 | $ 0 |
Common Stock - Par Value $0.01 per share; 1 Billion and 500 Million Shares Authorized, respectively; 469 Million and 402 Million Shares Issued, respectively | 5 | 4 |
Additional Paid in Capital | 6,342 | 3,624 |
Accumulated Other Comprehensive Loss | (37) | (90) |
Treasury Stock, at Cost; 38 Million Shares | (691) | (671) |
Retained Earnings | 6,831 | 7,458 |
Total Shareholders’ Equity | 12,450 | 10,325 |
Total Liabilities and Shareholders’ Equity | $ 25,965 | $ 22,553 |
Consolidated Balance Sheets (u5
Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 469,000,000 | 402,000,000 |
Treasury stock, shares (in shares) | 38,000,000 | 38,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net Income (Loss) | $ (413) | $ 811 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ||
Depreciation, Depletion and Amortization | 1,444 | 1,297 |
Asset Impairments | 43 | 164 |
Dry Hole Cost | 154 | 163 |
Deferred Income Tax (Benefit) Expense | (244) | 61 |
Income (Loss) from Equity Method Investees, Net of Dividends | (4) | 53 |
(Gain) Loss on Commodity Derivative Instruments | (331) | (74) |
Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments | 683 | (95) |
Gain on Divestitures | 0 | (72) |
Stock Based Compensation | 69 | 67 |
Non-cash Pension Termination Expense | 81 | 0 |
Other Adjustments for Noncash Items Included in Income | 78 | 42 |
Changes in Operating Assets and Liabilities | ||
Decrease in Accounts Receivable | 370 | 166 |
(Decrease) Increase in Accounts Payable | (248) | 103 |
(Decrease) in Current Income Taxes Payable | (118) | 21 |
Other Current Assets and Liabilities, Net | (28) | 16 |
Other Operating Assets and Liabilities, Net | (50) | (20) |
Net Cash Provided by Operating Activities | 1,486 | 2,703 |
Cash Flows From Investing Activities | ||
Additions to Property, Plant and Equipment | (2,519) | (3,585) |
Rosetta Merger | 61 | 0 |
Additions to Equity Method Investments | (86) | (58) |
Distribution from Equity Method Investee | 0 | 156 |
Proceeds from Divestitures | 151 | 312 |
Net Cash Used in Investing Activities | (2,393) | (3,175) |
Cash Flows From Financing Activities | ||
Exercise of Stock Options | 7 | 45 |
Excess Tax Benefits from Stock-Based Awards | 2 | 18 |
Dividends Paid, Common Stock | (214) | (182) |
Purchase of Treasury Stock | (20) | (15) |
Proceeds from Issuance of Shares of Common Stock to Public, Net of Offering Costs | 1,112 | 0 |
Proceeds from Credit Facility | 0 | 900 |
Repayment of Credit Facility | (74) | 0 |
Repayment of Senior Notes | (12) | (200) |
Repayment of Capital Lease Obligation | (49) | (42) |
Net Cash Provided by Financing Activities | 752 | 524 |
Increase (Decrease) in Cash and Cash Equivalents | (155) | 52 |
Cash and Cash Equivalents at Beginning of Period | 1,183 | 1,117 |
Cash and Cash Equivalents at End of Period | $ 1,028 | $ 1,169 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Retained Earnings |
Balance at Beginning of Period at Dec. 31, 2013 | $ 9,184 | $ 4 | $ 3,463 | $ (117) | $ (659) | $ 6,493 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | 811 | 0 | 0 | 0 | 0 | 811 |
Stock-based Compensation | 67 | 0 | 67 | 0 | 0 | 0 |
Exercise of Stock Options | 45 | 0 | 45 | 0 | 0 | 0 |
Dividends | (182) | 0 | 0 | 0 | 0 | (182) |
Changes in Treasury Stock, Net | (15) | 0 | 0 | 0 | (15) | 0 |
Tax Benefits Related to Exercise of Stock Options | 18 | 0 | 18 | 0 | 0 | 0 |
Net Change in Pension and Other | 10 | 0 | 0 | 10 | 0 | 0 |
Balance at End of Period at Sep. 30, 2014 | 9,938 | 4 | 3,593 | (107) | (674) | 7,122 |
Balance at Beginning of Period at Dec. 31, 2014 | 10,325 | 4 | 3,624 | (90) | (671) | 7,458 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | (413) | 0 | 0 | 0 | 0 | (413) |
Rosetta Merger | 1,529 | 1 | 1,528 | 0 | 0 | 0 |
Stock-based Compensation | 69 | 0 | 69 | 0 | 0 | 0 |
Exercise of Stock Options | 7 | 0 | 7 | 0 | 0 | 0 |
Dividends | (214) | 0 | 0 | 0 | 0 | (214) |
Changes in Treasury Stock, Net | (20) | 0 | 0 | 0 | (20) | 0 |
Tax Benefits Related to Exercise of Stock Options | 2 | 0 | 2 | 0 | 0 | 0 |
Issuance of Shares of Common Stock to Public, Net of Offering Costs | 1,112 | 0 | 1,112 | 0 | 0 | 0 |
Net Change in Pension and Other | 53 | 0 | 0 | 53 | 0 | 0 |
Balance at End of Period at Sep. 30, 2015 | $ 12,450 | $ 5 | $ 6,342 | $ (37) | $ (691) | $ 6,831 |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash Dividends per share (in dollars per share) | $ 0.54 | $ 0.50 |
Organization and Nature of Oper
Organization and Nature of Operations | 9 Months Ended |
Sep. 30, 2015 | |
Organization and Nature of Operations [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations Noble Energy, Inc. (Noble Energy, we or us) is a leading independent energy company engaged in worldwide crude oil and natural gas exploration and production. Our core operating areas include onshore US, primarily in the DJ Basin, Eagle Ford Shale, Delaware Basin and Marcellus Shale, deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the US (US GAAP) 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 GAAP for complete financial statements. The accompanying consolidated financial statements at September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014 contain all normally recurring adjustments considered necessary for a fair presentation of our financial position, results of operations, cash flows and shareholders’ equity for such periods. Certain prior-period amounts have been reclassified to conform to the current-period presentation. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2014 . Consolidation Our consolidated accounts include our accounts and the accounts of our wholly-owned subsidiaries. In addition, we use the equity method of accounting for investments in entities that we do not control, but over which we exert significant influence. All significant intercompany balances and transactions have been eliminated upon consolidation. Pension Plan In third quarter 2015, we completed the process of terminating our noncontributory, tax-qualified defined benefit pension plan through the purchase of annuities for the remaining participants. As a result, we expensed all remaining unamortized prior service costs and actuarial losses from accumulated other comprehensive loss (AOCL). For the nine months ended September 30, 2015, we have expensed $88 million related to the termination of the plan. As of September 30, 2015, we have $16 million remaining in AOCL related to our non-qualified defined benefit plan. Equity Offerings On March 3, 2015, we closed an underwritten public offering of 21 million shares of common stock, par value $0.01 per share, at a price of $47.50 per share. In addition, on March 25, 2015, we completed the issuance of an additional 3.15 million shares of common stock, par value $ 0.01 per share, in connection with the exercise of the option of the underwriters to purchase additional shares of common stock. The aggregate net proceeds of the offerings were approximately $1.1 billion (after deducting underwriting discounts and commissions and offering expenses). We used approximately $150 million of the net proceeds to repay outstanding indebtedness under our revolving credit facility and the remainder was used for general corporate purposes, including the funding of our capital investment program. On July 20, 2015, we issued approximately 41 million shares of common stock in exchange for all outstanding shares of Rosetta Resources Inc. (Rosetta) using a ratio of 0.542 of a share of Noble Energy common stock for each share of Rosetta common stock. See Note 3. Rosetta Merger . Increase in Authorized Shares On April 28, 2015, our stockholders approved an amendment to our Certificate of Incorporation to increase the number of authorized shares of our common stock from 500 million to 1 billion . Estimates The preparation of consolidated financial statements in conformity with US 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. Actual results could differ significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. Update on Core Area – Israel The Israeli government has developed a framework (Framework) to support the development of offshore natural gas reserves and natural gas exports. After a public hearing process, the Framework was approved by the Israeli Cabinet and Knesset. Enactment of the Framework provides that certain antitrust matters will be resolved. Authority resides with the Minister of Economy to provide the stipulated exemption related to these antitrust matters. Legal challenges may still be brought against the Framework in the Israeli courts. We continue to monitor this effort and if necessary, we are prepared to defend our legal rights to our Israel assets to the fullest extent in both Israel and international venues. The Framework requires divestiture of Tanin and Karish, and we, therefore, continue to hold these assets for sale. See Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Executive Overview for further discussion. Recently Issued Accounting Standards In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-11 (ASU 2015-11): Simplifying the Measurement of Inventory , effective for annual and interim periods beginning after December 15, 2016. ASU 2015-11 changes the inventory measurement principle for entities using the first-in, first out (FIFO) or average cost methods. For entities utilizing one of these methods, the inventory measurement principle will change from lower of cost or market to the lower of cost and net realizable value. We follow the average cost method and are currently evaluating the provisions of ASU 2015-11 and assessing the impact, if any, it may have on our financial position and results of operations. In April 2015, the FASB issued Accounting Standards Update No. 2015-03 (ASU 2015-03): Simplifying the Presentation of Debt Issuance Costs , effective for annual and interim periods beginning after December 15, 2015. ASU 2015-03 requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt. It is effective retrospectively for all prior periods presented in the financial statements beginning in the first quarter 2016 and is only expected to impact the presentation of our consolidated balance sheet. In August 2015, the FASB issued ASU 2015-15 to specifically address the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 allows entities to defer and present debt issuance costs related to line-of-credit arrangements as an asset and amortize the costs ratably over the term of the line-of-credit arrangement. As of September 30, 2015 and December 31, 2014 , we had $49 million and $50 million of capitalized, unamortized debt issuance costs, respectively, included in other long-term assets in our consolidated balance sheet. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02): Consolidation - Amendments to the Consolidation Analysis , effective for annual and interim periods beginning after December 15, 2015. ASU 2015-02 changes the guidance as to whether an entity is a variable interest entity (VIE) or a voting interest entity and how related parties are considered in the VIE model. We are currently evaluating the provisions of ASU 2015-02 and assessing the impact, if any, it may have on our financial position and results of operations. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), which creates Topic 606, Revenue from Contracts with Customers , and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, ASU 2014-09 supersedes the cost guidance in Subtopic 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, ASU 2014-09 requires enhanced financial statement disclosures over revenue recognition as part of the new accounting guidance. Initially, the amendments in ASU 2014-09 were effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application was not permitted. In August 2015, the FASB agreed to give companies an extra year to comply with the new standard. The standard will be effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We are currently evaluating the provisions of ASU 2014-09 and awaiting implementation guidance to determine the impact, if any, it may have on our financial position and results of operations. Statements of Operations Information Other statements of operations information is as follows: Three Months Ended Nine Months Ended (millions) 2015 2014 2015 2014 Production Expense Lease Operating Expense $ 133 $ 132 $ 419 $ 424 Production and Ad Valorem Taxes 28 44 89 146 Transportation and Gathering Expense 74 40 185 119 Total $ 235 $ 216 $ 693 $ 689 Other Operating (Income) Expense, Net Midstream Gathering and Processing (Income) Expense, Net $ 4 $ 1 $ 10 $ 8 Corporate Restructuring Expense (1) 21 — 39 — Stacked Drilling Rig Expense (2) 13 — 20 — Pension Plan Expense (3) 67 — 88 — Rosetta Merger Expenses (4) 71 — 73 — Gain on Divestitures — (30 ) — (72 ) Other, Net 6 10 22 33 Total $ 182 $ (19 ) $ 252 $ (31 ) Other Non-Operating (Income) Expense, Net Deferred Compensation (Income) Expense (5) $ (13 ) $ (12 ) (19 ) $ — Other (Income) Expense, Net 1 (1 ) (1 ) 1 Total $ (12 ) $ (13 ) $ (20 ) $ 1 (1) Amount represents expenses associated with the relocation of our personnel. The expenses primarily include the relocation of our Ardmore, Oklahoma office, as well as the consolidation of our Houston personnel to our corporate headquarters in Houston. (2) Amount represents the day rate cost associated with drilling rigs under contract, but not currently being utilized in our US onshore drilling programs. (3) Amount includes the expensing of the actuarial loss from AOCL related to the termination and re-measurement of our defined benefit pension plan. (4) Amount represents expenses associated with the completion of the Rosetta Merger. See Note 3. Rosetta Merger . (5) Amounts represent decreases in the fair value of shares of our common stock held in a rabbi trust. Balance Sheet Information Other balance sheet information is as follows: (millions) September 30, December 31, Accounts Receivable, Net Commodity Sales $ 284 $ 405 Joint Interest Billings 166 297 Other 140 171 Allowance for Doubtful Accounts (19 ) (16 ) Total $ 571 $ 857 Other Current Assets Inventories, Materials and Supplies $ 116 $ 81 Inventories, Crude Oil 28 24 Assets Held for Sale (1) 78 180 Prepaid Expenses and Other Current Assets 59 40 Total $ 281 $ 325 Other Noncurrent Assets Investments in Unconsolidated Subsidiaries $ 427 $ 325 Mutual Fund Investments 106 111 Commodity Derivative Assets 104 180 Other Assets 104 99 Total $ 741 $ 715 Other Current Liabilities Production and Ad Valorem Taxes $ 165 $ 110 Income Taxes Payable 60 180 Deferred Income Taxes, Current 86 158 Accrued Benefit Costs, Current 30 125 Asset Retirement Obligations 141 81 Interest Payable 119 70 Current Portion of Capital Lease Obligations 57 68 Other 137 152 Total $ 795 $ 944 Other Noncurrent Liabilities Deferred Compensation Liabilities $ 229 $ 218 Asset Retirement Obligations 746 670 Accrued Benefit Costs 17 24 Other 112 175 Total $ 1,104 $ 1,087 (1) Assets held for sale at September 30, 2015 include our Tanin and Karish natural gas discoveries, offshore Israel. See Update on Core Area – Israel, above. |
Rosetta Merger Rosetta Merger
Rosetta Merger Rosetta Merger | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Rosetta Merger | Rosetta Merger On July 20, 2015, Noble Energy completed the merger of Rosetta into a subsidiary of Noble Energy (Rosetta Merger). The results of Rosetta's operations since the merger date are included in our consolidated statement of operations. The merger was effected through the issuance of approximately 41 million shares of Noble Energy common stock in exchange for all outstanding shares of Rosetta using a ratio of 0.542 of a share of Noble Energy common stock for each share of Rosetta common stock and the assumption of Rosetta's liabilities, including approximately $2 billion fair value of outstanding debt. The merger adds two new onshore US shale positions to our portfolio including approximately 50,000 net acres in the Eagle Ford Shale and 54,000 net acres in the Permian ( 45,000 acres in the Delaware Basin and 9,000 acres in the Midland Basin). In connection with the Rosetta Merger, we incurred merger-related costs of approximately $73 million to date, including (i) $58 million of severance, consulting, investment, advisory, legal and other merger-related fees, and (ii) $15 million of noncash share-based compensation expense, all of which were expensed and are included in Other Operating (Income) Expense, Net. Allocation of Purchase Price - The merger has been accounted for as a business combination, using the acquisition method. The following table represents the preliminary allocation of the total purchase price of Rosetta to the assets acquired and the liabilities assumed based on the fair value at the merger date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded as goodwill. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, valuation of pre-merger contingencies, final tax returns that provide the underlying tax basis of Rosetta's assets and liabilities, and final appraisals of assets acquired and liabilities assumed. We expect to complete the purchase price allocation during the 12-month period following the merger date, in line with the acquisition method of accounting, during which time the value of the assets and liabilities, including any goodwill, may be revised as appropriate. The following table sets forth our preliminary purchase price allocation: (in millions, except stock price) Shares of Noble Energy common stock issued to Rosetta shareholders 41 Noble Energy common stock price on July 20, 2015 $ 36.97 Fair value of common stock issued $ 1,516 Plus: fair value of Rosetta's restricted stock awards and performance awards assumed 11 Plus: Rosetta stock options assumed 1 Total purchase price 1,528 Plus: liabilities assumed by Noble Energy Accounts Payable 96 Current Liabilities 37 Long-Term Debt 1,992 Other Long Term Liabilities 24 Asset Retirement Obligation 27 Total purchase price plus liabilities assumed $ 3,704 Fair Value of Rosetta Assets Cash and Equivalents $ 61 Other Current Assets 74 Derivative Instruments 209 Oil and Gas Properties: Proved Reserves 1,541 Undeveloped Leaseholds 1,165 Gathering & Processing Assets 207 Asset Retirement 27 Other Property Plant & Equipment 5 Long Term Deferred Tax Asset 86 Implied Goodwill 329 Total Asset Value $ 3,704 The fair value measurements of derivative instruments assumed were determined based on published forward commodity price curves as of the date of the merger and represent Level 2 inputs. Derivative instruments in an asset position include a measure of counterparty nonperformance 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. The fair value measurements of long-term debt were estimated based on published market prices and represent Level 1 inputs. The fair value measurements of oil and natural gas properties and asset retirement obligations are based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair values of oil and natural gas properties and asset retirement obligations were measured using valuation techniques that convert future cash flows to a single discounted amount. Significant inputs to the valuation of oil and natural gas properties included estimates of: (i) recoverable reserves; (ii) production rates; (iii) future operating and development costs; (iv) future commodity prices; and (v) a market-based weighted average cost of capital rate. These inputs required significant judgments and estimates by management at the time of the valuation and are the most sensitive and may be subject to change. The results of operations attributable to Rosetta are included in our consolidated statement of operations beginning on July 21, 2015. Revenues of $81 million and pre-tax net income of $43 million from Rosetta were generated from July 21, 2015 to September 30, 2015. Proforma Financial Information - The following pro forma condensed combined financial information was derived from the historical financial statements of Noble Energy and Rosetta and gives effect to the merger as if it had occurred on January 1, 2014. The below information reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including (i) Noble Energy's common stock and equity awards issued to convert Rosetta's outstanding shares of common stock and equity awards as of the closing date of the merger, (ii) adjustments to conform Rosetta's historical policy of accounting for its oil and natural gas properties from the full cost method to the successful efforts method of accounting, (iii) depletion of Rosetta's fair-valued proved oil and gas properties, and (iv) the estimated tax impacts of the pro forma adjustments. Additionally, pro forma earnings for the three and nine months ended September 30, 2015 were adjusted to exclude $71 million and $73 million , respectively, of merger-related costs incurred by Noble Energy and $32 million and $37 million , respectively, incurred by Rosetta. The pro forma results of operations do not include any cost savings or other synergies that may result from the Rosetta Merger or any estimated costs that have been or will be incurred by us to integrate the Rosetta assets. The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Rosetta Merger taken place on January 1, 2014; furthermore, the financial information is not intended to be a projection of future results. Three Months Ended Nine Months Ended (in millions, except per share amounts) 2015 2014 2015 2014 Revenues $ 828 $ 1,557 $ 2,582 $ 4,828 Net income $ (202 ) $ 542 $ (338 ) $ 1,039 Earnings per share: Basic $ (0.44 ) $ 1.37 $ (0.79 ) $ 2.63 Diluted $ (0.44 ) $ 1.35 $ (0.79 ) $ 2.59 |
Divestitures
Divestitures | 9 Months Ended |
Sep. 30, 2015 | |
Divestitures [Abstract] | |
Divestitures | Divestitures Onshore US Properties During the first nine months of 2015, we sold certain onshore US crude oil and natural gas properties, generating net proceeds of $151 million . Proceeds were primarily applied to the DJ Basin depletable field, with no recognition of gain or loss, other than a de minimis gain in second quarter 2015. During the first nine months of 2014, we sold certain non-core onshore US crude oil and natural gas properties. The information regarding the assets sold is as follows: Three Months Ended Nine Months Ended (millions) 2014 2014 Sales Proceeds $ 16 $ 126 Less Net Book Value of Assets Sold — (118 ) Goodwill Allocated to Assets Sold (1 ) (7 ) Asset Retirement Obligations Associated with Assets Sold 14 34 Other Closing Adjustments 1 2 Gain on Divestitures $ 30 $ 37 China Sale On June 30, 2014, we closed the sale of our China assets. We determined the sale of our China assets did not meet the criteria for discontinued operations presentation. The information regarding the China assets sold is as follows: Nine Months Ended (millions) 2014 Sales Proceeds $ 186 Less Net Book Value of Assets Sold (149 ) Other Closing Adjustments (2 ) Gain on Divestiture $ 35 |
Asset Impairments (Notes)
Asset Impairments (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Impairments [Abstract] | |
Asset Impairments | Asset Impairments Pre-tax (non-cash) asset impairment charges were as follows: Three Months Ended Nine Months Ended (millions) 2015 2014 2015 2014 US Properties, Primarily Shelf and Deepwater Gulf of Mexico $ — $ 2 $ 11 $ 56 Eastern Mediterranean — 31 32 14 North Sea — — — 94 Total $ — $ 33 $ 43 $ 164 Impairments for 2015 are primarily related to revisions in expected field abandonment or other costs at South Raton and Lorien (Deepwater Gulf of Mexico) and the Noa and Pinnacles fields (Eastern Mediterranean). Impairments for 2014 were primarily related to an increase in expected field abandonment costs and a change in the timing of abandonment activities at the North Sea MacCulloch field. See Note 2. Basis of Presentation , Note 8. Fair Value Measurements and Disclosures and Note 10. Asset Retirement Obligations . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Objective and Strategies for Using Derivative Instruments We are exposed to fluctuations in crude oil and natural gas prices. In order to mitigate the effect of commodity price volatility and enhance the predictability of cash flows relating to the marketing of our global crude oil and domestic natural gas, we enter into crude oil and natural gas price hedging arrangements. While these instruments mitigate the cash flow risk of future decreases in commodity prices, they may also curtail benefits from future increases in commodity prices. See Note 8. Fair Value Measurements and Disclosures for a discussion of methods and assumptions used to estimate the fair values of our derivative instruments. Unsettled Commodity Derivative Instruments As of September 30, 2015 , the following crude oil derivative contracts were outstanding: Swaps Collars Settlement Period Type of Contract Index Bbls Per Day Weighted Average Fixed Price Weighted Average Short Put Price Weighted Average Floor Price Weighted Average Ceiling Price 2015 Swaps NYMEX WTI 27,000 $ 88.80 $ — $ — $ — 2015 Swaps Dated Brent 8,000 100.31 — — — 2015 Swaps (1) (2) 12,000 89.81 — — — — 2015 Two-Way Collars NYMEX WTI 5,000 — — 50.00 64.94 2015 Two-Way Collars (1) (2) 8,000 — — 55.00 84.80 2015 Three-Way Collars NYMEX WTI 20,000 — 70.50 87.55 94.41 2015 Three-Way Collars Dated Brent 13,000 — 76.92 96.00 108.49 1H16 (4) Swaps NYMEX WTI 15,000 70.31 — — — 2H16 (4) Swaps NYMEX WTI 12,000 74.47 — — — 2016 Swaps Dated Brent 9,000 97.96 — — — 2016 Swaps (1) (2) 6,000 90.28 — — — — 2016 Two -Way Collars NYMEX WTI 1,000 — — 60.00 70.00 2016 Three-Way Collars NYMEX WTI 6,000 — 61.00 72.50 86.37 2016 Three-Way Collars Dated Brent 8,000 — 72.50 86.25 101.79 2H16 (4) Call (3) NYMEX WTI 3,000 — — — 53.65 2017 Call (3) NYMEX WTI 3,000 — — — 57.00 (1) Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger. (2) The index for these derivative instruments is NYMEX WTI and Argus LLS indices. (3) We have entered into crude oil derivative enhanced swaps with strike prices that are above the market value as of trade commencement. To effect the enhanced swap structure, we sold call options to the applicable counterparty to receive the above market terms. (4) We have entered into NYMEX WTI swap contracts for 3,000 Bbls per day for the first half of 2016 resulting in the difference in hedge volumes for the full year. As of September 30, 2015 , the following natural gas derivative contracts were outstanding: Swaps Collars Settlement Period Type of Contract Index MMBtu Per Day Weighted Average Fixed Price Weighted Average Short Put Price Weighted Average Floor Price Weighted Average Ceiling Price 2015 Swaps NYMEX HH 140,000 $ 4.30 $ — $ — $ — 2015 Swaps (1) (2) 50,000 $ 4.13 $ — $ — $ — 2015 Three-Way Collars NYMEX HH 150,000 — 3.58 4.25 5.04 2015 Two-Way Collars (1) (2) 50,000 — — 3.60 5.04 2016 Swaps (3) NYMEX HH 40,000 3.60 — — — 2016 Swaps (1) (2) 30,000 4.04 — — — 2016 Two-Way Collars NYMEX HH 30,000 — — 3.00 3.50 2016 Two-Way Collars (1) (2) 30,000 — — 3.50 5.60 2016 Three-Way Collars NYMEX HH 90,000 — 2.83 3.42 3.90 (1) Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger. (2) The index for these derivative instruments includes a combination of Houston Ship Channel and Tennessee Zone 0 indices. (3) We have entered into certain natural gas derivative contracts (swaptions), which give counterparties the option to extend for an additional 12-month period. Options covering a notional volume of 30,000 MMBtu/d are exercisable on December 22 and 23, 2016. If the counterparties exercise all such options, the notional volume of our existing natural gas derivative contracts will increase by 30,000 MMBtu/d at an average price of $ 3.50 per MMBtu for each month during the period January 1, 2017 through December 31, 2017. As of September 30, 2015 , we had assumed the following natural gas liquid derivative instruments, all of which were assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger. The index for these derivative instruments is the Mont Belvieu index. Swaps Collars Settlement Period Type of Contract Index Gallons Per Day Weighted Average Fixed Price Weighted Average Short Put Price Weighted Average Floor Price Weighted Average Ceiling Price 2015 Swaps NGL-Ethane 104,000 $ 0.27 $ — $ — $ — 2015 Swaps NGL-Propane 73,500 1.03 — — — 2015 Swaps NGL-Isobutane 25,900 1.26 — — — 2015 Swaps NGL-Normal Butane 24,300 1.25 — — — 2015 Swaps NGL-Pentanes Plus 24,300 1.85 — — — Fair Value Amounts and (Gain) Loss on Commodity Derivative Instruments The fair values of commodity derivative instruments in our consolidated balance sheets were as follows: Fair Value of Derivative Instruments Asset Derivative Instruments Liability Derivative Instruments September 30, December 31, September 30, December 31, (millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity Derivative Instruments Current Assets $ 650 Current Assets $ 710 Current Liabilities $ — Current Liabilities $ — Noncurrent Assets 104 Noncurrent Assets 180 Noncurrent Liabilities 6 Noncurrent Liabilities — Total $ 754 $ 890 $ 6 $ — The effect of commodity derivative instruments on our consolidated statements of operations was as follows: Three Months Ended Nine Months Ended (millions) 2015 2014 2015 2014 Cash (Received) Paid in Settlement of Commodity Derivative Instruments Crude Oil $ (235 ) $ 14 $ (578 ) $ 87 Natural Gas (42 ) (2 ) (98 ) 8 NGLs (7 ) — (7 ) — Total Cash (Received) Paid in Settlement of Commodity Derivative Instruments (284 ) 12 (683 ) 95 Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments Crude Oil 4 (374 ) 301 (155 ) Natural Gas 3 (23 ) 41 (14 ) NGLs 10 — 10 — Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments 17 (397 ) 352 (169 ) (Gain) Loss on Commodity Derivative Instruments Crude Oil (231 ) (360 ) (277 ) (68 ) Natural Gas (39 ) (25 ) (57 ) (6 ) NGLs 3 — 3 — Total (Gain) Loss on Commodity Derivative Instruments $ (267 ) $ (385 ) $ (331 ) $ (74 ) |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt [Abstract] | |
Debt | Debt Debt consists of the following: September 30, December 31, (millions, except percentages) Debt Interest Rate Debt Interest Rate Credit Facility, due August 27, 2020 $ — — % $ — — % Capital Lease and Other Obligations 424 — % 413 — % 8.25% Senior Notes, due March 1, 2019 1,000 8.25 % 1,000 8.25 % 5.625% Senior Notes, due May 1, 2021 693 5.625 % — — % 4.15% Senior Notes, due December 15, 2021 1,000 4.15 % 1,000 4.15 % 5.875% Senior Notes, due June 1, 2022 597 5.875 % — — % 7.25% Senior Notes, due October 15, 2023 100 7.25 % 100 7.25 % 5.875% Senior Notes, due June 1, 2024 499 5.875 % — — % 3.90% Senior Notes, due November 15, 2024 650 3.90 % 650 3.90 % 8.00% Senior Notes, due April 1, 2027 250 8.00 % 250 8.00 % 6.00% Senior Notes, due March 1, 2041 850 6.00 % 850 6.00 % 5.25% Senior Notes, due November 15, 2043 1,000 5.25 % 1,000 5.25 % 5.05% Senior Notes, due November 15, 2044 850 5.05 % 850 5.05 % 7.25% Senior Debentures, due August 1, 2097 84 7.25 % 84 7.25 % Total 7,997 6,197 Unamortized Discount (25 ) (26 ) Unamortized Premium 118 — Total Debt, Net of Unamortized Discount and Premium 8,090 6,171 Less Amounts Due Within One Year Capital Lease Obligations (57 ) (68 ) Long-Term Debt Due After One Year $ 8,033 $ 6,103 Credit Facility Our Credit Agreement provides for a $4.0 billion unsecured revolving credit facility (Credit Facility), which is available for general corporate purposes. The Credit Facility (i) provides for facility fee rates that range from 10 basis points to 25 basis points per year depending upon our credit rating, (ii) includes sub-facilities for short-term loans and letters of credit up to an aggregate amount of $500 million under each sub-facility and (iii) provides for interest rates that are based upon the Eurodollar rate plus a margin that ranges from 90 basis points to 150 basis points depending upon our credit rating. On August 27, 2015, we entered into the Second Amendment to Credit Agreement (Second Amendment) with JPMorgan Chase Bank, N.A., as administrative agent, and the other commercial lending institutions party thereto. The Second Amendment extended the maturity date of the Credit Agreement, among other things, from October 3, 2018 to August 27, 2020 . Debt Exchange On July 29, 2015, we completed our debt exchange offers to exchange all validly tendered and accepted senior notes assumed in the Rosetta Merger. We were able to exchange 99.4% of the outstanding Rosetta senior notes, whereby we issued (i) $693 million senior unsecured 5.625% notes due May 1, 2021 , (ii) $597 million senior unsecured 5.875% notes due June 1, 2022 and (iii) $499 million senior unsecured 5.875% notes due June 1, 2024 . See Note 8. Fair Value Measurements and Disclosures for a discussion of methods and assumptions used to estimate the fair values of debt. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures 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 may include variable to fixed price commodity swaps, two-way collars, three-way collars, swaptions and extendable swaps. Commodity derivative contracts were valued by a third party provider to estimate the fair values of these instruments using published forward commodity price curves 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 nonperformance 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 values of the put options sold and the contract floors and ceilings using an option pricing model which takes into account market volatility, market prices and contract terms. See Note 6. Derivative Instruments and Hedging Activities . Deferred Compensation Liability The value is dependent upon the fair values of mutual fund investments and shares of our 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) (1) Significant Other Observable Inputs (Level 2) (2) Significant Unobservable Inputs (Level 3) (3) Adjustment (4) Fair Value Measurement (millions) September 30, 2015 Financial Assets Mutual Fund Investments $ 106 $ — $ — $ — $ 106 Commodity Derivative Instruments — 759 — (5 ) 754 Financial Liabilities Commodity Derivative Instruments — (11 ) — 5 (6 ) Portion of Deferred Compensation Liability Measured at Fair Value (111 ) — — — (111 ) December 31, 2014 Financial Assets Mutual Fund Investments $ 111 $ — $ — $ — $ 111 Commodity Derivative Instruments — 890 — 890 Financial Liabilities Commodity Derivative Instruments — — — — — Portion of Deferred Compensation Liability Measured at Fair Value (134 ) — — — (134 ) (1) Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value. (2) Level 2 measurements are fair value measurements which use inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. (3) Level 3 measurements are fair value measurements which use unobservable inputs. (4) Amount represents the impact of netting provisions within our master agreements that allow us to net cash settle asset and liability positions with the same counterparty. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis in our consolidated balance sheets. The following methods and assumptions were used to estimate the fair values: Asset Impairments Information about impaired assets is as follows: Fair Value Measurements Using Description Quoted Prices in Significant Other Significant Net Book Value (1) Total Pre-tax (Non-cash) Impairment Loss millions Three Months Ended September 30, 2015 Impaired Oil and Gas Properties $ — $ — $ — $ — $ — Three Months Ended September 30, 2014 Impaired Oil and Gas Properties — — 9 42 33 Nine Months Ended September 30, 2015 Impaired Oil and Gas Properties $ — $ — $ — $ 43 $ 43 Nine Months Ended September 30, 2014 Impaired Oil and Gas Properties — — 23 187 164 (1) Amount represents net book value at the date of assessment. The fair value of impaired oil and gas properties was determined as of the date of the assessment using a discounted cash flow model based on management’s expectations of future crude oil and natural gas production prior to abandonment date, commodity prices based on NYMEX WTI, NYMEX Henry Hub, and Brent future price curves as of the date of the estimate, estimated operating and abandonment costs, and a risk-adjusted discount rate. Impairments for the first nine months of 2015 were due primarily to increases in asset carrying values associated with increases in estimated field abandonment costs. See Note 5. Asset Impairments . Goodwill As of September 30, 2015, we had allocated $945 million of goodwill to our US reporting unit, including goodwill associated with the Rosetta Merger, which may be revised as we complete our purchase price allocation for that transaction. We assess goodwill for impairment annually during the fourth quarter, or more frequently as circumstances require, at the reporting unit level. At September 30, 2015, we performed a qualitative assessment by examining relevant events and circumstances that could have a negative impact on our goodwill, such as: macroeconomic conditions; industry and market conditions, including current commodity prices; earnings and cash flows; overall financial performance; segment dispositions and acquisitions; and other relevant entity-specific events. Based upon our qualitative assessment of these circumstances, we concluded that a full impairment test was warranted. Accordingly, we estimated the fair value of our US reporting unit using a combination of the income approach and the market approach. We then estimated the implied fair value of goodwill based upon this valuation analysis. These procedures indicated no impairment at September 30, 2015. Additional Fair Value Disclosures Debt The fair value of public, fixed-rate debt is estimated based on the published market prices for the same or similar issues. As such, we consider the fair value of our public, fixed-rate debt to be a Level 1 measurement on the fair value hierarchy. Fair value information regarding our debt is as follows: September 30, December 31, (millions) Carrying Amount Fair Value Carrying Amount Fair Value Total Debt, Net of Unamortized Discount and Premium (1) $ 7,666 $ 7,497 $ 5,758 $ 6,179 (1) Excludes capital lease obligations. |
Capitalized Exploratory Well Co
Capitalized Exploratory Well Costs | 9 Months Ended |
Sep. 30, 2015 | |
Capitalized Exploratory Well Costs [Abstract] | |
Capitalized Exploratory Well Costs | Capitalized Exploratory Well Costs We capitalize exploratory well costs until a determination is made that the well has found proved reserves or is deemed noncommercial. On a quarterly basis, we review the status of suspended exploratory well costs and assess the development of these projects. If a well is deemed to be noncommercial, the well costs are charged to exploration expense as dry hole cost. Changes in capitalized exploratory well costs are as follows and exclude amounts that were capitalized and subsequently expensed in the same period: (millions) Nine Months Ended September 30, 2015 Capitalized Exploratory Well Costs, Beginning of Period $ 1,337 Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves 123 Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves (24 ) Capitalized Exploratory Well Costs Charged to Expense (1) (23 ) Capitalized Exploratory Well Costs, End of Period $ 1,413 (1) Relates primarily to onshore US exploration activity. The following table provides an aging of capitalized exploratory well costs based on the date that drilling commenced, and the number of projects that have been capitalized for a period greater than one year: (millions) September 30, December 31, Exploratory Well Costs Capitalized for a Period of One Year or Less $ 154 $ 247 Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling 1,259 1,090 Balance at End of Period $ 1,413 $ 1,337 Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling 14 13 The following table includes exploratory well costs that have been capitalized for a period greater than one year since the commencement of drilling as of September 30, 2015 : (millions) Total by Project Progress Country/Project: Onshore US Northeast Nevada $ 40 Analyzing results from our first four exploratory vertical wells, and evaluating potential for production tests. Deepwater Gulf of Mexico Katmai 80 Anticipate drilling an appraisal well in 2016 to test the resource potential of this 2014 crude oil discovery. Troubadour 48 Evaluating development scenarios for this 2013 natural gas discovery including subsea tieback to existing infrastructure. Offshore Equatorial Guinea (Blocks O and I) Diega/Carmen 236 Evaluating regional development scenarios for this 2008 crude oil discovery. We drilled subsequent appraisal wells. During 2014, we conducted additional seismic activity over Blocks O and I and are engaged in processing the newly-acquired seismic data to determine an appropriate development plan. Carla 170 Evaluating regional development scenarios for this 2011 crude oil discovery. We drilled subsequent appraisal wells. During 2014, we conducted additional seismic activity over Blocks O and I and are engaged in processing the newly-acquired seismic data. Felicita/Yolanda 59 Evaluating regional development plans for these 2008/2007 condensate and natural gas discoveries. Natural gas development teams are working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize data exchange agreements between the two countries. Offshore Cameroon YoYo 49 Working with the government to assess commercialization of this 2007 condensate and natural gas discovery. A natural gas development team is working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize a data exchange agreement between the two countries. Offshore Israel (1) Leviathan 190 During 2014, we received the Leviathan Development and Production Leases, submitted a development plan to the Israeli government, completed substantial engineering and pre-procurement activities and are currently negotiating natural gas marketing contracts in anticipation of the pending enactment of the Framework. Leviathan-1 Deep 81 Well did not reach the target interval; developing future drilling plans to test this deep oil concept, which is held by the Leviathan Development and Production Leases. We are working on potential well design and placement. Dalit 29 Submitted a development plan to the Israeli government to develop this 2009 natural gas discovery as a tie-in to existing infrastructure. Dolphin 1 26 Reviewing regional development scenarios for this 2011 natural gas discovery, including a potential tieback to Leviathan. We have applied to the Israeli government for a commerciality ruling. Offshore Cyprus Cyprus 210 Submitted a Declaration of Commerciality and a Preliminary Development Plan for Block 12 with the government of Cyprus. We have received approval of the extension request for our exploration obligation well from the government of Cyprus. Other Individual Projects Less than $20 million 41 Continuing to drill and evaluate wells. Total $ 1,259 (1) We are currently working to resolve antitrust and other regulatory matters with the Israeli government to enable Leviathan and other developments to move forward. See Note 2. Basis of Presentation – Update on Core Area – Israel . |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations (ARO) consist primarily of estimated costs of dismantlement, removal, site reclamation and similar activities associated with our oil and gas properties. Changes in ARO are as follows: Nine Months Ended (millions) 2015 2014 Asset Retirement Obligations, Beginning Balance $ 751 $ 586 Liabilities Incurred 54 38 Liabilities Settled (29 ) (77 ) Revision of Estimate 79 123 Accretion Expense (1) 32 28 Asset Retirement Obligations, Ending Balance $ 887 $ 698 (1) Accretion expense is included in DD&A expense in the consolidated statements of operations. For the nine months ended September 30, 2015 Liabilities incurred were due to new wells and facilities for onshore US and deepwater Gulf of Mexico as well as liabilities assumed by us in the Rosetta Merger. Liabilities settled relate primarily to non-core, onshore US properties sold. Revisions of estimates relate to changes in cost estimates and included $43 million for Eastern Mediterranean and $28 million for DJ Basin. For the nine months ended September 30, 2014 Liabilities incurred were due to new wells and facilities for onshore US, deepwater Gulf of Mexico, and Eastern Mediterranean. Liabilities settled primarily related to onshore US property abandonments and non-core, onshore US assets sold. Revisions of estimates included $67 million for the North Sea McCulloch field due to an increase in costs and a change in timing. See Note 5. Asset Impairments . Additional revisions of $21 million for DJ Basin, $16 million for Equatorial Guinea, $9 million for Eastern Mediterranean, and $9 million for deepwater Gulf of Mexico were due to changes in cost and timing estimates. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings 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 include the effect of outstanding stock options, shares of restricted stock, or shares of our common stock held in a rabbi trust (when dilutive). The following table summarizes the calculation of basic and diluted earnings per share: Three Months Ended Nine Months Ended (millions, except per share amounts) 2015 2014 2015 2014 Net Income (Loss) $ (283 ) $ 419 $ (413 ) $ 811 Earnings Adjustment from Assumed Conversion of Dilutive Shares of Common Stock in Rabbi Trust (2) — (8 ) — — Net Income (Loss) Used for Diluted Earnings Per Share Calculation $ (283 ) $ 411 $ (413 ) $ 811 Weighted Average Number of Shares Outstanding, Basic (1) 420 362 392 361 Incremental Shares from Assumed Conversion of Dilutive Stock Options, Restricted Stock, and Shares of Common Stock in Rabbi Trust (2) — 5 — 6 Weighted Average Number of Shares Outstanding, Diluted 420 367 392 367 Earnings (Loss) Per Share, Basic $ (0.67 ) $ 1.16 $ (1.05 ) $ 2.25 Earnings (Loss) Per Share, Diluted (0.67 ) 1.12 (1.05 ) 2.21 Number of Antidilutive Stock Options, Shares of Restricted Stock, and Shares of Common Stock in Rabbi Trust Excluded from Calculation Above 14 2 11 3 (1) The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24.15 million shares of Noble Energy common stock in first quarter 2015 and issued in connection with the exchange of approximately 41 million shares for all outstanding shares of Rosetta common stock on July 20, 2015. (2) For the three and nine months ended September 30, 2015, all outstanding options and non-vested restricted shares have been excluded from the calculation of diluted EPS as Noble Energy incurred losses. Therefore, inclusion of outstanding options and non-vested restricted shares in the calculation of diluted EPS would be anti-dilutive. Consistent with GAAP, when dilutive, deferred compensation gains or losses, net of tax, are excluded from net income while our common shares held in the rabbi trust are included in the diluted share count. For this reason, the diluted earnings per share calculations for the three months ended September 30, 2014 excluded deferred compensation (gains) losses, net of tax. The deferred compensation loss, net of tax, excluded for the calculation of diluted earnings per share for the nine months ended September 30, 2014 was de minimis. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision relating to continuing operations consists of the following: Three Months Ended Nine Months Ended (millions) 2015 2014 2015 2014 Current $ (45 ) $ 120 $ 64 $ 213 Deferred 69 37 (244 ) 61 Total Income Tax (Benefit) Provision $ 24 $ 157 $ (180 ) $ 274 Effective Tax Rate (9.3 )% 27.2 % 30.4 % 25.3 % At the end of each interim period, we apply our best estimate of our effective tax rate (ETR) expected to be applicable for the full year, which can result in interim ETR fluctuations. Our ETR for the three and nine months ended September 30, 2015 varied as compared with the three and nine months ended September 30, 2014 primarily as a result of a tax benefit. In the case of a pre-tax loss, our favorable permanent differences, such as income from equity method investees and increased earnings in our foreign jurisdictions with rates that vary from the US statutory rate, have the effect of increasing the tax benefit which, in turn, increases the ETR. In our major tax jurisdictions, the earliest years remaining open to examination are as follows: US – 2012 , Equatorial Guinea – 2010 and Israel – 2010 . |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have operations throughout the world and manage our global operations by country. The following information is grouped into four components that are all in the business of crude oil and natural gas exploration, development, production, and acquisition: the United States; West Africa (Equatorial Guinea, Cameroon, Gabon, and Sierra Leone, (which we have exited); Eastern Mediterranean (Israel and Cyprus); and Other International and Corporate. Other International includes the North Sea, China (through June 30, 2014), Falkland Islands, Nicaragua (which we have exited) and new ventures. (millions) Consolidated United States West Africa Eastern Mediterranean Other Int'l & Corporate Three Months Ended September 30, 2015 Revenues from Third Parties $ 765 $ 492 $ 120 $ 152 $ 1 Income (Loss) from Equity Method Investees 36 16 20 — — Total Revenues 801 508 140 152 1 DD&A 539 437 67 22 13 (Gain) Loss on Commodity Derivative Instruments (267 ) (187 ) (80 ) — — Income (Loss) Before Income Taxes (259 ) (189 ) 98 107 (275 ) Three Months Ended September 30, 2014 Revenues from Third Parties $ 1,228 $ 819 $ 269 $ 138 $ 2 Income from Equity Method Investees 41 — 41 — — Total Revenues 1,269 819 310 138 2 DD&A 460 351 70 17 22 Gain on Divestitures (30 ) (30 ) — — — Asset Impairments 33 33 — — — (Gain) Loss on Commodity Derivative Instruments (385 ) (252 ) (133 ) — — Income (Loss) Before Income Taxes 576 457 321 90 (292 ) Nine Months Ended September 30, 2015 Revenues from Third Parties $ 2,227 $ 1,411 $ 432 $ 378 $ 6 Income from Equity Method Investees 60 35 25 — — Total Revenues 2,287 1,446 457 378 6 DD&A 1,444 1,138 223 52 31 Asset Impairments 43 11 — 32 — (Gain) Loss on Commodity Derivative Instruments (331 ) (231 ) (100 ) — — Income (Loss) Before Income Taxes (593 ) (353 ) 195 227 (662 ) Nine Months Ended September 30, 2014 Revenues from Third Parties $ 3,893 $ 2,503 $ 931 $ 363 $ 96 Income from Equity Method Investees 138 — 138 — — Total Revenues 4,031 2,503 1,069 363 96 DD&A 1,297 970 218 46 63 Gain on Divestitures (72 ) (36 ) — — (36 ) Asset Impairments 164 56 — 14 94 (Gain) Loss on Commodity Derivative Instruments (74 ) (6 ) (68 ) — — Income (Loss) Before Income Taxes 1,085 838 786 211 (750 ) September 30, 2015 Total Assets $ 25,965 $ 20,052 $ 2,240 $ 2,503 $ 1,170 December 31, 2014 Total Assets 22,553 16,400 2,763 2,806 584 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies CONSOL Carried Cost Obligation In accordance with our Marcellus Shale joint venture arrangement with a subsidiary of CONSOL Energy Inc. (CONSOL), we agreed to fund one-third of CONSOL's 50% working interest share of future drilling and completion costs, capped at $400 million each year (CONSOL Carried Cost Obligation). The remaining obligation totaled approximately $1.6 billion at September 30, 2015 . The CONSOL Carried Cost Obligation is suspended if average Henry Hub natural gas prices fall and remain below $4.00 per MMBtu in any three consecutive month period and remain suspended until average Henry Hub natural gas prices equal or exceed $4.00 per MMBtu for three consecutive months. The CONSOL Carried Cost Obligation is currently suspended due to current natural gas prices. Based on the September 30, 2015 NYMEX Henry Hub natural gas price curve, we expect that the CONSOL Carried Cost Obligation will be suspended for the next 12 months. 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. Colorado Air Matter In April 2015, we entered into a joint consent decree (Consent Decree) with the US Environmental Protection Agency, US Department of Justice, and State of Colorado to improve emission control systems at a number of our condensate storage tanks that are part of our upstream oil and natural gas operations within the Non-Attainment Area of the DJ Basin. The Consent Decree was entered by the Court on June 2, 2015. The Consent Decree, which alleges violations of the Colorado Air Pollution Prevention and Control Act and Colorado’s federal approved State Implementation Plan, specifically Colorado Air Quality Control Commission Regulation Number 7, requires us to perform certain injunctive relief activities to complete mitigation projects and supplemental environmental projects (SEP), and pay a civil penalty. Costs associated with the settlement consist of $4.95 million in civil penalties, $4.5 million in mitigation projects, and $4 million in SEPs. Costs associated with the injunctive relief are not yet precisely quantifiable as they will be determined in accordance with the outcome of evaluations on the adequate design, operation, and maintenance of certain aspects of tank systems to handle potential peak instantaneous vapor flow rates between now and mid-2017. Compliance with the Consent Decree could result in the temporary shut in or permanent plugging and abandonment of certain wells and associated tank batteries. The Consent Decree sets forth a detailed compliance schedule with deadlines for achievement of milestones through early 2019. The Consent Decree contains additional obligations for ongoing inspection and monitoring beyond that which is required under existing Colorado regulations. Inspection and monitoring findings may influence decisions to temporarily shut in or permanently plug and abandon wells and associated tank batteries. We have concluded that the penalties, injunctive relief, and mitigation expenditures that resulted from this settlement did not have, and based on currently available information will not have, a material adverse effect on our financial position, results of operations or cash flows. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation [Abstract] | |
Statement of Operations Information | Statements of Operations Information Other statements of operations information is as follows: Three Months Ended Nine Months Ended (millions) 2015 2014 2015 2014 Production Expense Lease Operating Expense $ 133 $ 132 $ 419 $ 424 Production and Ad Valorem Taxes 28 44 89 146 Transportation and Gathering Expense 74 40 185 119 Total $ 235 $ 216 $ 693 $ 689 Other Operating (Income) Expense, Net Midstream Gathering and Processing (Income) Expense, Net $ 4 $ 1 $ 10 $ 8 Corporate Restructuring Expense (1) 21 — 39 — Stacked Drilling Rig Expense (2) 13 — 20 — Pension Plan Expense (3) 67 — 88 — Rosetta Merger Expenses (4) 71 — 73 — Gain on Divestitures — (30 ) — (72 ) Other, Net 6 10 22 33 Total $ 182 $ (19 ) $ 252 $ (31 ) Other Non-Operating (Income) Expense, Net Deferred Compensation (Income) Expense (5) $ (13 ) $ (12 ) (19 ) $ — Other (Income) Expense, Net 1 (1 ) (1 ) 1 Total $ (12 ) $ (13 ) $ (20 ) $ 1 (1) Amount represents expenses associated with the relocation of our personnel. The expenses primarily include the relocation of our Ardmore, Oklahoma office, as well as the consolidation of our Houston personnel to our corporate headquarters in Houston. (2) Amount represents the day rate cost associated with drilling rigs under contract, but not currently being utilized in our US onshore drilling programs. (3) Amount includes the expensing of the actuarial loss from AOCL related to the termination and re-measurement of our defined benefit pension plan. (4) Amount represents expenses associated with the completion of the Rosetta Merger. See Note 3. Rosetta Merger . (5) Amounts represent decreases in the fair value of shares of our common stock held in a rabbi trust. |
Balance Sheet Information Table | Balance Sheet Information Other balance sheet information is as follows: (millions) September 30, December 31, Accounts Receivable, Net Commodity Sales $ 284 $ 405 Joint Interest Billings 166 297 Other 140 171 Allowance for Doubtful Accounts (19 ) (16 ) Total $ 571 $ 857 Other Current Assets Inventories, Materials and Supplies $ 116 $ 81 Inventories, Crude Oil 28 24 Assets Held for Sale (1) 78 180 Prepaid Expenses and Other Current Assets 59 40 Total $ 281 $ 325 Other Noncurrent Assets Investments in Unconsolidated Subsidiaries $ 427 $ 325 Mutual Fund Investments 106 111 Commodity Derivative Assets 104 180 Other Assets 104 99 Total $ 741 $ 715 Other Current Liabilities Production and Ad Valorem Taxes $ 165 $ 110 Income Taxes Payable 60 180 Deferred Income Taxes, Current 86 158 Accrued Benefit Costs, Current 30 125 Asset Retirement Obligations 141 81 Interest Payable 119 70 Current Portion of Capital Lease Obligations 57 68 Other 137 152 Total $ 795 $ 944 Other Noncurrent Liabilities Deferred Compensation Liabilities $ 229 $ 218 Asset Retirement Obligations 746 670 Accrued Benefit Costs 17 24 Other 112 175 Total $ 1,104 $ 1,087 (1) Assets held for sale at September 30, 2015 include our Tanin and Karish natural gas discoveries, offshore Israel. See Update on Core Area – Israel, above. |
Rosetta Merger Rosetta Merger (
Rosetta Merger Rosetta Merger (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocations | The following table sets forth our preliminary purchase price allocation: (in millions, except stock price) Shares of Noble Energy common stock issued to Rosetta shareholders 41 Noble Energy common stock price on July 20, 2015 $ 36.97 Fair value of common stock issued $ 1,516 Plus: fair value of Rosetta's restricted stock awards and performance awards assumed 11 Plus: Rosetta stock options assumed 1 Total purchase price 1,528 Plus: liabilities assumed by Noble Energy Accounts Payable 96 Current Liabilities 37 Long-Term Debt 1,992 Other Long Term Liabilities 24 Asset Retirement Obligation 27 Total purchase price plus liabilities assumed $ 3,704 Fair Value of Rosetta Assets Cash and Equivalents $ 61 Other Current Assets 74 Derivative Instruments 209 Oil and Gas Properties: Proved Reserves 1,541 Undeveloped Leaseholds 1,165 Gathering & Processing Assets 207 Asset Retirement 27 Other Property Plant & Equipment 5 Long Term Deferred Tax Asset 86 Implied Goodwill 329 Total Asset Value $ 3,704 |
Schedule of pro forma information | Three Months Ended Nine Months Ended (in millions, except per share amounts) 2015 2014 2015 2014 Revenues $ 828 $ 1,557 $ 2,582 $ 4,828 Net income $ (202 ) $ 542 $ (338 ) $ 1,039 Earnings per share: Basic $ (0.44 ) $ 1.37 $ (0.79 ) $ 2.63 Diluted $ (0.44 ) $ 1.35 $ (0.79 ) $ 2.59 |
Divestitures (Tables)
Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2014 | |
Divestitures [Abstract] | |
Schedule of gain on asset divestitures | The information regarding the China assets sold is as follows: Nine Months Ended (millions) 2014 Sales Proceeds $ 186 Less Net Book Value of Assets Sold (149 ) Other Closing Adjustments (2 ) Gain on Divestiture $ 35 The information regarding the assets sold is as follows: Three Months Ended Nine Months Ended (millions) 2014 2014 Sales Proceeds $ 16 $ 126 Less Net Book Value of Assets Sold — (118 ) Goodwill Allocated to Assets Sold (1 ) (7 ) Asset Retirement Obligations Associated with Assets Sold 14 34 Other Closing Adjustments 1 2 Gain on Divestitures $ 30 $ 37 |
Asset Impairments (Tables)
Asset Impairments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Impairments [Abstract] | |
Summary of details of impairment of long-lived assets | Pre-tax (non-cash) asset impairment charges were as follows: Three Months Ended Nine Months Ended (millions) 2015 2014 2015 2014 US Properties, Primarily Shelf and Deepwater Gulf of Mexico $ — $ 2 $ 11 $ 56 Eastern Mediterranean — 31 32 14 North Sea — — — 94 Total $ — $ 33 $ 43 $ 164 |
Derivative Instruments and He27
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Unsettled Derivative Instruments | Unsettled Commodity Derivative Instruments As of September 30, 2015 , the following crude oil derivative contracts were outstanding: Swaps Collars Settlement Period Type of Contract Index Bbls Per Day Weighted Average Fixed Price Weighted Average Short Put Price Weighted Average Floor Price Weighted Average Ceiling Price 2015 Swaps NYMEX WTI 27,000 $ 88.80 $ — $ — $ — 2015 Swaps Dated Brent 8,000 100.31 — — — 2015 Swaps (1) (2) 12,000 89.81 — — — — 2015 Two-Way Collars NYMEX WTI 5,000 — — 50.00 64.94 2015 Two-Way Collars (1) (2) 8,000 — — 55.00 84.80 2015 Three-Way Collars NYMEX WTI 20,000 — 70.50 87.55 94.41 2015 Three-Way Collars Dated Brent 13,000 — 76.92 96.00 108.49 1H16 (4) Swaps NYMEX WTI 15,000 70.31 — — — 2H16 (4) Swaps NYMEX WTI 12,000 74.47 — — — 2016 Swaps Dated Brent 9,000 97.96 — — — 2016 Swaps (1) (2) 6,000 90.28 — — — — 2016 Two -Way Collars NYMEX WTI 1,000 — — 60.00 70.00 2016 Three-Way Collars NYMEX WTI 6,000 — 61.00 72.50 86.37 2016 Three-Way Collars Dated Brent 8,000 — 72.50 86.25 101.79 2H16 (4) Call (3) NYMEX WTI 3,000 — — — 53.65 2017 Call (3) NYMEX WTI 3,000 — — — 57.00 (1) Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger. (2) The index for these derivative instruments is NYMEX WTI and Argus LLS indices. (3) We have entered into crude oil derivative enhanced swaps with strike prices that are above the market value as of trade commencement. To effect the enhanced swap structure, we sold call options to the applicable counterparty to receive the above market terms. (4) We have entered into NYMEX WTI swap contracts for 3,000 Bbls per day for the first half of 2016 resulting in the difference in hedge volumes for the full year. As of September 30, 2015 , the following natural gas derivative contracts were outstanding: Swaps Collars Settlement Period Type of Contract Index MMBtu Per Day Weighted Average Fixed Price Weighted Average Short Put Price Weighted Average Floor Price Weighted Average Ceiling Price 2015 Swaps NYMEX HH 140,000 $ 4.30 $ — $ — $ — 2015 Swaps (1) (2) 50,000 $ 4.13 $ — $ — $ — 2015 Three-Way Collars NYMEX HH 150,000 — 3.58 4.25 5.04 2015 Two-Way Collars (1) (2) 50,000 — — 3.60 5.04 2016 Swaps (3) NYMEX HH 40,000 3.60 — — — 2016 Swaps (1) (2) 30,000 4.04 — — — 2016 Two-Way Collars NYMEX HH 30,000 — — 3.00 3.50 2016 Two-Way Collars (1) (2) 30,000 — — 3.50 5.60 2016 Three-Way Collars NYMEX HH 90,000 — 2.83 3.42 3.90 (1) Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger. (2) The index for these derivative instruments includes a combination of Houston Ship Channel and Tennessee Zone 0 indices. (3) We have entered into certain natural gas derivative contracts (swaptions), which give counterparties the option to extend for an additional 12-month period. Options covering a notional volume of 30,000 MMBtu/d are exercisable on December 22 and 23, 2016. If the counterparties exercise all such options, the notional volume of our existing natural gas derivative contracts will increase by 30,000 MMBtu/d at an average price of $ 3.50 per MMBtu for each month during the period January 1, 2017 through December 31, 2017. |
Fair Value of Derivative Instruments | Fair Value Amounts and (Gain) Loss on Commodity Derivative Instruments The fair values of commodity derivative instruments in our consolidated balance sheets were as follows: Fair Value of Derivative Instruments Asset Derivative Instruments Liability Derivative Instruments September 30, December 31, September 30, December 31, (millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity Derivative Instruments Current Assets $ 650 Current Assets $ 710 Current Liabilities $ — Current Liabilities $ — Noncurrent Assets 104 Noncurrent Assets 180 Noncurrent Liabilities 6 Noncurrent Liabilities — Total $ 754 $ 890 $ 6 $ — |
Derivative Instruments, (Gain) Loss | The effect of commodity derivative instruments on our consolidated statements of operations was as follows: Three Months Ended Nine Months Ended (millions) 2015 2014 2015 2014 Cash (Received) Paid in Settlement of Commodity Derivative Instruments Crude Oil $ (235 ) $ 14 $ (578 ) $ 87 Natural Gas (42 ) (2 ) (98 ) 8 NGLs (7 ) — (7 ) — Total Cash (Received) Paid in Settlement of Commodity Derivative Instruments (284 ) 12 (683 ) 95 Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments Crude Oil 4 (374 ) 301 (155 ) Natural Gas 3 (23 ) 41 (14 ) NGLs 10 — 10 — Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments 17 (397 ) 352 (169 ) (Gain) Loss on Commodity Derivative Instruments Crude Oil (231 ) (360 ) (277 ) (68 ) Natural Gas (39 ) (25 ) (57 ) (6 ) NGLs 3 — 3 — Total (Gain) Loss on Commodity Derivative Instruments $ (267 ) $ (385 ) $ (331 ) $ (74 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt [Abstract] | |
Schedule of debt | Debt consists of the following: September 30, December 31, (millions, except percentages) Debt Interest Rate Debt Interest Rate Credit Facility, due August 27, 2020 $ — — % $ — — % Capital Lease and Other Obligations 424 — % 413 — % 8.25% Senior Notes, due March 1, 2019 1,000 8.25 % 1,000 8.25 % 5.625% Senior Notes, due May 1, 2021 693 5.625 % — — % 4.15% Senior Notes, due December 15, 2021 1,000 4.15 % 1,000 4.15 % 5.875% Senior Notes, due June 1, 2022 597 5.875 % — — % 7.25% Senior Notes, due October 15, 2023 100 7.25 % 100 7.25 % 5.875% Senior Notes, due June 1, 2024 499 5.875 % — — % 3.90% Senior Notes, due November 15, 2024 650 3.90 % 650 3.90 % 8.00% Senior Notes, due April 1, 2027 250 8.00 % 250 8.00 % 6.00% Senior Notes, due March 1, 2041 850 6.00 % 850 6.00 % 5.25% Senior Notes, due November 15, 2043 1,000 5.25 % 1,000 5.25 % 5.05% Senior Notes, due November 15, 2044 850 5.05 % 850 5.05 % 7.25% Senior Debentures, due August 1, 2097 84 7.25 % 84 7.25 % Total 7,997 6,197 Unamortized Discount (25 ) (26 ) Unamortized Premium 118 — Total Debt, Net of Unamortized Discount and Premium 8,090 6,171 Less Amounts Due Within One Year Capital Lease Obligations (57 ) (68 ) Long-Term Debt Due After One Year $ 8,033 $ 6,103 |
Fair Value Measurements and D29
Fair Value Measurements and Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | 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) (1) Significant Other Observable Inputs (Level 2) (2) Significant Unobservable Inputs (Level 3) (3) Adjustment (4) Fair Value Measurement (millions) September 30, 2015 Financial Assets Mutual Fund Investments $ 106 $ — $ — $ — $ 106 Commodity Derivative Instruments — 759 — (5 ) 754 Financial Liabilities Commodity Derivative Instruments — (11 ) — 5 (6 ) Portion of Deferred Compensation Liability Measured at Fair Value (111 ) — — — (111 ) December 31, 2014 Financial Assets Mutual Fund Investments $ 111 $ — $ — $ — $ 111 Commodity Derivative Instruments — 890 — 890 Financial Liabilities Commodity Derivative Instruments — — — — — Portion of Deferred Compensation Liability Measured at Fair Value (134 ) — — — (134 ) (1) Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value. (2) Level 2 measurements are fair value measurements which use inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. (3) Level 3 measurements are fair value measurements which use unobservable inputs. (4) Amount represents the impact of netting provisions within our master agreements that allow us to net cash settle asset and liability positions with the same counterparty. |
Fair Value Measurements, Nonrecurring | Asset Impairments Information about impaired assets is as follows: Fair Value Measurements Using Description Quoted Prices in Significant Other Significant Net Book Value (1) Total Pre-tax (Non-cash) Impairment Loss millions Three Months Ended September 30, 2015 Impaired Oil and Gas Properties $ — $ — $ — $ — $ — Three Months Ended September 30, 2014 Impaired Oil and Gas Properties — — 9 42 33 Nine Months Ended September 30, 2015 Impaired Oil and Gas Properties $ — $ — $ — $ 43 $ 43 Nine Months Ended September 30, 2014 Impaired Oil and Gas Properties — — 23 187 164 (1) Amount represents net book value at the date of assessment. |
Additional fair value disclosures | Fair value information regarding our debt is as follows: September 30, December 31, (millions) Carrying Amount Fair Value Carrying Amount Fair Value Total Debt, Net of Unamortized Discount and Premium (1) $ 7,666 $ 7,497 $ 5,758 $ 6,179 (1) Excludes capital lease obligations. |
Capitalized Exploratory Well 30
Capitalized Exploratory Well Costs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Capitalized Exploratory Well Costs [Abstract] | |
Changes in 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: (millions) Nine Months Ended September 30, 2015 Capitalized Exploratory Well Costs, Beginning of Period $ 1,337 Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves 123 Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves (24 ) Capitalized Exploratory Well Costs Charged to Expense (1) (23 ) Capitalized Exploratory Well Costs, End of Period $ 1,413 (1) Relates primarily to onshore US exploration activity. |
Aging of Capitalized Well Costs | The following table provides an aging of capitalized exploratory well costs based on the date that drilling commenced, and the number of projects that have been capitalized for a period greater than one year: (millions) September 30, December 31, Exploratory Well Costs Capitalized for a Period of One Year or Less $ 154 $ 247 Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling 1,259 1,090 Balance at End of Period $ 1,413 $ 1,337 Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling 14 13 |
Aging of Exploratory Well Costs | The following table includes exploratory well costs that have been capitalized for a period greater than one year since the commencement of drilling as of September 30, 2015 : (millions) Total by Project Progress Country/Project: Onshore US Northeast Nevada $ 40 Analyzing results from our first four exploratory vertical wells, and evaluating potential for production tests. Deepwater Gulf of Mexico Katmai 80 Anticipate drilling an appraisal well in 2016 to test the resource potential of this 2014 crude oil discovery. Troubadour 48 Evaluating development scenarios for this 2013 natural gas discovery including subsea tieback to existing infrastructure. Offshore Equatorial Guinea (Blocks O and I) Diega/Carmen 236 Evaluating regional development scenarios for this 2008 crude oil discovery. We drilled subsequent appraisal wells. During 2014, we conducted additional seismic activity over Blocks O and I and are engaged in processing the newly-acquired seismic data to determine an appropriate development plan. Carla 170 Evaluating regional development scenarios for this 2011 crude oil discovery. We drilled subsequent appraisal wells. During 2014, we conducted additional seismic activity over Blocks O and I and are engaged in processing the newly-acquired seismic data. Felicita/Yolanda 59 Evaluating regional development plans for these 2008/2007 condensate and natural gas discoveries. Natural gas development teams are working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize data exchange agreements between the two countries. Offshore Cameroon YoYo 49 Working with the government to assess commercialization of this 2007 condensate and natural gas discovery. A natural gas development team is working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize a data exchange agreement between the two countries. Offshore Israel (1) Leviathan 190 During 2014, we received the Leviathan Development and Production Leases, submitted a development plan to the Israeli government, completed substantial engineering and pre-procurement activities and are currently negotiating natural gas marketing contracts in anticipation of the pending enactment of the Framework. Leviathan-1 Deep 81 Well did not reach the target interval; developing future drilling plans to test this deep oil concept, which is held by the Leviathan Development and Production Leases. We are working on potential well design and placement. Dalit 29 Submitted a development plan to the Israeli government to develop this 2009 natural gas discovery as a tie-in to existing infrastructure. Dolphin 1 26 Reviewing regional development scenarios for this 2011 natural gas discovery, including a potential tieback to Leviathan. We have applied to the Israeli government for a commerciality ruling. Offshore Cyprus Cyprus 210 Submitted a Declaration of Commerciality and a Preliminary Development Plan for Block 12 with the government of Cyprus. We have received approval of the extension request for our exploration obligation well from the government of Cyprus. Other Individual Projects Less than $20 million 41 Continuing to drill and evaluate wells. Total $ 1,259 (1) We are currently working to resolve antitrust and other regulatory matters with the Israeli government to enable Leviathan and other developments to move forward. See Note 2. Basis of Presentation – Update on Core Area – Israel . |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Changes in Asset Retirement Obligations | Changes in ARO are as follows: Nine Months Ended (millions) 2015 2014 Asset Retirement Obligations, Beginning Balance $ 751 $ 586 Liabilities Incurred 54 38 Liabilities Settled (29 ) (77 ) Revision of Estimate 79 123 Accretion Expense (1) 32 28 Asset Retirement Obligations, Ending Balance $ 887 $ 698 (1) Accretion expense is included in DD&A expense in the consolidated statements of operations. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table summarizes the calculation of basic and diluted earnings per share: Three Months Ended Nine Months Ended (millions, except per share amounts) 2015 2014 2015 2014 Net Income (Loss) $ (283 ) $ 419 $ (413 ) $ 811 Earnings Adjustment from Assumed Conversion of Dilutive Shares of Common Stock in Rabbi Trust (2) — (8 ) — — Net Income (Loss) Used for Diluted Earnings Per Share Calculation $ (283 ) $ 411 $ (413 ) $ 811 Weighted Average Number of Shares Outstanding, Basic (1) 420 362 392 361 Incremental Shares from Assumed Conversion of Dilutive Stock Options, Restricted Stock, and Shares of Common Stock in Rabbi Trust (2) — 5 — 6 Weighted Average Number of Shares Outstanding, Diluted 420 367 392 367 Earnings (Loss) Per Share, Basic $ (0.67 ) $ 1.16 $ (1.05 ) $ 2.25 Earnings (Loss) Per Share, Diluted (0.67 ) 1.12 (1.05 ) 2.21 Number of Antidilutive Stock Options, Shares of Restricted Stock, and Shares of Common Stock in Rabbi Trust Excluded from Calculation Above 14 2 11 3 (1) The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24.15 million shares of Noble Energy common stock in first quarter 2015 and issued in connection with the exchange of approximately 41 million shares for all outstanding shares of Rosetta common stock on July 20, 2015. (2) For the three and nine months ended September 30, 2015, all outstanding options and non-vested restricted shares have been excluded from the calculation of diluted EPS as Noble Energy incurred losses. Therefore, inclusion of outstanding options and non-vested restricted shares in the calculation of diluted EPS would be anti-dilutive. Consistent with GAAP, when dilutive, deferred compensation gains or losses, net of tax, are excluded from net income while our common shares held in the rabbi trust are included in the diluted share count. For this reason, the diluted earnings per share calculations for the three months ended September 30, 2014 excluded deferred compensation (gains) losses, net of tax. The deferred compensation loss, net of tax, excluded for the calculation of diluted earnings per share for the nine months ended September 30, 2014 was de minimis. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision (Benefit) | The income tax provision relating to continuing operations consists of the following: Three Months Ended Nine Months Ended (millions) 2015 2014 2015 2014 Current $ (45 ) $ 120 $ 64 $ 213 Deferred 69 37 (244 ) 61 Total Income Tax (Benefit) Provision $ 24 $ 157 $ (180 ) $ 274 Effective Tax Rate (9.3 )% 27.2 % 30.4 % 25.3 % |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | (millions) Consolidated United States West Africa Eastern Mediterranean Other Int'l & Corporate Three Months Ended September 30, 2015 Revenues from Third Parties $ 765 $ 492 $ 120 $ 152 $ 1 Income (Loss) from Equity Method Investees 36 16 20 — — Total Revenues 801 508 140 152 1 DD&A 539 437 67 22 13 (Gain) Loss on Commodity Derivative Instruments (267 ) (187 ) (80 ) — — Income (Loss) Before Income Taxes (259 ) (189 ) 98 107 (275 ) Three Months Ended September 30, 2014 Revenues from Third Parties $ 1,228 $ 819 $ 269 $ 138 $ 2 Income from Equity Method Investees 41 — 41 — — Total Revenues 1,269 819 310 138 2 DD&A 460 351 70 17 22 Gain on Divestitures (30 ) (30 ) — — — Asset Impairments 33 33 — — — (Gain) Loss on Commodity Derivative Instruments (385 ) (252 ) (133 ) — — Income (Loss) Before Income Taxes 576 457 321 90 (292 ) Nine Months Ended September 30, 2015 Revenues from Third Parties $ 2,227 $ 1,411 $ 432 $ 378 $ 6 Income from Equity Method Investees 60 35 25 — — Total Revenues 2,287 1,446 457 378 6 DD&A 1,444 1,138 223 52 31 Asset Impairments 43 11 — 32 — (Gain) Loss on Commodity Derivative Instruments (331 ) (231 ) (100 ) — — Income (Loss) Before Income Taxes (593 ) (353 ) 195 227 (662 ) Nine Months Ended September 30, 2014 Revenues from Third Parties $ 3,893 $ 2,503 $ 931 $ 363 $ 96 Income from Equity Method Investees 138 — 138 — — Total Revenues 4,031 2,503 1,069 363 96 DD&A 1,297 970 218 46 63 Gain on Divestitures (72 ) (36 ) — — (36 ) Asset Impairments 164 56 — 14 94 (Gain) Loss on Commodity Derivative Instruments (74 ) (6 ) (68 ) — — Income (Loss) Before Income Taxes 1,085 838 786 211 (750 ) September 30, 2015 Total Assets $ 25,965 $ 20,052 $ 2,240 $ 2,503 $ 1,170 December 31, 2014 Total Assets 22,553 16,400 2,763 2,806 584 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ / shares in Units, $ in Millions | Jul. 20, 2015shares | Mar. 25, 2015$ / sharesshares | Mar. 03, 2015$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | |
Non-qualified defined benefit plans in AOCL | $ 16 | ||||||||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Proceeds from Issuance of Shares of Common Stock to Public, Net of Offering Costs | $ 1,112 | $ 0 | |||||||
Repayment of outstanding indebtedness | $ 150 | ||||||||
Common stock, shares authorized (in shares) | shares | 1,000,000,000 | 1,000,000,000 | 500,000,000 | ||||||
Debt Issuance Cost | $ 49 | $ 50 | |||||||
Shares exchange in acquisition | shares | 41,000,000 | ||||||||
Production Expense | |||||||||
Lease Operating Expense | $ 133 | $ 132 | 419 | 424 | |||||
Production and Ad Valorem Taxes | 28 | 44 | 89 | 146 | |||||
Transportation and Gathering Expense | 74 | 40 | 185 | 119 | |||||
Total | 235 | 216 | 693 | 689 | |||||
Other Operating (Income) Expense, Net | |||||||||
Midstream Gathering and Processing (Income) Expense, Net | 4 | 1 | 10 | 8 | |||||
Corporate Restructuring Expense | [1] | 21 | 0 | 39 | 0 | ||||
Stacked Drilling Rig Expense | [2] | 13 | 0 | 20 | 0 | ||||
Pension Plan Termination Expense | [3] | 67 | 0 | 88 | 0 | ||||
Rosetta Merger Expenses | [4] | 71 | 0 | 73 | 0 | ||||
Gain on Divestitures | 0 | 30 | 0 | 72 | |||||
Other, Net | (6) | (10) | (22) | (33) | |||||
Total | 182 | (19) | 252 | (31) | |||||
Other Non-Operating (Income) Expense, Net | |||||||||
Deferred Compensation Expense | [5] | (13) | (12) | (19) | 0 | ||||
Other (Income) Expense, Net | 1 | (1) | (1) | 1 | |||||
Total | (12) | $ (13) | (20) | $ 1 | |||||
Accounts Receivable, Net | |||||||||
Commodity Sales | 284 | 284 | 405 | ||||||
Joint Interest Billings | 166 | 166 | 297 | ||||||
Other | 140 | 140 | 171 | ||||||
Allowance for Doubtful Accounts | (19) | (19) | (16) | ||||||
Total | 571 | 571 | 857 | ||||||
Other Current Assets | |||||||||
Inventories, Materials and Supplies | 116 | 116 | 81 | ||||||
Inventories, Crude Oil | 28 | 28 | 24 | ||||||
Assets Held-for-Sale | [6] | 78 | 78 | 180 | |||||
Prepaid Expenses and Other Current Assets | 59 | 59 | 40 | ||||||
Total | 281 | 281 | 325 | ||||||
Other Noncurrent Assets | |||||||||
Investments in Unconsolidated Subsidiaries | 427 | 427 | 325 | ||||||
Mutual Fund Investments | 106 | 106 | 111 | ||||||
Commodity Derivative Assets | 104 | 104 | 180 | ||||||
Other Assets | 104 | 104 | 99 | ||||||
Total | 741 | 741 | 715 | ||||||
Other Current Liabilities | |||||||||
Production and Ad Valorem Taxes | 165 | 165 | 110 | ||||||
Income Taxes Payable | 60 | 60 | 180 | ||||||
Deferred Income Taxes, Current | 86 | 86 | 158 | ||||||
Accrued Benefit Costs, Current | 30 | 30 | 125 | ||||||
Asset Retirement Obligations | 141 | 141 | 81 | ||||||
Interest Payable | 119 | 119 | 70 | ||||||
Current Portion of Capital Lease Obligations | 57 | 57 | 68 | ||||||
Other | 137 | 137 | 152 | ||||||
Total | 795 | 795 | 944 | ||||||
Other Noncurrent Liabilities | |||||||||
Deferred Compensation Liabilities | 229 | 229 | 218 | ||||||
Asset Retirement Obligations | 746 | 746 | 670 | ||||||
Accrued Benefit Costs | 17 | 17 | 24 | ||||||
Other | 112 | 112 | 175 | ||||||
Total | $ 1,104 | $ 1,104 | $ 1,087 | ||||||
Common Stock Authorized prior to Certificate of Incorporation Amendment [Member] | |||||||||
Common stock, shares authorized (in shares) | shares | 500,000,000 | 500,000,000 | |||||||
Common Stock Authorized after Stock Issuance [Member] | |||||||||
Common stock, shares authorized (in shares) | shares | 1,000,000,000 | 1,000,000,000 | |||||||
Underwritten Public Offering [Member] | |||||||||
Underwritten public offering (in shares) | shares | 21,000,000 | ||||||||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.01 | ||||||||
Sale of stock (in dollars per share) | $ / shares | $ 47.5 | ||||||||
Over-Allotment Option [Member] | |||||||||
Underwritten public offering (in shares) | shares | 3,150,000 | ||||||||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.01 | ||||||||
Rosetta Resources, Inc [Member] | |||||||||
Shares exchange in acquisition | shares | 41,000,000 | ||||||||
Other Operating (Income) Expense, Net | |||||||||
Rosetta Merger Expenses | $ 58 | ||||||||
Rosetta Resources, Inc [Member] | Common Stock | |||||||||
Shares exchange in acquisition | shares | 41,000,000 | ||||||||
Exchange ratio of common shares for acquired company | 0.542 | ||||||||
[1] | Amount represents expenses associated with the relocation of our personnel. The expenses primarily include the relocation of our Ardmore, Oklahoma office, as well as the consolidation of our Houston personnel to our corporate headquarters in Houston. | ||||||||
[2] | Amount represents the day rate cost associated with drilling rigs under contract, but not currently being utilized in our US onshore drilling programs. | ||||||||
[3] | Amount includes the expensing of the actuarial loss from AOCL related to the termination and re-measurement of our defined benefit pension plan. | ||||||||
[4] | Amount represents expenses associated with the completion of the Rosetta Merger. See Note 3. Rosetta Merger | ||||||||
[5] | Amounts represent decreases in the fair value of shares of our common stock held in a rabbi trust. | ||||||||
[6] | (1) Assets held for sale at September 30, 2015 include our Tanin and Karish natural gas discoveries, offshore Israel. See Update on Core Area – Israel, above. |
Rosetta Merger - Narrative (Det
Rosetta Merger - Narrative (Details) $ / shares in Units, a in Thousands, shares in Millions, $ in Millions | Jul. 20, 2015USD ($)abusiness$ / sharesshares | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Business Acquisition [Line Items] | |||||||
Shares exchange in acquisition | shares | 41 | ||||||
Rosetta Merger Expenses | [1] | $ 71 | $ 0 | $ 73 | $ 0 | ||
Pro forma revenue | $ 81 | ||||||
Pro forma pre-tax net income | $ 43 | ||||||
Rosetta Resources, Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Shares exchange in acquisition | shares | 41 | ||||||
Number of onshore plays added in acquisition | business | 2 | ||||||
Merger related costs including noncash share-based compensation expense | 71 | 73 | |||||
Rosetta Merger Expenses | 58 | ||||||
Merger related costs related to noncash share-based compensation | 15 | ||||||
Share price | $ / shares | $ 36.97 | ||||||
Eagle Ford Shale [Member] | Rosetta Resources, Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Liquid rich asset based acquired | a | 50 | ||||||
Permian [Member] | Rosetta Resources, Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Liquid rich asset based acquired | a | 54 | ||||||
Delaware Basin [Member] | Rosetta Resources, Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Liquid rich asset based acquired | a | 45 | ||||||
Midland Basin [Member] | Rosetta Resources, Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Long-term Debt, Fair Value | [2] | $ 2,000 | |||||
Liquid rich asset based acquired | a | 9 | ||||||
Common Stock | Rosetta Resources, Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Shares exchange in acquisition | shares | 41 | ||||||
Exchange ratio of common shares for acquired company | 0.542 | ||||||
Rosetta Resources, Inc [Member] | Rosetta Resources, Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Merger related costs including noncash share-based compensation expense | $ 32 | $ 37 | |||||
[1] | Amount represents expenses associated with the completion of the Rosetta Merger. See Note 3. Rosetta Merger | ||||||
[2] | Excludes capital lease obligations. |
Rosetta Merger - Assets Acquire
Rosetta Merger - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 20, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Shares of Noble Energy common stock issued to Rosetta shareholders (in shares) | 41 | ||
Oil and Gas Properties: | |||
Goodwill | $ 945 | $ 620 | |
Rosetta Resources, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Shares of Noble Energy common stock issued to Rosetta shareholders (in shares) | 41 | ||
Noble Energy common stock price on July 20, 2015 | $ 36.97 | ||
Fair value of common stock issued | $ 1,516 | ||
Plus: fair value of Rosetta's restricted stock awards and performance awards assumed | 11 | ||
Plus: Rosetta stock options assumed | 1 | ||
Total purchase price | 1,528 | ||
Plus: liabilities assumed by Noble Energy | |||
Accounts Payable | 96 | ||
Current Liabilities | 37 | ||
Long-Term Debt | 1,992 | ||
Other Long Term Liabilities | 24 | ||
Asset Retirement Obligation | 27 | ||
Total purchase price plus liabilities assumed | 3,704 | ||
Fair Value of Rosetta Assets | |||
Cash and Equivalents | 61 | ||
Other Current Assets | 74 | ||
Derivative Instruments | 209 | ||
Oil and Gas Properties: | |||
Proved Reserves | 1,541 | ||
Undeveloped Leaseholds | 1,165 | ||
Gathering & Processing Assets | 207 | ||
Asset Retirement | 27 | ||
Other Property Plant & Equipment | 5 | ||
Long Term Deferred Tax Asset | 86 | ||
Goodwill | 329 | ||
Total Asset Value | $ 3,704 |
Rosetta Merger - Pro Forma Info
Rosetta Merger - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Business Combinations [Abstract] | ||||
Revenues | $ 828 | $ 1,557 | $ 2,582 | $ 4,828 |
Net income | $ (202) | $ 542 | $ (338) | $ 1,039 |
Earnings per share: | ||||
Basic (in dollars per share) | $ (0.44) | $ 1.37 | $ (0.79) | $ 2.63 |
Diluted (in dollars per share) | $ (0.44) | $ 1.35 | $ (0.79) | $ 2.59 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sales Proceeds | $ 151 | $ 312 | |||
Asset Retirement Obligations Associated with Assets Sold | 29 | 77 | |||
Gain on Divestitures | $ 0 | $ (30) | 0 | (72) | |
US Onshore Assets Sold [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sales Proceeds | 16 | $ 151 | 126 | ||
Net Book Value of Assets Sold | 0 | (118) | |||
Goodwill Allocated to Assets Sold | (1) | (7) | |||
Asset Retirement Obligations Associated with Assets Sold | 14 | 34 | |||
Other Closing Adjustments | 1 | 2 | |||
Gain on Divestitures | $ 30 | 37 | |||
China [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sales Proceeds | [1] | 186 | |||
Net Book Value of Assets Sold | (149) | ||||
Other Closing Adjustments | (2) | ||||
Gain on Divestitures | $ 35 | ||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjdjNmI5NDUyZTVlOTRiMGY5YzhkYWQ0Zjk3MjNmNGFhfFRleHRTZWxlY3Rpb246MEI5RDAyRDcwMEY4NTk4M0I2MzBBQkUxNERGMzU5Q0IM} |
Asset Impairments (Details)
Asset Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset Impairments | $ 0 | $ 33 | $ 43 | $ 164 |
Deepwater Gulf of Mexico (US Properties) [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset Impairments | 0 | 2 | 11 | 56 |
Eastern Mediterranean [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset Impairments | 0 | 31 | 32 | 14 |
North Sea [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset Impairments | $ 0 | $ 0 | $ 0 | $ 94 |
Derivative Instruments and He41
Derivative Instruments and Hedging Activities (Details) | 9 Months Ended | |
Sep. 30, 2015bbl / dMMBTU / d$ / bbl$ / MMBTU | ||
Crude Oil Commodity Contract | Swaps - NYMEX WTI 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | NYMEX WTI | |
Bbls Per Day | bbl / d | 27,000 | |
Weighted Average Fixed Price | 88.80 | |
Crude Oil Commodity Contract | Two Way Collars - NYMEX WTI 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | NYMEX WTI | |
Bbls Per Day | bbl / d | 5,000 | |
Weighted Average Floor Price | 50 | |
Weighted Average Ceiling Price | 64.94 | |
Crude Oil Commodity Contract | Swaps - Dated Brent 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | Dated Brent | |
Bbls Per Day | bbl / d | 8,000 | |
Weighted Average Fixed Price | 100.31 | |
Crude Oil Commodity Contract | Three Way Collars - NYMEX WTI 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | NYMEX WTI | |
Bbls Per Day | bbl / d | 20,000 | |
Weighted Average Short Put Price | 70.50 | |
Weighted Average Floor Price | 87.55 | |
Weighted Average Ceiling Price | 94.41 | |
Crude Oil Commodity Contract | Three Way Collars - Dated Brent 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | Dated Brent | |
Bbls Per Day | bbl / d | 13,000 | |
Weighted Average Short Put Price | 76.92 | |
Weighted Average Floor Price | 96 | |
Weighted Average Ceiling Price | 108.49 | |
Crude Oil Commodity Contract | Swaps - Dated Brent 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2,016 | |
Index | Dated Brent | |
Bbls Per Day | bbl / d | 9,000 | |
Weighted Average Fixed Price | 97.96 | |
Crude Oil Commodity Contract | Three Way Collars - NYMEX WTI 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2,016 | |
Index | NYMEX WTI | |
Bbls Per Day | bbl / d | 6,000 | |
Weighted Average Short Put Price | 61 | |
Weighted Average Floor Price | 72.50 | |
Weighted Average Ceiling Price | 86.37 | |
Crude Oil Commodity Contract | Three Way Collars - Dated Brent 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2,016 | |
Index | Dated Brent | |
Bbls Per Day | bbl / d | 8,000 | |
Weighted Average Short Put Price | 72.50 | |
Weighted Average Floor Price | 86.25 | |
Weighted Average Ceiling Price | 101.79 | |
Crude Oil Commodity Contract | Call - NYMEX WTI 2017 [Member] | ||
Derivative [Line Items] | ||
Settlement Period | 2,017 | |
Index | NYMEX WTI | |
Bbls Per Day | bbl / d | 3,000 | |
Weighted Average Ceiling Price | 57 | |
Crude Oil Commodity Contract | Two Way Collars - NYMEX HH 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2,016 | |
Index | NYMEX WTI | |
Bbls Per Day | bbl / d | 1,000 | |
Weighted Average Floor Price | 60 | |
Weighted Average Ceiling Price | 70 | |
Natural Gas Commodity Contract | Swaps - NYMEX HH 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | NYMEX HH | |
Bbls Per Day | MMBTU / d | 140,000 | |
Weighted Average Fixed Price | $ / MMBTU | 4.30 | |
Natural Gas Commodity Contract | Three Way Collars - NYMEX HH 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | NYMEX HH | |
Bbls Per Day | MMBTU / d | 150,000 | |
Weighted Average Short Put Price | $ / MMBTU | 3.58 | |
Weighted Average Floor Price | $ / MMBTU | 4.25 | |
Weighted Average Ceiling Price | $ / MMBTU | 5.04 | |
Natural Gas Commodity Contract | Swaps - NYMEX HH 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2,016 | |
Index | NYMEX HH | |
Bbls Per Day | MMBTU / d | 40,000 | |
Weighted Average Fixed Price | $ / MMBTU | 3.60 | |
Natural Gas Commodity Contract | Two Way Collars - NYMEX HH 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2,016 | |
Index | NYMEX HH | |
Bbls Per Day | MMBTU / d | 30,000 | |
Weighted Average Floor Price | $ / MMBTU | 3 | |
Weighted Average Ceiling Price | $ / MMBTU | 3.50 | |
Natural Gas Commodity Contract | Three Way Collars - NYMEX HH 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2,016 | |
Index | NYMEX HH | |
Bbls Per Day | MMBTU / d | 90,000 | |
Weighted Average Short Put Price | $ / MMBTU | 2.83 | |
Weighted Average Floor Price | $ / MMBTU | 3.42 | |
Weighted Average Ceiling Price | $ / MMBTU | 3.90 | |
Natural Gas Commodity Contract | Swaps - NYMEX HH Extension | ||
Derivative [Line Items] | ||
Bbls Per Day | MMBTU / d | 30,000 | |
Natural Gas Commodity Contract | Swaps - NYMEX HH Increase | ||
Derivative [Line Items] | ||
Bbls Per Day | MMBTU / d | 30,000 | |
Weighted Average Fixed Price | $ / MMBTU | 3.50 | [1] |
Rosetta Resources, Inc [Member] | Crude Oil Commodity Contract | Swaps - NYMEX WTI 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | (2) | |
Bbls Per Day | bbl / d | 12,000 | |
Weighted Average Fixed Price | 89.81 | |
Rosetta Resources, Inc [Member] | Crude Oil Commodity Contract | Two Way Collars - NYMEX WTI 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | (2) | |
Bbls Per Day | bbl / d | 8,000 | |
Weighted Average Floor Price | 55 | |
Weighted Average Ceiling Price | 84.80 | |
Rosetta Resources, Inc [Member] | Crude Oil Commodity Contract | Swaps - NYMEX WTI 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2,016 | |
Index | (2) | |
Bbls Per Day | bbl / d | 6,000 | |
Weighted Average Fixed Price | 90.28 | |
Rosetta Resources, Inc [Member] | NGL Commodity Contract | Swaps - NGL Ethane | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | NGL-Ethane | |
Bbls Per Day | bbl / d | 104,000 | |
Weighted Average Fixed Price | 0.27 | |
Rosetta Resources, Inc [Member] | NGL Commodity Contract | Swaps - NGL Propane | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | NGL-Propane | |
Bbls Per Day | bbl / d | 73,500 | |
Weighted Average Fixed Price | 1.03 | |
Rosetta Resources, Inc [Member] | NGL Commodity Contract | Swaps - NGL Isobutane | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | NGL-Isobutane | |
Bbls Per Day | bbl / d | 25,900 | |
Weighted Average Fixed Price | 1.26 | |
Rosetta Resources, Inc [Member] | NGL Commodity Contract | Swaps - NGL Normal Butane | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | NGL-Normal Butane | |
Bbls Per Day | bbl / d | 24,300 | |
Weighted Average Fixed Price | 1.25 | |
Rosetta Resources, Inc [Member] | NGL Commodity Contract | Swaps - NGL Pentanes Plus | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | NGL-Pentanes Plus | |
Bbls Per Day | bbl / d | 24,300 | |
Weighted Average Fixed Price | 1.85 | |
Rosetta Resources, Inc [Member] | Natural Gas Commodity Contract | Swaps - Houston Ship Channel and Tennessee Zone 0 2015 [Member] | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | (2) | |
Bbls Per Day | MMBTU / d | 50,000 | |
Weighted Average Fixed Price | $ / MMBTU | 4.13 | |
Rosetta Resources, Inc [Member] | Natural Gas Commodity Contract | Two Way Collars - Houston Ship Channel and Tennessee Zone 0 2015 [Member] | ||
Derivative [Line Items] | ||
Settlement Period | 2,015 | |
Index | (2) | |
Bbls Per Day | MMBTU / d | 50,000 | |
Weighted Average Floor Price | $ / MMBTU | 3.60 | |
Weighted Average Ceiling Price | $ / MMBTU | 5.04 | |
Rosetta Resources, Inc [Member] | Natural Gas Commodity Contract | Swaps - Houston Ship Channel and Tennessee Zone 0 2016 [Member] [Member] | ||
Derivative [Line Items] | ||
Settlement Period | 2,016 | |
Index | (2) | |
Bbls Per Day | MMBTU / d | 30,000 | |
Weighted Average Fixed Price | $ / MMBTU | 4.04 | |
Rosetta Resources, Inc [Member] | Natural Gas Commodity Contract | Two Way Collars - Houston Ship Channel and Tennessee Zone 0 2016 [Member] | ||
Derivative [Line Items] | ||
Settlement Period | 2,016 | |
Index | (2) | |
Bbls Per Day | MMBTU / d | 30,000 | |
Weighted Average Floor Price | $ / MMBTU | 3.50 | |
Weighted Average Ceiling Price | $ / MMBTU | 5.60 | |
First half 2016 [Member] | Swaps - NYMEX WTI 2016 | ||
Derivative [Line Items] | ||
Bbls Per Day | bbl / d | 3,000 | |
First half 2016 [Member] | Crude Oil Commodity Contract | Swaps - NYMEX WTI 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 1H16 (4) | |
Index | NYMEX WTI | |
Bbls Per Day | bbl / d | 15,000 | |
Weighted Average Fixed Price | 70.31 | |
Second half 2016 [Member] | Crude Oil Commodity Contract | Swaps - NYMEX WTI 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2H16 (4) | |
Index | NYMEX WTI | |
Bbls Per Day | bbl / d | 12,000 | |
Weighted Average Fixed Price | 74.47 | |
Second half 2016 [Member] | Crude Oil Commodity Contract | Call - NYMEX WTI 2016 [Member] | ||
Derivative [Line Items] | ||
Settlement Period | 2H16 (4) | |
Index | NYMEX WTI | |
Bbls Per Day | bbl / d | 3,000 | |
Weighted Average Ceiling Price | 53.65 | |
[1] | Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger. |
Derivative Instruments and He42
Derivative Instruments and Hedging Activities (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value | $ 754 | $ 754 | $ 890 | ||
Derivative Liability, Fair Value | 6 | 6 | 0 | ||
Gain on Commodity Derivative Instruments | (267) | $ (385) | (331) | $ (74) | |
Cash Received (Paid) In Settlement Of Derivative Instruments Not Designated As Hedging Instruments | 284 | (12) | 683 | (95) | |
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | 17 | (397) | 352 | (169) | |
(Gain) Loss on Commodity Derivative Instruments | (267) | (385) | (331) | (74) | |
Current Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value | 650 | 650 | 710 | ||
Derivative Liability, Fair Value | 0 | 0 | 0 | ||
Noncurrent Liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value | 104 | 104 | 180 | ||
Derivative Liability, Fair Value | 6 | 6 | $ 0 | ||
Crude Oil [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain on Commodity Derivative Instruments | (235) | 14 | (578) | 87 | |
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | 4 | (374) | 301 | (155) | |
(Gain) Loss on Commodity Derivative Instruments | (231) | (360) | (277) | (68) | |
Natural Gas [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain on Commodity Derivative Instruments | (42) | (2) | (98) | 8 | |
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | 3 | (23) | 41 | (14) | |
(Gain) Loss on Commodity Derivative Instruments | (39) | (25) | (57) | (6) | |
Natural Gas Liquids [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain on Commodity Derivative Instruments | (7) | 0 | (7) | 0 | |
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | 10 | 0 | 10 | 0 | |
(Gain) Loss on Commodity Derivative Instruments | $ 3 | $ 0 | $ 3 | $ 0 |
Debt (Details)
Debt (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | Aug. 27, 2015 | Jul. 29, 2015 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | |||||
Debt | $ 7,997,000,000 | $ 6,197,000,000 | |||
Unamortized Discount | (25,000,000) | (26,000,000) | |||
Debt Instrument, Unamortized Premium | 118,000,000 | ||||
Total Debt, Net of Discount | 8,090,000,000 | 6,171,000,000 | |||
Capital Lease Obligations, Current | (57,000,000) | $ (68,000,000) | |||
Long-term Debt Due After One Year | 8,033,000,000 | $ 6,103,000,000 | 6,103,000,000 | ||
Debt Exchange, Percent of Outstanding Notes Tendered for Exchange | 99.40% | ||||
Credit Facility, due August 27, 2020 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 0 | $ 0 | |||
Interest Rate (percentage in hundredths) | 0.00% | 0.00% | |||
Debt instrument, maturity date | Aug. 27, 2020 | Oct. 3, 2018 | |||
Revolving Credit Facility Maximum Borrowing Capacity | $ 4,000,000,000 | ||||
Credit facility fee rate basis points, minimum | 0.10% | ||||
Credit facility fee rate basis points, maximum | 0.25% | ||||
Credit facility aggregate short-term loans and letters of credit, maximum | 500,000,000 | ||||
Credit facility interest rate, Eurodollar rate plus, minimum | 0.90% | ||||
Credit facility interest rate, Eurodollar rate plus, maximum | 1.50% | ||||
Capital Lease and Other Obligations | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 424,000,000 | $ 413,000,000 | |||
Interest Rate (percentage in hundredths) | 0.00% | 0.00% | |||
Capital Lease Obligations, Current | $ (57,000,000) | $ (68,000,000) | |||
8.25% Senior Notes, due March 1, 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 1,000,000,000 | $ 1,000,000,000 | |||
Interest Rate (percentage in hundredths) | 8.25% | 8.25% | |||
Debt instrument, maturity date | Mar. 1, 2019 | Mar. 1, 2019 | |||
5.625% Senior Notes, due May 1, 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 693,000,000 | $ 0 | |||
Interest Rate (percentage in hundredths) | 5.625% | 0.00% | |||
Debt instrument, maturity date | May 1, 2021 | ||||
4.15% Senior Notes, due December 15, 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 1,000,000,000 | $ 1,000,000,000 | |||
Interest Rate (percentage in hundredths) | 4.15% | 4.15% | |||
Debt instrument, maturity date | Dec. 15, 2021 | Dec. 15, 2021 | |||
5.875% Senior Notes, due June 1, 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 597,000,000 | $ 0 | |||
Interest Rate (percentage in hundredths) | 5.875% | 0.00% | |||
Debt instrument, maturity date | Jun. 1, 2022 | ||||
7.25% Senior Notes, due October 15, 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 100,000,000 | $ 100,000,000 | |||
Interest Rate (percentage in hundredths) | 7.25% | 7.25% | |||
Debt instrument, maturity date | Oct. 15, 2023 | Oct. 15, 2023 | |||
5.875% Senior Notes, due June 1, 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 499,000,000 | $ 0 | |||
Interest Rate (percentage in hundredths) | 5.875% | 0.00% | |||
Debt instrument, maturity date | Jun. 1, 2024 | ||||
3.90% Senior Notes, due November 15, 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 650,000,000 | $ 650,000,000 | |||
Interest Rate (percentage in hundredths) | 3.90% | 3.90% | |||
Debt instrument, maturity date | Nov. 15, 2024 | Nov. 15, 2024 | |||
8.00% Senior Notes, due April 1, 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 250,000,000 | $ 250,000,000 | |||
Interest Rate (percentage in hundredths) | 8.00% | 8.00% | |||
Debt instrument, maturity date | Apr. 1, 2027 | Apr. 1, 2027 | |||
6.00% Senior Notes, due March 1, 2041 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 850,000,000 | $ 850,000,000 | |||
Interest Rate (percentage in hundredths) | 6.00% | 6.00% | |||
Debt instrument, maturity date | Mar. 1, 2041 | Mar. 1, 2041 | |||
5.25% Senior Notes, due November 15, 2043 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 1,000,000,000 | $ 1,000,000,000 | |||
Interest Rate (percentage in hundredths) | 5.25% | 5.25% | |||
Debt instrument, maturity date | Nov. 15, 2043 | Nov. 15, 2043 | |||
5.05% Senior Notes, due November 15, 2044 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 850,000,000 | $ 850,000,000 | |||
Interest Rate (percentage in hundredths) | 5.05% | 5.05% | |||
Debt instrument, maturity date | Nov. 15, 2044 | Nov. 15, 2044 | |||
7.25% Senior Debentures, due August 1, 2097 | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 84,000,000 | $ 84,000,000 | |||
Interest Rate (percentage in hundredths) | 7.25% | 7.25% | |||
Debt instrument, maturity date | Aug. 1, 2097 | Aug. 1, 2097 |
Fair Value Measurements and D44
Fair Value Measurements and Disclosures of Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Financial Assets [Abstract] | |||
Mutual Fund Investments | $ 106 | $ 111 | |
Commodity Derivative Instruments | 754 | 890 | |
Financial Liabilities [Abstract] | |||
Commodity Derivative Instruments | (6) | 0 | |
Portion of Deferred Compensation Liability Measured at Fair Value | (111) | (134) | |
Quoted Prices in Active Markets (Level 1) | |||
Financial Assets [Abstract] | |||
Mutual Fund Investments | [1] | 106 | 111 |
Commodity Derivative Instruments | [1] | 0 | 0 |
Financial Liabilities [Abstract] | |||
Commodity Derivative Instruments | [1] | 0 | 0 |
Portion of Deferred Compensation Liability Measured at Fair Value | [1] | (111) | (134) |
Significant Other Observable Inputs (Level 2) | |||
Financial Assets [Abstract] | |||
Mutual Fund Investments | [2] | 0 | 0 |
Commodity Derivative Instruments | [2] | 759 | 890 |
Financial Liabilities [Abstract] | |||
Commodity Derivative Instruments | [2] | (11) | 0 |
Portion of Deferred Compensation Liability Measured at Fair Value | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) | |||
Financial Assets [Abstract] | |||
Mutual Fund Investments | [3] | 0 | $ 0 |
Commodity Derivative Instruments | [3] | 0 | |
Financial Liabilities [Abstract] | |||
Commodity Derivative Instruments | [3] | 0 | $ 0 |
Portion of Deferred Compensation Liability Measured at Fair Value | [3] | 0 | 0 |
Adjustment | |||
Financial Assets [Abstract] | |||
Mutual Fund Investments | [4] | 0 | 0 |
Commodity Derivative Instruments | [4] | (5) | 0 |
Financial Liabilities [Abstract] | |||
Commodity Derivative Instruments | [4] | 5 | 0 |
Portion of Deferred Compensation Liability Measured at Fair Value | [4] | $ 0 | $ 0 |
[1] | Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value. | ||
[2] | Level 2 measurements are fair value measurements which use inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. | ||
[3] | Level 3 measurements are fair value measurements which use unobservable inputs. | ||
[4] | Amount represents the impact of netting provisions within our master agreements that allow us to net cash settle asset and liability positions with the same counterparty. |
Fair Value Measurements and D45
Fair Value Measurements and Disclosures of Assets and Liabilities Measured on a Nonrecurring Basis (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Asset Impairment Charges [Abstract] | |||||
Impaired of Oil and Gas Properties | $ 0 | $ 33 | $ 43 | $ 164 | |
Oil and Gas Property, Full Cost Method, Net | [1] | $ 0 | $ 42 | $ 43 | $ 187 |
Discount Rate for Impairment Model | 10.00% | 10.00% | 10.00% | 10.00% | |
Quoted Prices in Active Markets (Level 1) | |||||
Asset Impairment Charges [Abstract] | |||||
Impaired of Oil and Gas Properties | $ 0 | $ 0 | $ 0 | $ 0 | |
Significant Other Observable Inputs (Level 2) | |||||
Asset Impairment Charges [Abstract] | |||||
Impaired of Oil and Gas Properties | 0 | 0 | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||||
Asset Impairment Charges [Abstract] | |||||
Impaired of Oil and Gas Properties | $ 0 | $ 9 | $ 0 | $ 23 | |
[1] | Amount represents net book value at the date of assessment. |
Fair Value Measurements and D46
Fair Value Measurements and Disclosures (Details 3) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | $ 945 | $ 620 | |
Reported Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term Debt, Fair Value | [1] | 7,666 | 5,758 |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term Debt, Fair Value | [1] | $ 7,497 | $ 6,179 |
[1] | Excludes capital lease obligations. |
Capitalized Exploratory Well 47
Capitalized Exploratory Well Costs (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Capitalized Exploratory Well Costs, Beginning of Period | $ 1,337 | |||
Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves | 123 | |||
Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves | (24) | |||
Capitalized Exploratory Well Cost, Charged to Expense | [1] | (23) | ||
Capitalized Exploratory Well Costs, End of Period | 1,413 | |||
Exploratory Well Costs Capitalized for a Period of One Year or Less | $ 154 | $ 247 | ||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 1,259 | 1,090 | ||
Capitalized Exploratory Well Costs, End of Period | $ 1,337 | $ 1,413 | $ 1,337 | |
Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 14 | 13 | ||
Northeast Nevada Onshore US [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | $ 40 | |||
Katmai Deepwater Gulf Of Mexico [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 80 | |||
Troubadour Deepwater Gulf of Mexico [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 48 | |||
Diega (including Carmen) Offshore Equatorial Guinea [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 236 | |||
Carla Offshore Equatorial Guinea [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 170 | |||
Felicita/Yolanda Offshore Equatorial Guinea [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 59 | |||
YoYo Offshore Cameron [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 49 | |||
Leviathan Offshore Israel [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | [2] | 190 | ||
Leviathan-1 Deep Offshore Israel [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | [2] | 81 | ||
Dalit Offshore Israel [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | [2] | 29 | ||
Dolphin 1 Offshore Israel [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | [2] | 26 | ||
Cyprus [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 210 | |||
Other - Projects of $20 million or less each [Member] | ||||
Capitalized Exploratory Well Costs [Roll Forward] | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | $ 41 | |||
[1] | (1) Relates primarily to onshore US exploration activity. | |||
[2] | (1) We are currently working to resolve antitrust and other regulatory matters with the Israeli government to enable Leviathan and other developments to move forward. See Note 2. Basis of Presentation – Update on Core Area – Israel. |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset Retirement Obligations, Beginning Balance | $ 751 | $ 586 | |
Liabilities Incurred | 54 | 38 | |
Liabilities Settled | (29) | (77) | |
Revision of Estimate | 79 | 123 | |
Accretion Expense | [1] | (32) | (28) |
Asset Retirement Obligations, Ending Balance | 887 | 698 | |
Onshore US [Member] | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Revision of Estimate | 28 | 21 | |
Eastern Mediterranean [Member] | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Revision of Estimate | $ 43 | 9 | |
Deepwater Gulf of Mexico [Member] | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Revision of Estimate | 9 | ||
North Sea [Member] | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Revision of Estimate | 67 | ||
Equatorial Guinea | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Revision of Estimate | $ 16 | ||
[1] | Accretion expense is included in DD&A expense in the consolidated statements of operations. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 20, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||||
Net Income (Loss) | $ (283) | $ 419 | $ (413) | $ 811 | ||
Earnings Adjustment from Assumed Conversion of Dilutive Shares of Common Stock in Rabbi Trust | 0 | (8) | 0 | 0 | ||
Net Income (Loss) Used for Diluted Earnings Per Share Calculation | $ (283) | $ 411 | $ (413) | $ 811 | ||
Weighted Average Number of Shares Outstanding, Basic (in shares) | [1] | 420,000,000 | 362,000,000 | 392,000,000 | 361,000,000 | |
Incremental Shares from Assumed Conversion of Dilutive Stock Options, Restricted Stock, and Shares of Common Stock in Rabbi Trust (in shares) | [2] | 0 | 5,000,000 | 0 | 6,000,000 | |
Weighted Average Number of Shares Outstanding, Diluted (in shares) | 420,000,000 | 367,000,000 | 392,000,000 | 367,000,000 | ||
Earnings (Loss) from Continuing Operations Per Share, Basic (in dollars per share) | $ (0.67) | $ 1.16 | $ (1.05) | $ 2.25 | ||
Earnings (Loss) from Continuing Operations Per Share, Diluted (in dollars per share) | $ (0.67) | $ 1.12 | $ (1.05) | $ 2.21 | ||
Number of antidilutive stock options, shares of restricted stock and shares of common stock in rabbi trust excluded from calculation above (in shares) | 14,000,000 | 2,000,000 | 11,000,000 | 3,000,000 | ||
Underwritten public offering (in shares) | 24,150,000 | |||||
Shares exchange in acquisition | 41,000,000 | |||||
[1] | The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24.15 million shares of Noble Energy common stock in first quarter 2015 and issued in connection with the exchange of approximately 41 million shares for all outstanding shares of Rosetta common stock on July 20, 2015. | |||||
[2] | For the three and nine months ended September 30, 2015, all outstanding options and non-vested restricted shares have been excluded from the calculation of diluted EPS as Noble Energy incurred losses. Therefore, inclusion of outstanding options and non-vested restricted shares in the calculation of diluted EPS would be anti-dilutive. Consistent with GAAP, when dilutive, deferred compensation gains or losses, net of tax, are excluded from net income while our common shares held in the rabbi trust are included in the diluted share count. For this reason, the diluted earnings per share calculations for the three months ended September 30, 2014 excluded deferred compensation (gains) losses, net of tax. The deferred compensation loss, net of tax, excluded for the calculation of diluted earnings per share for the nine months ended September 30, 2014 was de minimis. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Examination [Line Items] | ||||
Current | $ (45) | $ 120 | $ 64 | $ 213 |
Deferred | 69 | 37 | (244) | 61 |
Total Income Tax (Benefit) Provision | $ 24 | $ 157 | $ (180) | $ 274 |
Effective Tax Rate | (9.30%) | 27.20% | 30.40% | 25.30% |
US | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,012 | |||
Equatorial Guinea | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,010 | |||
Israel | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,010 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Revenues from Third Parties | $ 765 | $ 1,228 | $ 2,227 | $ 3,893 | |
Income (Loss) from Equity Method Investees | 36 | 41 | 60 | 138 | |
DD&A | 539 | 460 | 1,444 | 1,297 | |
Gain on Divestitures | 0 | (30) | 0 | (72) | |
Asset Impairments | 0 | 33 | 43 | 164 | |
Gain on Commodity Derivative Instruments | (267) | (385) | (331) | (74) | |
Total Revenues | 801 | 1,269 | 2,287 | 4,031 | |
Income (Loss) Before Income Taxes | (259) | 576 | (593) | 1,085 | |
Total Assets | 25,965 | 25,965 | $ 22,553 | ||
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from Third Parties | 492 | 819 | 1,411 | 2,503 | |
Income (Loss) from Equity Method Investees | 16 | 0 | 35 | 0 | |
DD&A | 437 | 351 | 1,138 | 970 | |
Gain on Divestitures | (30) | (36) | |||
Asset Impairments | 33 | 11 | 56 | ||
Gain on Commodity Derivative Instruments | (187) | (252) | (231) | (6) | |
Total Revenues | 508 | 819 | 1,446 | 2,503 | |
Income (Loss) Before Income Taxes | (189) | 457 | (353) | 838 | |
Total Assets | 20,052 | 20,052 | 16,400 | ||
West Africa [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from Third Parties | 120 | 269 | 432 | 931 | |
Income (Loss) from Equity Method Investees | 20 | 41 | 25 | 138 | |
DD&A | 67 | 70 | 223 | 218 | |
Gain on Divestitures | 0 | 0 | |||
Asset Impairments | 0 | 0 | 0 | ||
Gain on Commodity Derivative Instruments | (80) | (133) | (100) | (68) | |
Total Revenues | 140 | 310 | 457 | 1,069 | |
Income (Loss) Before Income Taxes | 98 | 321 | 195 | 786 | |
Total Assets | 2,240 | 2,240 | 2,763 | ||
Eastern Mediterranean [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from Third Parties | 152 | 138 | 378 | 363 | |
Income (Loss) from Equity Method Investees | 0 | 0 | 0 | 0 | |
DD&A | 22 | 17 | 52 | 46 | |
Gain on Divestitures | 0 | 0 | |||
Asset Impairments | 0 | 32 | 14 | ||
Gain on Commodity Derivative Instruments | 0 | 0 | 0 | 0 | |
Total Revenues | 152 | 138 | 378 | 363 | |
Income (Loss) Before Income Taxes | 107 | 90 | 227 | 211 | |
Total Assets | 2,503 | 2,503 | 2,806 | ||
Other Int'l & Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from Third Parties | 1 | 2 | 6 | 96 | |
Income (Loss) from Equity Method Investees | 0 | 0 | 0 | 0 | |
DD&A | 13 | 22 | 31 | 63 | |
Gain on Divestitures | 0 | (36) | |||
Asset Impairments | 0 | 0 | 94 | ||
Gain on Commodity Derivative Instruments | 0 | 0 | 0 | 0 | |
Total Revenues | 1 | 2 | 6 | 96 | |
Income (Loss) Before Income Taxes | (275) | $ (292) | (662) | $ (750) | |
Total Assets | $ 1,170 | $ 1,170 | $ 584 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) | 9 Months Ended |
Sep. 30, 2015USD ($)$ / MMBTU | |
CONSOL Carried Cost Obligation [Member] | |
Other Commitments [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Maximum amount to be paid each calendar year for funding of future drilling and completion costs | $ 400,000,000 |
Funding of joint venture's future drilling and completion costs | $ 1,600,000,000 |
Natural gas price agreed upon benchmark, average | 4 |
Consent Decree [Member] | |
Other Commitments [Line Items] | |
Civil penalty | $ 4,950,000 |
Mitigation projects | 4,500,000 |
Supplemental environmental projects | $ 4,000,000 |