Noble Energy cut its loses by 60 percent when compared to last year due to reduced losses and expenses and increased revenues, according to earnings released on Monday.
Noble is an oil and gas production company based in Houston, it posted $252 million in losses in the fourth quarter of 2016, or 59 cents per share, $1.8 billion or almost 90 percent better than the $2 billion in losses over the same period in 2015. It reported year-end losses of almost $1 billion, $1.4 billion greater than the $2.4 billion posted in 2015.
It cut expenses in the fourth quarter by nearly 50 percent to $1.4 billion from $2.6 billion in 2015. Year-end spending is down 15 percent to $4.8 billion from $3.2 billion in 2015.
In conjunction, the company increased revenues by just under 20 percent in the fourth quarter to $1 billion from $860 million in the last period of 2015. Year-end revenues increased 10 percent to $3.5 billion from $3.2 billion in 2015.
Recent West Texas purchases, including the $2.7 billion deal for Midland-based Clayton Williams Energy, closed in 2017 and were not included in last year’s earnings.
Fourth quarter oil volumes and sales exceeded expectations, the company said.
The 10 percent increase is attributed to a strong demand for natural gas in Israel, causing an increase in sales volume, driven by a high demand from industrial customers and displacement of coal to natural gas in Israel’s power generator sector.
U.S onshore wells in West Texas Permian Basin and Colorado’s DJ Basin continued to meet or exceed expectations as well.
“In total, we outperformed our original 2016 plans by 10 million barrels of oil equivalent, with significantly less capital,” said chief executive David L. Stover. “We are positioned for a tremendous year in 2017.”
Article written by HEI contributor Lydia Ezeakor.