Noble Energy Announces Fourth Quarter And Full Year 2012 Results, Including Record Sales Volumes And Cash Flow

February 8, 2013

Noble Energy, Inc. reported on February 7 fourth quarter 2012 net income of $251 million, or $1.39 per share diluted, and net income from continuing operations(1) of $277 million, or $1.54 per share diluted.  Excluding the impact of an unrealized commodity derivatives gain and an asset impairment charge, fourth quarter 2012 adjusted net income from continuing operations(2) was $296 million, or $1.65 per share diluted.  During the fourth quarter 2011, the Company had a net loss from continuing operations of $314 million, or $1.77 per share diluted, and adjusted net income from continuing operations(2) of $277 million, or $1.55 per share diluted.

Discretionary cash flow from continuing operations(2) for the fourth quarter 2012 was a record $824 million compared to $710 million for the same quarter in 2011.  Net cash provided by operating activities was $762 million and capital expenditures(3) for the quarter were $1.1 billion.

Key highlights for the fourth quarter of 2012 include:

    Record quarterly cash flow of $824 million and record annual cash flow of $2.9 billion for 2012
    Record sales volume from continuing operations of 255 thousand barrels of oil equivalent per day (MBoe/d) and 239 MBoe/d for the year
    DJ Basin volumes increased to 86 MBoe/d with horizontal production contributing 39 MBoe/d, 45 percent of the total volumes
    Production in the Marcellus Shale averaged 121 million cubic feet equivalent per day (MMcfe/d) net, a 19 percent increase over third quarter 2012
    Discovery at Big Bend in the Gulf of Mexico
    New reservoir discovery at Carla offshore Equatorial Guinea
    Tamar platform installed and commissioning process initiated
    Announced a strategic partner in the Leviathan leases offshore Israel

Noble Energy reported full year 2012 net income of $1.0 billion, or $5.71 per share diluted, compared to net income of $453 million, or $2.54 per share diluted, in 2011.  Adjusted net income from continuing operations(1) for 2012 was $889 million, or $4.95 per share diluted, compared to $904 million, or $5.06 per share diluted, in 2011.  Discretionary cash flow from continuing operations(1) was $2.9 billion for the year, up 21 percent from 2011, and net cash provided by operating activities for the year was $2.9 billion, up 32 percent from 2011.  Total year capital expenditures(2) were $3.6 billion.

Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "Delivering record quarterly cash flow of more than $800 million in the fourth quarter was an excellent culmination to an exciting year of growth for Noble Energy and has set the stage for an even better year in 2013.  Record sales, with liquids accounting for 47 percent of the volumes, were a strong contributor to the quarterly results.  In particular, crude and condensate sales grew more than 17 percent from the previous quarter.  In 2013, we anticipate another exciting year of growth as we deliver 20 percent production growth over 2012 after adjusting for our 2012 property sales.  We plan to bring Tamar and Alen to first production while continuing to grow our U.S.