Exhibit 99.1
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NEWS RELEASE
100 Glenborough Drive | Contact: Greg Panagos: 281-872-3125 | |
Suite 100 | Investor_Relations@nobleenergyinc.com | |
Houston, TX 77067 |
NOBLE ENERGY ANNOUNCES FULL YEAR AND
FOURTH QUARTER 2006 RESULTS
FOURTH QUARTER 2006 RESULTS
HOUSTON(February 22, 2007) — Noble Energy, Inc. (NYSE:NBL) today reported full year and fourth quarter 2006 results. For the full year, net income was a record $678.4 million, or $3.86 per basic share.
Excluding the after tax impact of $183.4 million related to the previously announced sale of the company’s Gulf of Mexico Shelf assets, the reclassification of certain cash flow hedges associated with those assets, and certain charges taken in the fourth quarter, Noble Energy’s adjusted full year net income, a non-GAAP measure, would have been $861.8 million, or $4.91 per basic share (see Schedule 8, Reconciliation of Net Income to Adjusted Net Income, Non-GAAP). Discretionary cash flow for the year reached an all time high of $2.1 billion (non-GAAP measure, see Schedule 3, Determination of Discretionary Cash Flow and Reconciliation).
For the fourth quarter 2006, the company reported net income of $165.0 million, or 95 cents per basic share. Excluding certain net charges totaling $13.1 million after tax (see Schedule 8, Reconciliation of Net Income to Adjusted Net Income, Non-GAAP), Noble Energy’s adjusted fourth quarter net income, a non-GAAP measure, would have been $178.1 million, or $1.03 per basic share. Discretionary cash flow for the fourth quarter was $486.9 million. Fourth quarter 2006 net cash provided by operating activities was $389.5 million. Capital expenditures for the quarter totaled $422.7 million. During the fourth quarter, Noble Energy repurchased 4.2 million shares of its common stock for $206.0 million, bringing the total repurchases for 2006 to 8.4 million shares for $398.5 million.
Significant financial and operating factors for 2006 include:
• | Completed the acquisition of U.S. Exploration Holdings, Inc. in March | ||
• | Increased daily equivalent production by 28 percent versus 2005 | ||
• | Deepwater exploration success at Raton, Redrock and Raton South | ||
• | First production from the Lorien and Ticonderoga deepwater Gulf of Mexico developments | ||
• | First natural gas sales to the Reading power plant in Tel Aviv, Israel | ||
• | Acquired 50 percent interest in Block PH-77 offshore Cameroon | ||
• | Increased common stock dividend by 83 percent versus 2005 | ||
• | Divested of Gulf of Mexico shelf assets for $625 million |
Charles D. Davidson, the company’s Chairman, President and CEO, said, “The outstanding financial and operating results from Noble Energy in 2006 reflect the successful implementation of a multi-year process to reposition the company for long-term growth. Through our balanced and diversified asset base, we are generating strong financial results that provide us with a solid foundation for growth and strong shareholder returns. Our domestic onshore business consists of thousands of lower risk projects that, when combined with many of our international projects, provides a stable and growing source of production and cash flow. At the same time, our deepwater Gulf of Mexico and international exploration portfolios offer exposure to significant resources in the medium and long terms.”
FULL YEAR 2006
Full year 2006 net income was $678.4 million, or $3.86 per basic share, compared to net income of $645.7 million, or $4.20 per basic share, for the previous year. Excluding certain net charges totaling $183.4 million after tax, adjusted full year net income (a non-GAAP measure) would have been $861.8 million, or $4.91 per basic share. Discretionary cash flow for 2006 was $2.1 billion compared to the previous year’s $1.4 billion.
Realized liquids prices increased 20 percent year-on-year to $54.47 per barrel (Bbl) compared to $45.35 per Bbl the previous year. The company’s average realized natural gas price decreased four percent to $5.55 per thousand cubic feet (Mcf) from $5.78 per Mcf the previous year.
Production volumes for the year increased 28 percent to 185,954 barrels of oil equivalent (Boepd) from 145,440 Boepd. Sales volumes for the year were 186,768 Boepd. Daily sales volumes exceeded production by 813 Boepd, primarily because of the timing of liftings in Equatorial Guinea. North America production increased 37,816 Boepd, or 45 percent, to 121,083 Boepd. The sale of the company’s Gulf of Mexico shelf assets, which closed on July 14, lowered production volumes by approximately 10,700 Boepd in 2006. International production increased 2,698 Boepd, or four percent, to 64,871 Boepd, primarily because of increased production in Israel.
FOURTH QUARTER 2006
Fourth quarter 2006 net income was $165.0 million, or 95 cents per basic share, compared to fourth quarter 2005 net income of $221.9 million, or $1.27 per basic share. Excluding certain net charges totaling $13.1 million after tax, adjusted fourth quarter net income (a non-GAAP measure) would have been $178.1 million, or $1.03 per basic share. Discretionary cash flow for the fourth quarter 2006 increased to $486.9 million compared to $460.2 million the previous year.
Realized liquids prices increased seven percent to $51.32 per Bbl compared to $47.78 per Bbl for the same period the previous year. The company’s average realized natural gas price decreased 20 percent to $5.56 per Mcf from $6.91 per Mcf for the fourth quarter the previous year.
Fourth quarter 2006 production increased nine percent to 182,028 Boepd from 167,075 Boepd for the same period in 2005. Severe weather in the Rocky Mountains reduced fourth quarter production by approximately 2,000 Boepd. Fourth quarter 2005 production included approximately 17,000 Boepd from the company’s Gulf of Mexico shelf assets, which were sold in 2006. Daily sales volumes exceeded production by 3,045 Boepd, primarily because of the timing of liftings in Equatorial Guinea.
NORTH AMERICA — FOURTH QUARTER 2006
North America reported operating income for the fourth quarter of $146.4 million. Excluding the effect of the royalty litigation reserve ($15.5 million pretax) and gains on the sale of assets ($7.1 million pretax), operating income would have been $154.8 million. The decline in quarter-on-quarter operating income primarily reflects lower realized liquids and natural gas prices, as well as increased exploration expense. Higher volumes and lower derivative losses partially offset the effects of these items.
North America benefited from higher production during the fourth quarter, which increased 16 percent to 115,967 Boepd from 100,034 Boepd for the same period in 2005. The average liquids price was $48.33 per Bbl compared to $52.72 per Bbl during the fourth quarter of 2005. The average realized natural gas price was $6.79 per Mcf compared to $8.83 per Mcf the previous year.
During the fourth quarter, the company had 23 drilling rigs running onshore (nine in the Rocky Mountains, 11 in the Mid-continent and three in the Gulf Coast) and 47 workover rigs (30 in the Rocky Mountains, 15 in the Mid-continent and two in the Gulf Coast). During 2006, Noble Energy drilled 687 net onshore wells, of which 26 were in the Gulf Coast, 435 were in the Rocky Mountains and 226 were in the Mid-continent.
2
The company also completed 708 refrac, trifrac, deepening and recompletion projects for 2006, most of which were in the Wattenberg field.
During the second quarter, the company announced two deepwater discoveries, Redrock and Raton. In January 2007, Noble Energy announced that the Raton South appraisal well encountered hydrocarbons in the anticipated sand intervals. Development options for Redrock, Raton and Raton South are currently under review, along with a fast-track subsea development of a natural gas zone discovered in the original Raton well. Noble Energy is the operator of Raton, Redrock and South Raton with a 50 percent working interest.
INTERNATIONAL OPERATIONS — FOURTH QUARTER 2006
International operations reported operating income for the fourth quarter of $164.8 million, an increase of $46.1 million, or 39 percent, compared to $118.7 million in the fourth quarter the previous year. Fourth quarter 2006 production totaled 66,061 Boepd.
West Africa
Total operating income in Equatorial Guinea increased 63 percent to $120.3 million compared to $73.8 million the previous year.
Total operating income in Equatorial Guinea increased 63 percent to $120.3 million compared to $73.8 million the previous year.
Alba field condensate and natural gas sales (exclusive of Alba Plant, LLC and methanol operations) accounted for $89.8 million, or 75 percent, of operating income from Equatorial Guinea. Alba Plant, LLC reported $19.9 million of income from LPG and condensate sales, net to Noble Energy’s interest, compared to $16.9 million for the fourth quarter 2005. The increase in operating income for Alba Plant, LLC reflects increased plant sales of 1,821 barrels per day.
Income from methanol operations decreased slightly to $10.6 million, net to Noble Energy’s interest, compared to $12.6 million during the fourth quarter 2005. The company’s share of methanol sales volumes was 24.7 million gallons compared to the previous year’s 40.2 million gallons. The sales decline relative to the previous year’s fourth quarter was due to compressor maintenance and repairs, which were completed during the quarter, and the replacement of inventories. Fourth quarter realized methanol prices were a record $1.13 per gallon.
North Sea
In the North Sea, operating income for the fourth quarter of 2006 was $13.6 million compared to $23.3 million the previous year, resulting primarily from lower crude oil sales due to natural field decline and the timing of liftings. In the U.K. sector of the North Sea, the Dumbarton development, sanctioned during the fourth quarter 2005, commenced production in January 2007. Noble Energy expects production from Dumbarton to average 9,000 Boepd, net, during 2007.
In the North Sea, operating income for the fourth quarter of 2006 was $13.6 million compared to $23.3 million the previous year, resulting primarily from lower crude oil sales due to natural field decline and the timing of liftings. In the U.K. sector of the North Sea, the Dumbarton development, sanctioned during the fourth quarter 2005, commenced production in January 2007. Noble Energy expects production from Dumbarton to average 9,000 Boepd, net, during 2007.
Israel
Fourth quarter operating income was $18.5 million compared to $10.6 million for the same period in 2005. Natural gas production, net to Noble Energy, averaged 96.6 MMcfpd for the fourth quarter 2006, compared to 64.0 MMcfpd the previous year. The increased natural gas volumes reflect the completion of infrastructure and conversion to natural gas of the Reading Plant in Tel Aviv and the Eshkol power plant’s natural gas turbine running as a combined-cycle base load unit.
Fourth quarter operating income was $18.5 million compared to $10.6 million for the same period in 2005. Natural gas production, net to Noble Energy, averaged 96.6 MMcfpd for the fourth quarter 2006, compared to 64.0 MMcfpd the previous year. The increased natural gas volumes reflect the completion of infrastructure and conversion to natural gas of the Reading Plant in Tel Aviv and the Eshkol power plant’s natural gas turbine running as a combined-cycle base load unit.
Argentina, China, Ecuador and Suriname
Argentina, China, Ecuador and Suriname combined recorded fourth quarter 2006 operating income of $12.5 million compared to $11.0 million for fourth quarter the previous year.
Argentina, China, Ecuador and Suriname combined recorded fourth quarter 2006 operating income of $12.5 million compared to $11.0 million for fourth quarter the previous year.
In China, fourth quarter operating income was $10.4 million. Net production in China averaged 4,135 barrels of oil per day for the fourth quarter. In Argentina, fourth quarter operating income was $4.0 million, and net production averaged 3,666 Boepd.
3
The Machala power plant reported operating income of $5.5 million for the fourth quarter. For the quarter, 262,470 megawatt-hours were produced at an average price of 8.4 cents per kilowatt-hour.
Noble Energy is one of the nation’s leading independent energy companies and operates throughout major basins in the United States including Colorado’s Wattenberg Field, the Mid-continent region of western Oklahoma and the Texas Panhandle, the San Juan Basin in New Mexico, the Gulf Coast and the Gulf of Mexico. In addition, Noble Energy operates internationally in Argentina, China, Ecuador, the Mediterranean Sea, the North Sea, West Africa and Suriname. Noble Energy markets natural gas and crude oil through its subsidiary, Noble Energy Marketing, Inc. Visit Noble Energy online atwww.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. Important factors that could cause the actual results to differ materially from those projected include, without limitation, the volatility in commodity prices for oil and 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. The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves. We may use certain terms in this press release, such as “resources,” “estimated resource range,” “resource potential” and “potential resources,” that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our Forms 10-K and 10-Q, File No. 1-16619, available from Noble Energy’s offices or website,www.nobleenergyinc.com. These forms can also be obtained from the SEC by calling 1-800-SEC-0330.
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PR 368 | 02/22/07 |
4
SCHEDULE 1
NOBLE ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
NOBLE ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
12/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||
REVENUES | ||||||||||||||||
Oil and gas sales | $ | 656,585 | $ | 625,661 | $ | 2,701,241 | $ | 1,966,422 | ||||||||
Income from equity method investees | 30,461 | 29,543 | 139,362 | 90,812 | ||||||||||||
Other revenues | 27,140 | 45,776 | 99,479 | 129,489 | ||||||||||||
Total Revenues | 714,186 | 700,980 | 2,940,082 | 2,186,723 | ||||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Lease operating costs | 78,780 | 71,187 | 317,087 | 217,860 | ||||||||||||
Production and ad valorem taxes | 25,316 | 27,578 | 108,979 | 78,703 | ||||||||||||
Transportation costs | 10,079 | 4,673 | 28,542 | 16,764 | ||||||||||||
Exploration costs | 75,597 | 51,918 | 167,924 | 178,426 | ||||||||||||
Depreciation, depletion and amortization | 163,730 | 112,715 | 622,608 | 390,544 | ||||||||||||
General and administrative | 50,825 | 30,799 | 164,541 | 100,125 | ||||||||||||
Accretion of discount on asset retirement obligations | 2,392 | 3,077 | 10,797 | 11,214 | ||||||||||||
Interest, net of amount capitalized | 21,403 | 28,511 | 117,045 | 87,541 | ||||||||||||
(Gain) Loss on derivative instruments | 2,664 | 30,559 | 392,367 | 32,680 | ||||||||||||
(Gain) Loss on sale of assets | (7,886 | ) | 1,213 | (219,577 | ) | (4,201 | ) | |||||||||
Other expense, net | 44,525 | 10,113 | 133,552 | 108,407 | ||||||||||||
Total Costs and Expenses | 467,425 | 372,343 | 1,843,865 | 1,218,063 | ||||||||||||
Income Before Taxes | 246,761 | 328,637 | 1,096,217 | 968,660 | ||||||||||||
Income Tax Provision | 81,780 | 106,718 | 417,789 | 322,940 | ||||||||||||
Income From Continuing Operations | 164,981 | 221,919 | 678,428 | 645,720 | ||||||||||||
Discontinued Operations, Net of Tax | — | — | — | — | ||||||||||||
NET INCOME | $ | 164,981 | $ | 221,919 | $ | 678,428 | $ | 645,720 | ||||||||
EARNINGS PER SHARE | ||||||||||||||||
Basic — | ||||||||||||||||
Income from continuing operations | $ | 0.95 | $ | 1.27 | $ | 3.86 | $ | 4.20 | ||||||||
Net Income | $ | 0.95 | $ | 1.27 | $ | 3.86 | $ | 4.20 | ||||||||
Diluted — | ||||||||||||||||
Income from continuing operations | $ | 0.94 | $ | 1.18 | [1] | $ | 3.79 | $ | 4.12 | |||||||
Net Income | $ | 0.94 | $ | 1.18 | $ | 3.79 | $ | 4.12 | ||||||||
Weighted average number of shares outstanding — Basic | 173,339 | 175,019 | 175,707 | 153,773 | ||||||||||||
Weighted average number of shares outstanding — Diluted | 175,711 | 180,865 | 179,044 | 156,759 |
[1] | Diluted net income excludes the after tax income statement effects of deferred compensation when those effects are antidilutive. For the fourth quarter 2005, the reductions to diluted net income totaled $8.7 million. |
SCHEDULE 2
NOBLE ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
NOBLE ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
December 31, | ||||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 153,408 | $ | 110,321 | ||||
Accounts receivable — trade, net | 586,882 | 566,206 | ||||||
Probable insurance claims | 101,233 | 142,311 | ||||||
Deferred income taxes | 99,835 | 237,045 | ||||||
Other current assets | 127,188 | 119,628 | ||||||
Total current assets | 1,068,546 | 1,175,511 | ||||||
Plant, property and equipment | ||||||||
Oil and gas properties (successful efforts method of accounting) | 8,867,639 | 8,411,426 | ||||||
Other plant, property and equipment | 79,646 | 69,869 | ||||||
8,947,285 | 8,481,295 | |||||||
Accumulated depreciation, depletion and amortization | (1,776,528 | ) | (2,282,379 | ) | ||||
Total property, plant and equipment, net | 7,170,757 | 6,198,916 | ||||||
Other noncurrent assets | 568,032 | 640,738 | ||||||
Goodwill | 781,290 | 862,868 | ||||||
Total Assets | $ | 9,588,625 | $ | 8,878,033 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable — trade | $ | 518,609 | $ | 519,971 | ||||
Derivative instruments | 254,625 | 445,939 | ||||||
Income taxes | 107,136 | 65,136 | ||||||
Asset retirement obligations | 68,500 | 60,331 | ||||||
Other current liabilities | 235,392 | 148,768 | ||||||
Total current liabilities | 1,184,262 | 1,240,145 | ||||||
Deferred income taxes | 1,758,452 | 1,201,191 | ||||||
Asset retirement obligations | 127,689 | 278,540 | ||||||
Derivative instruments | 328,875 | 757,509 | ||||||
Other noncurrent liabilities | 274,720 | 279,971 | ||||||
Long-term debt | 1,800,810 | 2,030,533 | ||||||
Total Liabilities | 5,474,808 | 5,787,889 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred stock — par value $1.00; 4,000,000 shares authorized, none issued | — | — | ||||||
Common stock — par value $3.33 1/3; 250,000,000 shares authorized; 188,808,087 and 184,893,510 shares issued, respectively | 629,360 | 616,311 | ||||||
Capital in excess of par value | 2,041,048 | 1,945,239 | ||||||
Deferred compensation | — | (5,288 | ) | |||||
Accumulated other comprehensive loss | (140,509 | ) | (783,499 | ) | ||||
Treasury stock, at cost: 16,574,384 and 9,268,932 shares, respectively | (511,443 | ) | (148,476 | ) | ||||
Retained earnings | 2,095,361 | 1,465,857 | ||||||
Total Shareholders’ Equity | 4,113,817 | 3,090,144 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 9,588,625 | $ | 8,878,033 | ||||
SCHEDULE 3
NOBLE ENERGY, INC. AND SUBSIDIARIES
DISCRETIONARY CASH FLOW AND RECONCILIATION TO OPERATING CASH FLOW
(In thousands)
(Unaudited)
NOBLE ENERGY, INC. AND SUBSIDIARIES
DISCRETIONARY CASH FLOW AND RECONCILIATION TO OPERATING CASH FLOW
(In thousands)
(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
12/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||
Net income | $ | 164,981 | $ | 221,919 | $ | 678,428 | $ | 645,720 | ||||||||
Adjustments to reconcile net income to discretionary cash flow: | ||||||||||||||||
Depreciation, depletion and amortization — oil and gas production | 163,730 | 112,714 | 622,608 | 390,544 | ||||||||||||
Depreciation, depletion and amortization — electricity generation | 4,479 | 4,077 | 16,319 | 16,476 | ||||||||||||
Impairment of operating assets | 2,166 | 170 | 8,525 | 5,368 | ||||||||||||
Exploration costs | 75,597 | 51,918 | 167,924 | 178,426 | ||||||||||||
Interest capitalized | (9,085 | ) | (1,388 | ) | (12,515 | ) | (8,684 | ) | ||||||||
Income from equity method investments | (30,461 | ) | (29,543 | ) | (139,362 | ) | (90,812 | ) | ||||||||
Distributions and dividends from equity method investees | 57,987 | 18,038 | 192,508 | 64,594 | ||||||||||||
Deferred compensation adjustment | 12,516 | (13,389 | ) | 28,189 | 17,918 | |||||||||||
Deferred income taxes | 47,551 | 85,745 | 194,261 | 183,770 | ||||||||||||
Accretion of discount on asset retirement obligations | 2,392 | 3,076 | 10,797 | 11,214 | ||||||||||||
Allowance for doubtful accounts | 6,232 | 16,797 | ||||||||||||||
Stock-based compensation expense | 2,496 | 1,372 | 11,816 | 4,008 | ||||||||||||
(Gain) loss on derivative instruments | (15,030 | ) | 30,559 | 415,298 | 32,680 | |||||||||||
Gain on sale of Gulf of Mexico shelf assets | (4,409 | ) | — | (92,557 | ) | — | ||||||||||
Other, net | 5,770 | (25,055 | ) | 10,850 | (20,668 | ) | ||||||||||
DISCRETIONARY CASH FLOW [1] | 486,912 | 460,213 | 2,129,886 | 1,430,554 | ||||||||||||
RECONCILIATION TO OPERATING CASH FLOWS: | ||||||||||||||||
Net changes in working capital | (50,800 | ) | (119,161 | ) | (60,994 | ) | (113,891 | ) | ||||||||
Cash exploration costs | (25,692 | ) | (26,308 | ) | (78,676 | ) | (62,556 | ) | ||||||||
Capitalized interest | 9,085 | 1,388 | 12,515 | 8,684 | ||||||||||||
Distributions from equity method investees | (38,637 | ) | (1,388 | ) | (155,158 | ) | (4,969 | ) | ||||||||
(Gain) Loss on disposal of assets | (3,477 | ) | 1,214 | (127,020 | ) | (4,201 | ) | |||||||||
Other adjustments to reconcile discretionary cash flow to operating cash flows | 12,102 | (42,921 | ) | 9,753 | (13,743 | ) | ||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 389,493 | $ | 273,037 | $ | 1,730,306 | $ | 1,239,878 | ||||||||
[1] | 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, management believes it is a good tool for internal use and the investment community in evaluating the Company’s overall financial performance. Among management, professional research analysts, portfolio managers and investors following the oil and gas industry, 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 4
NOBLE ENERGY, INC
INCOME BEFORE INCOME TAXES
(Dollars in thousands, except realized prices)
(Unaudited)
NOBLE ENERGY, INC
INCOME BEFORE INCOME TAXES
(Dollars in thousands, except realized prices)
(Unaudited)
Three Months Ended 12/31/06 | ||||||||||||||||||||||||||||
North | West | North | Other | Corporate | ||||||||||||||||||||||||
Consolidated | America | Africa | Sea | Israel | Int'l[1] | & Other[2] | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Oil sales | $ | 362,477 | $ | 203,148 | $ | 105,186 | $ | 21,530 | $ | — | $ | 32,613 | $ | — | ||||||||||||||
Gas sales | 294,108 | 263,574 | 1,626 | [3] | 4,979 | 23,932 | (3 | ) | — | |||||||||||||||||||
Equity investee liquids sales | — | — | 29,626 | — | — | — | (29,626 | ) | ||||||||||||||||||||
Equity investee methanol sales | — | — | 27,974 | — | — | — | (27,974 | ) | ||||||||||||||||||||
Gathering, marketing and processing | 5,209 | — | — | — | — | — | 5,209 | |||||||||||||||||||||
Electricity sales | 21,931 | — | — | — | — | 21,931 | — | |||||||||||||||||||||
Income from equity method investments | 30,461 | — | — | — | — | — | 30,461 | |||||||||||||||||||||
Total Revenues | 714,186 | 466,722 | 164,412 | 26,509 | 23,932 | 54,541 | (21,930 | ) | ||||||||||||||||||||
COSTS AND EXPENSES | ||||||||||||||||||||||||||||
Oil and gas operating costs | 74,586 | 57,991 | 4,797 | 3,657 | 2,677 | 5,170 | 294 | |||||||||||||||||||||
Workover and repair expense | 4,194 | 4,165 | [7] | — | — | — | 29 | — | ||||||||||||||||||||
Production and ad valorem taxes | 25,316 | 19,587 | — | — | — | 5,703 | 26 | |||||||||||||||||||||
Transportation | 10,079 | 6,706 | — | 3,167 | — | 206 | — | |||||||||||||||||||||
Oil and gas exploration | 75,597 | 65,605 | 1,990 | 1,243 | 143 | 3,855 | 2,761 | |||||||||||||||||||||
Gathering, marketing and processing | 2,990 | — | — | — | — | — | 2,990 | |||||||||||||||||||||
Equity investee liquids expense | — | — | 9,776 | — | — | — | (9,776 | ) | ||||||||||||||||||||
Equity investee methanol expense | — | — | 17,364 | — | — | — | (17,364 | ) | ||||||||||||||||||||
Electricity generation | 16,395 | — | — | — | — | 16,395 | — | |||||||||||||||||||||
DD&A | 163,730 | 141,398 | 7,946 | 2,190 | 3,580 | 6,455 | 2,161 | |||||||||||||||||||||
Impairment of operating assets | 2,166 | 2,166 | — | — | — | — | — | |||||||||||||||||||||
General and administrative | 50,825 | 16,621 | 4,655 | 1,266 | 53 | (864 | ) | 29,094 | ||||||||||||||||||||
Accretion expense | 2,392 | 1,901 | 26 | 291 | 120 | 54 | — | |||||||||||||||||||||
Interest expense | 21,403 | — | — | — | — | — | 21,403 | |||||||||||||||||||||
Deferred compensation | 12,516 | — | — | — | — | — | 12,516 | |||||||||||||||||||||
(Gain) loss on derivative instruments | 2,644 | 2,644 | — | — | — | — | — | |||||||||||||||||||||
Loss on involuntary conversion | — | — | — | — | — | — | — | |||||||||||||||||||||
(Gain) loss on sale of assets | (7,886 | ) | (7,591 | ) | — | (393 | ) | 81 | (7 | ) | 24 | |||||||||||||||||
Other expense (income), net | 10,478 | 9,098 | (2,429 | ) | 1,535 | (1,189 | ) | 5,081 | (1,618 | ) | ||||||||||||||||||
Total Costs and Expenses | 467,425 | 320,291 | 44,125 | 12,956 | 5,465 | 42,077 | 42,511 | |||||||||||||||||||||
OPERATING INCOME (LOSS) | $ | 246,761 | $ | 146,431 | $ | 120,287 | $ | 13,553 | $ | 18,467 | $ | 12,464 | $ | (64,441 | ) | |||||||||||||
KEY STATISTICS | ||||||||||||||||||||||||||||
SALES VOLUMES | ||||||||||||||||||||||||||||
Liquids (Bopd) | 76,766 | 45,692 | 19,301 | 4,005 | — | 7,768 | — | |||||||||||||||||||||
Natural Gas (Mcfpd) | 604,077 | 421,649 | 48,953 | [3] | 7,151 | 96,567 | 29,757 | [6] | — | |||||||||||||||||||
Equity Investee Liquids (Bopd) | 7,625 | — | 7,625 | [4] | — | — | — | — | ||||||||||||||||||||
Equity Investee Methanol (Kgal) | 24,748 | — | 24,748 | — | — | — | — | |||||||||||||||||||||
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PRODUCTION VOLUMES | ||||||||||||||||||||||||||||
Liquids (Bopd) | 73,734 | 45,692 | 16,385 | 4,268 | — | 7,389 | — | |||||||||||||||||||||
Natural Gas (Mcfpd) | 604,077 | 421,649 | 48,953 | 7,151 | 96,567 | 29,757 | — | |||||||||||||||||||||
Equity Investee Liquids (Bopd) | 7,613 | — | 7,613 | [5] | — | — | — | — | ||||||||||||||||||||
Total Production Boepd[8] | 182,028 | 115,967 | 32,157 | 5,460 | 16,095 | 12,349 | — | |||||||||||||||||||||
AVERAGE REALIZED PRICE | ||||||||||||||||||||||||||||
Liquids | $ | 51.32 | $ | 48.33 | $ | 59.24 | $ | 58.43 | $ | — | $ | 45.64 | $ | — | ||||||||||||||
Natural Gas | 5.56 | 6.79 | 0.36 | 7.57 | 2.69 | — | — | |||||||||||||||||||||
Equity Investee Liquids | 42.23 | — | 42.23 | — | — | — | — | |||||||||||||||||||||
Equity Investee Methanol | 1.13 | — | 1.13 | — | — | — | — | |||||||||||||||||||||
[1] | Other international includes operations in Argentina, China, Ecuador and Suriname. | |
[2] | Corporate and Other includes corporate overhead, intercompany eliminations and marketing. | |
[3] | Natural gas in Equatorial Guinea is under contract for $0.25 per MMBTU through 2026 to a methanol plant and an LPG plant. Both of these plants are owned by affiliated entities accounted for under the equity method of accounting. Beginning in 2006, the price on an Mcf basis has been adjusted to reflect the Btu content. | |
[4] | Equity Investee LPG volumes include condensate and natural gas liquids of 1,674 Bpd and 5,951 Bpd, respectively. These volumes are included in West Africa production and LPG sales revenue. | |
[5] | Equity Investee LPG volumes include condensate and natural gas liquids of 1,743 Bpd and 5,870 Bpd, respectively. | |
[6] | Ecuador natural gas volumes are included in Other International and Consolidated production, but are not included in natural gas sales revenue for either. Because the gas-to-power project in Ecuador is 100 percent owned by Noble Energy, intercompany natural gas sales are eliminated for accounting purposes. | |
[7] | Includes approximately $4.1 million of hurricane related repair expense. | |
[8] | Barrels of oil equivalent for natural gas is calculated at a 6 to 1 ratio. |
SCHEDULE 5
NOBLE ENERGY, INC
INCOME BEFORE INCOME TAXES
(Dollars in thousands, except realized prices)
(Unaudited)
NOBLE ENERGY, INC
INCOME BEFORE INCOME TAXES
(Dollars in thousands, except realized prices)
(Unaudited)
Three Months Ended 12/31/05 | ||||||||||||||||||||||||||||
North | West | North | Other | Corporate | ||||||||||||||||||||||||
Consolidated | America | Africa | Sea | Israel | Int'l[1] | & Other[2] | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Oil sales | $ | 259,664 | $ | 144,830 | $ | 63,243 | $ | 23,364 | $ | — | $ | 28,227 | $ | — | ||||||||||||||
Gas sales | 365,995 | 342,072 | 1,835 | [3] | 6,400 | 15,643 | 45 | — | ||||||||||||||||||||
Equity investee liquids sales | — | — | 25,326 | — | — | — | (25,326 | ) | ||||||||||||||||||||
Equity investee methanol sales | — | — | 30,767 | — | — | — | (30,767 | ) | ||||||||||||||||||||
Gathering, marketing and processing | 26,526 | — | — | — | — | — | 26,526 | |||||||||||||||||||||
Electricity sales | 19,250 | — | — | — | — | 19,250 | — | |||||||||||||||||||||
Income from equity method investments | 29,545 | — | — | — | — | — | 29,545 | |||||||||||||||||||||
Total Revenues | 700,980 | 486,902 | 121,171 | 29,764 | 15,643 | 47,522 | (22 | ) | ||||||||||||||||||||
COSTS AND EXPENSES | ||||||||||||||||||||||||||||
Oil and gas operating costs | 65,827 | 44,011 | 11,096 | 3,481 | 2,380 | 4,339 | 520 | |||||||||||||||||||||
Workover and repair expense | 5,360 | 5,304 | — | 22 | — | 34 | — | |||||||||||||||||||||
Production and ad valorem taxes | 27,578 | 24,082 | — | — | — | 3,517 | (21 | ) | ||||||||||||||||||||
Transportation | 4,673 | 2,644 | — | 1,834 | — | 195 | — | |||||||||||||||||||||
Oil and gas exploration | 51,918 | 35,297 | 3,151 | 794 | 118 | 10,905 | 1,653 | |||||||||||||||||||||
Gathering, marketing and processing | 7,162 | — | — | — | — | — | 7,162 | |||||||||||||||||||||
Equity investee liquids expense | — | — | 8,399 | — | — | — | (8,399 | ) | ||||||||||||||||||||
Equity investee methanol expense | — | — | 18,149 | — | — | — | (18,149 | ) | ||||||||||||||||||||
Electricity generation | 15,500 | — | — | — | — | 15,500 | — | |||||||||||||||||||||
DD&A | 112,715 | 94,600 | 6,444 | 1,647 | 2,788 | 5,496 | 1,740 | |||||||||||||||||||||
Impairment of operating assets | 170 | 170 | — | — | — | — | — | |||||||||||||||||||||
General and administrative | 30,799 | 12,914 | — | 854 | 149 | (3,536 | ) | 20,418 | ||||||||||||||||||||
Accretion expense | 3,077 | 2,596 | 23 | 285 | 116 | 57 | — | |||||||||||||||||||||
Interest expense | 28,511 | — | — | — | — | — | 28,511 | |||||||||||||||||||||
Deferred compensation | (13,389 | ) | — | — | — | — | — | (13,389 | ) | |||||||||||||||||||
(Gain) loss on derivative instruments | 30,559 | 30,559 | — | — | — | — | — | |||||||||||||||||||||
Loss on involuntary conversion | — | — | — | — | — | — | — | |||||||||||||||||||||
(Gain) loss on sale of assets | 1,213 | 1,137 | — | — | 75 | (1 | ) | 2 | ||||||||||||||||||||
Other expense (income), net | 670 | 1,838 | 104 | (2,484 | ) | (569 | ) | 36 | 1,745 | |||||||||||||||||||
Total Costs and Expenses | 372,343 | 255,152 | 47,366 | 6,433 | 5,057 | 36,542 | 21,793 | |||||||||||||||||||||
OPERATING INCOME (LOSS) | $ | 328,637 | $ | 231,750 | $ | 73,805 | $ | 23,331 | $ | 10,586 | $ | 10,980 | $ | (21,815 | ) | |||||||||||||
KEY STATISTICS | ||||||||||||||||||||||||||||
SALES VOLUMES | ||||||||||||||||||||||||||||
Liquids (Bopd) | 59,075 | 29,861 | 18,099 | 4,641 | — | 6,474 | — | |||||||||||||||||||||
Natural Gas (Mcfpd) | 601,843 | 421,037 | 81,195 | [3] | 9,345 | 63,991 | 26,275 | [6] | — | |||||||||||||||||||
Equity Investee Liquids (Bopd) | 5,804 | — | 5,804 | [4] | — | — | — | — | ||||||||||||||||||||
Equity Investee Methanol (Kgal) | 40,190 | — | 40,190 | — | — | — | — | |||||||||||||||||||||
PRODUCTION VOLUMES | ||||||||||||||||||||||||||||
Liquids (Bopd) | 59,914 | 29,861 | 18,511 | 4,401 | — | 7,141 | — | |||||||||||||||||||||
Natural Gas (Mcfpd) | 601,843 | 421,037 | 81,195 | 9,345 | 63,991 | 26,275 | — | |||||||||||||||||||||
Equity Investee Liquids (Bopd) | 6,854 | — | 6,854 | [5] | — | — | — | — | ||||||||||||||||||||
Total Production Boepd[7] | 167,075 | 100,034 | 38,897 | 5,959 | 10,665 | 11,520 | — | |||||||||||||||||||||
AVERAGE REALIZED PRICE | ||||||||||||||||||||||||||||
Liquids | $ | 47.78 | $ | 52.72 | $ | 37.98 | $ | 54.72 | $ | — | $ | 47.39 | $ | — | ||||||||||||||
Natural Gas | 6.91 | 8.83 | 0.25 | 7.44 | 2.66 | 1.10 | — | |||||||||||||||||||||
Equity Investee Liquids | 47.43 | — | 47.43 | — | — | — | — | |||||||||||||||||||||
Equity Investee Methanol | 0.77 | — | 0.77 | — | — | — | — | |||||||||||||||||||||
[1] | Other international includes operations in Argentina, China, Ecuador and Suriname. | |
[2] | Corporate and Other includes corporate overhead, intercompany eliminations and marketing. | |
[3] | Natural gas in Equatorial Guinea is under contract for $0.25 per MMBTU through 2026 to a methanol plant and an LPG plant. Both of these plants are owned by affiliated entities accounted for under the equity method of accounting. | |
[4] | Equity Investee LPG volumes include condensate and natural gas liquids of 1,623 Bpd and 4,181 Bpd, respectively. These volumes are included in West Africa production and LPG sales revenue. | |
[5] | Equity Investee LPG volumes include condensate and natural gas liquids of 1,572 Bpd and 5,282 Bpd, respectively. | |
[6] | Ecuador natural gas volumes are included in Other International and Consolidated production, but are not included in natural gas sales revenue for either. Because the gas-to-power project in Ecuador is 100 percent owned by Noble Energy, intercompany natural gas sales are eliminated for accounting purposes. | |
[7] | Barrels of oil equivalent for natural gas is calculated at a 6 to 1 ratio. |
SCHEDULE 6
NOBLE ENERGY, INC
INCOME BEFORE INCOME TAXES
(Dollars in thousands, except realized prices)
(Unaudited)
NOBLE ENERGY, INC
INCOME BEFORE INCOME TAXES
(Dollars in thousands, except realized prices)
(Unaudited)
Twelve Months Ended 12/31/05 | ||||||||||||||||||||||||||||
North | West | North | Other | Corporate | ||||||||||||||||||||||||
Consolidated | America | Africa | Sea | Israel | Int'l[1] | & Other[2] | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Oil sales | $ | 1,489,460 | $ | 847,251 | $ | 407,470 | $ | 91,478 | $ | — | $ | 143,261 | $ | — | ||||||||||||||
Gas sales | 1,211,781 | 1,089,339 | 6,212 | [3] | 23,754 | 92,373 | 103 | — | ||||||||||||||||||||
Equity investee liquids sales | — | — | 134,346 | — | — | — | (134,346 | ) | ||||||||||||||||||||
Equity investee methanol sales | — | — | 98,941 | — | — | — | (98,941 | ) | ||||||||||||||||||||
Gathering, marketing and processing | 27,876 | — | — | — | — | — | 27,876 | |||||||||||||||||||||
Electricity sales | 71,603 | — | — | — | — | 71,603 | — | |||||||||||||||||||||
Income from equity method investments | 139,362 | — | — | — | — | — | 139,362 | |||||||||||||||||||||
Total Revenues | 2,940,082 | 1,936,590 | 646,969 | 115,232 | 92,373 | 214,967 | (66,049 | ) | ||||||||||||||||||||
COSTS AND EXPENSES | ||||||||||||||||||||||||||||
Oil and gas operating costs | 270,136 | 205,348 | 26,557 | 11,655 | 9,066 | 16,793 | 717 | |||||||||||||||||||||
Workover and repair expense | 46,951 | 46,793 | [7] | — | — | — | 158 | — | ||||||||||||||||||||
Production and ad valorem taxes | 108,979 | 85,960 | — | — | — | 22,613 | 406 | |||||||||||||||||||||
Transportation | 28,542 | 20,728 | — | 7,010 | — | 804 | — | |||||||||||||||||||||
Oil and gas exploration | 167,924 | 128,086 | 7,329 | 10,522 | 286 | 11,539 | 10,162 | |||||||||||||||||||||
Gathering, marketing and processing | 18,664 | — | — | — | — | — | 18,664 | |||||||||||||||||||||
Equity investee liquids expense | — | — | 33,009 | — | — | — | (33,009 | ) | ||||||||||||||||||||
Equity investee methanol expense | — | — | 60,916 | — | — | — | (60,916 | ) | ||||||||||||||||||||
Electricity generation | 59,494 | — | — | — | — | 59,494 | — | |||||||||||||||||||||
DD&A | 622,608 | 543,431 | 23,620 | 8,123 | 13,947 | 25,900 | 7,587 | |||||||||||||||||||||
Impairment of operating assets | 8,525 | 8,525 | — | — | — | — | — | |||||||||||||||||||||
General and administrative | 164,541 | 60,710 | 4,656 | 3,346 | 111 | 2,118 | 93,600 | |||||||||||||||||||||
Accretion expense | 10,797 | 8,861 | 104 | 1,159 | 452 | 221 | — | |||||||||||||||||||||
Interest expense | 117,045 | — | — | — | — | — | 117,045 | |||||||||||||||||||||
Deferred compensation | 28,189 | — | — | — | — | — | 28,189 | |||||||||||||||||||||
(Gain) loss on derivative instruments | 392,367 | 392,367 | — | — | — | — | — | |||||||||||||||||||||
Loss on involuntary conversion | — | — | — | — | — | — | — | |||||||||||||||||||||
(Gain) loss on sale of assets | (219,577 | ) | (217,317 | ) | — | (2,397 | ) | 81 | 9 | 47 | ||||||||||||||||||
Other expense (income), net | 18,680 | 22,011 | (2,999 | ) | 3,011 | (2,888 | ) | 6,242 | (6,697 | ) | ||||||||||||||||||
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Total Costs and Expenses | 1,843,865 | 1,305,503 | 153,192 | 42,429 | 21,055 | 145,891 | 175,795 | |||||||||||||||||||||
OPERATING INCOME (LOSS) | $ | 1,096,217 | $ | 631,087 | $ | 493,777 | $ | 72,803 | $ | 71,318 | $ | 69,076 | $ | (241,844 | ) | |||||||||||||
KEY STATISTICS | ||||||||||||||||||||||||||||
SALES VOLUMES | ||||||||||||||||||||||||||||
Liquids (Bopd) | 74,915 | 45,798 | 17,860 | 3,717 | — | 7,540 | — | |||||||||||||||||||||
Natural Gas (Mcfpd) | 622,927 | 451,712 | 45,422 | [3] | 8,130 | 92,894 | 24,769 | [6] | — | |||||||||||||||||||
Equity Investee Liquids (Bopd) | 8,032 | — | 8,032 | [4] | — | — | — | — | ||||||||||||||||||||
Equity Investee Methanol (Kgal) | 109,942 | — | 109,942 | — | — | — | — | |||||||||||||||||||||
PRODUCTION VOLUMES | ||||||||||||||||||||||||||||
Liquids (Bopd) | 74,603 | 45,798 | 17,326 | 3,988 | — | 7,491 | — | |||||||||||||||||||||
Natural Gas (Mcfpd) | 622,927 | 451,712 | 45,422 | 8,130 | 92,894 | 24,769 | — | |||||||||||||||||||||
Equity Investee Liquids (Bopd) | 7,531 | — | 7,531 | [5] | — | — | — | — | ||||||||||||||||||||
Total Production Boepd[8] | 185,954 | 121,083 | 32,427 | 5,343 | 15,482 | 11,619 | — | |||||||||||||||||||||
AVERAGE REALIZED PRICE | ||||||||||||||||||||||||||||
Liquids | $ | 54.47 | $ | 50.68 | $ | 62.51 | $ | 67.43 | $ | — | $ | 52.05 | $ | — | ||||||||||||||
Natural Gas | 5.55 | 6.61 | 0.37 | 8.00 | 2.72 | 0.96 | — | |||||||||||||||||||||
Equity Investee Liquids | 45.83 | — | 45.83 | — | — | — | — | |||||||||||||||||||||
Equity Investee Methanol | 0.90 | — | 0.90 | — | — | — | — | |||||||||||||||||||||
[1] | Other international includes operations in Argentina, China, Ecuador and Suriname. | |
[2] | Corporate and Other includes corporate overhead, intercompany eliminations and marketing. | |
[3] | Natural gas in Equatorial Guinea is under contract for $0.25 per MMBTU through 2026 to a methanol plant and an LPG plant. Both of these plants are owned by affiliated entities accounted for under the equity method of accounting. Beginning in 2006, the price on an Mcf basis has been adjusted to reflect the Btu content. | |
[4] | Equity Investee LPG sales volumes include condensate and natural gas liquids of 1,738 Bpd and 6,294 Bpd, respectively. These volumes are included in West Africa production and LPG sales revenue. | |
[5] | Equity Investee LPG production volumes include condensate and natural gas liquids of 1,730 Bpd and 5,801 Bpd, respectively. | |
[6] | Ecuador natural gas volumes are included in Other International and Consolidated production, but are not included in natural gas sales revenue for either. Because the gas-to-power project in Ecuador is 100 percent owned by Noble Energy, intercompany natural gas sales are eliminated for accounting purposes. | |
[7] | Includes approximately $29.7 million of hurricane related repair expense. | |
[8] | Barrels of oil equivalent for natural gas is calculated at a 6 to 1 ratio. |
SCHEDULE 7
NOBLE ENERGY, INC
INCOME BEFORE INCOME TAXES
(Dollars in thousands, except realized prices)
(Unaudited)
NOBLE ENERGY, INC
INCOME BEFORE INCOME TAXES
(Dollars in thousands, except realized prices)
(Unaudited)
Twelve Months Ended 12/31/05 | ||||||||||||||||||||||||||||
North | West | North | Other | Corporate | ||||||||||||||||||||||||
Consolidated | America | Africa | Sea | Israel | Int'l[1] | & Other[2] | ||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||
Oil sales | $ | 942,778 | $ | 441,920 | $ | 275,958 | $ | 103,461 | $ | — | $ | 121,439 | $ | — | ||||||||||||||
Gas sales | 1,023,644 | 932,452 | 5,944 | 20,123 | 65,050 | 75 | — | |||||||||||||||||||||
Equity investee liquids sales | — | — | 51,389 | — | — | — | (51,389 | ) | ||||||||||||||||||||
Equity investee methanol sales | — | — | 125,716 | — | — | — | (125,716 | ) | ||||||||||||||||||||
Gathering, marketing and processing | 55,261 | — | — | — | — | — | 55,261 | |||||||||||||||||||||
Electricity sales | 74,228 | — | — | — | — | 74,228 | — | |||||||||||||||||||||
Income from equity method investments | 90,812 | — | — | — | — | — | 90,812 | |||||||||||||||||||||
Total Revenues | 2,186,723 | 1,374,372 | 459,007 | 123,584 | 65,050 | 195,742 | (31,032 | ) | ||||||||||||||||||||
COSTS AND EXPENSES | ||||||||||||||||||||||||||||
Oil and gas operating costs | 203,833 | 136,087 | 30,661 | 12,244 | 8,504 | 15,903 | 434 | |||||||||||||||||||||
Workover and repair expense | 14,027 | 13,734 | — | 259 | — | 34 | — | |||||||||||||||||||||
Production and ad valorem taxes | 78,703 | 65,428 | — | — | — | 12,888 | 387 | |||||||||||||||||||||
Transportation | 16,764 | 9,350 | — | 6,562 | — | 852 | — | |||||||||||||||||||||
Oil and gas exploration | 178,426 | 146,393 | 5,463 | 5,985 | 223 | 13,021 | 7,341 | |||||||||||||||||||||
Gathering, marketing and processing | 28,067 | — | — | — | — | — | 28,067 | |||||||||||||||||||||
Equity investee liquids expense | — | — | 17,473 | — | — | — | (17,473 | ) | ||||||||||||||||||||
Equity investee methanol expense | — | — | 68,820 | — | — | — | (68,820 | ) | ||||||||||||||||||||
Electricity generation | 53,137 | — | — | — | — | 53,137 | — | |||||||||||||||||||||
DD&A | 390,544 | 311,153 | 27,121 | 9,888 | 11,188 | 24,518 | 6,676 | |||||||||||||||||||||
Impairment of operating assets | 5,368 | 5,368 | — | — | — | — | — | |||||||||||||||||||||
General and administrative | 100,125 | 34,162 | 435 | 2,591 | 188 | 947 | 61,802 | |||||||||||||||||||||
Accretion expense | 11,214 | 9,590 | 51 | 1,134 | 281 | 158 | — | |||||||||||||||||||||
Interest expense | 87,541 | — | — | — | — | — | 87,541 | |||||||||||||||||||||
Deferred compensation | 17,918 | — | — | — | — | — | 17,918 | |||||||||||||||||||||
(Gain) loss on derivative instruments | 32,680 | 32,680 | — | — | — | — | — | |||||||||||||||||||||
Loss on involuntary conversion | 1,000 | 1,000 | — | — | — | — | — | |||||||||||||||||||||
(Gain) loss on sale of assets | (4,201 | ) | (13 | ) | — | (121 | ) | 75 | (1,179 | ) | (2,963 | ) | ||||||||||||||||
Other expense (income), net | 2,917 | 23,452 | (256 | ) | (3,482 | ) | (1,877 | ) | 264 | (15,184 | ) | |||||||||||||||||
Total Costs and Expenses | 1,218,063 | 788,384 | 149,768 | 35,060 | 18,582 | 120,543 | 105,726 | |||||||||||||||||||||
OPERATING INCOME (LOSS) | $ | 968,660 | $ | 585,988 | $ | 309,239 | $ | 88,524 | $ | 46,468 | $ | 75,199 | $ | (136,758 | ) | |||||||||||||
KEY STATISTICS | ||||||||||||||||||||||||||||
SALES VOLUMES | ||||||||||||||||||||||||||||
Liquids (Bopd) | 56,958 | 25,941 | 17,786 | 5,380 | — | 7,851 | — | |||||||||||||||||||||
Natural Gas (Mcfpd) | 508,195 | 343,953 | 65,581 | [3] | 9,299 | 66,377 | 22,985 | [6] | — | |||||||||||||||||||
Equity Investee Liquids (Bopd) | 3,240 | — | 3,240 | [4] | — | — | — | — | ||||||||||||||||||||
Equity Investee Methanol (Kgal) | 162,446 | — | 162,446 | — | — | — | — | |||||||||||||||||||||
PRODUCTION VOLUMES | ||||||||||||||||||||||||||||
Liquids (Bopd) | 57,012 | 25,941 | 17,691 | 5,201 | — | 8,179 | — | |||||||||||||||||||||
Natural Gas (Mcfpd) | 508,195 | 343,953 | 65,581 | 9,299 | 66,377 | 22,985 | — | |||||||||||||||||||||
Equity Investee Liquids (Bopd) | 3,728 | — | 3,728 | [5] | — | — | — | — | ||||||||||||||||||||
Total Production Boepd[7] | 145,440 | 83,267 | 32,349 | 6,751 | 11,063 | 12,010 | — | |||||||||||||||||||||
AVERAGE REALIZED PRICE | ||||||||||||||||||||||||||||
Liquids | $ | 45.35 | $ | 46.67 | $ | 42.51 | $ | 52.68 | $ | — | $ | 42.37 | $ | — | ||||||||||||||
Natural Gas | 5.78 | 7.43 | 0.25 | 5.93 | 2.68 | 1.10 | — | |||||||||||||||||||||
Equity Investee Liquids | 43.43 | — | 43.43 | — | — | — | — | |||||||||||||||||||||
Equity Investee Methanol | 0.77 | — | 0.77 | — | — | — | — | |||||||||||||||||||||
[1] | Other international includes operations in Argentina, China, Ecuador and Suriname. | |
[2] | Corporate and Other includes corporate overhead, intercompany eliminations and marketing. | |
[3] | Natural gas in Equatorial Guinea is under contract for $0.25 per MMBTU through 2026 to a methanol plant and an LPG plant. Both of these plants are owned by affiliated entities accounted for under the equity method of accounting. | |
[4] | Equity Investee LPG volumes include condensate and natural gas liquids of 912 Bpd and 2,328 Bpd, respectively. These volumes are included in Equatorial Guinea production and LPG sales revenue. | |
[5] | Equity Investee LPG production volumes include condensate and natural gas liquids of 928 Bpd and 2,800 Bpd, respectively. | |
[6] | Ecuador natural gas volumes are included in Other International and Consolidated production, but are not included in natural gas sales revenue for either. Because the gas-to-power project in Ecuador is 100 percent owned by Noble Energy, intercompany natural gas sales are eliminated for accounting purposes. | |
[7] | Barrels of oil equivalent for natural gas is calculated at a 6 to 1 ratio. |
SCHEDULE 8
NOBLE ENERGY, INC. AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED NET INCOME TO ADJUSTED NET INCOME (NON-GAAP)
(In Thousands)
(Unaudited)
NOBLE ENERGY, INC. AND SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED NET INCOME TO ADJUSTED NET INCOME (NON-GAAP)
(In Thousands)
(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||
12/31/2006 | 12/31/2006 | |||||||
NET INCOME | $ | 164,981 | $ | 678,428 | ||||
AFTER TAX NON-GAAP ADJUSTMENTS TO NET INCOME: | ||||||||
Gain on sale of Gulf of Mexico shelf assets | (7,110 | ) | (210,575 | ) | ||||
Tax provision for gain on sale | 2,702 | 118,019 | ||||||
Reclassification of associated cash flow hedges | — | 398,516 | [1] | |||||
Tax provision for hedge reclassification | — | (149,842 | ) | |||||
Deferred compensation | 12,516 | 28,189 | ||||||
Tax provision for deferred compensation | (4,706 | ) | (10,599 | ) | ||||
Increase in litigation reserve[2] | 15,500 | 15,500 | ||||||
Tax provision for increase in litigation reserve | (5,828 | ) | (5,828 | ) | ||||
ADJUSTED (NON-GAAP) NET INCOME [3] | $ | 178,055 | $ | 861,808 | ||||
[1] | Approximately $30.7 million pretax ($19.2 million after tax) of these losses were related to contracts that settled during the second half of 2006. | |
[2] | The increase to litigation reserves was for certain royalty matters. The parties have agreed to settlement terms, subject to court approval. | |
[3] | The table above reconciles net income to adjusted net income. While adjusted net income is not a GAAP measure of financial performance, management believes it is a good tool for internal use and the investment community in evaluating the Company’s overall financial performance. |
SCHEDULE 9
NOBLE ENERGY, INC.
PRETAX CASH FLOW HEDGES EARNINGS IMPACT
(Dollars in thousands)
(Unaudited)
NOBLE ENERGY, INC.
PRETAX CASH FLOW HEDGES EARNINGS IMPACT
(Dollars in thousands)
(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
12/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||
(DECREASE) INCREASE OF OIL AND GAS SALES: | ||||||||||||||||
Cash settlement crude oil contracts | $ | (31,042 | ) | $ | (37,192 | ) | $ | (190,730 | ) | $ | (140,486 | ) | ||||
Cash settlement natural gas contracts | 413 | (68,998 | ) | (69,063 | ) | (97,206 | ) | |||||||||
Total cash settlements | (30,629 | ) | (106,190 | ) | (259,793 | ) | (237,692 | ) | ||||||||
Non-cash impact of loss associated with Gulf of Mexico shelf asset sale | 17,236 | — | 27,365 | — | ||||||||||||
Net decrease (increase) of oil and gas sales | (13,393 | ) | (106,190 | ) | (232,428 | ) | (237,692 | ) | ||||||||
(LOSS) GAIN ON DERIVATIVE INSTRUMENTS: | ||||||||||||||||
(Loss) gain associated with Gulf of Mexico shelf asset sale | — | — | (398,517 | ) | — | |||||||||||
(Loss) gain from ineffectiveness and other | (2,644 | ) | (30,559 | ) | 6,150 | (32,680 | ) | |||||||||
(Loss) gain on derivative instruments | (2,644 | ) | (30,559 | ) | (392,367 | ) | (32,680 | ) | ||||||||
PRETAX EARNINGS (DECREASE) INCREASE | $ | (16,037 | ) | $ | (136,749 | ) | $ | (624,795 | ) | $ | (270,372 | ) | ||||
IMPACT OF LOSS ASSOCIATED WITH GULF OF MEXICO SHELF ASSET SALE
(DOLLARS IN THOUSANDS)
(Unaudited)
(DOLLARS IN THOUSANDS)
(Unaudited)
(LOSS) GAIN ASSOCIATED WITH GULF OF MEXICO SHELF ASSET SALE (2Q 2006) | $ | (398,517 | ) | |
REDESIGNATED CONTRACTS SETTLED (3Q AND 4Q 2006) | 27,365 | |||
MARK TO MARKET CONTRACTS SETTLED (3Q AND 4Q 2006) | 3,286 | |||
UNSETTLED (LOSS) GAIN ASSOCIATED WITH GULF OF MEXICO SHELF ASSET SALE | $ | (367,866 | ) |
Crude Oil | Natural Gas | Total | ||||||||||
SETTLEMENT SCHEDULE | ||||||||||||
1Q 2007 | $ | — | $ | 51,029 | $ | 51,029 | ||||||
2Q 2007 | — | 39,589 | 39,589 | |||||||||
3Q 2007 | — | 42,404 | 42,404 | |||||||||
4Q 2007 | — | 49,402 | 49,402 | |||||||||
1Q 2008 | 5,979 | 54,529 | 60,508 | |||||||||
2Q 2008 | 5,835 | 32,191 | 38,026 | |||||||||
3Q 2008 | 5,763 | 34,055 | 39,818 | |||||||||
4Q 2008 | 5,633 | 41,457 | 47,090 | |||||||||
REMAINING SETTLEMENTS | $ | 23,210 | $ | 344,656 | $ | 367,866 | ||||||
Schedule 10
NOBLE ENERGY, INC.
ECUADOR POWER OPERATIONS
(Dollars in thousands, except realized prices)
(Unaudited)
ECUADOR POWER OPERATIONS
(Dollars in thousands, except realized prices)
(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
12/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||
REVENUES | ||||||||||||||||
Power Sales | $ | 20,263 | $ | 17,215 | $ | 63,710 | $ | 66,348 | ||||||||
Capacity Charge | 1,668 | 2,035 | 7,893 | 7,880 | ||||||||||||
Total Revenues | 21,931 | 19,250 | 71,603 | 74,228 | ||||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Field | ||||||||||||||||
Lease Operating | 902 | 785 | 3,021 | 3,000 | ||||||||||||
DD&A | 3,280 | 3,021 | 11,617 | 12,251 | ||||||||||||
General and administrative | 1,245 | 1,073 | 3,102 | 2,612 | ||||||||||||
Plant | ||||||||||||||||
Fuel & Other Operating Costs | 8,728 | 8,198 | 30,389 | 25,599 | ||||||||||||
DD&A | 1,188 | 1,056 | 4,693 | 4,225 | ||||||||||||
General and administrative | 1,052 | 1,367 | 6,672 | 5,450 | ||||||||||||
Total Costs and Expenses | 16,395 | 15,500 | 59,494 | 53,137 | ||||||||||||
OPERATING (LOSS) INCOME | $ | 5,536 | $ | 3,750 | $ | 12,109 | $ | 21,091 | ||||||||
Natural Gas Production (Mcfpd) | 29,550 | 25,831 | 24,474 | 22,795 | ||||||||||||
Average Natural Gas Price | $ | 3.76 | $ | 3.76 | $ | 3.76 | $ | 3.83 | ||||||||
Power Production — Total MW | 262,470 | 233,436 | 865,983 | 799,160 | ||||||||||||
Average Power Price ($/Kwh) | $ | 0.084 | $ | 0.083 | $ | 0.083 | $ | 0.093 | ||||||||
SCHEDULE 11
INCOME FROM EQUITY METHOD INVESTEES
INCOME FROM EQUITY METHOD INVESTEES
METHANOL OPERATIONS
(Dollars in thousands, except realized prices)
(Unaudited)
(Dollars in thousands, except realized prices)
(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
12/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||
REVENUES | ||||||||||||||||
Methanol sales | $ | 27,974 | $ | 30,767 | $ | 98,941 | $ | 125,716 | ||||||||
Other | 1,865 | 1,173 | 9,823 | 5,786 | ||||||||||||
Total revenues | 29,839 | 31,940 | 108,764 | 131,502 | ||||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Cost of goods sold | 11,494 | 11,751 | 46,070 | 45,991 | ||||||||||||
DD&A | 3,364 | 2,371 | 10,439 | 9,370 | ||||||||||||
General and administrative | 763 | 1,123 | 2,167 | 2,762 | ||||||||||||
Total costs and expenses | 15,621 | 15,245 | 58,676 | 58,123 | ||||||||||||
INCOME TAX PROVISION | 3,607 | 4,077 | 12,064 | 16,483 | ||||||||||||
INCOME (LOSS) FROM EQUITY METHOD INVESTEES | $ | 10,611 | $ | 12,618 | $ | 38,024 | $ | 56,896 | ||||||||
Methanol Sales (MGal) | 24,709 | 40,190 | 109,942 | 162,446 | ||||||||||||
Average Realized Price ($/Gal) | $ | 1.13 | $ | 0.77 | $ | 0.90 | $ | 0.77 |
ALBA PLANT
(Dollars in thousands, except realized prices)
(Unaudited)
(Dollars in thousands, except realized prices)
(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
12/31/2006 | 12/31/2005 | 12/31/2006 | 12/31/2005 | |||||||||||||
REVENUES | ||||||||||||||||
LPG Plant Sales | $ | 29,626 | $ | 25,326 | $ | 134,346 | $ | 51,389 | ||||||||
Other | (150 | ) | 461 | 807 | 4,505 | |||||||||||
Total Revenues | 29,476 | 25,787 | 135,153 | 55,894 | ||||||||||||
COSTS AND EXPENSES | ||||||||||||||||
LPG Plant Expenses | 8,851 | 3,656 | 28,072 | 9,548 | ||||||||||||
DD&A | 1,746 | 726 | 6,679 | 3,938 | ||||||||||||
Total Costs and Expenses | 10,597 | 4,382 | 34,751 | 13,486 | ||||||||||||
INCOME TAX PROVISION | (971 | ) | 4,478 | (936 | ) | 8,492 | ||||||||||
INCOME (LOSS) FROM EQUITY METHOD INVESTEES | $ | 19,850 | $ | 16,927 | $ | 101,338 | $ | 33,916 | ||||||||
LPG Plant Sales (Bopd) | 7,625 | 5,804 | 8,032 | 3,240 | ||||||||||||
Average Realized Price ($/Bbl) | $ | 42.23 | $ | 47.43 | $ | 45.83 | $ | 43.43 |