Noble Energy, Inc. reported adjusted earnings of 26 cents per share for the fourth quarter of 2016 against the Zacks Consensus Estimate of a loss of 9 cents. Quarterly earnings, however, dropped 40.9% from the year-ago level of 44 cents.

On a GAAP basis, the company incurred a loss of 59 cents per share, much narrower than the year-ago loss of $4.73. The difference between adjusted and GAAP figures was due to the combined effect of a loss related to commodity derivative instruments, exploration expenses and asset impairments. These losses were partially offset by a gain on divestiture.

Full-year 2016 adjusted loss came in at 58 cents, narrower than the Zacks Consensus Estimate of a loss of 94 cents. In 2015, the company had reported earnings of 52 cents.

Total Revenue

Noble Energy's total revenue increased around 17.4% year over year to $1,010 million in the fourth quarter. Reported revenues marginally missed the Zacks Consensus Estimate of $1,048 million.

Full-year 2017 revenues were $3,491 million, missing the Zacks Consensus Estimate of $3,600 million by 3%. However, yearly revenues have risen 9.7% from $3,183 million in the year-ago period.

Operational Results

In the quarter under review, sales volumes averaged 410 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 2.8% year-over-year drop. As far as sales components are concerned, liquids comprised 46% of the sales volume, while natural gas accounted for the rest.

U.S. sales accounted for 70% of the total volume, while international sales accounted for the rest.

Lease operating expenses (LOE) were significantly lower at $3.44 per barrel of oil equivalent (BOE), representing a 9% decline from the fourth-quarter 2015 level.

Interest expenses in the quarter were $86 million, up 7.5%.

Realized Prices

Realized crude oil and condensate prices in the quarter increased 22.4% to $47.41 per barrel from the year-ago level of $38.75.

Natural gas realizations increased to $2.63 per thousand cubic feet (Mcf) from $2.19 in the year-ago period.

Realized prices for natural gas liquids were up 73.5% to $20.04 per barrel.

Financial Highlights

Noble Energy's cash and cash equivalents as of Dec 31, 2016 were $1,180 million, up from $1,028 million as of Dec 31, 2015.

Long-term debt was $7,011 million as of Dec 31, 2016, down from $7,976 million as of Dec 31, 2015.

Cash flow from operating activities in the quarter was $297 million, down 48.4% from $576 million last year.

Capital expenditure in the quarter was $638 million, up 22.2%.

Guidance

For 2017, Noble Energy expects organic capital expenditure in the range of $2,300–$2,600 million and total sales volumes in the range of 415–425 MBoe/d. Nearly 75% of the planned 2017 expenditures will be directed toward the U.S. onshore assets.

Upcoming Peer Release

Concho Resources Inc. has a Zacks Consensus Estimate of a loss of 9 cents and a Zacks Rank #3 (Hold). It is slated to report fourth-quarter earnings on Feb 21.

Peer Releases

Anadarko Petroleum Corporation reported fourth-quarter 2016 adjusted loss of 50 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents.

Murphy Oil Corporation (MUR Quick QuoteMUR - Free Report) reported fourth-quarter 2016 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 19 cents.

Zacks Rank

Noble Energy currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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