Noble Energy's Loss Widens

   By Anne Steele 
 

Noble Energy Inc.'s loss widened in the most recent quarter, despite a rise in revenue, as expenses grew.

On an adjusted basis, the oil-and-gas producer's loss wasn't as steep as projected, and the company again ticked up its volume guidance for the year.

In the June quarter, Noble's total lease operating costs averaged $3.07 per barrel of oil equivalent, a 30% drop from a year ago.

The company said total sales volumes for the quarter soared 43% to 427,000 barrels of oil equivalent a day. But Noble's average realized price fell 24% for crude oil and 6.1% for natural gas.

Chief Executive David Stover said operational execution in the quarter was helped by "additional capital efficiencies generated across our business."

"We are delivering ahead of our original expectations for the year, having enhanced both our operating capabilities and our financial strength through the first half of the year," he said.

Noble now anticipates total sales volume for 2016 of 415,000 barrels of oil equivalent a day--7% higher than its original estimates. The company reaffirmed its guidance for full-year capital expenditures to be less than $1.5 billion.

In all for the quarter, Noble reported a loss of $315 million, or 73 cents a share, wider than a loss of $109 million, or 28 cents a share, a year earlier. Operating expenses grew 23% from a year earlier.

Excluding certain items, the company's adjusted loss was 24 cents a share compared with a profit of 26 cents in the year-ago quarter. Analysts surveyed by Thomson Reuters had expected an adjusted loss of 29 cents a share.

Revenue rose 15% to $847 million, but below the average analyst estimate of $909 million.

Shares, inactive premarket, have risen 4.6% this year.

Write to Anne Steele at [e-mail].

(END) Dow Jones Newswires

August 03, 2016 09:28 ET (13:28 GMT)

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