EXHIBIT 99.1
[NOBLE ENERGY LOGO] NEWS RELEASE
100 GLENBOROUGH DRIVE CONTACT: Greg Panagos: 281-872-3125
SUITE 100 Investor_Relations@nobleenergyinc.com
HOUSTON, TX 77067
NOBLE ENERGY, INC. ANNOUNCES THIRD QUARTER 2003 RESULTS
Net Income and Discretionary Cash Flow Increase $36.3 Million and
$38.0 Million, Respectively
HOUSTON (October 29, 2003) -- Noble Energy, Inc. (NYSE: NBL) today reported
third quarter net income of $35.1 million, or 62 cents per share, compared to a
net loss of $1.2 million, or two cents per share, for the same period last year.
Discretionary cash flow (see Determination of Discretionary Cash Flow and
Reconciliation schedule) for the third quarter 2003 increased 33 percent to
$153.2 million compared to $115.2 million for the same period last year.
Discontinued operations reported net income of $3.0 million. Net income from
discontinued operations included two non-cash adjustments, an after-tax charge
of $11.9 million to write down the assets held for sale to their estimated fair
value and an after-tax gain on the disposition of assets during the third
quarter of $6.4 million.
Excluding the effect of the after-tax gain on disposition of assets and the
write down of assets held for sale, Noble Energy's net income would have been
$40.6 million, or 72 cents per share.
The increase in reported net income and discretionary cash flow versus the third
quarter last year primarily reflected higher realized commodity prices and lower
exploration expense. Increased production also contributed to strong
year-on-year financial and operating improvements.
Realized natural gas prices for the third quarter 2003 were $4.10 per thousand
cubic feet (Mcf), 50 percent above last year's $2.73 per Mcf. Realized crude oil
prices were $27.49 per barrel (Bbl), an increase of five percent compared to
$26.19 per Bbl for the third quarter 2002. Realized methanol prices were 63
cents per gallon (Gal) for the third quarter 2003, an increase of 31 percent
over 48 cents per Gal for the same period last year.
Charles D. Davidson, the company's Chairman, President and CEO, said, "The
continuing strong commodity price environment has significantly enhanced our
financial results. From an operating point of view, our international operations
continued to show strong results, while our domestic drilling and production
programs remained consistent with the first half of this year. Finally, after
several years of substantial investment, I am pleased to be able to say our
natural gas project in Israel and expansion in Equatorial Guinea are expected to
begin operations this quarter."
During 2003, Noble Energy identified five property packages for disposition, and
bids have now been received on all five packages. During the third quarter,
closed property sales resulted in a pre-tax gain of $9.9 million.
Also during the third quarter, certain properties in two packages were
classified as held for sale, written down by $18.3 million to fair value,
pre-tax, and reported in discontinued operations (see Discontinued Operations
Summary schedule). Subsequent to September 30, the remaining asset package met
the criteria to be classified as held for sale. For the full year, property
sales are expected to generate over $110 million in pre-tax proceeds.
Reported production, net of adjustments for discontinued operations, was 90,236
barrels of oil equivalent per day (Boepd), an increase of four percent compared
to 86,807 Boepd for the same period last year. The increase in volumes was
attributable to the start-up of production in China and a substantial increase
in
production volumes in Ecuador, partially offset by lower domestic and North Sea
volumes. As a result of property sales, overall production declined by
approximately 950 Boepd relative to the second quarter.
Third quarter 2003 reported production volumes declined compared to 94,275 Boepd
for the second quarter of 2003. Increased natural gas volumes in Ecuador were
offset by temporary maintenance related shut-ins in the North Sea, downtime for
construction in Equatorial Guinea and minor curtailments in the U.S. Overall
production for the third quarter 2003 was 99,111 Boepd after adding back the
volumes associated with discontinued operations compared to 103,466 Boepd last
quarter.
Reported oil and gas operating costs from continuing operations for the three
months ending September 30, 2003 were $4.52 per barrel of oil equivalent (BOE)
compared to $3.92 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 and ad valorem taxes resulting from higher natural gas and
crude oil prices. Relatively high commodity prices are expected to continue for
the remainder of 2003, which may cause aggregate oil and gas operating costs to
exceed the company's original expectations for the year. The start-up of
operations in China and the expansion in Equatorial Guinea and their associated
costs also contributed to higher operating costs.
Reported depreciation, depletion and amortization increased to $8.81 per BOE,
compared to $7.52 per BOE in the third 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.
Selling, general and administrative expenses for the third quarter were $1.51
per BOE compared to $1.86 per BOE for the third quarter of 2002. The decrease
primarily reflects lower legal expenses.
For the first nine months of 2003, net income was $99.0 million, or $1.74 per
share, compared to net income of $0.8 million, or one cent per share, last year.
Discretionary cash flow for the first three quarters of 2003 was $481.6 million
compared to $327.5 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 third quarter of $41.8 million, compared to an operating loss of $3.2
million for the same period last year. Domestic operating income included a
non-cash charge of $8.4 million. The total non-cash charge included a write down
of assets held for sale to fair value, partially offset by a realized gain on
sale of assets.
Domestic operations benefited from higher realized prices for crude oil and
natural gas during the quarter, which increased four percent and 50 percent,
respectively, compared to the third quarter of 2002. The average domestic
realized crude oil price was $26.55 per Bbl compared to $25.48 per Bbl during
the third quarter of 2002. The average domestic realized natural gas price was
$4.70 per Mcf compared to $3.14 per Mcf last year.
Compared to the second quarter 2003, domestic production volumes, excluding
discontinued operations, decreased to 59,301 Boepd from 62,253 Boepd. The
production decline was primarily due to temporarily reduced volumes at Green
Canyon 282 (Boris) and pipeline maintenance at Main Pass 305/306. Adding back
production from discontinued operations, domestic production during the third
quarter was 68,176 Boepd. During the quarter, domestic properties with
production volumes by approximately 950 Boepd were sold.
Domestic production volumes declined to 59,301 Boepd in the third quarter of
2003 from 61,073 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.
2
In the deepwater Gulf of Mexico, Boris #2 began production during the third
quarter. Gross production from the Boris #1 and #2 wells is currently curtailed
at 16,500 barrels of oil per day (Bopd) and 26 million cubic feet per day
(MMcfpd). Noble Energy has a 25 percent working interest in Boris.
In September, production began at South Timbalier 316 #A-1 (Roaring Fork) at an
initial rate of 6,000 Bopd and 13.2 MMcfpd. Noble Energy owns a 40 percent
working interest in Roaring Fork. Production began at Louisiana State Lease 340
#1 (Mound Point) in October at an initial rate of 33 million cubic feet
equivalent per day (MMcfepd). Noble Energy owns a 25 percent working interest in
Mound Point.
Noble Energy's domestic onshore operations were active during the first three
quarters of 2003, drilling 50 exploration and development wells with 29
successes. The company plans to drill a total of 85 onshore wells in 2003, of
which 49 are scheduled for the Gulf Coast area and 36 are scheduled for the
Mid-continent and Rocky Mountain regions.
INTERNATIONAL OPERATIONS
International operations reported operating income for the third quarter of
$29.4 million compared to operating income of $11.4 million in the third quarter
last year. The quarter-on-quarter increase in international operations reflects
higher commodity prices, increased production and lower exploration expense. The
start-up of production in China also contributed to improved quarter-on-quarter
earnings.
International operations benefited from higher realized prices for crude oil
during the quarter, which increased five percent compared to the third quarter
of 2002. The average international realized crude oil price was $28.29 per Bbl
compared to $26.83 per Bbl during the third quarter of 2002. The average
international realized natural gas price, excluding Ecuador production that is
eliminated as inter-company sales, was $1.03 per Mcf compared to 93 cents per
Mcf last year.
Third quarter 2003 international production volumes increased 20 percent to
30,935 Boepd from 25,734 Boepd last year. The increase in production volumes was
primarily due to the start-up of crude oil production in China and significantly
increased natural gas production in Ecuador. Maintenance related shut downs in
the North Sea and construction downtime in Equatorial Guinea combined to
partially offset increased international production.
In Israel, Noble Energy has completed all construction necessary to begin
natural gas production. The company expects to start production during the
fourth quarter of 2003.
Equatorial Guinea
Total operating income in Equatorial Guinea, which includes results from field
operations and methanol, for the third quarter of 2003 was $17.9 million
compared to $12.8 million last year.
Liquid petroleum gas (LPG), natural gas and condensate sales accounted for $9.3
million, or 52 percent, of operating income from Equatorial Guinea. Although the
Alba field was shut in for approximately ten days for construction tie-ins,
third quarter 2003 production volumes averaged 11,758 Boepd, a one percent
increase over last year. The average realized price for liquids during the third
quarter 2003 was $27.10 per Bbl compared to $25.62 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 $8.6 million of operating income net to Noble Energy's
interest. AMPCO results are reported as income from unconsolidated subsidiaries.
Third quarter realized methanol prices averaged 63 cents per Gal compared to 48
cents per Gal last year. The company's share of AMPCO methanol sales volumes was
28.4 million Gal compared to 31.3 million Gal for the third quarter of 2002,
reflecting facility downtime associated with the construction shut-ins.
3
The Phase 2A condensate expansion project is expected to start-up during the
fourth quarter of 2003. Phase 2A is expected to add gross production of 6,000
Bopd upon start-up, which is expected to occur in the first week of December.
The project will reach its full incremental production of 29,000 Bopd in the
first quarter of next year. Noble Energy has a 34 percent working interest in
Phase 2A.
North Sea
In the North Sea, operating income for the third quarter of 2003 was $9.7
million compared to $10.5 million last year. North Sea production for the third
quarter of 2003 was 8,773 Boepd compared to 9,803 Boepd last year, reflecting
the temporary maintenance related shut-in of production at the Cook field.
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 third quarter 2003 averaged 3,919 Bopd, net
to Noble Energy. Noble Energy has a 57 percent working interest in this project.
Noble Energy's Machala power plant operated at breakeven during the third
quarter 2003. During the quarter, 184,470 megawatts (MW) were produced at an
average sales price of 8.3 cents per kilowatt hour (Kwh). For the third quarter
2003, Noble Energy produced 21.2 MMcfpd of natural gas from the Amistad field at
an average price of $3.73 per Mcf. The volume of natural gas and MW produced in
Ecuador is related to thermal electricity demand in that country. Early in the
third quarter, Ecuador had sufficient rainfall to allow hydroelectric power
producers to provide base load power, while Noble Energy provided electricity to
meet peak demand. As seasonal rains subsided during the third quarter, Noble
Energy experienced increasing demand for thermal electricity.
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 242 10/29/03
4
NOBLE ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF RESULTS
(Unaudited) (In thousands, except per share)
Three Months Ended Nine Months Ended
---------------------------- ----------------------------
9/30/2003 9/30/2002 9/30/2003 9/30/2002
--------- --------- --------- ---------
REVENUES
Oil and Gas Sales and Royalties $ 205,650 $ 156,548 $ 632,192 $ 443,758
Gathering, Marketing and Processing 16,877 18,940 54,657 47,597
Electricity Sales 12,855 3,931 41,361 3,931
Income From Unconsol. Subs. 8,584 5,184 33,190 1,278
Other Income (Loss) (1,850) (1,901) (7,547) 972
--------- --------- --------- ---------
242,116 182,702 753,853 497,536
--------- --------- --------- ---------
COST AND EXPENSES
Oil and Gas Operations 37,508 31,289 111,719 79,911
Transportation 3,451 4,010 10,570 13,227
Oil and Gas Exploration 25,481 50,628 95,559 107,266
Gathering, Marketing and Processing 14,708 15,216 48,690 40,151
Electricity Generation 12,818 3,117 36,439 3,117
Depreciation, Depletion and Amortization 73,155 60,076 217,690 184,590
Selling, General and Administrative 12,495 14,835 41,069 38,241
Accretion of Asset Retirement Obligation 2,401 7,015
Interest Expense 15,405 14,979 46,363 47,092
Interest Capitalized (4,395) (4,649) (9,578) (13,732)
--------- --------- --------- ---------
193,027 189,501 605,536 499,863
--------- --------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAXES 49,089 (6,799) 148,317 (2,327)
INCOME TAX PROVISION (BENEFIT)
Current 18,434 (1,603) 58,029 (1,238)
Deferred (1,465) (1,493) (1,239) 2,783
--------- --------- --------- ---------
16,969 (3,096) 56,790 1,545
--------- --------- --------- ---------
INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS
AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE 32,120 (3,703) 91,527 (3,872)
DISCONTINUED OPERATIONS NET OF TAX 2,996 2,513 13,355 4,703
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET OF TAX (5,839)
--------- --------- --------- ---------
NET INCOME (LOSS) $ 35,116 $ (1,190) $ 99,043 $ 831
========= ========= ========= =========
INCOME (LOSS) PER SHARE BEFORE DISCONTINUED
OPERATIONS AND CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE $ 0.57 $ (0.06) $ 1.61 $ (0.07)
INCOME PER SHARE FROM DISCONTINUED
OPERATIONS $ 0.05 $ 0.04 $ 0.23 $ 0.08
LOSS PER SHARE FROM CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE $ -- $ -- $ (0.10) $ --
--------- --------- --------- ---------
NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED $ 0.62 $ (0.02) $ 1.74 $ 0.01
========= ========= ========= =========
AVERAGE SHARES OUTSTANDING 56,494 57,287 57,014 57,159
NOBLE ENERGY, INC. AND SUBSIDIARIES
DETERMINATION OF DISCRETIONARY CASH FLOW AND RECONCILIATION
(Unaudited) (In thousands)
Three Months Ended Nine Months Ended
---------------------------- ----------------------------
9/30/2003 9/30/2002 9/30/2003 9/30/2002
--------- --------- --------- ---------
Net Income (Loss) $ 35,116 $ (1,190) $ 99,043 $ 831
Depreciation, Depletion and
Amortization (DD&A) 73,155 60,076 217,690 184,590
Power Project DD&A 6,900 1,567 19,180 1,567
Oil and Gas Exploration 25,481 50,628 95,559 107,266
Interest Capitalized (4,395) (4,649) (9,578) (13,732)
Undistributed Earnings From Unconsol. Subs (8,584) (5,184) (33,190) (1,278)
Distribution From Unconsol. Subs 9,450 4,875 37,575 10,863
DD&A - Discontinued Operations 6,751 10,561 25,404 34,598
Non-cash Loss on Asset Disposition 8,422 13,336
Change in Accounting Principle, net of tax 5,839
Allowance for Doubtful Accounts 4,936
Deferred Income Tax Provision (Benefit) (1,465) (1,493) (1,239) 2,783
Accretion of Asset Retirement Obligation 2,401 7,015
--------- --------- --------- ---------
DISCRETIONARY CASH FLOW * $ 153,232 $ 115,191 $ 481,570 $ 327,488
Adjustments to Reconcile:
Working Capital $ 25,333 $ (5,771) $ 13,818 $ (832)
Cash Exploration Costs (11,426) (10,953) (31,104) (29,630)
Capitalized Interest 4,395 4,649 9,578 13,732
Deferred Tax, Misc. Credits and Other (11,954) 20,641 (2,879) (5,615)
--------- --------- --------- ---------
Net Cash Provided by Operating Activities $ 159,580 $ 123,757 $ 470,983 $ 305,143
========= ========= ========= =========
* 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)
----------- -----------
9/30/2003 12/31/2002
----------- -----------
ASSETS
Current Assets $ 476,821 $ 310,374
----------- -----------
Property, Plant and Equipment 4,054,927 4,334,015
Less: Accumulated Depreciation (1,880,879) (2,194,230)
----------- -----------
2,174,048 2,139,785
Investment In Unconsol. Subs 229,383 234,668
Other 48,762 45,188
----------- -----------
$ 2,929,014 $ 2,730,015
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities $ 524,650 $ 471,754
Long-term Debt 945,977 977,116
Deferred Income Taxes,
Other Deferred Credits and
Noncurrent Liabilities 373,907 271,759
Shareholders' Equity 1,084,480 1,009,386
----------- -----------
$ 2,929,014 $ 2,730,015
=========== ===========
NOBLE ENERGY, INC.
INCOME BEFORE INCOME TAXES
(Unaudited) (Dollars in thousands)
=================================================================================================================================
THREE MONTHS ENDED 09/30/03
EQUATORIAL OTHER CORPORATE
CONSOLIDATED DOMESTIC NORTH SEA GUINEA INTERNATIONAL(1) AND OTHER(2)
-------------- -------------- -------------- ------------- --------------- -------------
REVENUES
Oil Sales $ 88,630 $ 39,217 $ 18,305 $ 13,685 $ 17,423
Gas Sales [3] 117,020 112,224 3,914 860 22
Gathering, Marketing and
Processing Revenue 16,877 16,877
Electricity Sales 12,855 12,855
Income from Unconsolidated
Subsidiaries 8,584 8,584
Other (1,850) (4,481) (473) (394) 3,498
-------------- -------------- -------------- ------------- --------------- -------------
Total Revenues 242,116 146,960 21,746 23,129 29,906 20,375
COSTS AND EXPENSES
Oil and Gas Operations 37,508 25,339 2,407 3,798 5,235 729
Transportation 3,451 1,837 1,614
Oil and Gas Exploration 25,481 21,596 764 1 2,679 441
Gathering, Marketing and
Processing Expense 14,708 14,708
Electricity Generation 12,818 12,818
DD&A 73,155 59,007 7,087 1,286 5,061 714
SG&A 12,495 3,852 182 642 7,819
Interest Expense (net) 13,411 13,411
-------------- -------------- -------------- ------------- --------------- -------------
Total Costs and Expenses 193,027 109,794 12,095 5,267 28,049 37,822
OPERATING INCOME (LOSS) $ 49,089 $ 37,166 $ 9,651 $ 17,862 $ 1,857 $ (17,447)
DISCONTINUED OPERATIONS 4,609 4,609
-------------- -------------- -------------- ------------- --------------- -------------
OPERATING INCOME AFTER
DISCONTINUED OPERATIONS $ 53,698 $ 41,775 $ 9,651 $ 17,862 $ 1,857 $ (17,447)
============== ============== ============== ============= =============== =============
KEY STATISTICS
DAILY PRODUCTION
Liquids (Bbl) 35,038 16,053 6,692 5,488 6,805
Natural Gas (Mcf) 331,188 259,487 12,483 37,622 21,596
AVERAGE REALIZED PRICE
Liquids $ 27.49 $ 26.55 $ 29.73 $ 27.10 $ 27.83
Natural Gas $ 4.10 $ 4.70 $ 3.41 $ 0.25 $ 0.68
=================================================================================================================================
THREE MONTHS ENDED 09/30/02
EQUATORIAL OTHER CORPORATE
CONSOLIDATED DOMESTIC NORTH SEA GUINEA INTERNATIONAL(1) AND OTHER(2)
-------------- -------------- -------------- ------------- --------------- -------------
REVENUES
Oil Sales $ 72,928 $ 35,078 $ 18,041 $ 11,483 $ 8,249 $ 77
Gas Sales 83,620 79,859 3,812 922 (973)
Gathering, Marketing and
Processing Revenue 18,940 18,940
Electricity Sales 3,931 3,931
Income from Unconsolidated
Subsidiaries 5,184 5,184
Other (1,901) (2,561) 196 (296) 760
-------------- -------------- -------------- ------------- --------------- -------------
Total Revenues 182,702 112,376 22,049 17,589 11,884 18,804
COSTS AND EXPENSES
Oil and Gas Operations 31,289 23,816 2,522 2,466 3,197 (712)
Transportation 4,010 2,429 1,581
Oil and Gas Exploration 50,628 36,489 414 4 13,500 221
Gathering, Marketing and
Processing Expense 15,216 15,216
Electricity Generation 3,117 3,117
DD&A 60,076 50,328 5,986 1,781 2,076 (95)
SG&A 14,835 8,844 184 572 310 4,925
Interest Expense (net) 10,330 10,330
-------------- -------------- -------------- ------------- --------------- -------------
Total Costs and Expenses 189,501 119,477 11,535 4,823 23,781 29,885
OPERATING INCOME (LOSS) $ (6,799) $ (7,101) $ 10,514 $ 12,766 $ (11,897) $ (11,081)
Discontinued Operations 3,867 3,867
-------------- -------------- -------------- ------------- --------------- -------------
OPERATING INCOME AFTER
DISCONTINUED OPERATIONS $ (2,932) $ (3,234) $ 10,514 $ 12,766 $ (11,897) $ (11,081)
============== ============== ============== ============= =============== =============
KEY STATISTICS
DAILY PRODUCTION
Liquids (Bbl) 30,271 14,965 7,418 4,871 3,017
Natural Gas (Mcf) 339,215 276,650 14,310 40,968 7,287
AVERAGE REALIZED PRICE
Liquids $ 26.19 $ 25.48 $ 26.44 $ 25.62 $ 29.72
Natural Gas $ 2.73 $ 3.14 $ 2.90 $ 0.24 $ 0.96
NOBLE ENERGY, INC.
INCOME BEFORE INCOME TAXES
(Unaudited) (Dollars in thousands)
=================================================================================================================================
NINE MONTHS ENDED 09/30/03
EQUATORIAL OTHER CORPORATE
CONSOLIDATED DOMESTIC NORTH SEA GUINEA INTERNATIONAL(1) AND OTHER(2)
-------------- -------------- -------------- ------------- --------------- -------------
REVENUES
Oil Sales $ 266,302 $ 113,379 $ 59,394 $ 44,844 $ 48,685
Gas Sales [3] 365,890 349,403 13,558 2,841 88
Gathering, Marketing and
Processing Revenue 54,657 54,657
Electricity Sales 41,361 41,361
Income from Unconsolidated
Subsidiaries 33,190 33,190
Other (7,547) (11,136) (294) (982) 4,865
-------------- -------------- -------------- ------------- --------------- -------------
Total Revenues 753,853 451,646 72,658 80,875 89,152 59,522
COSTS AND EXPENSES
Oil and Gas Operations 111,719 74,394 8,130 11,965 14,322 2,908
Transportation 10,570 6,420 4,150
Oil and Gas Exploration 95,559 64,500 8,216 51 21,417 1,375
Gathering, Marketing and
Processing Expense 48,690 48,690
Electricity Generation 36,439 36,439
DD&A 217,690 175,036 22,228 4,892 13,788 1,746
SG&A 41,069 12,459 339 2,123 26,148
Interest Expense (net) 43,800 43,800
-------------- -------------- -------------- ------------- --------------- -------------
Total Costs and Expenses 605,536 326,389 44,994 17,247 92,239 124,667
OPERATING INCOME (LOSS) $ 148,317 $ 125,257 $ 27,664 $ 63,628 $ (3,087) $ (65,145)
Discontinued Operations 20,546 20,546
Cumulative Effect of SFAS 143 (8,983) (8,983)
-------------- -------------- -------------- ------------- --------------- -------------
OPERATING INCOME AFTER
DISCONTINUED OPERATIONS
AND CUMULATIVE EFFECT $ 159,880 $ 136,820 $ 27,664 $ 63,628 $ (3,087) $ (65,145)
============== ============== ============== ============= =============== =============
KEY STATISTICS
DAILY PRODUCTION
Liquids (Bbl) 35,436 16,002 7,238 5,978 6,218
Natural Gas (Mcf) 340,248 263,981 13,817 41,817 20,633
AVERAGE REALIZED PRICE
Liquids $ 27.53 $ 25.96 $ 30.06 $ 27.48 $ 28.68
Natural Gas $ 4.18 $ 4.85 $ 3.59 $ 0.25 $ 0.42
=================================================================================================================================
NINE MONTHS ENDED 09/30/02
EQUATORIAL OTHER CORPORATE
CONSOLIDATED DOMESTIC NORTH SEA GUINEA INTERNATIONAL(1) AND OTHER(2)
-------------- -------------- -------------- ------------- --------------- -------------
REVENUES
Oil Sales $ 196,942 $ 90,355 $ 52,510 $ 31,540 $ 22,423 $ 114
Gas Sales 246,816 232,439 14,253 2,144 (2,020)
Gathering, Marketing and
Processing Revenue 47,597 47,597
Electricity Sales 3,931 3,931
Income from Unconsolidated
Subsidiaries 1,278 1,278
Other 972 (411) 197 (199) 1,385
-------------- -------------- -------------- ------------- --------------- -------------
Total Revenues 497,536 322,383 66,960 34,962 26,155 47,076
COSTS AND EXPENSES
Oil and Gas Operations 79,911 64,643 7,695 6,973 3,540 (2,940)
Transportation 13,227 7,167 6,060
Oil and Gas Exploration 107,266 83,941 3,594 3 19,173 555
Gathering, Marketing and
Processing Expense 40,151 40,151
Electricity Generation 3,117 3,117
DD&A 184,590 152,829 19,827 3,852 7,353 729
SG&A 38,241 24,577 457 1,293 689 11,225
Interest Expense (net) 33,360 33,360
-------------- -------------- -------------- ------------- --------------- -------------
Total Costs and Expenses 499,863 325,990 38,740 12,121 39,932 83,080
OPERATING INCOME (LOSS) $ (2,327) $ (3,607) $ 28,220 $ 22,841 $ (13,777) $ (36,004)
Discontinued Operations 7,236 7,236
-------------- -------------- -------------- ------------- --------------- -------------
OPERATING INCOME AFTER
DISCONTINUED OPERATIONS $ 4,909 $ 3,629 $ 28,220 $ 22,841 $ (13,777) $ (36,004)
============== ============== ============== ============= =============== =============
KEY STATISTICS
DAILY PRODUCTION
Liquids (Bbl) 30,486 14,492 7,940 4,988 3,066
Natural Gas (Mcf) 339,564 287,017 17,291 32,045 3,211
AVERAGE REALIZED PRICE
Liquids $ 23.66 $ 22.84 $ 24.22 $ 23.16 $ 26.78
Natural Gas $ 2.68 $ 2.97 $ 3.02 $ 0.25 $ 0.94
AMPCO METHANOL OPERATIONS
(Unaudited) (Dollars in thousands)
Three Months Ended Nine Months Ended
----------------------------- ---------------------------
9/30/2003 9/30/2002 9/30/2003 9/30/2002
--------- --------- --------- ---------
REVENUES
Methanol Sales $ 18,035 $ 14,969 $ 62,069 $29,300
Sales of Purchased Methanol 964 2,283 3,825 4,731
Other 2,378 (342) 6,121 2,034
-------- -------
Total Revenues 21,377 16,910 72,015 36,065
COSTS AND EXPENSES
Cost of Goods Manufactured 8,842 6,067 26,026 19,643
Cost of Purchased Methanol 1,147 2,816 4,157 6,557
DD&A 2,310 2,467 7,090 7,350
SG&A 494 376 1,552 1,237
-------- -------
Total Costs and Expenses 12,793 11,726 38,825 34,787
INCOME/(LOSS) FROM UNCONS. SUBS $ 8,584 $ 5,184 $ 33,190 $ 1,278
========= ======== ======== =======
Methanol Sales (MGal) 28,419 31,295 92,746 76,156
Average Realized Price ($/Gal) $ 0.63 $ 0.48 $ 0.67 $ 0.38
====================================================================================================================================
ECUADOR POWER OPERATIONS
(Unaudited) (Dollars in thousands)
Three Months Ended Nine Months Ended
----------------------------- ---------------------------
9/30/2003 9/30/2002 9/30/2003 9/30/2002
--------- --------- --------- ---------
REVENUES
Power Sales $ 10,831 $ 3,931 $ 35,799 $ 3,931
Capacity Charge 2,024 5,562
--------- -------- -------- -------
Total Revenues 12,855 3,931 41,361 3,931
COSTS AND EXPENSES
Field
Lease Operating 832 483 2,161 483
DD&A 5,843 1,104 16,318 1,104
SG&A 454 517 2,138 517
Interest (1) (1)
Plant
Fuel 3,573 387 10,355 387
Non-Fuel 1,060 163 2,606 163
Depreciation 1,057 463 2,862 463
--------- -------- -------- -------
Total Costs and Expenses 12,818 3,117 36,439 3,117
--------- -------- -------- -------
OPERATING INCOME $ 37 $ 814 $ 4,922 $ 814
========= ======== ======== =======
Natural Gas Production (Mcfpd) [3] 21,235 6,171 19,856 2,079
Average Natural Gas Price $ 3.73 $ 3.44 $ 3.86 $ 3.44
Power Production - Total MW 184,470 52,192 519,342 52,192
Average Power Price ($/Kwh) $ 0.083 $ 0.075 $ 0.080 $ 0.075
====================================================================================================================================
[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)
As Of September 30, 2003
-------------------------------------------------------------
Three Months Ended
-------------- ---------------------------------------------
YTD 9/30/2003 6/30/2003 3/31/2003
-------------- -------------- -------------- -------------
REVENUES
Oil and Gas Sales and Royalties $ 78,386 $ 24,112 $ 24,363 $ 29,911
COST AND EXPENSES
Write down to Market Value & Realized (Gain)/Loss 13,336 8,422 4,914
Oil and Gas Operations 19,100 4,330 7,278 7,492
Depreciation, Depletion and Amortization 25,404 6,751 7,582 11,071
-------------- -------------- -------------- -------------
57,840 19,503 19,774 18,563
-------------- -------------- -------------- -------------
INCOME (LOSS) BEFORE INCOME TAXES 20,546 4,609 4,589 11,348
INCOME TAX PROVISION (BENEFIT)
Current 7,191 1,613 1,606 3,972
Deferred
-------------- -------------- -------------- -------------
7,191 1,613 1,606 3,972
-------------- -------------- -------------- -------------
NET INCOME (LOSS) $ 13,355 $ 2,996 $ 2,983 $ 7,376
============== ============== ============== =============
KEY STATISTICS:
Daily Production
Liquids (Bbl) 3,599 3,215 3,792 3,797
Natural Gas (Mcf) 33,116 33,958 32,393 32,988
Average Realized Price
Liquids ($/Bbl) $ 27.67 $ 27.94 $ 25.51 $ 29.61
Natural Gas ($/Mcf) $ 5.66 $ 5.07 $ 5.28 $ 6.67
As Of September 30, 2002
-------------------------------------------------------------
Three Months Ended
-------------- ---------------------------------------------
YTD 9/30/2002 6/30/2002 3/31/2002
-------------- -------------- -------------- -------------
REVENUES
Oil and Gas Sales and Royalties $ 61,665 $ 21,443 $ 22,296 $ 17,926
COST AND EXPENSES
Write down to Market Value & Realized (Gain)/Loss
Oil and Gas Operations 19,831 7,015 6,168 6,648
Depreciation, Depletion and Amortization 34,598 10,561 10,700 13,337
-------------- -------------- -------------- -------------
54,429 17,576 16,868 19,985
-------------- -------------- -------------- -------------
INCOME (LOSS) BEFORE INCOME TAXES 7,236 3,867 5,428 (2,059)
INCOME TAX PROVISION (BENEFIT)
Current 2,533 1,354 1,900 (721)
Deferred
-------------- -------------- -------------- -------------
2,533 1,354 1,900 (721)
-------------- -------------- -------------- -------------
NET INCOME (LOSS) $ 4,703 $ 2,513 $ 3,528 $ (1,338)
============== ============== ============== =============
KEY STATISTICS:
Daily Production
Liquids (Bbl) 3,968 4,069 3,939 3,893
Natural Gas (Mcf) 48,985 43,867 48,064 55,150
Average Realized Price
Liquids ($/Bbl) $ 20.97 $ 23.99 $ 20.76 $ 17.95
Natural Gas ($/Mcf) $ 2.91 $ 3.09 $ 3.40 $ 2.34