EXHIBIT 99.1
[NOBLE ENERGY LOGO APPEARS HERE]
NEWS RELEASE
CONTACT: Greg Panagos: 281-872-3125
Investor_Relations@nobleenergyinc.com
CORRECTED FOR SECOND QUARTER 2003 DOMESTIC PRICES
-------------------------------------------------
NOBLE ENERGY, INC. ANNOUNCES SECOND QUARTER 2003 RESULTS
Net Income and Discretionary Cash Flow Increase 70 Percent and 26 Percent,
Respectively
HOUSTON (July 23, 2003) -- Noble Energy, Inc. (NYSE: NBL) today reported second
quarter net income increased 70 percent to $29.1 million, or 51 cents per share,
compared to net income of $17.1 million, or 30 cents per share, for the same
period last year. Discretionary cash flow (see Determination of Discretionary
Cash Flow and Reconciliation schedule) for the second quarter 2003 increased 26
percent to $152.3 million compared to $121.0 million last year.
Discontinued operations reported a net loss of $2.0 million, which included a
non-cash, after-tax charge of $3.2 million to write down the assets held for
sale to their estimated fair value. Excluding the effect of the non-cash write
down of assets held for sale, net income would have been $32.3 million, or 56
cents per share.
Noble Energy has five property packages identified for disposition. During the
second quarter, certain properties in two of these packages were classified as
held for sale, written down to fair value and reported in discontinued
operations (see Discontinued Operations Summary schedule). Following disposition
of these two packages, a net gain on sale will be recognized in the third
quarter. The book value of certain properties in the remaining packages may be
adjusted in future quarters.
The increase in reported net income and discretionary cash flow versus the
second quarter last year primarily reflected higher realized commodity prices.
The company's improved financial performance also resulted from the recent
start-up of two significant international projects, production from the Cheng
Dao Xi (CDX) field in south Bohai Bay in China and production from the company's
offshore Amistad natural gas field and associated electrical power production in
Ecuador. As a result, Noble Energy experienced strong year-on-year financial and
operating improvements.
Realized natural gas prices for the second quarter 2003 were $4.11 per thousand
cubic feet (Mcf), 34 percent above last year's $3.07 per Mcf. Realized crude oil
prices were $25.84 per barrel (Bbl), an increase of six percent compared to
$24.40 per Bbl for the second quarter 2002. Realized methanol prices were 72
cents per gallon (Gal) for the second quarter 2003, an increase of 85 percent
over 39 cents per Gal for the same period last year.
Charles D. Davidson, the company's Chairman, President and CEO, said, "The
company continues to generate improved operating and financial results. Our
domestic drilling and production programs maintained the momentum begun in the
first quarter, as reflected in our strong quarter-to-quarter production growth.
Likewise, international operations continued to show strong results, while our
natural gas project in Israel and expansion in Equatorial Guinea rapidly
approach start-up later this year. In addition, the company's solid first half
earnings and cash flow have led to a continual strengthening of our balance
sheet."
Reported production, net of adjustments for discontinued operations, increased
over two percent compared to the first quarter 2003, to 101,055 barrels of oil
equivalent per day (Boepd) from 98,859 Boepd. Reported domestic operations had a
quarter-to-quarter production increase of six percent compared to the first
quarter 2003, with increased production of both natural gas and oil.
International volumes decreased four percent compared to the first quarter 2003,
primarily reflecting a seasonal reduction in electricity dispatch and consequent
reduction in natural gas volumes in Ecuador, as well as lower North Sea natural
gas volumes. Partially offsetting lower volumes in Ecuador and the North Sea was
an increase in crude oil volumes in the
Bohai Bay in China. Overall production volumes for the second quarter, adding
back the production associated with discontinued operations, were 103,466 Boepd.
Second quarter 2003 reported production volumes increased seven percent to
101,055 Boepd from 94,051 Boepd for the same period last year. The increase in
volumes was attributable to the start-up of production in China and Ecuador, as
well as a substantial increase in production volumes in Equatorial Guinea,
partially offset by lower domestic volumes.
Reported oil and gas operating costs for the three months ending June 30, 2003
were $4.50 per barrel of oil equivalent (BOE) compared to $3.18 per BOE for the
same period last year. The quarter-on-quarter increase in per BOE oil and gas
operating costs was primarily due to increased production taxes resulting from
higher natural gas and crude oil prices and increased ad valorem taxes. The
start-up of new international properties and their associated costs also
contributed to higher operating costs.
Reported depreciation, depletion and amortization increased to $8.59 per BOE,
compared to $8.19 per BOE in the second quarter of 2002. The increase was
primarily due to higher finding costs in the Gulf of Mexico shallow shelf in
prior years and the initial capital carry associated with the company's joint
venture with Aspect Energy. Adoption of SFAS No. 143 as of January 1, 2003,
which relates to accounting for abandonment costs, also contributed to higher
depreciation, depletion and amortization.
For the first six months of 2003, net income was $63.9 million, or $1.12 per
share, compared to net income of $2.0 million, or four cents per share, last
year. Discretionary cash flow for the first half of 2003 was $328.3 million
compared to $212.3 million for the same period last year. The year-on-year
increase in net income and discretionary cash flow resulted from higher
commodity prices and increased production volumes.
DOMESTIC OPERATIONS
Domestic operations reported operating income after discontinued operations for
the second quarter of $44.7 million, including a $4.9 million non-cash, pre-tax
charge for the write down of assets held for sale to their estimated fair value,
compared to operating income of $38.0 million for the second quarter last year.
Domestic operations benefited from higher realized prices for crude oil and
natural gas during the quarter, which increased ten percent and 58 percent,
respectively, compared to the second quarter of 2002. The average domestic
realized crude oil price was $25.60 per Bbl compared to $23.85 per Bbl during
the second quarter of 2002. The average domestic realized natural gas price was
$4.73 per Mcf compared to $3.32 per Mcf last year.
Compared to the first quarter 2003, domestic production volumes increased six
percent to 69,033 Boepd from 65,351 Boepd. Onshore operations contributed to the
volume increase with successful drilling results in early 2003 and timely
pipeline hook-ups of these wells. With the start up of two large deepwater
projects during the first quarter, Green Canyon 136 #8 (Shasta) and the Green
Canyon 282 (Boris #1), Noble Energy's offshore operations also contributed to
the quarter-to-quarter increase in volumes.
Domestic production volumes declined to 69,033 Boepd in the second quarter of
2003 from 71,412 Boepd last year. The decline in production volumes was
primarily due to natural decline rates in the Gulf of Mexico and onshore Gulf
Coast region.
In the deepwater Gulf of Mexico, Noble Energy announced a discovery on Green
Canyon Block 199 (Lorien) in July. The Lorien well, in which Noble Energy has a
20 percent working interest, encountered over 120 feet of apparent oil in a
high-quality reservoir interval. The company and its partners have temporarily
suspended the well pending further appraisal of the hydrocarbon zone that has
been encountered.
2
In May, Noble Energy announced a deep shelf discovery at Louisiana State Lease
340 #1 (Mound Point). The well was drilled and evaluated to a measured depth of
19,024 feet. Noble Energy and its partners are completing the Mound Point well,
and production is expected to commence early in the fourth quarter of 2003.
Noble Energy owns a 25 percent working interest in the well.
In the traditional Gulf of Mexico shallow shelf, Vermillion 196 #A-2 (25 percent
to Noble Energy) was completed as a discovery well in March 2003. Net to Noble
Energy, the well is currently producing at a rate of 5 million cubic feet
equivalent per day.
Noble Energy's domestic onshore operations remained active during the first half
of 2003, drilling 38 exploration and development wells with 21 successes. The
company plans to drill a total of 72 onshore wells in 2003, of which 37 are
scheduled for the Gulf Coast area and 35 are scheduled for the Mid-continent and
Rocky Mountain areas.
INTERNATIONAL OPERATIONS
International operations reported operating income for the second quarter of
$22.5 million compared to operating income of $14.9 million in the second
quarter last year. The quarter-on-quarter increase in international operations
reflects an increase in liquids and natural gas production volumes, as well as
methanol sales, in Equatorial Guinea. The start-up of production in China also
contributed to improved quarter-on-quarter earnings, but was offset by a $10.4
million pre-tax exploration charge for the Hannah #1 well offshore Israel and
the Joppa and Fleet wells in the North Sea.
International operations benefited from higher realized prices for crude oil
during the quarter, which increased four percent compared to the second quarter
of 2002. The average international realized crude oil price was $26.08 per Bbl
compared to $24.97 per Bbl during the second quarter of 2002. The average
international realized natural gas price, excluding Ecuador, decreased 35
percent to $1.00 per Mcf, compared to $1.53 per Mcf last year. The decrease in
realized natural gas prices primarily resulted from a 153 percent
quarter-on-quarter increase in natural gas sales in Equatorial Guinea at a sales
price of 25 cents per MMBTU.
Second quarter 2003 international production volumes increased 41 percent to
32,022 Boepd from 22,639 Boepd last year. The increase in production volumes was
primarily due to the start-up of crude oil production in China and natural gas
production in Ecuador. Additional natural gas and condensate production in
Equatorial Guinea also contributed to increased volumes.
Equatorial Guinea
Total operating income in Equatorial Guinea, which includes results from field
operations and methanol, for the second quarter of 2003 was $21.7 million
compared to $3.6 million last year.
Liquid petroleum gas (LPG), natural gas and condensate sales accounted for $9.8
million, or 45 percent, of operating income from Equatorial Guinea. Second
quarter 2003 production volumes averaged 13,607 Boepd, a 71 percent increase
over last year, primarily because the methanol plant was shut down for repairs
for 65 days during the second quarter of 2002. The average realized price for
liquids during the second quarter was $25.28 per Bbl compared to $22.90 per Bbl
for the same period last year. Natural gas was sold to the Atlantic Methanol
Production Company (AMPCO) at a price of 25 cents per MMBTU.
AMPCO, an unconsolidated subsidiary in which the company owns a 45 percent
interest, produced $11.9 million of operating income net to Noble Energy's
interest. AMPCO results are reported as income from unconsolidated subsidiaries.
Second quarter realized methanol prices averaged 72 cents per Gal compared to 39
cents per Gal last year. The company's share of AMPCO methanol sales volumes
more than doubled to 29.8 million Gal compared to 13.9 million Gal for the
second quarter of 2002, primarily reflecting a full quarter of production versus
last year's 65 day shutdown for repairs.
3
North Sea
In the North Sea, operating income for the second quarter of 2003 was $2.6
million compared to $10.8 million last year. The quarter-on-quarter decline in
operating income primarily reflects increased exploration expense resulting from
the Joppa and Fleet exploration wells, which were determined to be
non-commercial.
North Sea production for the second quarter of 2003 was 9,677 Boepd compared to
11,286 Boepd last year, reflecting natural field decline.
Noble Energy participated in a successful well in U.K. block 15/20a (Jura).
Studies are underway to determine the optimum development scenarios. An
appraisal well may be drilled in the future. Noble Energy has a 30 percent
working interest in this well.
Other International
Other international includes operating results from Argentina, China, Ecuador,
Israel and Vietnam.
In south Bohai Bay offshore China, production commenced from the CDX field on
January 13, 2003. Production for the second quarter 2003 averaged 3,600 barrels
of oil per day, net to Noble Energy. The company expects production volumes to
increase gradually as wells and facility operations are optimized. Noble Energy
has a 57 percent working interest in this project.
Noble Energy's Machala power plant reported an operating loss of $0.9 million
during the second quarter 2003. During the quarter, 111,666 megawatts (MW) were
produced at an average sales price of 8.3 cents per kilowatt hour (Kwh),
compared to 223,206 MW produced at an average sales price of 8.7 cents during
the first quarter. For the second quarter 2003, Noble Energy produced 12.7
million cubic feet per day (MMcfpd) of natural gas from the Amistad field at an
average price of $3.88 per Mcf. Second quarter 2003 natural gas volumes declined
51 percent compared to 25.7 MMcfpd for the first quarter. The quarter-to-quarter
decline in MW produced and natural gas volumes was due to the onset of the rainy
season in Ecuador, which resulted in increased reliance on hydroelectric power
production, and scheduled maintenance on the Machala power facility.
Noble Energy is one of the nation's leading independent energy companies and
operates throughout major basins in the United States including the Gulf of
Mexico, as well as internationally, in Argentina, China, Ecuador, Equatorial
Guinea, the Mediterranean Sea, the North Sea and Vietnam. Noble Energy markets
natural gas and crude oil through its subsidiary, Noble Energy Marketing, Inc.
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.
-xxx-
PR 236 7/23/03
4
NOBLE ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF RESULTS
(Unaudited) (In thousands, except per share)
Three Months Ended Six Months Ended
----------------------- -----------------------
6/30/2003 6/30/2002 6/30/2003 6/30/2002
--------- --------- --------- ---------
REVENUES
Oil and Gas Sales and Royalities $ 226,384 $ 175,966 468,177 317,645
Gathering, Marketing and Processing 19,880 13,876 37,780 28,657
Electricity Sales 9,181 28,506
Income (Loss) From Unconsol, Subs. 11,874 (3,480) 24,606 (3,905)
Other Income (Loss) (5,866) (135) (5,697) 2,872
--------- --------- --------- ---------
261,453 186,227 553,372 345,269
========= ========= ========= =========
COST AND EXPENSES
Oil and Gas Operations 41,416 27,254 84,869 57,709
Transporation 3,580 4,444 7,119 9,217
Oil and Gas Exploration 34,676 20,233 70,078 56,638
Gathering, Marketing and Processing 15,538 11,850 33,982 24,935
Electricity Generation 10,035 23,621
Depreciation, Depletion and Amortization 78,988 70,090 157,779 141,988
Selling, General and Administrative 14,945 12,083 28,574 23,406
Interest Expense 17,782 16,694 35,572 32,113
Interest Capitalized (3,253) (4,732) (5,183) (9,083)
--------- --------- --------- ---------
213,707 157,916 436,411 336,923
========= ========= ========= =========
INCOME (LOSS) BEFORE INCOME TAXES 47,746 28,311 116,961 8,346
INCOME TAX PROVISION (BENEFIT)
Current 21,560 5,762 45,802 1,720
Deferred (4,899) 5,836 226 4,276
--------- --------- --------- ---------
16,661 11,598 46,028 5,996
========= ========= ========= =========
INCOME (LOSS) BEFORE DISCONTINUED
OPERATIONS AND CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING PRINCIPLE 31,085 16,713 70,933 2,350
DISCONTINUED OPERATIONS (NET OF TAX) (2,015) 406 (1,167) (329)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET OF TAX (5,839)
--------- --------- --------- ---------
NET INCOME (LOSS) $ 29,070 $ 17,119 $ 63,927 $ 2,021
========= ========= ========= =========
INCOME (LOSS) PER SHARE BEFORE
DISCONTINUED OPERATIONS AND
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE $ 0.54 $ 0.29 $ 1.24 $ 0.04
INCOME (LOSS) PER SHARE FROM
DISCONTINUED OPERATIONS $ (0.04) $ 0.01 $ (0.02) $ (0.01)
INCOME (LOSS) PER SHARE FROM
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PORINCIPLE $ - $ - $ (0.10) $ -
NET INCOME (LOSS) PER SHARE $ 0.51 $ 0.30 $ 1.12 $ 0.04
========= ========= ========= =========
AVERAGE SHARES OUTSTANDING 57,181 57,171 57,278 57,094
NOBLE ENERGY, INC. AND SUBSIDIARIES
DETERMINATION OF DISCRETIONARY CASH FLOW AND RECONCILIATION
(Unaudited) (In thousands)
Three Months Ended Six Months Ended
----------------------- -----------------------
6/30/2003 6/30/2002 6/30/2003 6/30/2002
--------- --------- --------- ---------
Net income (Loss) $ 29,070 $ 17,119 63,927 2,021
Depreciation, Depletion and
Amortization (DD&A) 78,988 70,090 157,779 141,988
Power Project DD&A 4,716 12,281
Oil and Gas Exploration 34,676 20,233 70,078 56,638
Interest Capitalized (3,253) (4,732) (5,183) (9,083)
Undistributed (Earnings) Loss From
Unconsol.Subs. (11,874) 3,480 (24,606) 3,905
Distributed From Uncolsol.Subs. 15,750 5,988 28,125 5,988
Discontinued Operations 6,838 2,959 10,323 6,563
Change in Accounting Principle 5,839
Allowance for Doubtful Accounts 4,936
Deferred Income Tax Provision (Benefit) (4,899) 5,836 226 4,276
Accretion of Interest Expense - SFAS 143 2,281 4,614
--------- --------- --------- ---------
DISCRETIONARY CASH FLOW* $ 152,293 $ 120,973 $ 328,339 $ 212,296
Adjustments to Reconcile:
Working Capital $ (4,774) $ 26,973 $ (11,515) $ 4,939
Cash Exploration Costs (10,392) (9,092) (19,678) (18,677)
Capitalized Interest 3,253 4,732 5,183 9,083
Deferred Tax, Misc. Credits and Other 9,455 (30,314) 5,879 (20,198)
--------- --------- --------- ---------
Net Cash Provided by Operating
Activities $ 149,835 $ 113,272 $ 308,208 $ 187,443
========= ========= ========= =========
* 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.
===============================================================================
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited) (In thousands)
----------- -----------
6-30-03 12-31-02
----------- -----------
ASSETS
Current Assets $ 352,573 $ 310,374
----------- -----------
Property, Plant and Equipment 4,512,817 4,334,015
Less: Accumulated Depreciation (2,261,838) (2,194,230)
----------- -----------
2,250,979 2,139,785
Investment In Unconsol.Subs. 230,922 234,668
Other 40,947 45,188
----------- -----------
$ 2,875,421 $ 2,730,015
=========== ===========
LIABILITIES AND SHAREHOLDERS EQUITY
Current Liabilities $ 514,587 $ 471,754
Long-term Debt 940,933 977,116
Deferred Income Taxes Other Deferred Credits
and Noncurrent Liabilities 385,594 271,759
Shareholders' Equity 1,034,307 1,009,386
----------- -----------
$ 2,875,421 $ 2,730,015
=========== ===========
NOBLE ENERGY, INC.
INCOME BEFORE INCOME TAXES
(Unaudited) (Dollars in thousands)
============================================================================================================================
THREE MONTHS ENDED 06/30/03
EQUATORIAL OTHER CORPORATE
CONSOLIDATED DOMESTIC NORTH SEA GUINEA INTERNATIONAL(1) AND OTHER(2)
REVENUES
Oil Sales $ 93,611 $ 45,927 $ 17,490 $ 14,259 $ 15,935
Gas Sales(3) 132,773 127,428 4,295 1,011 39
Gathering, Marketing
and Processing Revenue 19,880 19,880
Electricity Sales 9,181 9,181
Income from Unconsolidated
Subsidiaries 11,874 11,874
Other (5,866) (4,898) 202 (426) (744)
----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 261,453 168,457 21,987 27,144 24,729 19,136
COSTS AND EXPENSES
Oil and Gas Operations 41,416 29,644 2,788 3,882 4,258 844
Transporation 3,580 2,315 1,265
Oil and Gas Exploration 34,676 21,683 6,847 4 5,698 444
Gathering, Marketing and
Processing Expense 15,538 15,538
Electricity Generation 10,035 10,035
DD&A 78,988 64,880 7,414 1,431 4,689 574
SG&A 14,945 4,419 97 641 9,788
Interest Expense (net) 14,529 14,529
----------- ----------- ----------- ----------- ----------- -----------
Total Costs and Expenses 213,707 120,626 19,364 5,414 26,586 41,717
OPERATING INCOME (LOSS) $ 47,746 $ 47,831 $ 2,623 $ 21,730 $ (1,857) $ (22,581)
Discontinued Operations (3,100) (3,100)
----------- ----------- ----------- ----------- ----------- -----------
PRETAX INCOME (LOSS) AFTER
DISCONTINUED OPERATIONS $ 44,646 $ 44,731 $ 2,623 $ 21,730 $ (1,857) $ (22,581)
=========== =========== =========== =========== =========== ===========
KEY STATISTICS
DAILY PRODUCTION
Liquids (Bbl) 39,804 19,711 7,438 6,198 6,457
Natural Gas (Mcf) 367,506 295,930 13,431 44,455 13,690
AVERAGED REALIZED PRICE
Liquids $ 25.84 $ 25.60 $ 25.84 $ 25.28 $ 27.12
Natural Gas $ 4.11 $ 4.73 $ 3.51 $ 0.25 $ 0.41
============================================================================================================================
============================================================================================================================
THREE MONTHS ENDED 06/30/02
EQUATORIAL OTHER CORPORATE
CONSOLIDATED DOMESTIC NORTH SEA GUINEA INTERNATIONAL(1) AND OTHER(2)
REVENUES
Oil Sales $ 74,139 $ 36,946 $ 18,591 $ 10,504 $ 8,084 14
Gas Sales(3) 101,827 96,996 4,721 397 110 (397)
Gathering, Marketing
and Processing Revenue 13,876 13,876
Electricity Sales -
Income from Unconsolidated
Subsidiaries (3,480) (3,480)
Other (135) (1,403) 322 72 874
----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 186,227 132,539 23,634 7,421 8,266 14,367
COSTS AND EXPENSES
Oil and Gas Operations 27,254 22,367 2,819 2,411 (762) 419
Transporation 4,444 2,288 2,156
Oil and Gas Exploration 20,233 9,375 876 (38) 2,431 7,589
Gathering, Marketing and
Processing Expense 11,850 11,850
Electricity Generation -
DD&A 70,090 58,996 6,650 927 2,929 588
SG&A 12,083 4,468 228 517 957 5,913
Interest Expense (net) 11,962 11,962
----------- ----------- ----------- ----------- ----------- -----------
Total Costs and Expenses 157,916 95,206 12,861 3,817 7,711 38,321
OPERATING INCOME (LOSS) $ 28,311 $ 37,333 $ 10,773 $ 3,604 $ 555 $ (23,954)
Discontinued Operations 625 625
----------- ----------- ----------- ----------- ----------- -----------
PRETAX INCOME (LOSS) AFTER
DISCONTINUED OPERATIONS $ 28,936 $ 37,958 $ 10,773 $ 3,604 $ 555 (23,954)
=========== =========== =========== =========== =========== ===========
KEY STATISTICS
DAILY PRODUCTION
Liquids (Bbl) 33,393 17,030 8,179 5,040 3,144
Natural Gas (Mcf) 363,949 326,291 18,643 17,592 1,423
AVERAGED REALIZED PRICE
Liquids $ 24.40 $ 23.85 $ 24.98 $ 22.90 $ 28.25
Natural Gas $ 3.07 $ 3.32 $ 2.78 $ 0.25 $ 0.85
============================================================================================================================
============================================================================================================================
SIX MONTHS ENDED 06/30/03
EQUATORIAL OTHER CORPORATE
CONSOLIDATED DOMESTIC NORTH SEA GUINEA INTERNATIONAL(1) AND OTHER(2)
REVENUES
Oil Sales $ 190,511 $ 87,001 $ 41,089 $ 31,159 $ 31,262
Gas Sales(3) 277,666 265,975 9,644 1,981 66
Gathering, Marketing
and Processing Revenue 37,780 37,780
Electricity Sales 28,506 28,506
Income from Unconsolidated
Subsidiaries 24,606 24,606
Other (5,697) (5,927) 179 (588) 639
----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 553,372 347,049 50,912 57,746 59,246 38,419
COSTS AND EXPENSES
Oil and Gas Operations 84,869 59,713 5,723 8,167 9,087 2,179
Transporation 7,119 4,583 2,536
Oil and Gas Exploration 70,078 42,904 7,452 50 18,738 934
Gathering, Marketing and
Processing Expense 33,982 33,982
Electricity Generation 23,621 23,621
DD&A 157,779 129,273 15,141 3,606 8,727 1,032
SG&A 28,574 8,607 157 1,481 18,329
Interest Expense (net) 30,389 30,389
----------- ----------- ----------- ----------- ----------- -----------
Total Costs and Expenses 436,411 240,497 32,899 11,980 64,190 86,845
OPERATING INCOME (LOSS) $ 116,961 $ 106,552 $ 18,013 $ 45,766 $ (4,944) (48,426)
Discontinued Operations (1,796) (1,796)
Cumulative Effect of
SFAS 143 (8,983) (8,983)
----------- ----------- ----------- ----------- ----------- -----------
PRETAX INCOME (LOSS) AFTER
DISCONTINUED OPERATIONS
AND CUMULATIVE EFFECT $ 106,182 $ 95,773 $ 18,013 $ 45,766 $ (4,944) $ (48,426)
=========== =========== =========== =========== =========== ===========
KEY STATISTICS
DAILY PRODUCTION
Liquids (Bbl) 38,179 18,516 7,515 6,227 5,921
Natural Gas (Mcf) 370,707 292,120 14,495 43,949 20,143
AVERAGED REALIZED PRICE
Liquids $ 27.57 $ 28.36 $ 30.21 $ 27.64 $ 29.17
Natural Gas $ 4.36 $ 4.93 $ 3.68 $ 0.25 $ 0.37
============================================================================================================================
============================================================================================================================
SIX MONTHS ENDED 06/30/02
EQUATORIAL OTHER CORPORATE
CONSOLIDATED DOMESTIC NORTH SEA GUINEA INTERNATIONAL(1) AND OTHER(2)
REVENUES
Oil Sales $ 133,537 $ 64,800 $ 34,468 $ 20,056 $ 14,174 39
Gas Sales(3) 184,108 173,491 10,441 1,222 176 (1,222)
Gathering, Marketing
and Processing Revenue 28,657 28,657
Electricity Sales -
Income from Unconsolidated
Subsidiaries (3,905) (3,905)
Other 2,872 1,544 449 1 97 781
----------- ----------- ----------- ----------- ----------- -----------
Total Revenues 345,269 239,835 45,358 17,374 14,447 28,255
COSTS AND EXPENSES
Oil and Gas Operations 57,709 47,237 5,174 4,506 389 403
Transporation 9,217 4,737 4,480
Oil and Gas Exploration 56,638 39,137 3,054 (2) 5,861 8,588
Gathering, Marketing and
Processing Expense 24,935 24,935
Electricity Generation -
DD&A 141,988 119,527 13,841 2,071 5,381 1,168
SG&A 23,406 9,233 193 721 1,149 12,110
Interest Expense (net) 23,030 23,030
----------- ----------- ----------- ----------- ----------- -----------
Total Costs and Expenses 336,923 215,134 26,999 7,296 17,260 70,234
OPERATING INCOME (LOSS) $ 8,346 $ 24,701 $ 18,359 $ 10,078 $ (2,813) $ (41,979)
Discontinued Operations (506) (506)
----------- ----------- ----------- ----------- ----------- -----------
PRETAX INCOME (LOSS) AFTER
DISCONTINUED OPERATIONS $ 7,840 $ 24,195 $ 18,359 $ 10,078 $ (2,813) (41,979)
=========== =========== =========== =========== =========== ===========
KEY STATISTICS
DAILY PRODUCTION
Liquids (Bbl) 33,279 16,935 8,206 5,047 3,091
Natural Gas (Mcf) 379,923 332,467 18,808 27,509 1,139
AVERAGED REALIZED PRICE
Liquids $ 22.16 $ 21.15 $ 23.20 $ 21.95 $ 25.33
Natural Gas $ 2.68 $ 2.86 $ 3.07 $ 0.25 $ 0.85
============================================================================================================================
AMPCO METHANOL OPERATIONS
(Unaudited) (Dollars in thousands)
Three Months Ended Six Months Ended
----------------------- -----------------------
6/30/2003 6/30/2002 6/30/2003 6/30/2002
--------- --------- --------- ---------
REVENUES
Methanol Sales $ 21,439 $ 5,496 $ 44,034 $ 14,331
Sales of Purchased Methanol 803 2,448 2,861 2,448
Other 2,108 1,275 3,743 2,376
--------- --------- --------- ---------
Total Revenues 24,350 9,219 50,638 19,155
COSTS AND EXPENSES
Cost of Goods Manufactured 8,607 6,043 17,184 13,576
Cost of Purchased Methanol 994 3,741 3,010 3,741
DD&A 2,372 2,471 4,780 4,883
SG&A 503 444 1,058 860
--------- --------- --------- ---------
Total Costs and Expenses 12,476 12,699 26,032 23,060
INCOME (LOSS) FROM UNCONS. SUBS. $ 11,874 $ (3,480) $ 24,606 $ (3,905)
========= ========= ========= =========
Methanol Sales (MGal) 29,841 13,920 64,327 44,861
Average Realized Price ($/Gal) $ 0.72 $ 0.39 $ 0.68 $ 0.32
============================================================================================
ECUADOR POWER OPERATIONS
(Unaudited) (Dollars in thousands)
Three Months Ended Six Months Ended
----------------------- -----------------------
6/30/2003 6/30/2002 6/30/2003 6/30/2002
--------- --------- --------- ---------
REVENUES
Power Sales $ 7,473 $ 24,968
Capacity Charge 1,708 3,538
Other 1 17
--------- --------- --------- ---------
Total Revenues 9,181 1 28,506 17
COSTS AND EXPENSES
Field
Lease Operating 690 1,329
DD&A 3,750 31 10,475 62
SG&A 1,141 1,684
Interest (945) (1,827)
Plant
Fuel 2,723 6,782
Non-Fuel 767 1,546
Depreciation 964 15 1,805 27
Interest (4,819) (5,863)
--------- --------- --------- ---------
Total Costs and Expenses 10,035 (5,718) 23,621 (7,601)
--------- --------- --------- ---------
OPERATING (LOSS) INCOME $ (854) $ 5,719 $ 4,885 $ 7,618
========= ========= ========= =========
Natural Gas Production (Mcfpd)(3) 12,651 19,156
Average Natural Gas Price $ 3.88 $ 3.94
Power Production - Total MW 111,666 334,872
Average Power Price ($/Kwh) $ 0.083 $ 0.085
============================================================================================
(1) Other international includes operations in Argentina, China, Ecuador,
Israel and Vietnam.
(2) Corporate and Other includes corporate overhead, intercompany eliminations
and marketing.
(3) 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.
NOBLE ENERGY, INC. AND SUBSIDIARIES
DISCONTINUED OPERATIONS SUMMARY
(Unaudited) (In thousands, except per share)
Three Months Ended Six Months Ended
----------------------- -----------------------
6/30/2003 6/30/2002 6/30/2003 6/30/2002
--------- --------- --------- ---------
REVENUES
Oil and Gas Sales and Royalties $ 5,937 $ 5,393 $ 12,640 $ 9,786
COST AND EXPENSES
Write down to Market Value 4,914 4,914
Oil and Gas Operations 2,199 1,809 4,113 3,729
Depreciation, Depletion and Amortization 1,924 2,959 5,409 6,563
--------- --------- --------- ---------
9,037 4,768 14,436 10,292
--------- --------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAXES (3,100) 625 (1,796) (506)
INCOME TAX PROVISION (BENEFIT)
Current (1,085) 219 (629) (177)
Deferred
--------- --------- --------- ---------
(1,085) 219 (629) (177)
--------- --------- --------- ---------
INCOME (LOSS) FROM DISCONTINUED
OPERATIONS $ 2,015 $ 406 $ (1,167) $ (329)
========= ========= ========= =========
KEY STATISTICS:
Daily Production
Liquids 1,286 1,248 1,254 1,233
Natural Gas (Mcf) 6,746 10,682 6,834 11,405
Average Realized Price
Liquids ($/Bbl) $ 25.49 $ 19.75 $ 26.80 $ 18.85
Natural Gas ($Mcf) $ 4.81 $ 3.24 $ 5.30 $ 2.70