Noble Energy Posts Sharp Revenue Decline

   By Ezequiel Minaya 
 

Noble Energy Inc. on Monday reported a 37% decline in third-quarter revenue amid slumping energy prices, and the company posted a deeper adjusted loss than analysts had expected.

The oil-and-gas producer said total sales volumes for the quarter climbed 25% to 379,000 barrels of oil equivalent per day.

The company updated its sales-volume guidance for the final quarter of the year, raising the bottom end of expectations. It said it sees a range of 385,000 barrels of oil equivalent per day to 405,000, from a previous range of 375,000 to 400,000.

For the latest quarter, Noble Energy reported a loss of $283 million, or a loss of 67 cents a share, down from earnings of $419 million, or $1.12 a share, a year earlier. Excluding certain items, the company posted a loss of 21 cents a share in the quarter, down from earnings of 28 cents.

Revenue fell 37% to $801 million.

Analysts surveyed by Thomson Reuters had expected a loss of 17 cents a share on revenue of $962 million.

The total sales volumes growth reflects the added contribution from the Eagle Ford Shale and Permian assets following the close of Noble's merger with Rosetta Resources in July. Legacy Noble Energy holdings posted a 12% increase in total sales volumes.

The merger with Rosetta Resources resulted in some layoffs. Noble had said that it expected more than 15% annual production growth from the acquired assets, which includes 50,000 acres in the Eagle Ford Shale and 54,000 acres in the Permian.

The company also outlined a 40% reduction in planned capital investments for 2015 to $2.9 billion, following a number of other energy companies that have slashed their spending in the wake of sharply lower oil prices.

The Houston-based company has been focusing on developing the DJ Basin and Marcellus Shale as it seeks to stoke volume and stabilize the results during the recent swoon in oil prices.

Write to Ezequiel Minaya at [e-mail]

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(END) Dow Jones Newswires

November 02, 2015 08:54 ET (13:54 GMT)

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