-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AlQDBrFmwldxg7iEgXHl88JbybhJno/CUiK5dVLnqvYYU/b5BBak4iaDxzotIh6j FN3NXPa0TbFw4Kt+OB095Q== 0000950129-04-005502.txt : 20040804 0000950129-04-005502.hdr.sgml : 20040804 20040804072949 ACCESSION NUMBER: 0000950129-04-005502 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040804 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040804 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NOBLE ENERGY INC CENTRAL INDEX KEY: 0000072207 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 730785597 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07964 FILM NUMBER: 04949935 BUSINESS ADDRESS: STREET 1: 100 GLENBOROUGH STREET 2: SUITE 100 CITY: HOUSTON STATE: TX ZIP: 77067 BUSINESS PHONE: 2818723100 MAIL ADDRESS: STREET 1: 100 GLENBOROUGH STREET 2: SUITE 100 CITY: HOUSTON STATE: TX ZIP: 77067 FORMER COMPANY: FORMER CONFORMED NAME: NOBLE AFFILIATES INC DATE OF NAME CHANGE: 20020426 FORMER COMPANY: FORMER CONFORMED NAME: NOBLE AFFILIATES INC DATE OF NAME CHANGE: 19920703 8-K 1 h17293e8vk.txt NOBLE ENERGY, INC.- DATE OF REPORT: AUGUST 4, 2004 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------- FORM 8-K ------------------------- CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): AUGUST 4, 2004 NOBLE ENERGY, INC. ------------------ (Exact name of Registrant as specified in its charter) DELAWARE 001-07964 73-0785597 -------- --------- ---------- (State or other jurisdiction of Commission (I.R.S. Employer incorporation or organization) File Number Identification No.) 100 GLENBOROUGH, SUITE 100 HOUSTON, TEXAS 77067 - ---------------------------------------- ----- (Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (281) 872-3100 - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) ================================================================================ ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. The following exhibits are furnished as part of this current Report on Form 8-K: 99.1 Press Release dated August 4, 2004. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On August 4, 2004 the Company issued a press release announcing its financial results for its second quarter ended June 30, 2004. A copy of the press release issued by the Company is attached hereto as Exhibit 99.1. The Company's press release announcing its financial results for its second quarter ended June 30, 2004 contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles, or GAAP. Pursuant to the requirements of Regulation G, the Company has provided quantitative reconciliations within the press release of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The press release attached to this Form 8-K as Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that Section. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. NOBLE ENERGY, INC. Date: August 4, 2004 By:/s/ JAMES L. MCELVANY ------------------------------------- James L. McElvany Senior Vice President, Chief Financial Officer and Treasurer INDEX TO EXHIBITS Item Exhibit ---- ------- 99.1 Press Release dated August 4, 2004 EX-99.1 2 h17293exv99w1.txt PRESS RELEASE DATED AUGUST 4, 2004 EXHIBIT 99.1 (NOBLE ENERGY, INC. LOGO) PRESS RELEASE 100 GLENBOROUGH DRIVE CONTACT: Greg Panagos: 281-872-3125 SUITE 100 Investor_Relations@nobleenergyinc.com HOUSTON, TX 77067 NOBLE ENERGY REPORTS SECOND QUARTER 2004 RESULTS Discretionary Cash Flow Reaches Record High, Net Income Up 147 Percent Versus Last Year HOUSTON (August 4, 2004) - Noble Energy, Inc. (NYSE: NBL) today reported second quarter net income of $72.0 million, or $1.24 per share, compared to $29.1 million, or 51 cents per share, reported for the second quarter last year. Second quarter 2004 net income increased 147 percent compared to the same period last year. Discretionary cash flow (non-GAAP measure, see Determination of Discretionary Cash Flow and Reconciliation schedule) was $221.4 million for the second quarter of 2004, the highest in Noble Energy's history and an increase of 39 percent compared to $159.8 million for the second quarter of 2003. Net cash provided by operating activities was $160.7 million for the second quarter of 2004. On a continuing basis, the company reported net income of $70.6 million, $1.22 per share. Discontinued operations reported net income of $1.4 million, or two cents per share. Charles D. Davidson, the company's Chairman, President and CEO, said, "Our strong operating and financial performance during the second quarter reflects a trend that began last year, accelerated during the first quarter of this year and will continue for some time. Noble Energy showed improved results across-the-board. Our domestic operations continued to demonstrate solid production growth. On the international side, the Phase 2A condensate expansion in Equatorial Guinea and the ramp up of natural gas sales in Israel both contributed significant production and earnings. And finally, overall unit costs declined compared to last year." The increase in net income and discretionary cash flow versus the second quarter last year primarily reflected an increase in daily production from continuing operations of 17 percent. Realized crude oil and natural gas prices increased 27 percent and 19 percent, respectively, also contributing to the increase in net income. Higher production volumes and commodity prices combined to increase oil and gas revenues by $87.3 million over the second quarter of 2003. In May, Noble Energy completed its asset disposition program first announced in July 2003. The sales price for the five packages of properties totaled approximately $130 million before closing adjustments ($115 million after closing adjustments). Compared to the second quarter 2003, overall production volumes from continuing operations for the second quarter 2004 increased 17 percent to 109,096 barrels of oil equivalent per day (Boepd) from 93,269 Boepd. Domestic operations had a production increase of seven percent, reflecting new domestic crude oil production from the Roaring Fork field (South Timbalier 315/316) in the Gulf of Mexico. International volumes increased 36 percent compared to the second quarter 2003, primarily because of increased condensate volumes resulting from the start-up of Phase 2A in Equatorial Guinea, the start-up of natural gas sales in Israel and increased production in Ecuador. Second quarter 2004 production volumes from continuing operations increased two percent to 109,096 Boepd from 106,615 Boepd for the first quarter. Domestic production increased one percent, primarily attributable to increased domestic onshore natural gas production. International production increased five percent over the first quarter, primarily because of the continuing ramp up of natural gas volumes in Israel. On a unit basis, depreciation, depletion and amortization decreased 14 percent to $8.12 per barrel of oil equivalent (BOE) compared to $9.40 per BOE in the second quarter of 2003. Selling, general and administrative expense declined 25 percent to $1.32 per BOE compared to $1.76 per BOE last year. The quarter-over-quarter decrease in unit costs was due to higher production volumes, including production from lower cost fields. Aggregate selling, general and administrative costs also declined due to reduced personnel costs. Oil and gas unit operations expense for the three months ended June 30, 2004 were $4.95 per BOE compared to $4.18 per BOE for the same period last year. The increase in oil and gas operations expense reflects two factors: o Workover costs increased $7.8 million, with most of the incremental expenses occurring in the Main Pass 306 field; and o Increased production taxes resulting from higher commodity prices. DOMESTIC OPERATIONS Continuing domestic operations reported operating income for the second quarter of $68.3 million, an increase of 82 percent compared to $37.6 million for the second quarter last year. Second quarter 2004 domestic production volumes increased to 65,530 Boepd from 61,247 Boepd for the same quarter last year. Domestic operations benefited from higher crude oil production and higher realized prices for crude oil and natural gas during the quarter. The average domestic realized crude oil price was $30.98 per barrel (Bbl) compared to $25.66 per Bbl during the second quarter of 2003. The average domestic realized natural gas price was $5.96 per thousand cubic feet (Mcf) compared to $4.67 per Mcf last year. Depreciation, depletion and amortization decreased $2.6 million compared to the second quarter of 2003, despite the seven percent production increase, primarily reflecting greater contribution from lower cost production. Reduced salaries and wages contributed to lower selling, general and administrative expense of $1.2 million. On a unit basis, depreciation, depletion and amortization decreased 10 percent to $10.58 per BOE compared to $11.78 per BOE in the second quarter of 2003. Selling, general and administrative expense declined 33 percent to 53 cents per BOE compared to 79 cents per BOE last year. Oil and gas operations expense increased $10.8 million to $34.5 million, compared to the second quarter of 2003. The increase in oil and gas operations expense included $7.6 million of incremental workover expense and $3.2 million of higher production taxes and service costs. On a unit basis, oil and gas operations expenses increased 36 percent compared to the second quarter of 2003. Exploration expense increased $11.1 million compared to the second quarter of last year, primarily as a result of dry holes at the Brazos A-39 #1 (Midway) and Ewing Banks 949 #2 (Queen of Hearts). Noble Energy's onshore operations were very active during the first half of 2004, drilling 58 wells with 46 successes. The company plans to drill 108 onshore wells in 2004, of which 44 are to be drilled in the Gulf Coast area and 64 are scheduled for the Rocky Mountain and Mid-continent areas. In May, Noble Energy announced the acquisition of an additional interest in the Swordfish development project (Viosca Knoll 917, 961 and 962) in the deepwater Gulf of Mexico. The Swordfish acquisition increased Noble Energy's working interest from 10 percent to 60 percent. Swordfish is expected to commence production in the second quarter of 2005 at an initial rate of 11,000 Boepd, net. A rig is currently on location at Swordfish where it is drilling a third well required for field development. In April, Noble Energy announced successful results from the Green Canyon 768 #1 exploration well (Ticonderoga) and the acquisition of an additional interest in the Green Canyon 199 discovery well (Lorien). Both Ticonderoga and Lorien are located in the deepwater Gulf of Mexico. Noble Energy is 2 currently drilling an exploration well on Green Canyon 767 (the Conquest prospect), which offsets the Ticonderoga discovery. In addition, an appraisal well at Lorien is planned for August. INTERNATIONAL OPERATIONS International operations reported operating income for the second quarter of $67.6 million, a 203 percent increase compared to operating income of $22.3 million in the second quarter last year. Second quarter 2004 international production volumes increased to 43,567 Boepd from 32,022 Boepd for the same quarter last year. Reflecting increased low cost production volumes, second quarter 2004 depreciation, depletion and amortization declined to $4.10 per BOE from $4.64 per BOE for the same period last year. Oil and gas operating and transportation expense decreased to $4.64 per BOE from $4.98 per BOE as a result of the ramp-up of production in Israel, increased production in China and an increase in the proportion of lower cost production with the commencement of summer maintenance in the North Sea. Equatorial Guinea Total operating income in Equatorial Guinea, which includes results from field operations and methanol operations, for the second quarter of 2004 was $37.3 million compared to $21.7 million last year. For the second consecutive quarter, operating income from Equatorial Guinea reached a new record high. Liquid petroleum gas (LPG), natural gas and condensate sales accounted for $19.7 million, or 53 percent, of operating income from Equatorial Guinea. Second quarter 2004 production volumes averaged 16,355 Boepd, a 20 percent increase over last year. The average realized price for liquids during the second quarter was $34.95 per Bbl compared to $25.28 per Bbl for the same period last year. Natural gas was sold to the methanol operations at a price of 25 cents per Mcf. Operating income from methanol operations was a record $17.6 million net to Noble Energy's interest. Methanol operations' results are reported as income from unconsolidated subsidiaries. Included in income from unconsolidated subsidiaries was $4.8 million of nonrecurring other income. Excluding nonrecurring other income, methanol operations still generated record operating income during the second quarter. Second quarter realized methanol prices averaged 64 cents per gallon (Gal) compared to 72 cents per Gal last year. The company's share of methanol sales volumes was 37.4 million Gal, an increase of 26 percent compared to 29.8 million Gal for the second quarter of 2003. In April, the company announced that it had signed a Production Sharing Contract (PSC) with the Republic of Equatorial Guinea covering Block "O" offshore Bioko Island. To date, two 3-D seismic surveys have been shot on the block. Noble Energy and its partners have agreed to drill two exploration wells within the first exploration period of three years, with planning underway for the first well to spud in 2005. Under the terms of the PSC, Noble Energy will be the Technical Operator with a 45 percent working interest. Israel Natural gas sales commenced from the Mari-B field in Israel on February 18, 2004. Second quarter operating income was $7.8 million. Oil and gas operations expense averaged 42 cents per Mcf, and depreciation, depletion and amortization averaged 55 cents per Mcf. Unit costs are expected to decline as natural gas production increases. Natural gas production net to Noble Energy averaged 47.8 million cubic feet per day (MMcfpd) for the second quarter and continued to increase throughout July. Natural gas sales volumes will be dependent upon seasonal demand, with fourth quarter volumes expected to decline from the third quarter as a result of reduced electricity demand. Ultimate gross production under the IEC contract is planned to average 170 MMcfpd (70 MMcfpd net). Noble Energy has a 47 percent working interest in this project. 3 North Sea In the North Sea, operating income for the second quarter of 2004 increased nearly six fold to $13.2 million compared to $2.4 million last year. The quarter-over-quarter improvement reflects higher realized crude oil and natural gas prices, as well as lower exploration and depreciation, depletion and amortization expenses. Other International Other international, which includes operating results from Argentina, China and Ecuador, reported operating income of $9.2 million for the second quarter 2004, nearly triple the reported operating income of $3.3 million last year. The increase in operating income primarily reflects increased power production and electricity income in Ecuador, combined with higher crude oil sales and prices in China. Noble Energy's Machala power plant contributed $1.3 million of operating income during the second quarter 2004 compared to a $0.9 million loss for the same period last year. During the quarter, 168,815 megawatts (MW) were produced at an average sales price of 7.0 cents per kilowatt hour (Kwh). For the second quarter 2003, the company produced 111,666 MW at an average sales price of 8.3 cents per Kwh. For the second quarter 2004, Noble Energy produced 20.1 MMcfpd of natural gas from the Amistad field. In South Bohai Bay offshore China, production from the Cheng Dao Xi (CDX) field was 3,706 barrels of oil per day (Bopd) compared to 3,600 for the same period last year. China had operating income of $5.5 million during the second quarter compared to operating income of $3.9 million for the second quarter of 2003. Noble Energy has a 57 percent working interest in CDX. Outlook Production -- the range of expected average barrels of oil equivalent production from continuing operations in 2004 remains 13 percent to 18 percent over the average for the full year 2003 of 92,116 Boepd. Noble Energy's production profile will be impacted by several factors, including: o The timing of the production increases in Israel and Phase 2A in Equatorial Guinea during 2004; o Seasonal variations in rainfall in Ecuador that affect the company's natural gas-to-power project; and o Potential weather-related shut-ins in the U.S. Gulf of Mexico and Gulf Coast areas. Major international projects scheduled to contribute incremental production this year include: o Initial natural gas sales offshore Israel. Production is projected to continue to increase during the third quarter of 2004 and range between 50 MMcfpd and 80 MMcfpd, net to Noble Energy, during the second half of the year; and o Phase 2A condensate expansion in Equatorial Guinea, which began during November 2003. Costs and expenses -- compared to the full year 2003, costs and expenses may vary as follows: o Exploration expense is still expected to range from $130 million to $140 million; o Selling, general and administrative expense is still expected to range from $1.30 per BOE to $1.50 per BOE; o Oil and gas operations expense is still expected to range from $4.35 per BOE to $4.65 per BOE; o Depreciation, depletion and amortization is now expected to range from $7.50 per BOE to $8.00 per BOE; and o The effective tax rate is still expected to range from 36 percent to 44 percent. Of the total book taxes planned for 2004, 20 percent to 40 percent are expected to be deferred. The above estimates do not include the impact of Noble Energy's possible asset purchases or sales, if any. 4 Capital Expenditures -- Noble Energy expects 2004 capital expenditures to be approximately $750 million compared to the $600 million announced in May of this year. The $150 million expected increase in the capital budget is associated with deepwater expenditures for the Swordfish acquisition and development, as well as the accelerated appraisal and development of the Ticonderoga discovery, including the test of the Conquest prospect offsetting Ticonderoga. 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 and the North Sea. 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 ("SEC") filings. -xxx- PR 274 08/04/04 5 NOBLE ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF RESULTS (Unaudited) (In thousands, except per share)
Three Months Ended Six Months Ended --------------------------- --------------------------- 6/30/2004 6/30/2003 6/30/2004 6/30/2003 --------- --------- --------- --------- REVENUES Oil and Gas Sales and Royalties $ 292,910 $ 205,605 $ 564,496 $ 421,180 Gathering, Marketing and Processing 12,945 19,880 27,120 37,780 Electricity Sales 11,746 9,181 30,865 28,506 Income From Unconsol. Subs 17,632 11,874 30,368 24,606 Other Income (Loss) 3,969 1,650 5,779 1,819 --------- --------- --------- --------- 339,202 248,190 658,628 513,891 --------- --------- --------- --------- COST AND EXPENSES Oil and Gas Operations 49,123 35,496 89,758 72,538 Transportation 3,572 3,580 7,843 7,119 Oil and Gas Exploration 39,026 34,676 55,512 70,078 Gathering, Marketing and Processing 10,634 15,538 21,350 33,982 Electricity Generation 10,410 10,035 23,434 23,621 Depreciation, Depletion and Amortization 80,643 79,760 158,325 149,723 Selling, General and Administrative 13,133 14,945 28,192 28,574 Accretion of Asset Retirement Obligation 2,352 2,281 5,013 4,614 Interest Expense 16,854 15,501 31,012 30,958 Interest Capitalized (2,528) (3,253) (6,642) (5,183) --------- --------- --------- --------- 223,219 208,559 413,797 416,024 --------- --------- --------- --------- INCOME BEFORE INCOME TAXES 115,983 39,631 244,831 97,867 INCOME TAX PROVISION (BENEFIT) Current 28,962 18,720 59,321 39,119 Deferred 16,393 (4,899) 39,570 226 --------- --------- --------- --------- 45,355 13,821 98,891 39,345 --------- --------- --------- --------- INCOME BEFORE DISCONTINUED OPERATIONS AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 70,628 25,810 145,940 58,522 DISCONTINUED OPERATIONS (NET OF TAX) 1,399 3,260 11,633 11,244 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX (5,839) --------- --------- --------- --------- NET INCOME $ 72,027 $ 29,070 $ 157,573 $ 63,927 ========= ========= ========= ========= INCOME PER SHARE BEFORE DISCONTINUED OPERATIONS AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE $ 1.22 $ 0.45 $ 2.52 $ 1.02 INCOME PER SHARE FROM DISCONTINUED OPERATIONS 0.02 0.06 0.20 0.20 LOSS PER SHARE FROM CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE (0.10) --------- --------- --------- --------- NET INCOME PER SHARE $ 1.24 $ 0.51 $ 2.72 $ 1.12 ========= ========= ========= ========= AVERAGE SHARES OUTSTANDING 58,084 57,181 57,874 57,278
NOBLE ENERGY, INC. AND SUBSIDIARIES DETERMINATION OF DISCRETIONARY CASH FLOW AND RECONCILIATION (Unaudited) (In thousands)
Three Months Ended Six Months Ended --------------------------- --------------------------- 6/30/2004 6/30/2003 6/30/2004 6/30/2003 --------- --------- --------- --------- Net Income $ 72,027 $ 29,070 $ 157,573 $ 63,927 Depreciation, Depletion and Amortization (DD&A) 80,643 79,760 158,325 149,723 Power Project DD&A 5,382 4,716 11,537 12,281 Oil and Gas Exploration 39,026 34,676 55,512 70,078 Interest Capitalized (2,528) (3,253) (6,642) (5,183) Undistributed Earnings From Unconsol. Subs (17,632) (11,874) (30,368) (24,606) Distribution/Dividends from Unconsol. Subs 23,643 15,750 35,831 28,125 DD&A - Discontinued Operations 8,668 20,981 Change in Accounting Principle, net of tax 5,839 Deferred Income Tax Provision (Benefit) 16,393 (4,899) 39,570 226 Deferred Income Tax Provision-Discontinued Ops 840 5,003 Accretion of Asset Retirement Obligation 2,352 2,281 5,013 4,614 Other 1,272 4,914 (4,539) 9,850 --------- --------- --------- --------- DISCRETIONARY CASH FLOW* 221,418 159,809 426,815 335,855 Adjustments to Reconcile: Working Capital (36,106) (4,188) (22,558) (10,929) Israel - Take or Pay Payment 4,450 Cash Exploration Costs (11,865) (10,392) (18,596) (19,678) Capitalized Interest 2,528 3,253 6,642 5,183 Deferred Tax, Misc. Credits and Other (15,261) 5,017 (25,323) 1,558 --------- --------- --------- --------- Net Cash Provided by Operating Activities $ 160,714 $ 153,499 $ 371,430 $ 311,989 ========= ========= ========= =========
* 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)
6/30/2004 12/31/2003 ----------- ----------- ASSETS Current Assets $ 531,601 $ 478,387 ----------- ----------- Property, Plant and Equipment 4,182,404 3,924,987 Less: Accumulated Depreciation (1,969,919) (1,825,246) ----------- ----------- 2,212,485 2,099,741 Investment In Unconsol. Subs 222,487 227,669 Other 35,076 36,852 ----------- ----------- $ 3,001,649 $ 2,842,649 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities $ 575,355 $ 654,718 Long-term Debt 795,118 776,021 Deferred Income Taxes, Other Deferred Credits and Noncurrent Liabilities 372,291 338,337 Shareholders' Equity 1,258,885 1,073,573 ----------- ----------- $ 3,001,649 $ 2,842,649 =========== ===========
NOBLE ENERGY, INC. INCOME BEFORE INCOME TAXES (Unaudited) (Dollars in thousands) ================================================================================ THREE MONTHS ENDED 6/30/04
Corporate Equatorial Other and Consolidated Domestic North Sea Guinea Israel International[1] Other[2] ------------ -------- --------- ---------- -------- ---------------- --------- REVENUES Oil Sales $135,715 $ 63,927 $ 23,641 $ 28,958 $ -- $ 19,189 $ -- Gas Sales[3] 157,195 139,534 4,527 996 12,095 43 Gathering, Marketing and Processing Revenue 12,945 12,945 Electricity Sales 11,746 11,746 Income from Unconsolidated Subsidiaries 17,632 17,632 Other 3,969 317 111 (454) 65 51 3,879 -------- -------- -------- -------- -------- -------- -------- Total Revenues 339,202 203,778 28,279 47,132 12,160 31,029 16,824 COSTS AND EXPENSES Oil and Gas Operations 49,123 34,479 2,540 5,891 1,833 4,548 (168) Transportation 3,572 2,063 1,509 Oil and Gas Exploration 39,026 32,771 5,094 100 68 433 560 Gathering, Marketing and Processing Expense 10,634 10,634 Electricity Generation 10,410 10,410 DD&A 80,643 63,074 5,033 3,714 2,371 5,144 1,307 SG&A 13,133 3,176 113 (262) 10,106 Accretion Expense 2,352 2,000 306 46 Interest Expense (net) 14,326 14,326 -------- -------- -------- -------- -------- -------- -------- Total Costs and Expenses 223,219 135,500 15,036 9,818 4,318 21,782 36,765 OPERATING INCOME (LOSS) 115,983 68,278 13,243 37,314 7,842 9,247 (19,941) Discontinued Operations 2,153 2,153 -------- -------- -------- -------- -------- -------- -------- OPERATING INCOME AFTER DISCONTINUED OPERATIONS $118,136 $ 70,431 $ 13,243 $ 37,314 $ 7,842 $ 9,247 $(19,941) ======== ======== ======== ======== ======== ======== ======== KEY STATISTICS DAILY PRODUCTION Liquids (Bbl) 45,515 22,676 7,070 9,105 6,664 Natural Gas (Mcf) 381,488 257,121 12,458 43,500 47,769 20,640[3] AVERAGE REALIZED PRICE Liquids $ 32.77 $ 30.98 $ 36.75 $ 34.95 $ 31.64 Natural Gas $ 4.78 $ 5.96 $ 3.99 $ 0.25 $ 2.78 $ 0.89
================================================================================ THREE MONTHS ENDED 6/30/03
Corporate Equatorial Other and Consolidated Domestic North Sea Guinea Israel International[1] Other[2] ------------ -------- --------- ---------- -------- ---------------- --------- REVENUES Oil Sales $ 85,678 $ 37,994 $ 17,490 $ 14,259 $ -- $ 15,935 $ -- Gas Sales 119,927 114,582 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 1,650 2,617 202 (426) (743) -------- -------- -------- -------- -------- -------- -------- Total Revenues 248,190 155,193 21,987 27,144 0 24,729 19,137 COSTS AND EXPENSES Oil and Gas Operations 35,496 23,724 2,788 3,882 4,258 844 Transportation 3,580 2,315 1,265 Oil and Gas Exploration 34,676 21,683 6,847 4 5,182 516 444 Gathering, Marketing and Processing Expense 15,538 15,538 Electricity Generation 10,035 10,035 DD&A 79,760 65,652 7,414 1,431 10 4,679 574 SG&A 14,945 4,419 97 641 9,788 Accretion Expense 2,281 2,070 211 Interest Expense (net) 12,248 12,248 -------- -------- -------- -------- -------- -------- -------- Total Costs and Expenses 208,559 117,548 19,575 5,414 5,192 21,394 39,436 OPERATING INCOME (LOSS) 39,631 37,645 2,412 21,730 (5,192) 3,335 (20,299) Discontinued Operations 5,015 5,015 -------- -------- -------- -------- -------- -------- -------- OPERATING INCOME AFTER DISCONTINUED OPERATIONS $ 44,646 $ 42,660 $ 2,412 $ 21,730 $ (5,192) $ 3,335 $(20,299) ======== ======== ======== ======== ======== ======== ======== KEY STATISTICS DAILY PRODUCTION Liquids (Bbl) 36,366 16,273 7,438 6,198 6,457 Natural Gas (Mcf) 341,417 269,841 13,431 44,455 13,690[3] AVERAGE REALIZED PRICE Liquids $ 25.89 $ 25.66 $ 25.84 $ 25.28 $ 27.12 Natural Gas $ 4.01 $ 4.67 $ 3.51 $ 0.25 $ 0.41
NOBLE ENERGY, INC. INCOME BEFORE INCOME TAXES (Unaudited) (Dollars in thousands) =============================================================================== SIX MONTHS ENDED 6/30/04
Corporate Equatorial Other and Consolidated Domestic North Sea Guinea Israel International[1] Other[2] ------------ -------- --------- ---------- -------- ---------------- --------- REVENUES Oil Sales $272,413 $129,009 $ 47,242 $ 57,471 $ -- $ 38,691 $ -- Gas Sales[3] 292,083 264,682 10,085 2,060 15,180 76 Gathering, Marketing and Processing Revenue 27,120 27,120 Electricity Sales 30,865 30,865 Income from Unconsolidated Subsidiaries 30,368 30,368 Other 5,779 1,115 1,633 (454) 98 (355) 3,742 -------- -------- -------- -------- -------- -------- -------- Total Revenues 658,628 394,806 58,960 89,445 15,278 69,277 30,862 COSTS AND EXPENSES Oil and Gas Operations 89,758 61,565 5,414 11,040 2,997 9,164 (422) Transportation 7,843 4,605 3,238 Oil and Gas Exploration 55,512 46,784 5,962 136 668 834 1,128 Gathering, Marketing and Processing Expense 21,350 21,350 Electricity Generation 23,434 23,434 DD&A 158,325 125,943 10,441 5,756 3,451 10,495 2,239 SG&A 28,192 6,855 1 148 9 21,179 Accretion Expense 5,013 4,312 622 79 Interest Expense (net) 24,370 24,370 -------- -------- -------- -------- -------- -------- -------- Total Costs and Expenses 413,797 245,459 27,045 17,080 7,195 47,174 69,844 OPERATING INCOME (LOSS) 244,831 149,347 31,915 72,365 8,083 22,103 (38,982) Discontinued Operations 17,897 17,897 -------- -------- -------- -------- -------- -------- -------- OPERATING INCOME AFTER DISCONTINUED OPERATIONS $262,728 $167,244 $ 31,915 $ 72,365 $ 8,083 $ 22,103 $(38,982) ======== ======== ======== ======== ======== ======== ======== KEY STATISTICS DAILY PRODUCTION Liquids (Bbl) 46,836 23,036 7,389 9,551 6,860 Natural Gas (Mcf) 366,118 253,586 12,370 44,961 30,002 25,199[3] AVERAGE REALIZED PRICE Liquids $ 31.96 $ 30.77 $ 35.13 $ 33.06 $ 30.99 Natural Gas $ 4.70 $ 5.73 $ 4.48 $ 0.25 $ 2.78 $ 0.69
=============================================================================== SIX MONTHS ENDED 6/30/03
Corporate Equatorial Other and Consolidated Domestic North Sea Guinea Israel International[1] Other[2] ------------ -------- --------- ---------- -------- ---------------- --------- REVENUES Oil Sales $ 172,756 $ 69,246 $ 41,089 $ 31,159 $ -- $ 31,262 $ -- Gas Sales 248,424 236,733 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 1,819 1,588 179 1 (589) 640 --------- --------- --------- --------- --------- --------- --------- Total Revenues 513,891 307,567 50,912 57,746 1 59,245 38,420 COSTS AND EXPENSES Oil and Gas Operations 72,538 47,382 5,723 8,167 9,087 2,179 Transportation 7,119 4,583 2,536 Oil and Gas Exploration 70,078 42,904 7,452 50 5,455 13,283 934 Gathering, Marketing and Processing Expense 33,982 33,982 Electricity Generation 23,621 23,621 DD&A 149,723 121,217 15,141 3,606 20 8,707 1,032 SG&A 28,574 8,607 157 1,481 18,329 Accretion Expense 4,614 4,191 423 Interest Expense (net) 25,775 25,775 --------- --------- --------- --------- --------- --------- --------- Total Costs and Expenses 416,024 224,301 33,322 11,980 5,475 58,715 82,231 OPERATING INCOME (LOSS) 97,867 83,266 17,590 45,766 (5,474) 530 (43,811) Discontinued Operations 17,298 17,298 Cumulative Effect of SFAS 143 (8,983) (8,983) --------- --------- --------- --------- --------- --------- --------- OPERATING INCOME AFTER DISCONTINUED OPERATIONS $ 106,182 $ 91,581 $ 17,590 $ 45,766 $ (5,474) $ 530 $ (43,811) ========= ========= ========= ========= ========= ========= ========= KEY STATISTICS DAILY PRODUCTION Liquids (Bbl) 34,642 14,979 7,515 6,227 5,921 Natural Gas (Mcf) 344,466 265,879 14,495 43,949 20,143[3] AVERAGE REALIZED PRICE Liquids $ 27.55 $ 25.54 $ 30.21 $ 27.64 $ 29.17 Natural Gas $ 4.22 $ 4.92 $ 3.68 $ 0.25 $ 0.37
METHANOL OPERATIONS (Unaudited) (Dollars in thousands)
Three Months Ended Six Months Ended ------------------------ ----------------------- 6/30/2004 6/30/2003 6/30/2004 6/30/2003 --------- --------- --------- --------- REVENUES Methanol Sales $ 23,899 $ 21,439 $ 47,922 $ 44,034 Sales of Purchased Methanol 803 708 2,861 Other 3,576 2,108 6,253 3,743 --------- --------- --------- --------- Total Revenues 27,475 24,350 54,883 50,638 COSTS AND EXPENSES Cost of Goods Manufactured 7,110 8,607 17,997 17,184 Cost of Purchased Methanol (92) 994 811 3,010 DD&A 2,290 2,372 4,615 4,780 SG&A 535 503 1,092 1,058 --------- --------- --------- --------- Total Costs and Expenses 9,843 12,476 24,515 26,032 INCOME FROM UNCONS. SUBS $ 17,632 $ 11,874 $ 30,368 $ 24,606 ========= ========= ========= ========= Methanol Sales (MGal) 37,364 29,841 75,561 64,327 Average Realized Price ($/Gal) $ 0.64 $ 0.72 $ 0.63 $ 0.68
================================================================================ ECUADOR POWER OPERATIONS (Unaudited) (Dollars in thousands)
Three Months Ended Six Months Ended ------------------------ ----------------------- 6/30/2004 6/30/2003 6/30/2004 6/30/2003 --------- --------- --------- --------- REVENUES Power Sales $ 9,580 $ 7,473 $ 26,582 $ 24,968 Capacity Charge 2,166 1,708 4,283 3,538 --------- --------- --------- --------- Total Revenues 11,746 9,181 30,865 28,506 COSTS AND EXPENSES Field Lease Operating 537 690 997 1,329 DD&A 4,324 3,750 9,423 10,475 SG&A 502 1,141 1,150 1,684 Plant Fuel 3,007 2,723 7,647 6,782 Non-Fuel 982 767 2,102 1,546 Depreciation 1,059 964 2,115 1,805 --------- --------- --------- --------- Total Costs and Expenses 10,411 10,035 23,434 23,621 --------- --------- --------- --------- OPERATING INCOME $ 1,335 $ (854) $ 7,431 $ 4,885 ========= ========= ========= ========= Natural Gas Production (Mcfpd) [3] 20,102 12,651 24,595 19,156 Average Natural Gas Price $ 2.97 $ 3.88 $ 2.97 $ 3.94 Power Production - Total MW 168,815 111,666 421,876 334,872 Average Power Price ($/Kwh) $ 0.070 $ 0.083 $ 0.073 $ 0.085
================================================================================ [1] Other international includes operations in Argentina, China and Ecuador. [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) (Dollars in thousands)
Three Months Ended -------- ----------------------- YTD 6/30/2004 3/31/2004 -------- --------- --------- REVENUES Oil and Gas Sales and Royalties $ 12,457 $ (265) $ 12,722 COST AND EXPENSES Purchase Price and Accrual Adjustments (9,599) (3,707) (5,892) Oil and Gas Operations 4,160 1,290 2,870 -------- -------- -------- (5,439) (2,417) (3,022) -------- -------- -------- INCOME BEFORE INCOME TAXES 17,896 2,152 15,744 INCOME TAX PROVISION Current 1,260 (87) 1,347 Deferred 5,003 840 4,163 -------- -------- -------- 6,263 753 5,510 -------- -------- -------- NET INCOME $ 11,633 $ 1,399 $ 10,234 ======== ======== ======== KEY STATISTICS: Daily Production Liquids (Bbl) 454 (87) 996 Natural Gas (Mcf) 8,937 (1,013) 18,887 Average Realized Price Liquids ($/Bbl) $ 34.07 $ 26.33 $ 33.39 Natural Gas ($/Mcf) $ 5.93 $ 0.60 $ 5.64
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Three Months Ended -------- ----------------------- YTD 6/30/2003 3/31/2003 -------- --------- --------- REVENUES Oil and Gas Sales and Royalties $ 59,636 $ 26,716 $ 32,920 COST AND EXPENSES Write Down to Fair Value 4,914 4,914 Oil and Gas Operations 16,443 8,119 8,324 Depreciation, Depletion and Amortization 20,981 8,668 12,313 -------- -------- -------- 42,338 21,701 20,637 -------- -------- -------- INCOME BEFORE INCOME TAXES 17,298 5,015 12,283 INCOME TAX PROVISION Current 6,054 1,755 4,299 NET INCOME $ 11,244 $ 3,260 $ 7,984 ======== ======== ======== KEY STATISTICS: Daily Production Liquids (Bbl) 4,791 4,724 4,859 Natural Gas (Mcf) 33,075 32,834 33,318 Average Realized Price Liquids ($/Bbl) $ 27.49 $ 25.39 $ 29.56 Natural Gas ($/Mcf) $ 5.98 $ 5.29 $ 6.67
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