Noble Energy (NBL) 8-K Noble Energy Announces Third Quarter 2009 Results

Exhibit 99.1

NEWS RELEASE

NOBLE ENERGY ANNOUNCES THIRD QUARTER 2009 RESULTS

HOUSTON(October 29, 2009) — Noble Energy, Inc. (NYSE:NBL) reported today third quarter 2009 net income of $107 million, or $0.61 per share diluted, on revenues of $621 million. The results were reduced by certain items totaling $86 million after-tax, the largest of which was a previously disclosed unrealized commodity derivative loss. Excluding these items, which are typically not considered by analysts in published estimates, third quarter 2009 adjusted net income⁽¹⁾ was $193 million, or $1.10 per share diluted. For the third quarter of 2008, net income was $974 million, or $5.37 per share diluted, on revenues of $1.1 billion. Adjusted net income⁽¹⁾ for the same period was $395 million, or $2.08 per share diluted.

Discretionary cash flow⁽¹⁾ for the third quarter 2009 was $499 million, compared to $657 million for the similar quarter in 2008. Net cash provided by operating activities was $488 million and capital expenditures were $224 million.

Key highlights for the third quarter 2009 include:

• Ticonderoga in the deepwater Gulf of Mexico returned to full production

• Approved Isabela/Santa Cruz oil development project in the deepwater Gulf of Mexico

• Record Wattenberg production of 283 million cubic feet equivalent per day, including liquid volumes of 22 thousand barrels per day

• Completed first horizontal East Texas Haynesville shale well with initial 30-day average production rate of over 11 million cubic feet per day, gross

• Sanctioned Aseng oil development project in Block ‘I’ offshore Equatorial Guinea

• Executed an additional gas sales agreement in Israel which raised average natural gas prices by over 40 percent from the previous quarter

“Noble Energy reported very strong results for the quarter with sales volumes up and costs down versus the second quarter this year and the third quarter of 2008. Our diverse product mix, combined with strengthening global liquid prices and record realizations in Israel, were certainly key contributors,” said Charles D. Davidson, Noble Energy’s Chairman and CEO.

Mr. Davidson went on to say, “Initial results from our Texas Haynesville drilling program are very positive, and we anticipate more results in the near future. In addition, we look forward to resuming our deepwater Gulf of Mexico exploration program with drilling to start on two significant tests at Deep Blue and Double Mountain in the fourth quarter. We also made important progress on our long-term growth projects, sanctioning oil projects at Aseng and Isabela/Santa Cruz and moving forward the development plans at Tamar offshore Israel. Our financial and operating results for the quarter provide us with a lot of momentum as we approach the end of the year.”

Total sales volumes averaged 217 thousand barrels of oil equivalent per day for the quarter, up three percent from the third quarter of 2008 primarily as a result of increased volumes in the United States and West Africa. Domestically, higher volumes were supported by ongoing development activity at Wattenberg, the return to full production of Ticonderoga, and the impact of the Raton gas project in the deepwater Gulf of Mexico. Greater natural gas volumes in West Africa were largely related to a lesser amount of facility maintenance downtime. North Sea volumes were down from the third quarter 2008 mainly due to Dumbarton performance.

Commodity price realizations for the quarter were down from the similar period last year. The Company’s global crude oil and natural gas prices averaged $63.36 per barrel and $2.41 per thousand cubic feet during the third quarter 2009. Third quarter 2009 crude oil realizations were reduced $1.89 and $5.32 per barrel in the United States and West Africa, respectively, as a result of previously deferred hedge losses.

Cash costs, including lease operating, production and ad valorem taxes, transportation, and G&A were $9.22 per barrel of oil equivalent (Boe) for the quarter versus $11.44 per Boe for the same period in 2008. Lease operating expenses (LOE) averaged $4.41 per Boe, down 13 percent from the third quarter of 2008. The majority of the variance in LOE related to continued cost cutting measures, fewer workover activities onshore in the U.S., and reduced process handling fees in the deepwater Gulf of Mexico. Production taxes significantly declined as a result of lower realized commodity prices. G&A expenses also decreased from the prior period related mostly to incentive compensation. In addition, exploration expense was down from the third quarter of 2008 due to continued drilling success and lower seismic expenditures.

(1) A Non-GAAP measure, see attached Reconciliation Schedules

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CONFERENCE CALL

Noble Energy’s third quarter 2009 conference call will be available today via live audio webcast at 9:00 a.m. Central Time. To listen, log on to www.nobleenergyinc.com and click on the Investors tab and go to the Investors Events link. Dial in numbers are (888) 437-9276 or (719) 325-2361. The conference call replay will be available on the website until November 30, 2009.

Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The Company operates primarily in the Rocky Mountains, Mid-Continent, and deepwater Gulf of Mexico areas in the United States, with significant international operations offshore Israel and West Africa. Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL. Visit Noble Energy online at www.nobleenergyinc.com.

Contacts:
David Larson
(281) 872-3125 dlarson@nobleenergyinc.com

Brad Whitmarsh
(281) 872-3187 bwhitmarsh@nobleenergyinc.com

This news release may include projections and other “forward-looking statements” within the meaning of the federal securities laws. Any such projections or statements reflect Noble Energy’s current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected, and actual results may differ materially from those projected. Risks, uncertainties and assumptions that could cause actual results to differ materially from those projected include, without limitation, the volatility in commodity prices for crude oil and natural gas, the presence or recoverability of estimated reserves, the ability to replace reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other action, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy’s business that are detailed in its Securities and Exchange Commission filings. Words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may,” and similar expressions may be used to identify forward-looking statements. Noble Energy assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.

This news release may also contain certain forward-looking non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating the company’s overall financial performance. These non-GAAP measures are broadly used to value and compare companies in the crude oil and natural gas industry.

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Schedule 1
Noble Energy, Inc.
Reconciliation of Net Income (Loss) to Adjusted Net Income
(in millions, except per share amounts, unaudited)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2009		2008			2009			2008
Net Income (Loss)	$	107	$	974		$	(139	)	$	1,045
Adjustments, net of tax[1]
Unrealized (gains) losses on commodity derivative instruments		81		(637	)		302			(7	)
Gain on sale of Argentina assets		—		—			(14	)		—
Asset impairments[2]		—		26			259			25
Allowance for SemCrude receivable		5		26			5			25
Other adjustments, net		—		6			(1	)		6
Adjusted Net Income [3]	$	193	$	395		$	412		$	1,094
Adjusted Earnings Per Share
Basic	$	1.11	$	2.29		$	2.38		$	6.35
Diluted		1.10		2.08			2.35			6.14
Weighted average number of shares outstanding
Basic		173		173			173			172
Diluted[4]		175		176			175			176

[1]	The net tax effects are determined by calculating the tax provision for GAAP Net Income (Loss), which includes the adjusting items, and comparing the results to the tax provision for Adjusted Net Income, which excludes the adjusting items. The difference in the tax provision calculations represents the tax impact of the adjusting items listed here. The calculation is performed at the end of each quarter and, as a result, the tax rates for each discrete period are different.
[2]	The 2009 impairments were recorded in the first quarter and were predominantly related to Granite Wash.
[3]	Adjusted net income should not be considered a substitute for net income as reported in accordance with GAAP. Adjusted net income is provided for comparison to earnings forecasts prepared by analysts and other third parties. Our management believes, and certain investors may find, that adjusted net income is beneficial in evaluating our financial performance.
[4]	The adjusted diluted earnings per share calculation for the nine months ended September 30, 2009 includes an increase to diluted shares of approximately 2 million shares representing the incremental dilutive shares that were anti-dilutive, for GAAP purposes, and therefore excluded from the calculation of GAAP net loss per share for the nine months ended September 30, 2009.

Schedule 2
Noble Energy, Inc.
Summary Statement of Operations
(in millions, except per share amounts, unaudited)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2009		2008			2009			2008
|	| |					|
Revenues
Crude oil and condensate	$	377	$	629		$	876		$	1,830
Natural gas		172		361			498			1,132
NGLs		24		50			66			153
Income from equity method investees		25		40			52			158
Other revenues		23		18			61			55
Total revenues		621		1,098			1,553			3,328
Operating Expenses
Lease operating expense		88		98			281			268
Production and ad valorem taxes		25		47			66			141
Transportation expense		18		14			43			43
Exploration expense		27		39			102			181
Depreciation, depletion and amortization		205		194			601			593
General and administrative		53		63			173			184
Asset impairments		—		38			437			38
Other operating expense, net		34		60			22			107
Total operating expenses		450		553			1,725			1,555
Operating Income (Loss)		171		545			(172	)		1,773
Other (Income) Expense
(Gain) Loss on commodity derivative instruments		28		(875	)		95			190
Interest, net of amount capitalized		23		18			64			52
Other expense (income), net		5		(52	)		18			(42	)
Total other (income) expense		56		(909	)		177			200
Income (Loss) Before Taxes		115		1,454			(349	)		1,573
Income Tax Provision (Benefit)		8		480			(210	)		528
Net Income (Loss)	$	107	$	974		$	(139	)	$	1,045
Earnings (Loss) Per Share
Basic	$	0.62	$	5.64		$	(0.80	)	$	6.06
Diluted		0.61		5.37			(0.80	)		5.86
Weighted average number of shares outstanding
Basic		173		173			173			172
Diluted		175		176			173			176

Schedule 3
Noble Energy, Inc.
Volume and Price Statistics
(unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2009		2008		2009		2008
Crude Oil and Condensate Sales Volumes (MBpd)
United States		39		38		37		41
West Africa		14		14		14		15
North Sea		8		12		7		10
Other International		4		3		4		4
Total consolidated operations		65		67		62		70
Equity method investee		2		2		2		2
Total sales volumes		67		69		64		72
Crude Oil and Condensate Realized Prices ($/Bbl)
United States	$	62.30	$	93.47	$	50.45	$	87.84
West Africa		63.10		109.90		51.94		103.31
North Sea		69.56		117.44		57.61		114.42
Other International		62.75		106.03		49.76		73.37
Consolidated average realized prices	$	63.36	$	101.82	$	51.55	$	78.89
Natural Gas Sales Volumes (MMcfpd)
United States		397		384		401		393
West Africa		228		194		238		212
North Sea		5		6		5		6
Israel		144		155		117		140
Other International		28		21		24		22
Total sales volumes		802		760		785		773
Natural Gas Realized Prices ($/Mcf)
United States	$	3.05	$	8.48	$	3.36	$	9.10
West Africa		0.27		0.27		0.27		0.27
North Sea		4.63		11.54		5.94		10.62
Israel		3.95		3.57		3.27		3.15
Other International		—		—		—		—
Average realized prices	$	2.41	$	5.31	$	2.40	$	5.50
Natural Gas Liquids (NGL) Sales Volumes (MBpd)
United States		10		10		10		10
Equity method investee		6		5		6		6
Total sales volumes		16		15		16		16
Natural Gas Liquids Realized Prices ($/Bbl)
United States	$	25.39	$	57.06	$	24.70	$	57.39
Barrels of Oil Equivalent Volumes (MBoepd)
United States		115		111		113		117
West Africa		52		47		54		50
North Sea		9		13		8		11
Israel		24		26		20		23
Other International		9		7		8		8
Total consolidated operations		209		204		203		209
Equity method investee		8		7		8		8
Total barrels of oil equivalent (MBoepd)		217		211		211		217
Barrels of oil equivalent volumes (MMBoe)		20		19		58		59

Schedule 4
Noble Energy, Inc.
Condensed Balance Sheets
(in millions)

	(unaudited)
	September 30,		December 31,
	2009		2008
Assets
Current Assets
Cash and cash equivalents	$	926	$	1,140
Accounts receivable, net		348		423
Commodity derivative assets		96		437
Other current assets		130		158
Total current assets		1,500		2,158
Net property, plant and equipment		8,896		9,004
Goodwill		758		759
Other noncurrent assets		481		463
Total Assets	$	11,635	$	12,384
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable — trade	$	397	$	579
Other current liabilities		449		595
Total current liabilities		846		1,174
Long-term debt		2,161		2,241
Deferred income taxes		1,905		2,174
Other noncurrent liabilities		565		486
Total Liabilities		5,477		6,075
Total Shareholders’ Equity		6,158		6,309
Total Liabilities and Shareholders’ Equity	$	11,635	$	12,384

Schedule 5
Noble Energy, Inc.
Discretionary Cash Flow and Reconciliation to Operating Cash Flow
(in millions, unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
Adjusted Net Income [1]	$	193		$	395		$	412		$	1,094
Adjustments to reconcile net income to discretionary cash flow:
Depreciation, depletion and amortization		205			194			601			593
Exploration expense		27			38			102			181
Interest capitalized		(12	)		(7	)		(30	)		(23	)
(Income) / distributions from equity method investments, net		7			31			(15	)		34
Deferred compensation adjustment		7			(47	)		18			(25	)
Deferred income taxes		51			81			96			199
Stock-based compensation expense		13			10			37			30
Settlement of previously recognized hedge losses[2]		—			(43	)		—			(144	)
Other, net		8			5			(8	)		20
Discretionary Cash Flow [3]	$	499		$	657		$	1,213		$	1,959
Reconciliation to Operating Cash Flows
Net changes in working capital		62			281			11			(9	)
Cash exploration costs		(25	)		(29	)		(91	)		(103	)
Capitalized interest		12			7			30			23
Current tax benefit (expense) of net income adjustments		(60	)		(196	)		(136	)		—
Gain on disposal of assets		—			—			(24	)		—
Other adjustments		—			(7	)		(17	)		(3	)
Net Cash Provided by Operating Activities	$	488		$	713		$	986		$	1,867
Capital Expenditures, accrual based	$	224		$	786		$	933		$	1,832

[1]	See Schedule 1, Reconciliation of Net Income (Loss) to Adjusted Net Income.
[2]	See Schedule 6, Effect of Derivative Instruments.
[3]	The table above reconciles discretionary cash flow to net cash provided by operating activities. While discretionary cash flow is not a GAAP measure of financial performance, our management believes it is a useful tool for evaluating our overall financial performance. Among our management, research analysts, portfolio managers and investors, discretionary cash flow is broadly used as an indicator of a company’s ability to fund exploration and production activities and meet financial obligations. Discretionary cash flow is also commonly used as a basis to value and compare companies in the oil and gas industry.

Schedule 6
Noble Energy, Inc.
Effect of Commodity Derivative Instruments
(in millions, unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
Reclassification from Accumulated Other Comprehensive Loss (AOCL) to Revenue [1]
Crude oil	$	(14	)	$	(89	)	$	(45	)	$	(279	)
Natural gas		—			(4	)		—			31
Total Revenue Decrease	$	(14	)	$	(93	)	$	(45	)	$	(248	)
Gain (Loss) on Derivative Instruments
Crude oil
Realized	$	50		$	(61	)	$	212		$	(140	)
Unrealized		(34	)		559			(305	)		(121	)
Total crude oil		16			498			(93	)		(261	)
Natural gas
Realized		71			(7	)		201			(59	)
Unrealized		(115	)		384			(203	)		130
Total natural gas		(44	)		377			(2	)		71
Total Gain (Loss) on Derivative Instruments	$	(28	)	$	875		$	(95	)	$	(190	)
Summary of Cash Settlements
Cash settlements (received) paid	$	(107	)	$	204		$	(368	)	$	591
Realized gain (loss) on derivative instruments		121			(68	)		413			(199	)
Amounts reclassified from AOCL		(14	)		(93	)		(45	)		(248	)
Settlement of previously recognized hedge losses	$	—		$	43		$	—		$	144

[1] The amounts in AOCL represent deferred unrealized hedge gains and losses. Upon settlement, these deferred gains and losses are reclasssified from AOCL to net income as increases or decreases to crude oil and natural gas revenues, and impact reported realized commodity prices.