Delaware
|
|
73-0785597
|
|
(State of incorporation)
|
|
(I.R.S. employer identification number)
|
|
1001 Noble Energy Way
|
|
|
|
Houston,
|
Texas
|
|
77070
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
(281)
|
872-3100
|
||
(Registrant’s telephone number, including area code)
|
Securities registered pursuant to Section 12(b) of the Act:
|
||||
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
|
NBL
|
|
The Nasdaq Stock Market LLC
|
|
|
|
|
(NASDAQ Global Select Market)
|
Large accelerated filer
|
☒
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
PART I
|
||
Items 1. and 2.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 3.
|
||
Item 4.
|
||
PART II
|
||
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
||
PART III
|
||
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
PART IV
|
||
Item 15.
|
||
Item 16.
|
•
|
our growth strategies, including our capital spending plans;
|
•
|
our future results of operations;
|
•
|
our liquidity and ability to finance our exploration and development activities;
|
•
|
our ability to successfully and economically explore for and develop crude oil, natural gas liquids (NGLs) and natural gas resources;
|
•
|
anticipated trends in our business;
|
•
|
market conditions in the oil and gas industry;
|
•
|
the impact of governmental regulation, including United States (US) federal, state, local, and foreign host government tax regulations, fiscal policies and terms, as well as that involving the protection of the environment or marketing of production and other regulations;
|
•
|
our ability to make and integrate acquisitions or execute divestitures; and
|
•
|
access to resources.
|
|
|
Crude Oil & Condensate
|
|
NGLs
|
|
Natural Gas
|
|
Total
|
|||||||
|
|
(MMBbls)
|
|
(MMBbls)
|
|
(Bcf)
|
|
(MMBoe)(1)
|
|
(Percent)
|
|||||
Proved Developed
|
|
|
|
|
|
|
|
|
|
|
|||||
United States
|
|
176
|
|
|
138
|
|
|
1,055
|
|
|
490
|
|
|
33
|
%
|
Israel
|
|
9
|
|
|
—
|
|
|
5,463
|
|
|
920
|
|
|
61
|
%
|
Equatorial Guinea
|
|
25
|
|
|
10
|
|
|
355
|
|
|
94
|
|
|
6
|
%
|
Total Proved Developed Reserves
|
|
210
|
|
|
148
|
|
|
6,873
|
|
|
1,504
|
|
|
100
|
%
|
Proved Undeveloped
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
United States
|
|
201
|
|
|
125
|
|
|
964
|
|
|
486
|
|
|
89
|
%
|
Israel
|
|
—
|
|
|
—
|
|
|
132
|
|
|
22
|
|
|
4
|
%
|
Equatorial Guinea
|
|
2
|
|
|
5
|
|
|
182
|
|
|
38
|
|
|
7
|
%
|
Total Proved Undeveloped Reserves
|
|
203
|
|
|
130
|
|
|
1,278
|
|
|
546
|
|
|
100
|
%
|
Total Proved Reserves
|
|
413
|
|
|
278
|
|
|
8,151
|
|
|
2,050
|
|
|
|
(1)
|
Million barrels oil equivalent. Natural gas is converted on the basis of six Mcf of gas per one barrel of crude oil equivalent. This ratio reflects an energy content equivalency and not a price or revenue equivalency. Given commodity price disparities, the price for a barrel of crude oil equivalent for US natural gas and NGLs is significantly less than the price for a barrel of crude oil. In Israel, we sell natural gas under contracts where the majority of the price is fixed, resulting in less commodity price disparity.
|
|
|
Year Ended December 31,
|
|||||||
(MMBoe)
|
|
2019
|
|
2018
|
|
2017
|
|||
Proved Reserves, Beginning of Year
|
|
1,929
|
|
|
1,965
|
|
|
1,437
|
|
Revisions of Previous Estimates(1)
|
|
(50
|
)
|
|
(2
|
)
|
|
135
|
|
Extensions, Discoveries and Other Additions
|
|
305
|
|
|
223
|
|
|
736
|
|
Purchase of Minerals in Place
|
|
—
|
|
|
—
|
|
|
57
|
|
Sale of Minerals in Place
|
|
(2
|
)
|
|
(128
|
)
|
|
(261
|
)
|
Production
|
|
(132
|
)
|
|
(129
|
)
|
|
(139
|
)
|
Proved Reserves, End of Year
|
|
2,050
|
|
|
1,929
|
|
|
1,965
|
|
(1)
|
Includes negative price revisions of 53 MMBoe in 2019 and positive price revisions of 27 MMBoe and 30 MMBoe in 2018 and 2017, respectively.
|
(MMBoe)
|
|
United States
|
|
Israel (1)
|
|
Equatorial Guinea
|
|
Total
|
||||
Proved Undeveloped Reserves, Beginning of Year
|
|
560
|
|
|
612
|
|
|
3
|
|
|
1,175
|
|
Revisions of Previous Estimates
|
|
(67
|
)
|
|
(39
|
)
|
|
4
|
|
|
(102
|
)
|
Extensions, Discoveries and Other Additions
|
|
167
|
|
|
—
|
|
|
34
|
|
|
201
|
|
Conversion to Proved Developed
|
|
(174
|
)
|
|
(551
|
)
|
|
(3
|
)
|
|
(728
|
)
|
Proved Undeveloped Reserves, End of Year
|
|
486
|
|
|
22
|
|
|
38
|
|
|
546
|
|
|
|
|
|
|
|
|
|
|
||||
Conversion Percentage (Percent of Beginning Balance)
|
|
31
|
%
|
|
90
|
%
|
|
100
|
%
|
|
61
|
%
|
(1)
|
In Israel, PUDs revisions of previous estimates reflects a reclassification to developed reserves associated with our Tamar field based upon our determination the reserves are accessible with limited further development. As such, we concurrently reflect an upward
|
(MMBoe)
|
|
DJ Basin
|
|
Delaware Basin
|
|
Israel
|
|
Equatorial Guinea
|
|
Total
|
|||||
Price
|
|
(2
|
)
|
|
(15
|
)
|
|
—
|
|
|
3
|
|
|
(14
|
)
|
Development Plans
|
|
(19
|
)
|
|
(25
|
)
|
|
(39
|
)
|
|
1
|
|
|
(82
|
)
|
Performance
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
Total
|
|
(21
|
)
|
|
(46
|
)
|
|
(39
|
)
|
|
4
|
|
|
(102
|
)
|
|
|
Year Ended December 31,
|
||||||||||
(millions)
|
|
2020
|
|
2021
|
|
2022
|
||||||
Future Development Costs
|
|
$
|
1,191
|
|
|
$
|
920
|
|
|
$
|
994
|
|
•
|
the Audit Committee of our Board of Directors reviews significant reserves changes on an annual basis;
|
•
|
fields that meet a minimum reserve quantity threshold, which combined represent over 80% of our proved reserves, are audited by Netherland, Sewell & Associates, Inc. (NSAI), a third-party petroleum consulting firm, on an annual basis;
|
•
|
NSAI is engaged by, and has direct access to, the Audit Committee.
|
|
|
Sales Volumes
|
|
Average Sales Price (1)
|
|
Average Production Cost (2)
|
|||||||||||||||||||
|
|
Crude Oil & Condensate
|
|
NGLs
|
|
Natural Gas
|
|
Crude Oil & Condensate
|
|
NGLs
|
|
Natural Gas
|
|
Total
|
|||||||||||
|
|
(MBbl)
|
|
(MBbl)
|
|
(MMcf)
|
|
(Per Bbl)
|
|
(Per Bbl)
|
|
(Per Mcf)
|
|
(Per BOE)
|
|||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
United States
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
DJ Basin
|
|
25,494
|
|
|
11,931
|
|
|
109,790
|
|
|
$
|
56.33
|
|
|
$
|
12.96
|
|
|
$
|
1.70
|
|
|
$
|
3.55
|
|
Other US
|
|
18,278
|
|
|
12,832
|
|
|
78,408
|
|
|
54.78
|
|
|
15.58
|
|
|
2.02
|
|
|
6.37
|
|
||||
Total US
|
|
43,772
|
|
|
24,763
|
|
|
188,198
|
|
|
$
|
55.68
|
|
|
$
|
14.32
|
|
|
$
|
1.83
|
|
|
$
|
4.80
|
|
Israel
|
|
106
|
|
|
—
|
|
|
81,269
|
|
|
$
|
56.07
|
|
|
$
|
—
|
|
|
$
|
5.55
|
|
|
$
|
2.73
|
|
Equatorial Guinea
|
|
4,792
|
|
|
—
|
|
|
67,729
|
|
|
61.03
|
|
|
—
|
|
|
0.27
|
|
|
4.73
|
|
||||
Total Consolidated Operations
|
|
48,670
|
|
|
24,763
|
|
|
337,196
|
|
|
$
|
56.21
|
|
|
$
|
14.32
|
|
|
$
|
2.41
|
|
|
$
|
4.63
|
|
Equity Investment (3)
|
|
535
|
|
|
1,634
|
|
|
—
|
|
|
58.65
|
|
|
31.77
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
49,205
|
|
|
26,397
|
|
|
337,196
|
|
|
$
|
56.24
|
|
|
$
|
15.40
|
|
|
$
|
2.41
|
|
|
—
|
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
United States (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
DJ Basin
|
|
23,165
|
|
|
8,880
|
|
|
83,766
|
|
|
$
|
63.06
|
|
|
$
|
25.32
|
|
|
$
|
2.13
|
|
|
$
|
4.53
|
|
Other US
|
|
18,506
|
|
|
13,761
|
|
|
88,370
|
|
|
58.69
|
|
|
26.24
|
|
|
2.90
|
|
|
6.16
|
|
||||
Total US
|
|
41,671
|
|
|
22,641
|
|
|
172,136
|
|
|
$
|
61.12
|
|
|
$
|
25.88
|
|
|
$
|
2.53
|
|
|
$
|
5.35
|
|
Israel
|
|
113
|
|
|
—
|
|
|
86,461
|
|
|
$
|
63.25
|
|
|
$
|
—
|
|
|
$
|
5.47
|
|
|
$
|
2.30
|
|
Equatorial Guinea
|
|
5,690
|
|
|
—
|
|
|
77,767
|
|
|
68.53
|
|
|
—
|
|
|
0.27
|
|
|
5.21
|
|
||||
Total Consolidated Operations
|
|
47,474
|
|
|
22,641
|
|
|
336,364
|
|
|
$
|
62.01
|
|
|
$
|
25.88
|
|
|
$
|
2.76
|
|
|
$
|
4.78
|
|
Equity Investment (3)
|
|
576
|
|
|
1,962
|
|
|
—
|
|
|
68.99
|
|
|
42.14
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
48,050
|
|
|
24,603
|
|
|
336,364
|
|
|
$
|
62.10
|
|
|
$
|
27.18
|
|
|
$
|
2.76
|
|
|
—
|
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
United States (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
DJ Basin
|
|
21,564
|
|
|
6,911
|
|
|
70,660
|
|
|
$
|
50.20
|
|
|
$
|
25.22
|
|
|
$
|
2.96
|
|
|
$
|
4.46
|
|
Marcellus Shale
|
|
233
|
|
|
1,654
|
|
|
63,443
|
|
|
36.91
|
|
|
23.81
|
|
|
3.15
|
|
|
1.05
|
|
||||
Other US
|
|
18,757
|
|
|
12,521
|
|
|
87,364
|
|
|
48.01
|
|
|
22.34
|
|
|
2.99
|
|
|
6.48
|
|
||||
Total US
|
|
40,554
|
|
|
21,086
|
|
|
221,467
|
|
|
$
|
49.11
|
|
|
$
|
23.40
|
|
|
$
|
3.02
|
|
|
$
|
4.81
|
|
Israel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tamar Field
|
|
130
|
|
|
—
|
|
|
96,894
|
|
|
$
|
46.95
|
|
|
$
|
—
|
|
|
$
|
5.37
|
|
|
$
|
2.02
|
|
Other Israel
|
|
—
|
|
|
—
|
|
|
2,346
|
|
|
—
|
|
|
—
|
|
|
3.56
|
|
|
—
|
|
||||
Total Israel
|
|
130
|
|
|
—
|
|
|
99,240
|
|
|
$
|
46.95
|
|
|
$
|
—
|
|
|
$
|
5.32
|
|
|
$
|
2.01
|
|
Equatorial Guinea
|
|
6,460
|
|
|
—
|
|
|
87,269
|
|
|
53.68
|
|
|
—
|
|
|
0.27
|
|
|
4.30
|
|
||||
Total Consolidated Operations
|
|
47,144
|
|
|
21,086
|
|
|
407,976
|
|
|
$
|
49.73
|
|
|
$
|
23.40
|
|
|
$
|
3.01
|
|
|
$
|
4.31
|
|
Equity Investment (3)
|
|
662
|
|
|
2,162
|
|
|
—
|
|
|
55.13
|
|
|
38.48
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
47,806
|
|
|
23,248
|
|
|
407,976
|
|
|
$
|
49.84
|
|
|
$
|
24.81
|
|
|
$
|
3.01
|
|
|
—
|
|
(1)
|
Average sales prices exclude gains or losses on commodity derivative instruments. See Item 8. Financial Statements and Supplementary Data – Note 14. Derivative Instruments and Hedging Activities.
|
(2)
|
Average production cost includes oil and gas production operating costs, workover and repair expense and excludes production and ad valorem taxes, gathering, transportation and processing expense, and other royalty expense.
|
(3)
|
Volumes represent sales of condensate and liquefied petroleum gas (LPG) from the LPG plant in Equatorial Guinea.
|
(4)
|
Amounts include Gulf of Mexico assets prior to sale in second quarter 2018 and Marcellus Shale assets prior to sale in second quarter 2017. See Item 8. Financial Statements and Supplementary Data – Note 4. Acquisitions and Divestitures.
|
|
Crude Oil Wells
|
|
Natural Gas Wells
|
|
Total
|
||||||||||||
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
||||||
United States
|
4,819
|
|
|
4,231
|
|
|
807
|
|
|
764
|
|
|
5,626
|
|
|
4,995
|
|
Israel
|
—
|
|
|
—
|
|
|
10
|
|
|
3
|
|
|
10
|
|
|
3
|
|
Equatorial Guinea
|
6
|
|
|
2
|
|
|
23
|
|
|
8
|
|
|
29
|
|
|
10
|
|
Total
|
4,825
|
|
|
4,233
|
|
|
840
|
|
|
775
|
|
|
5,665
|
|
|
5,008
|
|
|
Developed Acreage
|
|
Undeveloped Acreage
|
||||||||
(thousands of acres)
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
||||
United States
|
575
|
|
|
453
|
|
|
495
|
|
|
438
|
|
Israel
|
309
|
|
|
123
|
|
|
161
|
|
|
62
|
|
Equatorial Guinea
|
284
|
|
|
118
|
|
|
26
|
|
|
10
|
|
Newfoundland, Canada
|
—
|
|
|
—
|
|
|
2,331
|
|
|
681
|
|
Colombia
|
—
|
|
|
—
|
|
|
2,174
|
|
|
869
|
|
Gabon
|
—
|
|
|
—
|
|
|
671
|
|
|
403
|
|
Cyprus
|
—
|
|
|
—
|
|
|
95
|
|
|
33
|
|
Cameroon
|
—
|
|
|
—
|
|
|
168
|
|
|
168
|
|
Total
|
1,168
|
|
|
694
|
|
|
6,121
|
|
|
2,664
|
|
|
Net Undeveloped Acreage
|
|||||||
(thousands of acres)
|
2020
|
|
2021
|
|
2022
|
|||
United States (1)
|
29
|
|
|
59
|
|
|
28
|
|
Israel (2)
|
46
|
|
|
—
|
|
|
—
|
|
Gabon
|
—
|
|
|
403
|
|
|
—
|
|
Total
|
75
|
|
|
462
|
|
|
28
|
|
(1)
|
Approximately 80% relates to acreage on which we have not recorded PUDs. Of the remaining acreage, there are no PUDs on acreage we plan to let expire as our development plan contemplates the drilling or renewing of leases associated with this acreage prior to expiration.
|
(2)
|
Acreage relates to the Alon D license.
|
|
Net Exploratory Wells
|
|
Net Development Wells
|
|
Total
|
|||||||||||||||
|
Productive
|
|
Dry
|
|
Total
|
|
Productive
|
|
Dry
|
|
Total
|
|
||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
United States
|
—
|
|
|
—
|
|
|
—
|
|
|
183.9
|
|
|
—
|
|
|
183.9
|
|
|
183.9
|
|
Israel
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|
1.6
|
|
Equatorial Guinea
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
Total
|
—
|
|
|
—
|
|
|
—
|
|
|
185.9
|
|
|
—
|
|
|
185.9
|
|
|
185.9
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
—
|
|
|
—
|
|
|
—
|
|
|
203.0
|
|
|
—
|
|
|
203.0
|
|
|
203.0
|
|
Total
|
—
|
|
|
—
|
|
|
—
|
|
|
203.0
|
|
|
—
|
|
|
203.0
|
|
|
203.0
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
—
|
|
|
—
|
|
|
—
|
|
|
185.3
|
|
|
—
|
|
|
185.3
|
|
|
185.3
|
|
Israel
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
Suriname
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Total
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
185.6
|
|
|
—
|
|
|
185.6
|
|
|
185.8
|
|
|
Exploratory(1)
|
|
Development(1)
|
|
Total
|
||||||||||||
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
||||||
United States
|
—
|
|
|
—
|
|
|
72.0
|
|
|
64.0
|
|
|
72.0
|
|
|
64.0
|
|
Total
|
—
|
|
|
—
|
|
|
72.0
|
|
|
64.0
|
|
|
72.0
|
|
|
64.0
|
|
(1)
|
Amounts include wells awaiting completion activities, with the exception of Tamar Southwest as it is not in the process of completing at December 31, 2019. Amounts exclude wells drilled and suspended awaiting a sanctioned development plan or being evaluated to assess the economic viability of the well.
|
|
DJ Basin
|
|
Delaware Basin
|
|
Eagle Ford Shale
|
|
Total
|
||||
Net Acreage (thousands) (1)
|
336
|
|
|
92
|
|
|
35
|
|
|
463
|
|
Proved Reserves (MMBoe)
|
666
|
|
|
204
|
|
|
106
|
|
|
976
|
|
Sales Volumes (MBoe/d)
|
153
|
|
|
66
|
|
|
55
|
|
|
274
|
|
Gross Wells Drilled (2)
|
106
|
|
|
66
|
|
|
16
|
|
|
188
|
|
Gross Wells Brought Online
|
120
|
|
|
64
|
|
|
25
|
|
|
209
|
|
Gross Non-Operated Wells Participated In
|
2
|
|
|
21
|
|
|
—
|
|
|
23
|
|
(1)
|
Amounts include net developed and net undeveloped acres. Total excludes approximately 181,000 net acres in the Powder River and Green River Basins and approximately 239,000 net acres in other US onshore locations.
|
(2)
|
The number of wells drilled refers to the number of wells completed, regardless of when drilling was initiated. Amount excludes two refracture wells in the Eagle Ford Shale.
|
|
Total
|
|
Proved Reserves (MMBoe) (1)
|
942
|
|
Sales Volumes (MMcf/d)
|
223
|
|
Net Developed Acres (thousands)
|
123
|
|
Net Undeveloped Acres (thousands)
|
95
|
|
Gross Wells Drilled (2)
|
4
|
|
Gross Wells Brought Online
|
4
|
|
(1)
|
Includes 639 MMBoe, 281 MMBoe, and 22 MMBoe related to the Leviathan, Tamar, and Tamar Southwest fields, respectively.
|
(2)
|
The number of wells drilled refers to the number of wells completed, regardless of when drilling was initiated.
|
•
|
Advantage Pipeline L.L.C. (Advantage Pipeline), which owns a crude oil pipeline system in the southern Delaware Basin from Reeves County, Texas to Crane County, Texas (Advantage Pipeline System);
|
•
|
EPIC Y-Grade, which owns a Y-Grade pipeline from the Delaware Basin to Corpus Christi, Texas (EPIC Y-Grade Pipeline);
|
•
|
EPIC Crude Holdings, which is currently constructing a crude oil pipeline from the Delaware Basin to Corpus Christi, Texas (EPIC Crude Oil Pipeline); and
|
•
|
Delaware Crossing, which is currently constructing a crude oil pipeline and gathering system in the Delaware Basin.
|
•
|
the Bureau of Land Management (BLM) published a final rule governing hydraulic fracturing on federal and Indian lands; the rule was repealed in 2017, but state and environmental groups have challenged the rollback;
|
•
|
the Occupational Safety and Health Administration (OSHA) has lowered exposure limits for workers who use silica (sand), which can include hydraulic fracturing activities, and silica work practices have become stricter; and
|
•
|
state and federal regulatory agencies have focused on areas where there have been connections between hydraulic fracturing related activities, particularly the operation of injection wells used for oil and gas waste disposal or hydraulic fracturing activities, and seismic activity due to the presence of critically stressed faulting and orientation, which some have termed “induced seismicity”. Some state regulatory agencies have modified their regulations to account for such induced seismicity and operators, including us, have implemented practices to avoid, monitor, mitigate and respond as necessary to induced seismicity.
|
•
|
reduction of our revenues, profit margins, operating income, and cash flows;
|
•
|
reduction in the amount of crude oil, NGLs and natural gas that we can produce economically, leading to shut-in or early abandonment of producing wells, including low-margin US onshore wells, and increased capital requirements for abandonment operations;
|
•
|
certain properties in our portfolio becoming economically unviable;
|
•
|
impairments of proved or unproved properties or other long-lived assets;
|
•
|
use of cash flow to satisfy minimum obligations under throughput agreements if production is suspended;
|
•
|
delay, reduction, or cancellation of future capital investment programs relating to our exploration and/or development projects, resulting in a reduced ability to develop or replace our reserves;
|
•
|
inability to meet exploration or continuous drilling commitments, leading to loss of leases or exploration rights;
|
•
|
loss of undeveloped acreage if we are unable to make scheduled delay rental payments or loss of developed acreage if our production is shut-in;
|
•
|
divestments of properties to generate funds to meet cash flow or liquidity requirements;
|
•
|
limitations on our financial condition, liquidity, including access to sources of capital, such as debt and equity, and/or ability to finance planned capital expenditures and operations;
|
•
|
failure of our partners to fund their share of development costs or obtain financing, which could result in delay or cancellation of future projects, thus limiting our growth and future cash flows;
|
•
|
inability to meet scheduled interest and/or debt payments or payments due under operating or finance leases;
|
•
|
a series of credit rating downgrades or other negative rating actions, which could increase our future cost of financing and may increase our requirements to post collateral as financial assurance of performance under certain other contracts, which, in turn, could have a negative impact on our liquidity and our ability to access the commercial paper market;
|
•
|
reduction or suspension of dividends or repurchases of our common stock;
|
•
|
declines in our stock price; and
|
•
|
additional counterparty credit risk exposure on commodity hedges and joint venture receivables.
|
•
|
global demand for crude oil, NGLs, and natural gas, as impacted by economic factors that affect gross domestic product growth rates of countries around the world, including impacts from global health epidemics and concerns, such as the coronavirus;
|
•
|
global supply for crude oil, NGLs, and natural gas, including inventories, as impacted by OPEC and non-OPEC countries;
|
•
|
technology advances that increase crude oil, NGL, and natural gas production, thereby increasing supply;
|
•
|
new technologies that promote fuel efficiency or fuel efficiency regulations, such as the Corporate Average Fuel Economy (CAFE) standards, and impact demand for crude oil as a transportation fuel and reduce energy consumption;
|
•
|
the price and availability of alternative fuels and battery storage and the long-term impact on the crude oil market of the use of natural gas and electricity as an alternative fuel for road transportation or the use of natural gas as fuel for electricity generation impacting the demand for electricity;
|
•
|
developments in the global LNG market, including increasing exports from the US;
|
•
|
geopolitical conditions and events, including domestic political uncertainty or foreign generational leadership or regime changes, changes in government energy policies, including imposed price controls and/or product subsidies, the impact of trade embargoes or imposed tariffs, or instability/armed conflict in hydrocarbon-producing regions;
|
•
|
fluctuations in exchange rates of the US dollar, the currency in which the world's crude oil trade is generally denominated;
|
•
|
periods when production surpasses local pipeline/rail transportation and/or refining capacity, which in turn results in transportation constraints and significant discounts to our realized prices;
|
•
|
the level and effect of trading in commodity futures markets, including by commodity price speculators and others;
|
•
|
the effectiveness of worldwide conservation measures;
|
•
|
weather conditions; and
|
•
|
domestic and foreign governmental regulations and taxes.
|
•
|
commodity prices, including price realizations on specific crude oil, NGL and natural gas production;
|
•
|
operating and development costs;
|
•
|
production, drilling and delivery commitments, or other contractual obligations;
|
•
|
drilling results;
|
•
|
cash flows from operations and indebtedness levels;
|
•
|
availability of financing or other sources of funding;
|
•
|
impact of new laws and regulations on our business practices, including potential legislative or regulatory changes regarding the use of hydraulic fracturing;
|
•
|
property acquisitions and divestitures;
|
•
|
exploration activity; and
|
•
|
potential changes in the fiscal regimes of the US and other countries in which we operate.
|
•
|
incorrect estimates or assumptions about reserves, exploration potential or potential drilling locations;
|
•
|
incorrect assumptions regarding future revenues, including future commodity prices and differentials, or regarding future development and operating costs;
|
•
|
incorrect assumptions regarding potential synergies and the overall costs of equity or debt;
|
•
|
difficulties in integrating the operations, technologies, products and personnel of the acquired assets or business; and
|
•
|
unknown and unforeseen liabilities or other issues related to any acquisition for which contractual protections prove inadequate, including environmental liabilities and title defects.
|
•
|
current commodity prices;
|
•
|
laws and regulations impacting oil and gas operations in the areas where the assets are located;
|
•
|
willingness of the purchaser to assume certain liabilities such as asset retirement obligations;
|
•
|
our willingness to indemnify buyers for certain matters; and
|
•
|
delays in closing.
|
•
|
renegotiation, modification or nullification of existing contracts, which may occur pursuant to future regulations enacted as a result of changes in Israel's antitrust, export and natural gas development policies, or the hydrocarbons law enacted in 2006 by the government of Equatorial Guinea, which can increase the amount of revenues that the host government receives from production (government take) or otherwise decrease project profitability;
|
•
|
actions taken by host nations, such as expropriation or nationalization of assets or termination of contracts, which may cause a loss of revenue, property and equipment;
|
•
|
changes in drilling, environmental, social or safety regulations;
|
•
|
laws and policies of the US and foreign jurisdictions affecting trade, foreign investment, taxation and business conduct;
|
•
|
political conditions and events which may cause the potential for Israel natural gas production and regional exports to be interrupted;
|
•
|
the doctrine of sovereign immunity and foreign sovereignty over international operations which may cause difficulties enforcing our rights against a governmental agency;
|
•
|
US and international monetary policies impacting foreign exchange or repatriation restrictions in countries in which we conduct business; and
|
•
|
other hazards arising out of foreign governmental sovereignty over areas in which we conduct operations.
|
•
|
increased volatility in global crude oil, NGL and natural gas prices, which could negatively impact the global economy, resulting in slower economic growth rates, which could reduce demand for our products;
|
•
|
negative impact on the global crude oil supply if infrastructure or transportation are disrupted, leading to further commodity price volatility;
|
•
|
difficulty in attracting and retaining qualified personnel to work in areas with potential for conflict;
|
•
|
inability of our personnel, third-party providers or supplies to enter or exit the countries where we conduct operations;
|
•
|
disruption of our operations due to evacuation of personnel;
|
•
|
inability to deliver our production due to disruption or closing of transportation routes;
|
•
|
reduced ability to export our production due to efforts of countries to conserve domestic resources;
|
•
|
damage to or destruction of our wells, production facilities, receiving terminals or other operating assets;
|
•
|
damage to or destruction of property belonging to our purchasers, leading to interruption of commodity deliveries, claims of force majeure, and/or termination of sales contracts, resulting in a reduction in our revenues;
|
•
|
lack of availability of drilling rigs, oilfield equipment or services if third-party providers decide to exit the region; and
|
•
|
shutdown of a financial system, communications network, or power grid causing a disruption to our business activities.
|
•
|
have a negative impact on our ability to compete for oil and gas resources;
|
•
|
result in a failure to reach the intended target or lead to a drilling incident during drilling activities;
|
•
|
result in loss of production, or accidental discharge should production infrastructure be impacted;
|
•
|
result in supply chain disruptions which could delay or halt a development project, effectively delaying the start of cash flows from the project;
|
•
|
prevent us from marketing our production through a third-party gathering or pipeline service provider, resulting in a loss of revenues;
|
•
|
cause operational disruption if communication networks or power grids are targeted resulting in loss of revenues;
|
•
|
result in events of non-compliance which could lead to regulatory fines or penalties due to deliberate corruption of our financial or operational data, or data theft; and
|
•
|
result in expensive remediation efforts, distraction of management, damage to our reputation, or have a negative impact on the price of our common stock.
|
•
|
new municipal, state or federal land use regulations, which may restrict drilling locations or certain activities such as hydraulic fracturing;
|
•
|
local and municipal government control of land or zoning requirements, which can conflict with state law and deprive land owners of property development rights;
|
•
|
landowner, community and/or governmental opposition to infrastructure development;
|
•
|
regulation of federal and Indian land by the BLM; and
|
•
|
the presence of threatened or endangered species or of their habitat.
|
•
|
reduce our proved reserves;
|
•
|
reduce our ability to explore for new proved reserves;
|
•
|
increase exploratory and development well drilling costs, operating or other costs;
|
•
|
delay, or preclude, project development resulting in longer development cycle times;
|
•
|
disrupt or prohibit our ability to construct or operate midstream assets;
|
•
|
divert our cash flows from capital investments in order to maintain liquidity;
|
•
|
increase or remove liability caps for claims of damages from oil spills;
|
•
|
increase our share of civil or criminal fines or sanctions for actual or alleged violations if a well incident were to occur; and
|
•
|
limit our ability to obtain additional insurance coverage, at a level that balances the cost of insurance and our desired rates of return, to protect against any increase in liability.
|
•
|
restrict resource access or investment in lease holdings;
|
•
|
limit or cancel exploration and/or development activities, which could have a long-term negative impact on future quantities of proved reserves and inhibit future production growth;
|
•
|
reduce the profitability of our projects, resulting in decreases in net income and cash flows with the potential to make future investments uneconomical;
|
•
|
result in currently producing projects becoming uneconomic, to the extent fiscal changes are retroactive, thereby reducing the amount of proved reserves we record and cash flows we receive, and possibly resulting in asset impairment charges;
|
•
|
require that valuation allowances be established against deferred tax assets, with offsetting increases in income tax expense, resulting in decreases in net income and cash flow; and/or
|
•
|
restrict our ability to compete with imported volumes of crude oil or natural gas.
|
•
|
pipeline ruptures and spills;
|
•
|
fires, explosions, blowouts and well cratering;
|
•
|
equipment malfunctions and/or mechanical failure on high-volume, high-impact wells;
|
•
|
malfunctions of, or damage to, gathering, processing, compression and transportation facilities and equipment and other facilities and equipment utilized in support of our operations;
|
•
|
leaks or spills occurring during the transfer of hydrocarbons from an FPSO to an oil tanker;
|
•
|
loss of product occurring as a result of transfer to a truck or rail car or train derailments;
|
•
|
leakage or loss of access to hydrocarbons resulting from formations with abnormal pressures and basin subsidence;
|
•
|
release of pollutants; and
|
•
|
spills, leaks or discharges of fluids used in or produced in the course of operations, especially those that reach surface water or groundwater.
|
•
|
hurricanes, tropical storms, windstorms, flooding or “superstorms,” which could affect our operations in Texas;
|
•
|
winter storms and snow, which could affect our operations in the DJ Basin;
|
•
|
extremely high temperatures, which could affect our midstream or third-party gathering and processing facilities in the DJ Basin and Texas;
|
•
|
severe droughts, which could result in new restrictions on water usage in the DJ Basin and Texas;
|
•
|
harsh weather and rough seas offshore international locations, which could limit exploration activities; and
|
•
|
other natural disasters.
|
•
|
a portion of our cash flows from operating activities must be used to service our indebtedness and is not available for other purposes;
|
•
|
we may be at a competitive disadvantage as compared to similar companies that have less debt;
|
•
|
a covenant contained in our Credit Agreement provides that our total debt to capitalization ratio (as defined in the Credit Agreement) may not exceed 65% at any time, which may make additional borrowings more expensive, thereby affecting our flexibility in planning for, and reacting to, changes in the economy and our industry;
|
•
|
additional future financing for working capital, capital expenditures, acquisitions, general corporate or other purposes may have higher costs and more restrictive covenants; and
|
•
|
we may be more vulnerable to general adverse economic and industry conditions.
|
•
|
estimating future production from an area is consistent with historical production from similar producing areas;
|
•
|
assumed effects of regulations by governmental agencies, including the SEC;
|
•
|
future development, operating and abandonment costs, as well as timing of such activities; and
|
•
|
impacts of cost recovery provisions in contracts with foreign governments.
|
Period
|
Total Number of Shares Purchased (1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
(millions)
|
||||||
10/1/2019 - 10/31/2019
|
3,060
|
|
|
$
|
20.07
|
|
|
—
|
|
|
|
||
11/1/2019 - 11/30/2019
|
125
|
|
|
21.24
|
|
|
—
|
|
|
|
|||
12/1/2019 - 12/31/2019
|
81
|
|
|
20.91
|
|
|
—
|
|
|
|
|||
Total
|
3,266
|
|
|
$
|
20.14
|
|
|
—
|
|
|
$
|
455
|
|
(1)
|
Shares repurchased during the period related to stock received by us from employees for the payment of withholding taxes due on shares of common stock issued under stock-based compensation plans.
|
(2)
|
During fourth quarter 2019, we did not repurchase any shares under the $750 million share repurchase program, authorized by the Board of Directors and announced in February 2018, which expires on December 31, 2020.
|
(1)
|
Anadarko Petroleum Corp. is excluded from all periods in the graph below due to its acquisition by Occidental Petroleum Corp. in 2019.
|
Year Ended December 31,
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||
Noble Energy, Inc.
|
$
|
70.66
|
|
$
|
82.62
|
|
$
|
64.10
|
|
$
|
41.88
|
|
$
|
56.66
|
|
S&P 500
|
101.38
|
|
113.51
|
|
138.29
|
|
132.23
|
|
173.86
|
|
|||||
2018 (Previous) Peer Group
|
61.58
|
|
90.75
|
|
83.75
|
|
62.94
|
|
65.16
|
|
|||||
2019 (New) Peer Group
|
61.28
|
|
94.22
|
|
88.70
|
|
63.73
|
|
66.02
|
|
|
Year Ended December 31,
|
||||||||||||||||||
(millions, except as noted)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Revenues and Income
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Revenues
|
$
|
4,438
|
|
|
$
|
4,986
|
|
|
$
|
4,256
|
|
|
$
|
3,491
|
|
|
$
|
3,183
|
|
Asset Impairments (1)
|
1,160
|
|
|
206
|
|
|
70
|
|
|
92
|
|
|
533
|
|
|||||
Net (Loss) Income and Comprehensive (Loss) Income Including Noncontrolling Interests
|
(1,433
|
)
|
|
14
|
|
|
(1,050
|
)
|
|
(985
|
)
|
|
(2,441
|
)
|
|||||
Net Loss and Comprehensive Loss Attributable to Noble Energy
|
(1,512
|
)
|
|
(66
|
)
|
|
(1,118
|
)
|
|
(998
|
)
|
|
(2,441
|
)
|
|||||
Per Share Data, Attributable to Noble Energy
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loss per Share - Basic and Diluted
|
$
|
(3.16
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(2.38
|
)
|
|
$
|
(2.32
|
)
|
|
$
|
(6.07
|
)
|
Cash Dividends per Share
|
0.47
|
|
|
0.43
|
|
|
0.40
|
|
|
0.40
|
|
|
0.72
|
|
|||||
Stock Price per Share
|
24.84
|
|
|
18.76
|
|
|
29.14
|
|
|
38.06
|
|
|
32.93
|
|
|||||
Weighted Average Number of Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic and Diluted
|
478
|
|
|
483
|
|
|
469
|
|
|
430
|
|
|
402
|
|
|||||
Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net Cash Provided by Operating Activities
|
$
|
1,998
|
|
|
$
|
2,336
|
|
|
$
|
1,951
|
|
|
$
|
1,351
|
|
|
$
|
2,062
|
|
Additions to Property, Plant and Equipment
|
2,524
|
|
|
3,279
|
|
|
2,649
|
|
|
1,541
|
|
|
2,979
|
|
|||||
Net Proceeds from Divestitures (2)
|
173
|
|
|
1,999
|
|
|
2,073
|
|
|
1,241
|
|
|
151
|
|
|||||
Proceeds from Issuance of Noble Energy Common Stock, Net of Offering Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,112
|
|
|||||
Proceeds from Issuance of Noble Midstream Partners Common Units, Net of Offering Costs
|
243
|
|
|
—
|
|
|
312
|
|
|
299
|
|
|
—
|
|
|||||
Financial Position
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Cash Equivalents
|
$
|
484
|
|
|
$
|
716
|
|
|
$
|
675
|
|
|
$
|
1,180
|
|
|
$
|
1,028
|
|
Property, Plant and Equipment, Net
|
17,451
|
|
|
18,419
|
|
|
17,502
|
|
|
18,548
|
|
|
21,300
|
|
|||||
Goodwill (1)
|
110
|
|
|
110
|
|
|
1,310
|
|
|
—
|
|
|
—
|
|
|||||
Total Assets
|
20,647
|
|
|
21,120
|
|
|
21,476
|
|
|
21,011
|
|
|
24,196
|
|
|||||
Long-term Obligations
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-Term Debt
|
7,477
|
|
|
6,574
|
|
|
6,746
|
|
|
7,011
|
|
|
7,976
|
|
|||||
Deferred Income Taxes
|
662
|
|
|
1,061
|
|
|
1,127
|
|
|
1,819
|
|
|
2,826
|
|
|||||
Asset Retirement Obligations, Noncurrent
|
730
|
|
|
762
|
|
|
824
|
|
|
775
|
|
|
861
|
|
|||||
Other
|
648
|
|
|
403
|
|
|
421
|
|
|
328
|
|
|
358
|
|
|||||
Mezzanine Equity
|
106
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Shareholders' Equity
|
9,055
|
|
|
10,484
|
|
|
10,619
|
|
|
9,600
|
|
|
10,370
|
|
(1)
|
(2)
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Consolidated Operations Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consolidated Crude Oil Sales (MBbl/d)
|
133
|
|
|
130
|
|
|
129
|
|
|
125
|
|
|
112
|
|
|||||
Average Realized Price ($/Bbl)
|
$
|
56.21
|
|
|
$
|
62.01
|
|
|
$
|
49.73
|
|
|
$
|
40.39
|
|
|
$
|
45.00
|
|
Consolidated NGL Sales (MBbl/d)
|
68
|
|
|
62
|
|
|
58
|
|
|
54
|
|
|
39
|
|
|||||
Average Realized Price ($/Bbl)
|
$
|
14.32
|
|
|
$
|
25.88
|
|
|
$
|
23.40
|
|
|
$
|
14.92
|
|
|
$
|
13.91
|
|
Consolidated Natural Gas Sales (MMcf/d)
|
925
|
|
|
922
|
|
|
1,118
|
|
|
1,397
|
|
|
1,187
|
|
|||||
Average Realized Price ($/Mcf)
|
$
|
2.41
|
|
|
$
|
2.76
|
|
|
$
|
3.01
|
|
|
$
|
2.42
|
|
|
$
|
2.44
|
|
Proved Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Crude Oil and Condensate Reserves (MMBbls)
|
413
|
|
|
457
|
|
|
457
|
|
|
333
|
|
|
307
|
|
|||||
NGL Reserves (MMBbls)
|
278
|
|
|
266
|
|
|
229
|
|
|
219
|
|
|
189
|
|
|||||
Natural Gas Reserves (Bcf)
|
8,151
|
|
|
7,231
|
|
|
7,680
|
|
|
5,308
|
|
|
5,549
|
|
|||||
Total Reserves (MMBoe)
|
2,050
|
|
|
1,929
|
|
|
1,965
|
|
|
1,437
|
|
|
1,421
|
|
|||||
Number of Employees
|
2,282
|
|
|
2,330
|
|
|
2,277
|
|
|
2,274
|
|
|
2,395
|
|
•
|
•
|
•
|
•
|
•
|
•
|
•
|
•
|
Execution of a disciplined capital allocation process by:
|
◦
|
designing a flexible investment program aligned with the current commodity price environment.
|
•
|
Leveraging the benefits of our well-positioned and diversified portfolio, including:
|
◦
|
exercising investment optionality and flexibility afforded by our assets, certain of which are held by production; and
|
◦
|
continuing portfolio optimization actions to maximize strategic value.
|
•
|
Enhancing capital efficiencies by:
|
◦
|
utilizing our technical competencies and applying historical learnings from unconventional US shale plays to reduce US onshore exploration and development costs.
|
•
|
Capitalizing on a currently low-cost offshore environment with execution of high-quality, long-cycle development projects, such as:
|
◦
|
continuing development offshore Israel and monetizing natural gas offshore West Africa.
|
•
|
Maintaining financial strength through:
|
◦
|
focusing operational activities on high-margin, high-return assets; and
|
◦
|
improving overall corporate returns.
|
•
|
Commitment to people and communities in which we operate by:
|
◦
|
being a safe and reliable operator;
|
◦
|
complying with applicable air quality rules and environmental regulations; and
|
◦
|
advancing ESG initiatives.
|
•
|
increased total average consolidated sales volumes by 3% to 355 MBoe/d, net;
|
•
|
increased average daily sales volumes for US onshore crude oil by 10% to 120 MBbl/d, net;
|
•
|
reduced total production expense per BOE by 3% as compared to 2018;
|
•
|
exceeded 2 Tcf, gross, of natural gas produced from the Tamar field since commencement of operations;
|
•
|
commenced production from the Leviathan field in December 2019;
|
•
|
invested in the EMG Pipeline, through our affiliate, EMED Pipeline B.V., enabling future flow of natural gas production from offshore Israel to customers in Egypt;
|
•
|
reduced capital expenditures, excluding acquisitions, by $571 million as compared with 2018;
|
•
|
drilled the Aseng 6P well, offshore Equatorial Guinea, and commenced production in fourth quarter 2019; and
|
•
|
sanctioned the Alen Gas Monetization project, offshore Equatorial Guinea.
|
|
Year Ended December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Oil, NGL and Gas Sales to Third Parties
|
$
|
3,904
|
|
|
$
|
4,461
|
|
Sales of Purchased Oil and Gas
|
109
|
|
|
20
|
|
||
Income from Equity Method Investments and Other
|
69
|
|
|
132
|
|
||
Total Revenues
|
4,082
|
|
|
4,613
|
|
||
Production Expense
|
1,354
|
|
|
1,358
|
|
||
Exploration Expense
|
202
|
|
|
129
|
|
||
Depreciation, Depletion and Amortization
|
2,058
|
|
|
1,819
|
|
||
Gain on Divestitures, Net (1)
|
—
|
|
|
(340
|
)
|
||
Asset Impairments (2)
|
1,160
|
|
|
169
|
|
||
Goodwill Impairment (2)
|
—
|
|
|
1,281
|
|
||
Cost of Purchased Oil and Gas
|
107
|
|
|
20
|
|
||
Loss (Gain) on Commodity Derivative Instruments
|
143
|
|
|
(63
|
)
|
||
(Loss) Income Before Income Taxes
|
(1,093
|
)
|
|
119
|
|
(1)
|
(2)
|
|
Average Sales Volumes
|
|
Average Realized Sales Prices
|
||||||||||||||||||||
|
Crude Oil & Condensate
(MBbl/d)
|
|
NGLs
(MBbl/d) |
|
Natural Gas
(MMcf/d)
|
|
Total
(MBoe/d)
|
|
Crude Oil & Condensate
(Per Bbl)
|
|
NGLs
(Per Bbl)
|
|
Natural Gas
(Per Mcf) |
||||||||||
Year Ended December 31, 2019
|
|||||||||||||||||||||||
United States
|
120
|
|
|
68
|
|
|
516
|
|
|
274
|
|
|
$
|
55.68
|
|
|
$
|
14.32
|
|
|
$
|
1.83
|
|
Eastern Mediterranean
|
—
|
|
|
—
|
|
|
223
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
5.55
|
|
|||
West Africa (1)
|
13
|
|
|
—
|
|
|
186
|
|
|
44
|
|
|
61.03
|
|
|
—
|
|
|
0.27
|
|
|||
Total Consolidated Operations
|
133
|
|
|
68
|
|
|
925
|
|
|
355
|
|
|
56.21
|
|
|
14.32
|
|
|
2.41
|
|
|||
Equity Investment (2)
|
2
|
|
|
4
|
|
|
—
|
|
|
6
|
|
|
58.65
|
|
|
31.77
|
|
|
—
|
|
|||
Total
|
135
|
|
|
72
|
|
|
925
|
|
|
361
|
|
|
$
|
56.24
|
|
|
$
|
15.40
|
|
|
$
|
2.41
|
|
Year Ended December 31, 2018
|
|||||||||||||||||||||||
United States (3)
|
114
|
|
|
62
|
|
|
472
|
|
|
255
|
|
|
$
|
61.12
|
|
|
$
|
25.88
|
|
|
$
|
2.53
|
|
Eastern Mediterranean
|
—
|
|
|
—
|
|
|
237
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
5.47
|
|
|||
West Africa (1)
|
16
|
|
|
—
|
|
|
213
|
|
|
51
|
|
|
68.53
|
|
|
—
|
|
|
0.27
|
|
|||
Total Consolidated Operations
|
130
|
|
|
62
|
|
|
922
|
|
|
346
|
|
|
62.01
|
|
|
25.88
|
|
|
2.76
|
|
|||
Equity Investment (2)
|
2
|
|
|
5
|
|
|
—
|
|
|
7
|
|
|
68.99
|
|
|
42.14
|
|
|
—
|
|
|||
Total
|
132
|
|
|
67
|
|
|
922
|
|
|
353
|
|
|
$
|
62.10
|
|
|
$
|
27.18
|
|
|
$
|
2.76
|
|
(1)
|
Natural gas from the Alba field is sold under contract for $0.25 per MMBtu to a methanol plant, an LPG plant, an LNG plant and a power generation plant. The methanol and LPG plants are owned by affiliated entities accounted for under the equity method. See Items 1. and 2. Business and Properties – Delivery Commitments – West Africa Agreements.
|
(2)
|
Volumes represent sales of condensate and LPG from the LPG plant in Equatorial Guinea. See Income from Equity Method Investments and Other.
|
(3)
|
Includes 7 MBoe/d for 2018 related to Gulf of Mexico assets sold in second quarter 2018. See Item 8. Financial Statements and Supplementary Data – Note 4. Acquisitions and Divestitures.
|
(millions)
|
Crude Oil & Condensate
|
|
NGLs
|
|
Natural
Gas
|
|
Total
|
||||||||
Year Ended December 31, 2018
|
$
|
2,945
|
|
|
$
|
587
|
|
|
$
|
929
|
|
|
$
|
4,461
|
|
Changes due to
|
|
|
|
|
|
|
|
||||||||
Increase (Decrease) in Sales Volumes
|
68
|
|
|
48
|
|
|
(15
|
)
|
|
101
|
|
||||
Decrease in Sales Prices (1)
|
(277
|
)
|
|
(281
|
)
|
|
(100
|
)
|
|
(658
|
)
|
||||
Year Ended December 31, 2019
|
$
|
2,736
|
|
|
$
|
354
|
|
|
$
|
814
|
|
|
$
|
3,904
|
|
(1)
|
Changes exclude impacts of commodity derivative instruments. See Item 8. Financial Statements and Supplementary Data – Note 14. Derivative Instruments and Hedging Activities.
|
•
|
9% decrease in average realized prices (see factors impacting global pricing at Executive Overview – Industry Outlook);
|
•
|
reduction in sales volumes of 5 MBbl/d due to the sale of our Gulf of Mexico assets in second quarter 2018; and
|
•
|
lower offshore West Africa sales volumes of 3 MBbl/d due to timing of liftings and natural field decline;
|
•
|
higher US onshore sales volumes of 11 MBbl/d primarily due to an increase in development activity in the DJ and Delaware Basins.
|
•
|
43% decrease in average realized prices (see factors impacting global pricing at Executive Overview – Industry Outlook); and
|
•
|
lower Eagle Ford Shale sales volumes of 6 MBbl/d due to reduced activity and natural field decline;
|
•
|
higher sales volumes of 12 MBbl/d in the DJ and Delaware Basins due to an increase in development activities.
|
•
|
13% decrease in average realized prices (see factors impacting global pricing at Executive Overview – Industry Outlook);
|
•
|
lower Eagle Ford Shale sales volumes of 41 MMcf/d due to reduced activity and natural field decline;
|
•
|
lower West Africa sales volumes of 28 MMcf/d due to natural field decline and planned maintenance at onshore facilities during first quarter 2019, which required shut-in for a portion of the period; and
|
•
|
lower Israel sales volumes of 14 MMcf/d primarily due to the sale of a 7.5% interest in the Tamar field in March 2018;
|
•
|
higher sales volumes of 91 MMcf/d in the DJ and Delaware Basins due to an increase in development activity.
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Net Income (millions)
|
|
|
|
||||
AMPCO and Affiliates
|
$
|
23
|
|
|
$
|
64
|
|
Alba Plant
|
41
|
|
|
71
|
|
||
Dividends (millions)
|
|
|
|
||||
AMPCO and Affiliates
|
$
|
9
|
|
|
$
|
63
|
|
Alba Plant
|
42
|
|
|
93
|
|
||
Sales Volumes
|
|
|
|
||||
Methanol (Mt/d)
|
1,091
|
|
|
1,230
|
|
||
Condensate (MBbl/d)
|
2
|
|
|
2
|
|
||
LPG (MBbl/d)
|
4
|
|
|
5
|
|
||
Average Realized Prices
|
|
|
|
Methanol (per Mt)
|
$
|
269.73
|
|
|
$
|
379.62
|
|
Condensate (per Bbl)
|
58.65
|
|
|
68.99
|
|
||
LPG (per Bbl)
|
31.77
|
|
|
42.14
|
|
•
|
decrease in net income from AMPCO and affiliates primarily due to lower realized methanol prices; and
|
•
|
decrease in net income from Alba Plant primarily due to lower realized LPG prices.
|
(millions, except unit rate)
|
Total per BOE (1)(2)
|
|
Total
|
|
United
States (2)
|
|
Eastern Mediterranean
|
|
West Africa
|
||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease Operating Expense
|
$
|
4.42
|
|
|
$
|
573
|
|
|
$
|
460
|
|
|
$
|
37
|
|
|
$
|
76
|
|
Production and Ad Valorem Taxes
|
1.30
|
|
|
169
|
|
|
169
|
|
|
—
|
|
|
—
|
|
|||||
Gathering, Transportation and Processing
|
4.62
|
|
|
599
|
|
|
598
|
|
|
1
|
|
|
—
|
|
|||||
Other Royalty Expense
|
0.10
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|||||
Total Production Expense
|
$
|
10.44
|
|
|
$
|
1,354
|
|
|
$
|
1,240
|
|
|
$
|
38
|
|
|
$
|
76
|
|
Total Production Expense per BOE
|
|
|
$
|
10.44
|
|
|
$
|
12.41
|
|
|
$
|
2.78
|
|
|
$
|
4.73
|
|
||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Lease Operating Expense
|
$
|
4.78
|
|
|
$
|
603
|
|
|
$
|
480
|
|
|
$
|
26
|
|
|
$
|
97
|
|
Production and Ad Valorem Taxes
|
1.46
|
|
|
184
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|||||
Gathering, Transportation and Processing
|
4.22
|
|
|
533
|
|
|
533
|
|
|
—
|
|
|
—
|
|
|||||
Other Royalty Expense
|
0.30
|
|
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|||||
Total Production Expense
|
$
|
10.76
|
|
|
$
|
1,358
|
|
|
$
|
1,235
|
|
|
$
|
26
|
|
|
$
|
97
|
|
Total Production Expense per BOE
|
|
|
$
|
10.76
|
|
|
$
|
13.28
|
|
|
$
|
1.79
|
|
|
$
|
5.20
|
|
(1)
|
Consolidated unit rates exclude sales volumes and expenses attributable to equity method investments.
|
(2)
|
US production expense includes charges from our midstream operations that are eliminated on a consolidated basis. See Item 8. Financial Statements and Supplementary Data – Note 3. Segment Information.
|
•
|
decrease in US lease operating expense primarily due to the sale of our Gulf of Mexico assets and cost reduction efforts, notably workover reductions and compression optimization, in the US onshore basins; and
|
•
|
decrease in other royalty expense due to lower commodity prices;
|
•
|
decrease in West Africa lease operating expense due to cost reduction efforts across all assets; and
|
•
|
decrease in production and ad valorem taxes due to production tax refunds;
|
•
|
increase in US gathering, transportation and processing (GTP) expense primarily due to increased development activity in the DJ Basin and higher-cost Delaware Basin; and
|
•
|
increase in Eastern Mediterranean lease operating expense due to planned maintenance activities.
|
(millions, except unit rate)
|
Total
|
|
United States
|
|
Eastern Mediterranean
|
|
West Africa
|
|
Other Int'l
|
||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
DD&A Expense (1)
|
$
|
2,058
|
|
|
$
|
1,907
|
|
|
$
|
67
|
|
|
$
|
83
|
|
|
$
|
1
|
|
Unit Rate per BOE (2)
|
$
|
15.88
|
|
|
$
|
19.09
|
|
|
$
|
4.91
|
|
|
$
|
5.16
|
|
|
$
|
—
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
DD&A Expense (1)
|
$
|
1,819
|
|
|
$
|
1,642
|
|
|
$
|
60
|
|
|
$
|
115
|
|
|
$
|
2
|
|
Unit Rate per BOE (2)
|
$
|
14.42
|
|
|
$
|
17.66
|
|
|
$
|
4.13
|
|
|
$
|
6.17
|
|
|
$
|
—
|
|
(1)
|
DD&A expense includes accretion of discount on asset retirement obligations (AROs) of $43 million in 2019 and $33 million in 2018.
|
(2)
|
Consolidated rates exclude sales volumes and expenses attributable to equity method investments.
|
•
|
capital investment and development activities in the DJ and Delaware Basins resulting in higher sales volumes; and
|
•
|
increase in Eastern Mediterranean primarily due to the retirement of certain capital assets resulting in accelerated depreciation;
|
•
|
decrease resulting from the sale of our Gulf of Mexico assets in second quarter 2018; and
|
•
|
reduced sales volumes in West Africa, as noted above, from natural field decline.
|
•
|
net cash receipt of $32 million; and
|
•
|
net non-cash decrease of $175 million in the fair value of our net commodity derivative liability, primarily driven by increases in the forward commodity price curve for crude oil.
|
•
|
net cash payment of $161 million; and
|
•
|
net non-cash increase of $224 million in the fair value of our net commodity derivative asset, primarily driven by decreases in the forward commodity price curve for crude oil.
|
•
|
sold substantially all of our US onshore midstream interests and assets and our incentive distribution rights to Noble Midstream Partners for total consideration of $1.6 billion;
|
•
|
expanded our long-haul business by developing strategic relationships in the Delaware Basin, exercising investment options in EPIC Y-Grade and EPIC Crude Holdings, and forming the Delaware Crossing crude oil pipeline joint venture, with total equity contributions of approximately $590 million; and
|
•
|
secured long-term takeaway at a lower cost in the DJ Basin through a strategic relationship with Saddlehorn.
|
|
Year Ended December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Midstream Services Revenues - Third Party
|
$
|
94
|
|
|
$
|
78
|
|
Sales of Purchased Oil and Gas
|
190
|
|
|
142
|
|
||
(Loss) Income from Equity Method Investments
|
(18
|
)
|
|
40
|
|
||
Intersegment Revenues
|
427
|
|
|
351
|
|
||
Total Revenues
|
693
|
|
|
611
|
|
Operating Costs and Expenses
|
150
|
|
|
128
|
|
||
Depreciation, Depletion and Amortization
|
104
|
|
|
87
|
|
||
Gain on Divestiture, Net
|
—
|
|
|
(503
|
)
|
||
Asset Impairments
|
—
|
|
|
37
|
|
||
Cost of Purchased Oil and Gas
|
181
|
|
|
136
|
|
||
Total Expense (Income)
|
435
|
|
|
(115
|
)
|
||
Income Before Income Taxes
|
$
|
258
|
|
|
$
|
726
|
|
|
Year Ended December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Sales of Purchased Gas (1)
|
$
|
90
|
|
|
$
|
113
|
|
Cost of Purchased Gas (1)
|
143
|
|
|
140
|
|
||
Firm Transportation Exit Cost (2)
|
88
|
|
|
—
|
|
(1)
|
Relates to third-party mitigation activities we engage in to utilize a portion of our Marcellus Shale transportation commitments. Cost of purchased gas includes utilized and unutilized transportation expense.
|
(2)
|
Includes exit costs related to future commitments to a third-party resulting from a permanent capacity assignment.
|
|
Year Ended December 31,
|
||||||
(millions, except unit rate)
|
2019
|
|
2018
|
||||
G&A Expense
|
$
|
416
|
|
|
$
|
385
|
|
Unit Rate per BOE (1)
|
$
|
3.21
|
|
|
$
|
3.05
|
|
(1)
|
Consolidated unit rates exclude sales volumes and expenses attributable to equity method investments.
|
|
Year Ended December 31,
|
||||||
(millions, except unit rate)
|
2019
|
|
2018
|
||||
Interest Expense
|
$
|
362
|
|
|
$
|
355
|
|
Capitalized Interest
|
(102
|
)
|
|
(73
|
)
|
||
Interest Expense, Net
|
$
|
260
|
|
|
$
|
282
|
|
Unit Rate per BOE (1)
|
$
|
2.01
|
|
|
$
|
2.23
|
|
(1)
|
Consolidated unit rates exclude sales volumes and expenses attributable to equity method investments.
|
•
|
initiated a commercial paper program;
|
•
|
issued and redeemed notes, lowering interest expense and extending debt maturities;
|
•
|
established a new Noble Midstream Partners term loan;
|
•
|
increased the Noble Midstream Services Revolving Credit Facility capacity to almost $1.2 billion;
|
•
|
secured a $200 million preferred equity commitment at Noble Midstream Partners; and
|
•
|
completed our midstream asset sale and simplification to Noble Midstream Partners.
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(millions, except percentages)
|
Noble Energy Excluding
Noble Midstream Partners
|
|
Noble Midstream Partners
|
|
Total
|
|
Noble Energy Excluding
Noble Midstream Partners
|
|
Noble Midstream Partners
|
|
Total
|
||||||||||||
Total Cash (1)
|
$
|
471
|
|
|
$
|
13
|
|
|
$
|
484
|
|
|
$
|
707
|
|
|
$
|
12
|
|
|
$
|
719
|
|
Amounts Available for Borrowing (2)
|
4,000
|
|
|
—
|
|
|
4,000
|
|
|
4,000
|
|
|
—
|
|
|
4,000
|
|
||||||
Total Liquidity
|
$
|
4,471
|
|
|
$
|
13
|
|
|
$
|
4,484
|
|
|
$
|
4,707
|
|
|
$
|
12
|
|
|
$
|
4,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Debt (3)
|
$
|
6,089
|
|
|
$
|
1,495
|
|
|
$
|
7,584
|
|
|
$
|
6,115
|
|
|
$
|
560
|
|
|
$
|
6,675
|
|
Noble Energy Share of Equity
|
|
|
|
|
$
|
8,410
|
|
|
|
|
|
|
$
|
9,426
|
|
||||||||
Ratio of Debt-to-Book Capital (4)
|
|
|
|
|
47
|
%
|
|
|
|
|
|
41
|
%
|
(1)
|
Total cash includes $3 million of restricted cash at December 31, 2018.
|
(2)
|
Excludes amounts available to be borrowed under the Noble Midstream Services Revolving Credit Facility, which is not available to Noble Energy for general corporate purposes.
|
(3)
|
Total debt excludes unamortized debt discount/premium and debt issuance costs. See Item 8. Financial Statements and Supplementary Data – Note 8. Long-Term Debt
|
(4)
|
We define our ratio of debt-to-book capital as total debt divided by the sum of total debt plus Noble Energy's share of equity.
|
|
Year Ended December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Total Cash Provided By (Used in)
|
|
|
|
||||
Operating Activities
|
$
|
1,998
|
|
|
$
|
2,336
|
|
Investing Activities
|
(3,138
|
)
|
|
(1,931
|
)
|
||
Financing Activities
|
905
|
|
|
(399
|
)
|
||
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
|
$
|
(235
|
)
|
|
$
|
6
|
|
|
Year Ended December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Unproved Property Acquisition (1)
|
$
|
37
|
|
|
$
|
41
|
|
Proved Property Acquisition
|
4
|
|
|
—
|
|
||
Exploration
|
38
|
|
|
25
|
|
||
Development
|
2,074
|
|
|
2,658
|
|
||
Midstream
|
230
|
|
|
727
|
|
||
Corporate
|
66
|
|
|
60
|
|
||
Total
|
$
|
2,449
|
|
|
$
|
3,511
|
|
|
|
|
|
|
|||
Additions to Equity Method Investments(2)
|
|
|
|
||||
EMED Pipeline B.V.
|
$
|
189
|
|
|
$
|
—
|
|
EPIC Y-Grade
|
174
|
|
|
—
|
|
||
EPIC Crude Holdings
|
358
|
|
|
—
|
|
||
Delaware Crossing
|
72
|
|
|
—
|
|
||
Other
|
6
|
|
|
—
|
|
||
Total Additions to Equity Method Investments
|
$
|
799
|
|
|
$
|
—
|
|
|
|
|
|
||||
Increase in Finance Lease Obligations
|
$
|
7
|
|
|
$
|
14
|
|
(1)
|
Amounts relate to US onshore undeveloped leasehold activity.
|
(2)
|
Amounts include capitalized interest that will be amortized into earnings over the useful life of the related assets.
|
(millions)
|
Note Reference (1)
|
2020
|
|
2021 and 2022
|
|
2023 and 2024
|
|
2025 and beyond
|
|
Total
|
||||||||||
Long-Term Debt (2)
|
$
|
—
|
|
|
$
|
900
|
|
|
$
|
1,345
|
|
|
$
|
5,134
|
|
|
$
|
7,379
|
|
|
Long-Term Debt Interest Payments and Revolving Credit Facility Commitment Fee (3)
|
342
|
|
|
661
|
|
|
580
|
|
|
4,458
|
|
|
6,041
|
|
||||||
Operating Lease Obligations (4)
|
100
|
|
|
101
|
|
|
41
|
|
|
37
|
|
|
279
|
|
||||||
Finance Lease Obligations (4)
|
52
|
|
|
65
|
|
|
44
|
|
|
86
|
|
|
247
|
|
||||||
Marcellus Shale Firm Transportation Obligations (5)
|
143
|
|
|
187
|
|
|
175
|
|
|
675
|
|
|
1,180
|
|
||||||
Purchase and Service Obligations (6)
|
135
|
|
|
42
|
|
|
32
|
|
|
72
|
|
|
281
|
|
||||||
Gathering, Transportation and Processing Obligations
|
174
|
|
|
332
|
|
|
302
|
|
|
334
|
|
|
1,142
|
|
||||||
Other Liabilities (7)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Retirement Obligations (8)
|
85
|
|
|
170
|
|
|
34
|
|
|
525
|
|
|
814
|
|
||||||
Commodity Derivative Instruments (9)
|
36
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
37
|
|
||||||
Total Contractual Obligations
|
|
$
|
1,067
|
|
|
$
|
2,459
|
|
|
$
|
2,553
|
|
|
$
|
11,321
|
|
|
$
|
17,400
|
|
(1)
|
(2)
|
Long-term debt excludes unamortized discounts, premiums, debt issuance costs and finance lease obligations.
|
(3)
|
Interest payments and commitment fees are based on the total debt balance, scheduled maturities and interest rates in effect at December 31, 2019.
|
(4)
|
Annual lease payments exclude regular maintenance and operational costs.
|
(5)
|
Amount includes firm transportation exit cost accruals resulting from certain permanent capacity assignments.
|
(6)
|
Purchase and service obligations represent contractual agreements to purchase goods or services that are enforceable, legally binding and specify all significant terms, including fixed and minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction.
|
(7)
|
The table excludes deferred compensation liabilities of $133 million as specific payment dates are unknown. See Item 8. Financial Statements and Supplementary Data – Note 16. Stock-Based and Other Compensation Plans.
|
(8)
|
AROs are discounted.
|
(9)
|
Amount represents commodity derivative instruments that were in a net payable position with the counterparty at December 31, 2019.
|
Consolidated Financial Statements of Noble Energy, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noble Energy, Inc.
|
|
|
|
/s/ KPMG LLP
|
|
|
|
|
|
|
|
We have served as the Company’s auditor since 2002.
|
||||
|
|
|
|
|
Houston, Texas
|
|
|
|
|
February 12, 2020
|
|
|
|
|
|
|
/s/ KPMG LLP
|
|
|
Houston, Texas
|
|
|
|
|
February 12, 2020
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues
|
|
|
|
|
|
||||||
Oil, NGL and Gas Sales
|
$
|
3,904
|
|
|
$
|
4,461
|
|
|
$
|
4,060
|
|
Sales of Purchased Oil and Gas
|
389
|
|
|
275
|
|
|
—
|
|
|||
Other Revenue
|
145
|
|
|
250
|
|
|
196
|
|
|||
Total
|
4,438
|
|
|
4,986
|
|
|
4,256
|
|
|||
Costs and Expenses
|
|
|
|
|
|
||||||
Production Expense
|
1,137
|
|
|
1,197
|
|
|
1,141
|
|
|||
Exploration Expense
|
202
|
|
|
129
|
|
|
188
|
|
|||
Depreciation, Depletion and Amortization
|
2,197
|
|
|
1,934
|
|
|
2,053
|
|
|||
General and Administrative
|
416
|
|
|
385
|
|
|
415
|
|
|||
Cost of Purchased Oil and Gas
|
431
|
|
|
296
|
|
|
—
|
|
|||
Gain on Divestitures, Net
|
—
|
|
|
(843
|
)
|
|
(326
|
)
|
|||
Asset Impairments
|
1,160
|
|
|
206
|
|
|
70
|
|
|||
Goodwill Impairment
|
—
|
|
|
1,281
|
|
|
—
|
|
|||
Loss on Marcellus Shale Upstream Divestiture and Other
|
—
|
|
|
—
|
|
|
2,379
|
|
|||
Other Operating Expense, Net
|
214
|
|
|
50
|
|
|
138
|
|
|||
Total
|
5,757
|
|
|
4,635
|
|
|
6,058
|
|
|||
Operating (Loss) Income
|
(1,319
|
)
|
|
351
|
|
|
(1,802
|
)
|
|||
Other Expense
|
|
|
|
|
|
||||||
Loss (Gain) on Commodity Derivative Instruments
|
143
|
|
|
(63
|
)
|
|
(63
|
)
|
|||
Loss on Extinguishment of Debt or Facility
|
44
|
|
|
8
|
|
|
98
|
|
|||
Interest, Net of Amount Capitalized
|
260
|
|
|
282
|
|
|
354
|
|
|||
Other Non-Operating Expense (Income), Net
|
10
|
|
|
(16
|
)
|
|
—
|
|
|||
Total
|
457
|
|
|
211
|
|
|
389
|
|
|||
(Loss) Income Before Income Taxes
|
(1,776
|
)
|
|
140
|
|
|
(2,191
|
)
|
|||
Income Tax (Benefit) Expense
|
(343
|
)
|
|
126
|
|
|
(1,141
|
)
|
|||
Net (Loss) Income and Comprehensive (Loss) Income Including Noncontrolling Interests
|
(1,433
|
)
|
|
14
|
|
|
(1,050
|
)
|
|||
Less: Net Income and Comprehensive Income Attributable to Noncontrolling Interests
|
79
|
|
|
80
|
|
|
68
|
|
|||
Net Loss and Comprehensive Loss Attributable to Noble Energy
|
$
|
(1,512
|
)
|
|
$
|
(66
|
)
|
|
$
|
(1,118
|
)
|
|
|
|
|
|
|
||||||
Loss Attributable to Noble Energy per Common Share
|
|
|
|
|
|
||||||
Basic and Diluted
|
$
|
(3.16
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(2.38
|
)
|
Weighted Average Number of Shares Outstanding
|
|
|
|
|
|
||||||
Basic and Diluted
|
478
|
|
|
483
|
|
|
469
|
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
484
|
|
|
$
|
716
|
|
Accounts Receivable, Net
|
730
|
|
|
616
|
|
||
Other Current Assets
|
148
|
|
|
418
|
|
||
Total Current Assets
|
1,362
|
|
|
1,750
|
|
||
Property, Plant and Equipment
|
|
|
|
||||
Oil and Gas Properties (Successful Efforts Method of Accounting)
|
30,404
|
|
|
29,002
|
|
||
Property, Plant and Equipment, Other
|
1,083
|
|
|
891
|
|
||
Total Property, Plant and Equipment, Gross
|
31,487
|
|
|
29,893
|
|
||
Accumulated Depreciation, Depletion and Amortization
|
(14,036
|
)
|
|
(11,474
|
)
|
||
Total Property, Plant and Equipment, Net
|
17,451
|
|
|
18,419
|
|
||
Other Noncurrent Assets
|
1,834
|
|
|
841
|
|
||
Total Assets
|
$
|
20,647
|
|
|
$
|
21,010
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts Payable - Trade
|
$
|
1,250
|
|
|
$
|
1,207
|
|
Other Current Liabilities
|
719
|
|
|
519
|
|
||
Total Current Liabilities
|
1,969
|
|
|
1,726
|
|
||
Long-Term Debt
|
7,477
|
|
|
6,574
|
|
||
Deferred Income Taxes
|
662
|
|
|
1,061
|
|
||
Other Noncurrent Liabilities
|
1,378
|
|
|
1,165
|
|
||
Total Liabilities
|
11,486
|
|
|
10,526
|
|
||
Commitments and Contingencies
|
|
|
|
|
|||
Mezzanine Equity
|
|
|
|
||||
Redeemable Noncontrolling Interest, Net
|
106
|
|
|
—
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Preferred Stock - Par Value $1.00 per share; 4 Million Shares Authorized; None Issued
|
—
|
|
|
—
|
|
||
Common Stock - Par Value $0.01 per share; 1 Billion Shares Authorized; 522 Million and 520 Million Shares Issued, respectively
|
5
|
|
|
5
|
|
||
Additional Paid in Capital
|
8,927
|
|
|
8,203
|
|
||
Accumulated Other Comprehensive Loss
|
(31
|
)
|
|
(32
|
)
|
||
Treasury Stock, at Cost; 39 Million Shares
|
(732
|
)
|
|
(730
|
)
|
||
Retained Earnings
|
241
|
|
|
1,980
|
|
||
Noble Energy Share of Equity
|
8,410
|
|
|
9,426
|
|
||
Noncontrolling Interests
|
645
|
|
|
1,058
|
|
||
Total Shareholders' Equity
|
9,055
|
|
|
10,484
|
|
||
Total Liabilities, Mezzanine Equity and Shareholders' Equity
|
$
|
20,647
|
|
|
$
|
21,010
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows From Operating Activities
|
|
|
|
|
|
||||||
Net (Loss) Income Including Noncontrolling Interests
|
$
|
(1,433
|
)
|
|
$
|
14
|
|
|
$
|
(1,050
|
)
|
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities
|
|
|
|
|
|
|
|
||||
Depreciation, Depletion and Amortization
|
2,197
|
|
|
1,934
|
|
|
2,053
|
|
|||
Loss on Marcellus Shale Upstream Divestiture and Other
|
—
|
|
|
—
|
|
|
2,379
|
|
|||
Gain on Divestitures, Net
|
—
|
|
|
(843
|
)
|
|
(326
|
)
|
|||
Asset Impairments
|
1,160
|
|
|
206
|
|
|
70
|
|
|||
Goodwill Impairment
|
—
|
|
|
1,281
|
|
|
—
|
|
|||
Deferred Income Tax Benefit
|
(434
|
)
|
|
(70
|
)
|
|
(1,227
|
)
|
|||
Loss on Extinguishment of Debt or Facility
|
44
|
|
|
4
|
|
|
98
|
|
|||
Loss (Gain) on Commodity Derivative Instruments
|
143
|
|
|
(63
|
)
|
|
(63
|
)
|
|||
Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments
|
32
|
|
|
(161
|
)
|
|
13
|
|
|||
Stock Based Compensation
|
68
|
|
|
62
|
|
|
104
|
|
|||
Firm Transportation Exit Cost
|
88
|
|
|
—
|
|
|
—
|
|
|||
Noncash Exploration Expense
|
100
|
|
|
2
|
|
|
71
|
|
|||
Other Adjustments for Noncash Items Included in Net (Loss) Income
|
98
|
|
|
17
|
|
|
(21
|
)
|
|||
Changes in Operating Assets and Liabilities
|
|
|
|
|
|
||||||
(Increase) Decrease in Accounts Receivable
|
(6
|
)
|
|
156
|
|
|
(171
|
)
|
|||
Increase (Decrease) in Accounts Payable
|
9
|
|
|
(63
|
)
|
|
248
|
|
|||
Other Current Assets and Liabilities, Net
|
94
|
|
|
(14
|
)
|
|
(107
|
)
|
|||
Other Operating Assets and Liabilities, Net
|
(162
|
)
|
|
(126
|
)
|
|
(120
|
)
|
|||
Net Cash Provided by Operating Activities
|
1,998
|
|
|
2,336
|
|
|
1,951
|
|
|||
Cash Flows From Investing Activities
|
|
|
|
|
|
|
|
||||
Additions to Property, Plant and Equipment
|
(2,524
|
)
|
|
(3,279
|
)
|
|
(2,649
|
)
|
|||
Acquisitions, Net of Cash Received
|
—
|
|
|
(653
|
)
|
|
(954
|
)
|
|||
Additions to Equity Method Investments
|
(799
|
)
|
|
—
|
|
|
(68
|
)
|
|||
Net Proceeds from Divestitures
|
173
|
|
|
1,999
|
|
|
2,073
|
|
|||
Other
|
12
|
|
|
2
|
|
|
(19
|
)
|
|||
Net Cash Used in Investing Activities
|
(3,138
|
)
|
|
(1,931
|
)
|
|
(1,617
|
)
|
|||
Cash Flows From Financing Activities
|
|
|
|
|
|
|
|
||||
Proceeds from Revolving Credit Facility
|
50
|
|
|
1,580
|
|
|
1,585
|
|
|||
Repayment of Revolving Credit Facility
|
(50
|
)
|
|
(1,810
|
)
|
|
(1,355
|
)
|
|||
Repayment of Term Loan Facility
|
—
|
|
|
—
|
|
|
(550
|
)
|
|||
Proceeds from Noble Midstream Services Revolving Credit Facility
|
1,290
|
|
|
777
|
|
|
325
|
|
|||
Repayment of Noble Midstream Services Revolving Credit Facility
|
(755
|
)
|
|
(802
|
)
|
|
(240
|
)
|
|||
Proceeds from Noble Midstream Services Term Loan Credit Facilities
|
400
|
|
|
500
|
|
|
—
|
|
|||
Repayment of Senior Notes
|
(1,053
|
)
|
|
(384
|
)
|
|
(1,114
|
)
|
|||
Repayment of Clayton Williams Energy Long-term Debt
|
—
|
|
|
—
|
|
|
(595
|
)
|
|||
Proceeds from Issuance of Senior Notes
|
1,000
|
|
|
—
|
|
|
1,086
|
|
|||
Dividends Paid, Common Stock
|
(227
|
)
|
|
(208
|
)
|
|
(190
|
)
|
|||
Purchase and Retirement of Common Stock
|
—
|
|
|
(295
|
)
|
|
—
|
|
|||
Proceeds from Issuance of Mezzanine Equity, Net of Offering Costs
|
97
|
|
|
—
|
|
|
—
|
|
|||
Issuance of Noble Midstream Partners Common Units, Net of Offering Costs
|
243
|
|
|
—
|
|
|
312
|
|
|||
Contributions from Noncontrolling Interest Owners
|
37
|
|
|
353
|
|
|
19
|
|
|||
Other
|
(127
|
)
|
|
(110
|
)
|
|
(114
|
)
|
|||
Net Cash Used in Financing Activities
|
905
|
|
|
(399
|
)
|
|
(831
|
)
|
|||
(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash
|
(235
|
)
|
|
6
|
|
|
(497
|
)
|
|||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period
|
719
|
|
|
713
|
|
|
1,210
|
|
|||
Cash, Cash Equivalents, and Restricted Cash at End of Period
|
$
|
484
|
|
|
$
|
719
|
|
|
$
|
713
|
|
|
Attributable to Noble Energy
|
|
|
|
|
||||||||||||||||||||||
|
Common Stock
|
|
Additional Paid in Capital
|
|
Accumulated Other Comprehensive Loss
|
|
Treasury Stock at Cost
|
|
Retained Earnings
|
|
Non-controlling Interests
|
|
Total Equity
|
||||||||||||||
December 31, 2016
|
$
|
5
|
|
|
$
|
6,450
|
|
|
$
|
(31
|
)
|
|
$
|
(692
|
)
|
|
$
|
3,556
|
|
|
$
|
312
|
|
|
$
|
9,600
|
|
Net (Loss) Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,118
|
)
|
|
68
|
|
|
(1,050
|
)
|
|||||||
Clayton Williams Energy Acquisition
|
—
|
|
|
1,876
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
1,851
|
|
|||||||
Stock-based Compensation
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|||||||
Exercise of Stock Options
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||||
Dividends (40 cents per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(190
|
)
|
|
—
|
|
|
(190
|
)
|
|||||||
Issuance of Noble Midstream Partners Common Units, Net of Offering Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
312
|
|
|
312
|
|
|||||||
Distributions to Noncontrolling Interest Owners
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
(28
|
)
|
|||||||
Other
|
—
|
|
|
2
|
|
|
1
|
|
|
(8
|
)
|
|
—
|
|
|
19
|
|
|
14
|
|
|||||||
December 31, 2017
|
$
|
5
|
|
|
$
|
8,438
|
|
|
$
|
(30
|
)
|
|
$
|
(725
|
)
|
|
$
|
2,248
|
|
|
$
|
683
|
|
|
$
|
10,619
|
|
Net (Loss) Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(66
|
)
|
|
80
|
|
|
14
|
|
|||||||
Stock-based Compensation
|
—
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|||||||
Dividends (43 cents per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(208
|
)
|
|
—
|
|
|
(208
|
)
|
|||||||
Purchase and Retirement of Common Stock
|
—
|
|
|
(295
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(295
|
)
|
|||||||
Clayton Williams Energy Acquisition
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|||||||
Distributions to Noncontrolling Interest Owners
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51
|
)
|
|
(51
|
)
|
|||||||
Contributions from Noncontrolling Interest Owners
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
353
|
|
|
353
|
|
|||||||
Other
|
—
|
|
|
7
|
|
|
(2
|
)
|
|
(5
|
)
|
|
6
|
|
|
(7
|
)
|
|
(1
|
)
|
|||||||
December 31, 2018
|
$
|
5
|
|
|
$
|
8,203
|
|
|
$
|
(32
|
)
|
|
$
|
(730
|
)
|
|
$
|
1,980
|
|
|
$
|
1,058
|
|
|
$
|
10,484
|
|
Net (Loss) Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,512
|
)
|
|
79
|
|
|
(1,433
|
)
|
|||||||
Stock-based Compensation
|
—
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|||||||
Dividends (47 cents per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(227
|
)
|
|
—
|
|
|
(227
|
)
|
|||||||
Issuance of Noble Midstream Partners Common Units, Net of Offering Costs
|
—
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
210
|
|
|||||||
Subsidiary Equity Transaction
|
—
|
|
|
538
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(538
|
)
|
|
—
|
|
|||||||
Distributions to Noncontrolling Interest Owners
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
|
(74
|
)
|
|||||||
Contributions from Noncontrolling Interest Owners
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
37
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
|
(17
|
)
|
|
(18
|
)
|
|||||||
December 31, 2019
|
$
|
5
|
|
|
$
|
8,927
|
|
|
$
|
(31
|
)
|
|
$
|
(732
|
)
|
|
$
|
241
|
|
|
$
|
645
|
|
|
$
|
9,055
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
•
|
Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities.
|
•
|
Level 2 measurements are fair value measurements which use inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly.
|
•
|
Level 3 measurements are fair value measurements which use unobservable inputs.
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
(millions)
|
2020
|
2021
|
2022
|
2023
|
2024
|
Thereafter
|
Total
|
||||||||||||||
Natural Gas Revenues(1)
|
$
|
743
|
|
$
|
768
|
|
$
|
583
|
|
$
|
583
|
|
$
|
583
|
|
$
|
5,259
|
|
$
|
8,519
|
|
(1)
|
Includes amounts related to the Tamar and Leviathan fields, offshore Israel.
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
•
|
transition “practical expedients,” permitting us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs;
|
•
|
the practical expedient pertaining to land easements, allowing us to account for existing land easements under our previous accounting policy; and
|
•
|
the practical expedient to not separate lease and non-lease components for the majority of our leases (elected by asset class).
|
•
|
Most of our leases do not provide implicit borrowing rates; therefore, using the portfolio approach, we determine the present value of lease payments using hypothetical secured borrowing rates based on information available at lease commencement.
|
•
|
Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one month to one year or more. Additionally, some of our leases include an option for early termination. We include renewal periods and exclude termination periods from our lease term if, at commencement, it is reasonably likely that we will exercise the option.
|
•
|
Certain of our lease agreements include rental payments that are adjusted periodically for inflation or passage of time. These step payments are included within our present value calculation as they are known adjustments at commencement. Variable payments related to lease agreements are not material.
|
•
|
We have lease agreements that include lease and non-lease components, such as equipment maintenance, that are generally accounted for as a single lease component. For these leases, lease payments include all fixed payments stated within the contract. For other leases, such as office space, lease and non-lease components are accounted for separately. While some lease agreements include residual value guarantees, there are no material guarantees that impact our lease payments.
|
•
|
ROU assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable.
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
Year Ended December 31,
|
||||||||||
(millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Other Revenue
|
|
|
|
|
|
|
|
|
|||
Income from Equity Method Investments and Other
|
$
|
51
|
|
|
$
|
172
|
|
|
$
|
177
|
|
Midstream Services Revenues - Third Party
|
94
|
|
|
78
|
|
|
19
|
|
|||
Total
|
$
|
145
|
|
|
$
|
250
|
|
|
$
|
196
|
|
Production Expense
|
|
|
|
|
|
||||||
Lease Operating Expense
|
$
|
532
|
|
|
$
|
576
|
|
|
$
|
571
|
|
Production and Ad Valorem Taxes
|
175
|
|
|
190
|
|
|
118
|
|
|||
Gathering, Transportation and Processing Expense
|
417
|
|
|
393
|
|
|
432
|
|
|||
Other Royalty Expense
|
13
|
|
|
38
|
|
|
20
|
|
|||
Total
|
$
|
1,137
|
|
|
$
|
1,197
|
|
|
$
|
1,141
|
|
Exploration Expense
|
|
|
|
|
|
||||||
Leasehold Impairment and Amortization
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
62
|
|
Dry Hole Cost (1)
|
100
|
|
|
1
|
|
|
9
|
|
|||
Seismic, Geological and Geophysical
|
21
|
|
|
22
|
|
|
27
|
|
|||
Staff Expense
|
48
|
|
|
54
|
|
|
55
|
|
|||
Other
|
33
|
|
|
51
|
|
|
35
|
|
|||
Total
|
$
|
202
|
|
|
$
|
129
|
|
|
$
|
188
|
|
Loss on Marcellus Shale Upstream Divestiture and Other
|
|
|
|
|
|
||||||
Loss on Sale
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,270
|
|
Exit Cost
|
—
|
|
|
—
|
|
|
93
|
|
|||
Other
|
—
|
|
|
—
|
|
|
16
|
|
|||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,379
|
|
Other Operating Expense, Net
|
|
|
|
|
|
|
|
|
|||
Marketing Expense
|
$
|
34
|
|
|
$
|
40
|
|
|
$
|
47
|
|
Firm Transportation Exit Cost (2)
|
88
|
|
|
—
|
|
|
—
|
|
|||
Clayton Williams Energy Acquisition Expenses
|
—
|
|
|
—
|
|
|
100
|
|
|||
Loss (Gain) on Asset Retirement Obligation Revisions
|
9
|
|
|
(25
|
)
|
|
(42
|
)
|
|||
Other, Net
|
83
|
|
|
35
|
|
|
33
|
|
|||
Total
|
$
|
214
|
|
|
$
|
50
|
|
|
$
|
138
|
|
(1)
|
(2)
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Accounts Receivable, Net
|
|
|
|
||||
Commodity Sales
|
$
|
446
|
|
|
$
|
383
|
|
Joint Interest Billings
|
164
|
|
|
137
|
|
||
Other
|
128
|
|
|
111
|
|
||
Allowance
|
(8
|
)
|
|
(15
|
)
|
||
Total
|
$
|
730
|
|
|
$
|
616
|
|
Other Current Assets
|
|
|
|
|
|
||
Commodity Derivative Assets
|
$
|
14
|
|
|
$
|
180
|
|
Inventories, Materials and Supplies
|
59
|
|
|
55
|
|
||
Assets Held for Sale (1)
|
14
|
|
|
133
|
|
||
Prepaid Expenses and Other Current Assets
|
61
|
|
|
50
|
|
||
Total
|
$
|
148
|
|
|
$
|
418
|
|
Other Noncurrent Assets
|
|
|
|
||||
Equity Method Investments (2)
|
$
|
1,066
|
|
|
$
|
286
|
|
Operating Lease Right-of-Use Assets (3)
|
227
|
|
|
—
|
|
||
Customer-Related Intangible Assets, Net
|
278
|
|
|
310
|
|
||
Goodwill
|
110
|
|
|
110
|
|
||
Mutual Fund Investments
|
27
|
|
|
38
|
|
||
Other Noncurrent Assets
|
126
|
|
|
97
|
|
||
Total
|
$
|
1,834
|
|
|
$
|
841
|
|
Other Current Liabilities
|
|
|
|
||||
Production and Ad Valorem Taxes
|
$
|
118
|
|
|
$
|
103
|
|
Asset Retirement Obligations
|
84
|
|
|
118
|
|
||
Interest Payable
|
74
|
|
|
66
|
|
||
Operating Lease Liabilities (3)
|
88
|
|
|
—
|
|
||
Compensation and Benefits Payable
|
126
|
|
|
83
|
|
||
Other Current Liabilities
|
229
|
|
|
149
|
|
||
Total
|
$
|
719
|
|
|
$
|
519
|
|
Other Noncurrent Liabilities
|
|
|
|
||||
Deferred Compensation Liabilities
|
$
|
133
|
|
|
$
|
147
|
|
Asset Retirement Obligations
|
730
|
|
|
762
|
|
||
Operating Lease Liabilities (3)
|
164
|
|
|
—
|
|
||
Firm Transportation Exit Cost Accrual (4)
|
129
|
|
|
67
|
|
||
Other Noncurrent Liabilities
|
222
|
|
|
189
|
|
||
Total
|
$
|
1,378
|
|
|
$
|
1,165
|
|
(1)
|
Amounts relate to divestitures of non-core assets and acreage in Reeves County, Texas. See Note 4. Acquisitions and Divestitures.
|
(2)
|
(3)
|
Amounts relate to assets and liabilities recorded as a result of ASC 842 adoption. See Note 9. Leases.
|
(4)
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
December 31,
|
||||||
(millions)
|
|
2019
|
|
2018
|
||||
Cash and Cash Equivalents at Beginning of Period
|
|
$
|
716
|
|
|
$
|
675
|
|
Restricted Cash at Beginning of Period
|
|
3
|
|
|
38
|
|
||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period
|
|
$
|
719
|
|
|
$
|
713
|
|
Cash and Cash Equivalents at End of Period
|
|
$
|
484
|
|
|
$
|
716
|
|
Restricted Cash at End of Period
|
|
—
|
|
|
3
|
|
||
Cash, Cash Equivalents, and Restricted Cash at End of Period
|
|
$
|
484
|
|
|
$
|
719
|
|
|
Year Ended December 31,
|
||||||||||
(millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Paid During the Year For
|
|
|
|
|
|
||||||
Interest, Net of Amount Capitalized (1)
|
$
|
208
|
|
|
$
|
270
|
|
|
$
|
346
|
|
Income Taxes Paid, Net
|
76
|
|
|
172
|
|
|
121
|
|
(1)
|
Interest capitalized totaled $102 million in 2019, $73 million in 2018 and $49 million in 2017.
|
|
Year Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Percentage of Crude Oil Sales
|
|
|
|
|
|
|||
Shell (1)
|
22
|
%
|
|
22
|
%
|
|
22
|
%
|
BP (2)
|
18
|
%
|
|
31
|
%
|
|
15
|
%
|
Percentage of Total Crude Oil, NGL & Natural Gas Sales
|
|
|
|
|
|
|||
Shell (1)
|
15
|
%
|
|
14
|
%
|
|
13
|
%
|
BP (2)
|
14
|
%
|
|
17
|
%
|
|
10
|
%
|
(1)
|
Includes sales to Shell Energy North America and Shell Trading (US) Company (collectively, Shell).
|
(2)
|
Includes sales to BP America Production, BP Energy Co and BP Products North America, Inc (collectively, BP).
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
|
Oil and Gas Exploration and Production
|
|
Midstream
|
|
|
||||||||||||||||||||||||
(millions)
|
Consolidated
|
|
United States
|
|
Eastern Mediter-ranean
|
|
West Africa
|
|
Other Int'l
|
|
United States
|
|
Intersegment Eliminations and Other (1)
|
|
Corporate
|
||||||||||||||||
Year Ended December 31, 2019
|
|||||||||||||||||||||||||||||||
Crude Oil Sales
|
$
|
2,736
|
|
|
$
|
2,437
|
|
|
$
|
6
|
|
|
$
|
293
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
NGL Sales
|
354
|
|
|
354
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Natural Gas Sales
|
814
|
|
|
345
|
|
|
451
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Crude Oil, NGL and Natural Gas Sales
|
3,904
|
|
|
3,136
|
|
|
457
|
|
|
311
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Sales of Purchased Oil and Gas
|
389
|
|
|
109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
190
|
|
|
—
|
|
|
90
|
|
||||||||
Income (Loss) from Equity Method Investments and Other
|
51
|
|
|
8
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
||||||||
Midstream Services Revenues - Third Party
|
94
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94
|
|
|
|
|
|
—
|
|
||||||||
Intersegment Revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
427
|
|
|
(427
|
)
|
|
—
|
|
||||||||
Total Revenues
|
4,438
|
|
|
3,253
|
|
|
457
|
|
|
372
|
|
|
—
|
|
|
693
|
|
|
(427
|
)
|
|
90
|
|
||||||||
Lease Operating Expense
|
532
|
|
|
460
|
|
|
37
|
|
|
76
|
|
|
—
|
|
|
4
|
|
|
(45
|
)
|
|
—
|
|
||||||||
Production and Ad Valorem Taxes
|
175
|
|
|
169
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||||||
Gathering, Transportation and Processing Expense
|
417
|
|
|
598
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|
(292
|
)
|
|
—
|
|
||||||||
Other Royalty Expense
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Production Expense
|
1,137
|
|
|
1,240
|
|
|
38
|
|
|
76
|
|
|
—
|
|
|
120
|
|
|
(337
|
)
|
|
—
|
|
||||||||
Exploration Expense
|
202
|
|
|
57
|
|
|
109
|
|
|
13
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Depreciation, Depletion and Amortization
|
2,197
|
|
|
1,907
|
|
|
67
|
|
|
83
|
|
|
1
|
|
|
104
|
|
|
(29
|
)
|
|
64
|
|
||||||||
Asset Impairments
|
1,160
|
|
|
1,160
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Cost of Purchased Oil and Gas
|
431
|
|
|
107
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
181
|
|
|
—
|
|
|
143
|
|
||||||||
Firm Transportation Exit Cost
|
88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
||||||||
Loss on Commodity Derivative Instruments
|
143
|
|
|
125
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss on Debt Extinguishment
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||||||
(Loss) Income Before Income Taxes
|
(1,776
|
)
|
|
(1,431
|
)
|
|
199
|
|
|
164
|
|
|
(25
|
)
|
|
258
|
|
|
(55
|
)
|
|
(886
|
)
|
||||||||
Additions to Long-Lived Assets, Excluding Acquisitions
|
2,408
|
|
|
1,651
|
|
|
505
|
|
|
70
|
|
|
20
|
|
|
230
|
|
|
(92
|
)
|
|
24
|
|
||||||||
Additions to Equity Method Investments
|
799
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
—
|
|
|
610
|
|
|
—
|
|
|
—
|
|
||||||||
Property, Plant and Equipment, Net
|
17,451
|
|
|
11,859
|
|
|
3,041
|
|
|
793
|
|
|
44
|
|
|
1,721
|
|
|
(223
|
)
|
|
216
|
|
||||||||
Year Ended December 31, 2018
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
|
Oil and Gas Exploration and Production
|
|
Midstream
|
|
|
||||||||||||||||||||||||
(millions)
|
Consolidated
|
|
United States
|
|
Eastern Mediter-ranean
|
|
West Africa
|
|
Other Int'l
|
|
United States
|
|
Intersegment Eliminations and Other (1)
|
|
Corporate
|
||||||||||||||||
Crude Oil Sales
|
$
|
2,945
|
|
|
$
|
2,548
|
|
|
$
|
7
|
|
|
$
|
390
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
NGL Sales
|
587
|
|
|
587
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Natural Gas Sales
|
929
|
|
|
435
|
|
|
473
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Crude Oil, NGL and Natural Gas Sales
|
4,461
|
|
|
3,570
|
|
|
480
|
|
|
411
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Sales of Purchased Oil and Gas
|
275
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|
—
|
|
|
113
|
|
||||||||
Income from Equity Method Investments and Other
|
172
|
|
|
—
|
|
|
—
|
|
|
132
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
—
|
|
||||||||
Midstream Services Revenues - Third Party
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
—
|
|
||||||||
Intersegment Revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
351
|
|
|
(351
|
)
|
|
—
|
|
||||||||
Total Revenues
|
4,986
|
|
|
3,590
|
|
|
480
|
|
|
543
|
|
|
—
|
|
|
611
|
|
|
(351
|
)
|
|
113
|
|
||||||||
Lease Operating Expense
|
576
|
|
|
480
|
|
|
26
|
|
|
97
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
||||||||
Production and Ad Valorem Taxes
|
190
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||||||
Gathering, Transportation and Processing Expense
|
393
|
|
|
533
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95
|
|
|
(235
|
)
|
|
—
|
|
||||||||
Other Royalty Expense
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Production Expense
|
1,197
|
|
|
1,235
|
|
|
26
|
|
|
97
|
|
|
—
|
|
|
101
|
|
|
(262
|
)
|
|
—
|
|
||||||||
Exploration Expense
|
129
|
|
|
48
|
|
|
7
|
|
|
6
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Depreciation, Depletion and Amortization
|
1,934
|
|
|
1,642
|
|
|
60
|
|
|
115
|
|
|
2
|
|
|
87
|
|
|
(20
|
)
|
|
48
|
|
||||||||
(Gain) Loss on Divestitures, Net
|
(843
|
)
|
|
36
|
|
|
(376
|
)
|
|
—
|
|
|
—
|
|
|
(503
|
)
|
|
—
|
|
|
—
|
|
||||||||
Asset Impairments
|
206
|
|
|
169
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
—
|
|
||||||||
Goodwill Impairment
|
1,281
|
|
|
1,281
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Cost of Purchased Oil and Gas
|
296
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
—
|
|
|
140
|
|
||||||||
Gain on Asset Retirement Obligation Revision
|
(25
|
)
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
(Gain) Loss on Commodity Derivative Instruments
|
(63
|
)
|
|
(70
|
)
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Income (Loss) Before Income Taxes
|
140
|
|
|
(875
|
)
|
|
742
|
|
|
305
|
|
|
(53
|
)
|
|
726
|
|
|
(60
|
)
|
|
(645
|
)
|
||||||||
Additions to Long Lived Assets, Excluding Acquisitions
|
3,253
|
|
|
2,115
|
|
|
671
|
|
|
12
|
|
|
—
|
|
|
521
|
|
|
(91
|
)
|
|
25
|
|
||||||||
Property, Plant and Equipment, Net
|
18,419
|
|
|
13,044
|
|
|
2,630
|
|
|
805
|
|
|
37
|
|
|
1,742
|
|
|
(145
|
)
|
|
306
|
|
||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||||||||||||||
Crude Oil Sales
|
$
|
2,346
|
|
|
$
|
1,993
|
|
|
$
|
6
|
|
|
$
|
347
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
NGL Sales
|
493
|
|
|
493
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Natural Gas Sales
|
1,221
|
|
|
670
|
|
|
528
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Crude Oil, NGL and Natural Gas Sales
|
4,060
|
|
|
3,156
|
|
|
534
|
|
|
370
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Income from Equity Method Investments and Other
|
177
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
—
|
|
||||||||
Midstream Services Revenues - Third Party
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
||||||||
Intersegment Revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
277
|
|
|
(277
|
)
|
|
—
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
|
Oil and Gas Exploration and Production
|
|
Midstream
|
|
|
||||||||||||||||||||||||
(millions)
|
Consolidated
|
|
United States
|
|
Eastern Mediter-ranean
|
|
West Africa
|
|
Other Int'l
|
|
United States
|
|
Intersegment Eliminations and Other (1)
|
|
Corporate
|
||||||||||||||||
Total Revenues
|
4,256
|
|
|
3,156
|
|
|
534
|
|
|
490
|
|
|
—
|
|
|
353
|
|
|
(277
|
)
|
|
—
|
|
||||||||
Lease Operating Expense
|
571
|
|
|
466
|
|
|
29
|
|
|
90
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
||||||||
Production and Ad Valorem Taxes
|
118
|
|
|
115
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||||
Gathering, Transportation and Processing Expense
|
432
|
|
|
550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
(188
|
)
|
|
—
|
|
||||||||
Other Royalty Expense
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Production Expense
|
1,141
|
|
|
1,151
|
|
|
29
|
|
|
90
|
|
|
—
|
|
|
73
|
|
|
(202
|
)
|
|
—
|
|
||||||||
Exploration Expense
|
188
|
|
|
102
|
|
|
2
|
|
|
5
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Depreciation, Depletion and Amortization
|
2,053
|
|
|
1,739
|
|
|
76
|
|
|
146
|
|
|
4
|
|
|
30
|
|
|
(5
|
)
|
|
63
|
|
||||||||
Loss on Marcellus Shale Upstream Divestiture and Other
|
2,379
|
|
|
2,286
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93
|
|
||||||||
Gain on Divestitures, Net
|
(326
|
)
|
|
(325
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Asset Impairments
|
70
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Clayton Williams Energy Acquisition Expenses
|
100
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Gain on Asset Retirement Obligation Revision
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
(Gain) Loss on Commodity Derivative Instruments
|
(63
|
)
|
|
(92
|
)
|
|
—
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss on Debt Extinguishment
|
98
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
||||||||
(Loss) Income Before Income Taxes
|
(2,191
|
)
|
|
(2,365
|
)
|
|
413
|
|
|
203
|
|
|
(54
|
)
|
|
233
|
|
|
(62
|
)
|
|
(559
|
)
|
||||||||
Additions to Long Lived Assets, Excluding Acquisitions
|
2,851
|
|
|
1,994
|
|
|
411
|
|
|
34
|
|
|
(34
|
)
|
|
423
|
|
|
(79
|
)
|
|
102
|
|
||||||||
Property, Plant and Equipment, Net
|
17,502
|
|
|
13,348
|
|
|
2,005
|
|
|
863
|
|
|
25
|
|
|
1,027
|
|
|
(74
|
)
|
|
308
|
|
(1)
|
Intersegment eliminations related to income (loss) before income taxes are the result of Midstream expenditures. Certain of these expenditures are presented as property, plant and equipment within the E&P business on an unconsolidated basis, in accordance with the successful efforts method of accounting. Other expenditures are presented as production expense. Intercompany revenues and expenses are eliminated upon consolidation.
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
•
|
sold certain US onshore properties receiving total proceeds of $671 million, including $568 million related to divestment of non-core acreage in the DJ Basin. Proceeds were applied to reduce field basis with no recognition of gain or loss.
|
•
|
received $335 million and recognized a gain of $334 million on the sale of mineral and royalty assets covering approximately 140,000 net mineral acres concentrated primarily in Texas, Oklahoma and North Dakota.
|
•
|
acquired Delaware Basin properties, including seven producing wells, increasing our contiguous acreage position in the Reeves County, Texas area. Consideration totaled $301 million, approximately $246 million of which was allocated to undeveloped leasehold cost.
|
|
|
|
|
|
December 31,
|
||||||
(millions, except percentages)
|
Segment
|
|
Ownership
|
|
2019
|
|
2018
|
||||
Eastern Mediterranean Pipeline B.V.
|
Eastern Mediterranean
|
|
25%
|
|
$
|
189
|
|
|
$
|
—
|
|
Atlantic Methanol Production Company, LLC and Affiliates(1)
|
West Africa
|
|
45%
|
|
160
|
|
|
146
|
|
||
Alba Plant LLC (2)
|
West Africa
|
|
28%
|
|
56
|
|
|
58
|
|
||
EPIC Y-Grade, LP
|
Midstream
|
|
15%
|
|
166
|
|
|
—
|
|
||
EPIC Crude Holdings, LP
|
Midstream
|
|
30%
|
|
339
|
|
|
—
|
|
||
Delaware Crossing LLC
|
Midstream
|
|
50%
|
|
69
|
|
|
—
|
|
||
Advantage Pipeline, L.L.C.
|
Midstream
|
|
50%
|
|
77
|
|
|
73
|
|
||
Other
|
N/A
|
|
N/A
|
|
10
|
|
|
9
|
|
||
Total Equity Method Investments (3)
|
|
|
|
|
$
|
1,066
|
|
|
$
|
286
|
|
(1)
|
Atlantic Methanol Production Company, LLC (AMPCO) owns and operates a methanol plant and related facilities in Equatorial Guinea.
|
(2)
|
Alba Plant LLC owns and operates a LPG processing plant in Equatorial Guinea.
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
(3)
|
At December 31, 2019, total carrying values were $42 million higher than the underlying net assets of the investments, primarily due to capitalized interest which is amortized into earnings over the useful life of the related assets.
|
|
December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Current Assets
|
$
|
681
|
|
|
$
|
387
|
|
Noncurrent Assets
|
5,306
|
|
|
575
|
|
||
Current Liabilities
|
607
|
|
|
198
|
|
||
Noncurrent Liabilities
|
2,243
|
|
|
81
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
Year Ended December 31,
|
||||||||||
(millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Operating Revenues
|
$
|
1,018
|
|
|
$
|
855
|
|
|
$
|
790
|
|
Operating Expenses
|
853
|
|
|
284
|
|
|
303
|
|
|||
Operating Income
|
165
|
|
|
571
|
|
|
487
|
|
|||
Other (Loss) Income, net
|
(33
|
)
|
|
3
|
|
|
15
|
|
|||
Income Before Income Taxes
|
132
|
|
|
574
|
|
|
502
|
|
|||
Income Tax Provision
|
72
|
|
|
152
|
|
|
136
|
|
|||
Net Income
|
$
|
60
|
|
|
$
|
422
|
|
|
$
|
366
|
|
|
Year Ended December 31,
|
||||||||||
(millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Capitalized Exploratory Well Costs, Beginning of Period
|
$
|
354
|
|
|
$
|
520
|
|
|
$
|
768
|
|
Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves
|
26
|
|
|
7
|
|
|
20
|
|
|||
Divestitures (1)
|
—
|
|
|
(168
|
)
|
|
—
|
|
|||
Reclassified to Proved Oil and Gas Properties, Based on Determination of Proved Reserves, or to Assets Held for Sale (2)
|
—
|
|
|
(1
|
)
|
|
(203
|
)
|
|||
Capitalized Exploratory Well Costs Charged to Expense (3)
|
(100
|
)
|
|
(4
|
)
|
|
(65
|
)
|
|||
Capitalized Exploratory Well Costs, End of Period
|
$
|
280
|
|
|
$
|
354
|
|
|
$
|
520
|
|
(1)
|
The 2018 amount relates to the second quarter 2018 sale of our Gulf of Mexico assets.
|
(2)
|
The 2017 amount relates to the approval and sanction of the first phase of development of the Leviathan field.
|
(3)
|
In fourth quarter 2019, we recorded exploration expense of $100 million related to the Leviathan Deep prospect, offshore Israel, which was initially drilled in 2012 but did not reach the target interval. Throughout this time, we have evaluated seismic information and nearby discoveries in the region. Upon concluding we would not move forward with the project, we wrote off the entire amount of capitalized exploratory well costs associated with this prospect. The 2017 amount relates to a write-off of costs for a natural gas discovery in the Gulf of Mexico. See Note 10. Impairments.
|
|
December 31,
|
||||||||||
(millions, except number of projects)
|
2019
|
|
2018
|
|
2017
|
||||||
Exploratory Well Costs Capitalized for a Period of One Year or Less
|
$
|
22
|
|
|
$
|
6
|
|
|
$
|
10
|
|
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling
|
258
|
|
|
348
|
|
|
510
|
|
|||
Balance at End of Period
|
$
|
280
|
|
|
$
|
354
|
|
|
$
|
520
|
|
Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling
|
5
|
|
|
7
|
|
|
8
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
|
Suspended Since
|
|
|
||||||||||||
(millions)
|
Total
|
|
2017 - 2018
|
|
2015 - 2016
|
|
2014 & Prior
|
|
Progress
|
||||||||
Offshore Eastern Mediterranean
|
|
|
|
|
|
|
|
|
|||||||||
Dalit (Offshore Israel)
|
$
|
23
|
|
|
$
|
(9
|
)
|
|
$
|
3
|
|
|
$
|
29
|
|
|
Our future development plan for this 2008 natural gas discovery, consisting of a tie-in to existing infrastructure at Tamar, was approved by the Government of Israel in 2019. During 2019, we continued analyzing 3D seismic data to evaluate additional potential of the area.
|
Cyprus (Offshore Cyprus)
|
100
|
|
|
3
|
|
|
15
|
|
|
82
|
|
|
During 2019, we received approval of our Plan of Development and Exploitation License from the Government of Cyprus. We continued to progress capital project cost improvement and regional natural gas marketing efforts.
|
||||
Offshore West Africa
|
|
|
|
|
|
|
|
|
|
||||||||
Felicita (Block O, Offshore Equatorial Guinea)
|
49
|
|
|
2
|
|
|
4
|
|
|
43
|
|
|
We are in the process of evaluating regional development scenarios for this 2008 natural gas discovery. The recent sanction of the Alen Gas Monetization project, which represents the initial step in establishing a regional natural gas hub, expands the options for development of this discovery through existing infrastructure.
|
||||
YoYo (YoYo Block, Offshore Cameroon) and Yolanda (Block I, Offshore Equatorial Guinea)
|
80
|
|
|
2
|
|
|
5
|
|
|
73
|
|
|
A data exchange agreement for these 2007 condensate and natural gas discoveries has been executed between the governments of Equatorial Guinea and Cameroon. Our development team is working with both governments to evaluate natural gas monetization options. The recent sanction of the Alen Gas Monetization project, which represents the initial step in establishing a regional natural gas hub, expands the options for development of this discovery through existing infrastructure.
|
||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Projects less than $20 million
|
6
|
|
|
(1
|
)
|
|
(10
|
)
|
|
17
|
|
|
Continuing to assess and evaluate wells.
|
||||
Total
|
$
|
258
|
|
|
$
|
(3
|
)
|
|
$
|
17
|
|
|
$
|
244
|
|
|
|
|
Year Ended December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Undeveloped Leasehold Costs, Beginning of Period
|
$
|
2,373
|
|
|
$
|
2,922
|
|
Additions to Undeveloped Leasehold Costs
|
59
|
|
|
47
|
|
||
Transfers to Proved Properties (1)
|
(184
|
)
|
|
(453
|
)
|
||
Assets Sold (2)
|
(96
|
)
|
|
(142
|
)
|
||
Impairment
|
—
|
|
|
(1
|
)
|
||
Undeveloped Leasehold Costs, End of Period
|
$
|
2,152
|
|
|
$
|
2,373
|
|
(1)
|
Transfers primarily relate to development of Delaware Basin assets.
|
(2)
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
Year Ended December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Asset Retirement Obligations, Beginning of Period
|
$
|
880
|
|
|
$
|
875
|
|
Liabilities Incurred
|
70
|
|
|
25
|
|
||
Liabilities Settled
|
(110
|
)
|
|
(345
|
)
|
||
Revisions of Estimates
|
(69
|
)
|
|
293
|
|
||
Reclassification to Liabilities Associated with Assets Held for Sale
|
—
|
|
|
(1
|
)
|
||
Accretion Expense
|
43
|
|
|
33
|
|
||
Asset Retirement Obligations, End of Period
|
$
|
814
|
|
|
$
|
880
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(millions, except percentages)
|
Debt
|
|
Interest Rate
|
|
Debt
|
|
Interest Rate
|
||||||
Noble Energy, Excluding Noble Midstream Partners
|
|
|
|
|
|
|
|
||||||
Revolving Credit Facility, due March 9, 2023
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Commercial Paper Borrowings
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||
Senior Notes, due December 15, 2021
|
—
|
|
|
—
|
%
|
|
1,000
|
|
|
4.15
|
%
|
||
Senior Notes, due October 15, 2023
|
100
|
|
|
7.25
|
%
|
|
100
|
|
|
7.25
|
%
|
||
Senior Notes, due November 15, 2024
|
650
|
|
|
3.90
|
%
|
|
650
|
|
|
3.90
|
%
|
||
Senior Notes, due April 1, 2027
|
250
|
|
|
8.00
|
%
|
|
250
|
|
|
8.00
|
%
|
||
Senior Notes, due January 15, 2028
|
600
|
|
|
3.85
|
%
|
|
600
|
|
|
3.85
|
%
|
||
Senior Notes, due October 15, 2029
|
500
|
|
|
3.25
|
%
|
|
—
|
|
|
—
|
%
|
||
Senior Notes, due March 1, 2041
|
850
|
|
|
6.00
|
%
|
|
850
|
|
|
6.00
|
%
|
||
Senior Notes, due November 15, 2043
|
1,000
|
|
|
5.25
|
%
|
|
1,000
|
|
|
5.25
|
%
|
||
Senior Notes, due November 15, 2044
|
850
|
|
|
5.05
|
%
|
|
850
|
|
|
5.05
|
%
|
||
Senior Notes, due August 15, 2047
|
500
|
|
|
4.95
|
%
|
|
500
|
|
|
4.95
|
%
|
||
Senior Notes, due October 15, 2049
|
500
|
|
|
4.20
|
%
|
|
—
|
|
|
—
|
%
|
||
Senior Debentures
|
84
|
|
|
7.25
|
%
|
|
92
|
|
|
7.13
|
%
|
||
Finance Lease Obligations
|
205
|
|
|
—
|
%
|
|
223
|
|
|
—
|
%
|
||
Total Noble Energy Debt, Excluding Noble Midstream Partners Debt
|
6,089
|
|
|
|
|
6,115
|
|
|
|
||||
Noble Midstream Partners
|
|
|
|
|
|
|
|
||||||
Noble Midstream Services Revolving Credit Facility, due March 9, 2023
|
595
|
|
|
3.11
|
%
|
|
60
|
|
|
3.67
|
%
|
||
Noble Midstream Services Term Loan Credit Facility, due July 31, 2021
|
500
|
|
|
2.85
|
%
|
|
500
|
|
|
3.42
|
%
|
||
Noble Midstream Services Term Loan Credit Facility, due August 23, 2022
|
400
|
|
|
2.74
|
%
|
|
—
|
|
|
—
|
%
|
||
Total Noble Midstream Partners Debt
|
1,495
|
|
|
|
|
560
|
|
|
|
||||
Total Debt
|
7,584
|
|
|
|
|
6,675
|
|
|
|
||||
Net Unamortized Discounts and Debt Issuance Costs
|
(65
|
)
|
|
|
|
(60
|
)
|
|
|
||||
Total Debt, Net of Unamortized Discounts and Debt Issuance Costs
|
$
|
7,519
|
|
|
|
|
|
$
|
6,615
|
|
|
|
|
Less Amounts Due Within One Year:
|
|
|
|
|
|
|
|
|
|
||||
Finance Lease Obligations
|
(42
|
)
|
|
|
|
|
(41
|
)
|
|
|
|
||
Long-Term Debt Due After One Year
|
$
|
7,477
|
|
|
|
|
|
$
|
6,574
|
|
|
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
(millions)
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
||||||||
Debt
|
$
|
7,379
|
|
|
$
|
8,033
|
|
|
$
|
6,452
|
|
|
$
|
6,121
|
|
|
Debt Principal Payments
|
||||||||||
(millions)
|
Noble Energy Excluding Noble Midstream Partners
|
|
Noble Midstream Partners
|
|
Total
|
||||||
2020
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
2021
|
—
|
|
|
500
|
|
|
500
|
|
|||
2022
|
—
|
|
|
400
|
|
|
400
|
|
|||
2023
|
100
|
|
|
595
|
|
|
695
|
|
|||
2024
|
650
|
|
|
—
|
|
|
650
|
|
|||
Thereafter
|
5,134
|
|
|
—
|
|
|
5,134
|
|
|||
Total
|
$
|
5,884
|
|
|
$
|
1,495
|
|
|
$
|
7,379
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
(millions)
|
Balance Sheet Location
|
December 31, 2019
|
||
ROU Assets
|
|
|
||
Operating Leases (1)
|
Other Noncurrent Assets
|
$
|
227
|
|
Finance Leases (2)
|
Total Property, Plant and Equipment, Net
|
172
|
|
|
Total ROU Assets
|
|
$
|
399
|
|
Lease Liabilities
|
|
|
||
Current Liabilities
|
|
|
||
Operating Leases
|
Other Current Liabilities
|
$
|
88
|
|
Finance Leases
|
Other Current Liabilities
|
42
|
|
|
Noncurrent Liabilities
|
|
|
||
Operating Leases
|
Other Noncurrent Liabilities
|
164
|
|
|
Finance Leases
|
Long-Term Debt
|
163
|
|
|
Total Lease Liabilities
|
|
$
|
457
|
|
(1)
|
Operating lease ROU assets include compressors of $89 million and office space of $80 million.
|
(2)
|
Finance lease ROU assets include office space of $90 million and a trunkline of $28 million, both net of accumulated amortization.
|
(millions)
|
Statement of Operations Location
|
Year Ended December 31, 2019
|
||
Operating Lease Cost
|
Various (1)
|
$
|
110
|
|
Finance Lease Cost
|
|
|
||
Amortization Expense
|
Depreciation, Depletion and Amortization
|
38
|
|
|
Interest Expense
|
Interest, Net of Amount Capitalized
|
13
|
|
|
Short-term Lease Cost (2)
|
Various (1)
|
424
|
|
|
Sublease Income
|
General and Administrative
|
(5
|
)
|
|
Total Lease Cost
|
|
$
|
580
|
|
(1)
|
Cost classifications vary depending on the leased asset. Costs are primarily included within production expense and general and administrative expense. In addition, in accordance with the successful efforts method of accounting, certain lease costs may be capitalized when incurred and therefore, are included as part of oil and gas properties on our consolidated balance sheets.
|
(2)
|
Costs primarily relate to hydraulic fracturing services, well-to-well drilling rig contracts and other miscellaneous lease agreements. Amount excludes costs for leases with an initial term of one month or less.
|
|
Year Ended December 31, 2019
|
||||||
(millions)
|
Operating Leases
|
|
Finance Leases
|
||||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
|
|
|
|
||||
Operating Cash Flows
|
$
|
74
|
|
|
$
|
12
|
|
Investing Cash Flows
|
36
|
|
|
—
|
|
||
Financing Cash Flows
|
—
|
|
|
42
|
|
||
Non-Cash Activities
|
|
|
|
||||
ROU Assets Obtained in Exchange for Lease Liabilities (1)
|
127
|
|
|
26
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
(1)
|
Amounts exclude the impact of adopting ASC 842 on January 1, 2019. See Note 1. Summary of Significant Accounting Policies.
|
(millions)
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
2020
|
$
|
100
|
|
|
$
|
52
|
|
|
$
|
152
|
|
2021
|
60
|
|
|
38
|
|
|
98
|
|
|||
2022
|
41
|
|
|
27
|
|
|
68
|
|
|||
2023
|
26
|
|
|
23
|
|
|
49
|
|
|||
2024
|
15
|
|
|
21
|
|
|
36
|
|
|||
2025 and Thereafter
|
37
|
|
|
86
|
|
|
123
|
|
|||
Total Lease Liabilities, Undiscounted
|
279
|
|
|
247
|
|
|
526
|
|
|||
Less: Imputed Interest
|
27
|
|
|
42
|
|
|
69
|
|
|||
Total Lease Liabilities (1)
|
$
|
252
|
|
|
$
|
205
|
|
|
$
|
457
|
|
(1)
|
Includes the current portions of $88 million and $42 million for operating and finance leases, respectively.
|
|
Operating Leases
|
|
Finance Leases
|
||
Weighted-Average Remaining Lease Term
|
4.9 years
|
|
|
7.5 years
|
|
Weighted-Average Discount Rate
|
4.05
|
%
|
|
4.96
|
%
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
December 31,
|
||||||
(millions)
|
|
2019
|
|
2018
|
||||
Balance at Beginning of Period
|
|
$
|
80
|
|
|
$
|
90
|
|
Exit Cost Accrual(1)
|
|
88
|
|
|
—
|
|
||
Payments, Net of Accretion
|
|
(5
|
)
|
|
(10
|
)
|
||
Balance at End of Period
|
|
$
|
163
|
|
|
$
|
80
|
|
Less Current Portion Included in Other Current Liabilities
|
|
34
|
|
|
13
|
|
||
Long-term Portion Included in Other Noncurrent Liabilities
|
|
$
|
129
|
|
|
$
|
67
|
|
(1)
|
Amount includes $92 million exit cost for the permanent assigned discussed above, offset by a gain of $4 million.
|
|
|
Year Ended December 31,
|
||||||||||
(millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Sales of Purchased Gas
|
|
$
|
90
|
|
|
$
|
113
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
||||||
Cost of Purchased of Gas
|
|
85
|
|
|
108
|
|
|
—
|
|
|||
Utilized Firm Transportation Expense
|
|
57
|
|
|
29
|
|
|
—
|
|
|||
Unutilized Firm Transportation Expense
|
|
1
|
|
|
3
|
|
|
—
|
|
|||
Cost of Purchased Gas, Total
|
|
$
|
143
|
|
|
$
|
140
|
|
|
$
|
—
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
(millions)
|
Purchase and Service Obligations
|
|
Marcellus Shale Firm Transportation Obligations (1)
|
|
Gathering, Transportation & Processing Obligations (2)
|
|
Operating Lease Obligations (3)
|
|
Finance Lease Obligations (3)
|
|
Total
|
||||||||||||
2020
|
$
|
135
|
|
|
$
|
143
|
|
|
$
|
174
|
|
|
$
|
100
|
|
|
$
|
52
|
|
|
$
|
604
|
|
2021
|
28
|
|
|
102
|
|
|
176
|
|
|
60
|
|
|
38
|
|
|
404
|
|
||||||
2022
|
14
|
|
|
85
|
|
|
156
|
|
|
41
|
|
|
27
|
|
|
323
|
|
||||||
2023
|
30
|
|
|
83
|
|
|
153
|
|
|
26
|
|
|
23
|
|
|
315
|
|
||||||
2024
|
2
|
|
|
92
|
|
|
149
|
|
|
15
|
|
|
21
|
|
|
279
|
|
||||||
2025 and Thereafter
|
72
|
|
|
675
|
|
|
334
|
|
|
37
|
|
|
86
|
|
|
1,204
|
|
||||||
Total
|
$
|
281
|
|
|
$
|
1,180
|
|
|
$
|
1,142
|
|
|
$
|
279
|
|
|
$
|
247
|
|
|
$
|
3,129
|
|
(1)
|
Amount includes exit cost obligations resulting from permanent capacity assignments. See Note 11. Exit Cost – Transportation Commitments.
|
(2)
|
Amount includes US onshore and Eastern Mediterranean transportation obligations of $921 million, undiscounted, and Noble Midstream Partners obligations of $221 million, undiscounted.
|
(3)
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
Year Ended December 31,
|
||||||||||
(millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Domestic
|
$
|
(2,222
|
)
|
|
$
|
(953
|
)
|
|
$
|
(2,831
|
)
|
Foreign
|
446
|
|
|
1,093
|
|
|
640
|
|
|||
Total
|
$
|
(1,776
|
)
|
|
$
|
140
|
|
|
$
|
(2,191
|
)
|
|
Year Ended December 31,
|
||||||||||
(millions, except percentages)
|
2019
|
|
2018
|
|
2017
|
||||||
Current Taxes
|
|
|
|
|
|
||||||
Federal
|
$
|
1
|
|
|
$
|
22
|
|
|
$
|
(11
|
)
|
State
|
3
|
|
|
2
|
|
|
1
|
|
|||
Foreign
|
81
|
|
|
172
|
|
|
96
|
|
|||
Total Current
|
$
|
85
|
|
|
$
|
196
|
|
|
$
|
86
|
|
Deferred Taxes
|
|
|
|
|
|
||||||
Federal
|
$
|
(413
|
)
|
|
$
|
(123
|
)
|
|
$
|
(1,258
|
)
|
State
|
(25
|
)
|
|
(7
|
)
|
|
(8
|
)
|
|||
Foreign
|
10
|
|
|
60
|
|
|
39
|
|
|||
Total Deferred
|
$
|
(428
|
)
|
|
$
|
(70
|
)
|
|
$
|
(1,227
|
)
|
Total Income Tax (Benefit) Provision Attributable to Noble Energy
|
$
|
(343
|
)
|
|
$
|
126
|
|
|
$
|
(1,141
|
)
|
Effective Tax Rate
|
19.3
|
%
|
|
90.0
|
%
|
|
52.1
|
%
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
Year Ended December 31,
|
|||||||
(percentages)
|
2019
|
|
2018
|
|
2017
|
|||
Federal Statutory Rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
Effect of
|
|
|
|
|
|
|||
Goodwill Impairment
|
—
|
|
|
192.5
|
|
|
—
|
|
Change in Valuation Allowance
|
(0.6
|
)
|
|
(170.2
|
)
|
|
(17.4
|
)
|
US and Foreign Statutory Rate Change
|
—
|
|
|
80.7
|
|
|
23.5
|
|
Accumulated Undistributed Foreign Earnings
|
—
|
|
|
—
|
|
|
11.0
|
|
Transition Tax
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
Difference Between US and Foreign Rates
|
(0.6
|
)
|
|
17.9
|
|
|
1.8
|
|
Earnings of Equity Method Investments
|
0.7
|
|
|
(20.1
|
)
|
|
1.9
|
|
Noncontrolling Interests
|
0.9
|
|
|
(12.1
|
)
|
|
1.1
|
|
State Taxes
|
1.1
|
|
|
0.9
|
|
|
0.3
|
|
Foreign Exploration Loss
|
—
|
|
|
(35.6
|
)
|
|
—
|
|
Global Intangible Low-Taxed Income (GILTI)
|
(0.8
|
)
|
|
24.2
|
|
|
—
|
|
Return to Provision
|
—
|
|
|
(17.1
|
)
|
|
(0.1
|
)
|
Audit Settlement
|
—
|
|
|
5.1
|
|
|
0.1
|
|
Oil Profits Tax - Israel
|
(0.1
|
)
|
|
3.3
|
|
|
(0.1
|
)
|
Other, Net
|
(2.3
|
)
|
|
(0.5
|
)
|
|
(0.2
|
)
|
Effective Rate
|
19.3
|
%
|
|
90.0
|
%
|
|
52.1
|
%
|
|
December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Deferred Tax Assets
|
|
|
|
||||
Loss Carryforwards (1)
|
$
|
656
|
|
|
$
|
589
|
|
Employee Compensation and Benefits
|
92
|
|
|
92
|
|
||
Mark to Market of Commodity Derivative Instruments
|
11
|
|
|
(27
|
)
|
||
Foreign Tax Credits
|
133
|
|
|
138
|
|
||
Other
|
126
|
|
|
157
|
|
||
Total Deferred Tax Assets
|
$
|
1,018
|
|
|
$
|
949
|
|
Valuation Allowance - Foreign Loss Carryforwards and Foreign Tax Credits
|
(327
|
)
|
|
(320
|
)
|
||
Net Deferred Tax Assets
|
$
|
691
|
|
|
$
|
629
|
|
Deferred Tax Liabilities
|
|
|
|
||||
Property, Plant and Equipment, Principally Due to Differences in Depreciation, Amortization, Lease Impairment and Abandonments
|
(1,338
|
)
|
|
(1,669
|
)
|
||
Total Deferred Tax Liability
|
$
|
(1,338
|
)
|
|
$
|
(1,669
|
)
|
Net Deferred Tax Liability
|
$
|
(647
|
)
|
|
$
|
(1,040
|
)
|
(1)
|
At December 31, 2019, $459 million related to domestic tax (state and federal) and $197 million related to foreign tax.
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
December 31,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Deferred Income Tax Asset - Noncurrent
|
$
|
15
|
|
|
$
|
21
|
|
Deferred Income Tax Liability - Noncurrent
|
(662
|
)
|
|
(1,061
|
)
|
||
Net Deferred Tax Liability
|
$
|
(647
|
)
|
|
$
|
(1,040
|
)
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
|
|
|
Swaps
|
|
Collars
|
|||||||||||||
Settlement Period
|
Type of Contract
|
Index
|
Bbls per Day
|
|
Weighted Average Differential
|
Weighted Average Fixed Price
|
|
Weighted Average Short Put Price
|
Weighted Average Floor Price
|
Weighted Average Ceiling Price
|
||||||||||
2020
|
Sold Calls
|
NYMEX WTI
|
8,000
|
|
$
|
—
|
|
$
|
65.59
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
2020
|
Swaps
|
NYMEX WTI
|
35,000
|
|
—
|
|
58.12
|
|
|
—
|
|
—
|
|
—
|
|
|||||
2020
|
Three-Way Collars
|
NYMEX WTI
|
30,000
|
|
—
|
|
—
|
|
|
48.33
|
|
57.87
|
|
64.27
|
|
|||||
Jan2020-Jun2020
|
Swaps
|
NYMEX WTI
|
24,000
|
|
—
|
|
59.54
|
|
|
—
|
|
—
|
|
—
|
|
|||||
Jul2020-Dec2020
|
Call Swaption
|
NYMEX WTI
|
11,000
|
|
—
|
|
58.95
|
|
|
—
|
|
—
|
|
—
|
|
|||||
2020
|
Basis Swaps
|
(1)
|
15,000
|
|
(5.01
|
)
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(1)
|
We have entered into crude oil basis swap contracts in order to establish a fixed amount for the differential between pricing in Midland, Texas, and Cushing, Oklahoma. The weighted average differential represents the amount of reduction to Cushing, Oklahoma, prices for the notional volumes covered by the basis swap contracts.
|
|
|
|
|
|
Swaps
|
||
Settlement Period
|
Type of Contract
|
Index
|
Bbls per Day
|
|
Weighted Average Fixed Price
|
||
Apr 2020-Sept 2020
|
Ethane Swaps
|
Mont Belvieu
|
2,000
|
|
$
|
7.77
|
|
Apr 2020-Sept 2020
|
Propane Swaps
|
Mont Belvieu
|
5,000
|
|
21.04
|
|
|
Apr 2020-Sept 2020
|
Isobutane Swaps
|
Mont Belvieu
|
1,000
|
|
25.36
|
|
|
Apr 2020-Sept 2020
|
Butane Swaps
|
Mont Belvieu
|
1,500
|
|
24.31
|
|
|
|
|
|
|
Swaps
|
|
Collars
|
||||||||||||||
Settlement Period
|
Type of Contract
|
Index
|
MMBtu per Day
|
|
Weighted Average Differential
|
Weighted Average Fixed Price
|
|
Weighted Average Short Put Price
|
Weighted Average Floor Price
|
Weighted Average Ceiling Price
|
|||||||||||
Apr2020-Dec2020
|
Swaps
|
NYMEX HH
|
90,000
|
|
|
$
|
—
|
|
$
|
2.60
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Apr2020-Oct2020
|
Three-Way Collars
|
NYMEX HH
|
40,000
|
|
|
—
|
|
—
|
|
|
2.25
|
|
2.70
|
|
2.85
|
|
|||||
2020
|
Sold Puts
|
NYMEX HH
|
90,000
|
|
|
—
|
|
—
|
|
|
2.15
|
|
—
|
|
—
|
|
|||||
2020
|
Basis Swaps
|
CIG (1)
|
139,000
|
|
|
(0.56
|
)
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|||||
2020
|
Basis Swaps
|
Waha (1)
|
49,500
|
|
|
(1.05
|
)
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|||||
2021
|
Basis Swaps
|
CIG (1)
|
60,000
|
|
|
(0.52
|
)
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|||||
2021
|
Basis Swaps
|
Waha (1)
|
14,000
|
|
|
(0.60
|
)
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(1)
|
We have entered into natural gas basis swap contracts in order to establish a fixed amount for the differential between index pricing for Colorado Interstate Gas (CIG) and Waha Hub versus NYMEX Henry Hub (HH). The weighted average differential represents the amount of reduction to NYMEX HH prices for the notional volumes covered by the basis swap contracts.
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
Asset Derivative Instruments
|
|
Liability Derivative Instruments
|
||||||||||||||
Balance Sheet Location
|
December 31, 2019
|
|
December 31, 2018
|
|
Balance Sheet Location
|
December 31, 2019
|
|
December 31, 2018
|
||||||||
Other Current Assets
|
$
|
14
|
|
|
$
|
180
|
|
|
Other Current Liabilities
|
$
|
36
|
|
|
$
|
1
|
|
Other Noncurrent Assets
|
1
|
|
|
—
|
|
|
Other Noncurrent Liabilities
|
1
|
|
|
26
|
|
||||
Total Assets
|
$
|
15
|
|
|
$
|
180
|
|
|
Total Liabilities
|
$
|
37
|
|
|
$
|
27
|
|
|
Year Ended December 31,
|
||||||||||
(millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments
|
|
|
|
|
|
||||||
Crude Oil
|
$
|
(10
|
)
|
|
$
|
162
|
|
|
$
|
(14
|
)
|
Natural Gas
|
(22
|
)
|
|
(1
|
)
|
|
1
|
|
|||
Total Cash (Received) Paid in Settlement of Commodity Derivative Instruments
|
(32
|
)
|
|
161
|
|
|
(13
|
)
|
|||
Non-cash Portion of Loss (Gain) on Commodity Derivative Instruments
|
|
|
|
|
|
||||||
Crude Oil
|
184
|
|
|
(225
|
)
|
|
18
|
|
|||
NGLs
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||
Natural Gas
|
(6
|
)
|
|
1
|
|
|
(68
|
)
|
|||
Total Non-cash Portion of Loss (Gain) on Commodity Derivative Instruments
|
175
|
|
|
(224
|
)
|
|
(50
|
)
|
|||
Loss (Gain) on Commodity Derivative Instruments
|
|
|
|
|
|
||||||
Crude Oil
|
174
|
|
|
(63
|
)
|
|
4
|
|
|||
NGLs
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||
Natural Gas
|
(28
|
)
|
|
—
|
|
|
(67
|
)
|
|||
Total Loss (Gain) on Commodity Derivative Instruments
|
$
|
143
|
|
|
$
|
(63
|
)
|
|
$
|
(63
|
)
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
Year Ended December 31,
|
||||
|
2019
|
|
2018
|
||
Shares of Common Stock Issued
|
|
|
|
|
|
Shares, Beginning of Period
|
521,055,001
|
|
|
528,743,381
|
|
Exercise of Common Stock Options
|
—
|
|
|
576,617
|
|
Restricted Stock Awarded, Net of Forfeitures
|
2,768,731
|
|
|
2,488,363
|
|
Purchase and Retirement of Common Stock (1)
|
—
|
|
|
(10,008,128
|
)
|
Adjustment to Shares Exchanged in Clayton Williams Energy Acquisition
|
—
|
|
|
(745,232
|
)
|
Shares, End of Period
|
523,823,732
|
|
|
521,055,001
|
|
Treasury Stock
|
|
|
|
||
Shares, Beginning of Period
|
38,851,988
|
|
|
38,786,969
|
|
Shares Received in Payment of Withholding Taxes Due on Vesting of Shares of Restricted Stock
|
240,865
|
|
|
267,258
|
|
Rabbi Trust Shares Distributed and/or Sold
|
(203,063
|
)
|
|
(202,239
|
)
|
Shares, End of Period
|
38,889,790
|
|
|
38,851,988
|
|
Additional Information
|
|
|
|
||
Incremental Shares From Assumed Conversion of Dilutive Stock Options, Restricted Stock, and Shares of Common Stock in Rabbi Trust
|
—
|
|
|
—
|
|
Number of Antidilutive Stock Options, Shares of Restricted Stock and Shares of Common Stock in Rabbi Trust excluded from Dilutive Earnings (Loss) per Share (2)
|
13,892,742
|
|
|
15,004,591
|
|
(1)
|
On February 15, 2018, we announced that the Company's Board of Directors had authorized a share repurchase program of $750 million which expires December 31, 2020. In 2019, no shares were repurchased and retired. In 2018, shares were repurchased and retired at an average price of $29.49 per share.
|
(2)
|
For the years ended December 31, 2019 and 2018, all outstanding options and non-vested restricted shares have been excluded from the calculation of diluted earnings (loss) per share as Noble Energy incurred a loss. Therefore, inclusion of outstanding options and non-vested restricted shares in the calculation of diluted earnings (loss) per share would be anti-dilutive.
|
(millions)
|
Interest Rate Cash Flow Hedge
|
|
Other Postretirement Benefit Plans
|
|
Total
|
||||||
December 31, 2016
|
$
|
(21
|
)
|
|
$
|
(10
|
)
|
|
$
|
(31
|
)
|
Realized Amounts Reclassified Into Earnings
|
1
|
|
|
4
|
|
|
5
|
|
|||
Unrealized Change in Fair Value
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|||
December 31, 2017
|
(20
|
)
|
|
(10
|
)
|
|
(30
|
)
|
|||
Realized Amounts Reclassified Into Earnings
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
|||
December 31, 2018
|
(23
|
)
|
|
(9
|
)
|
|
(32
|
)
|
|||
Realized Amounts Reclassified Into Earnings
|
1
|
|
|
—
|
|
|
1
|
|
|||
December 31, 2019
|
$
|
(22
|
)
|
|
$
|
(9
|
)
|
|
$
|
(31
|
)
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
Year Ended December 31,
|
||||||||||
(millions)
|
2019
|
|
2018
|
|
2017
|
||||||
General and Administrative Expense
|
$
|
59
|
|
|
$
|
54
|
|
|
$
|
56
|
|
Exploration Expense and Other
|
9
|
|
|
8
|
|
|
48
|
|
|||
Total Stock-Based Compensation Expense (1)
|
$
|
68
|
|
|
$
|
62
|
|
|
$
|
104
|
|
Tax Benefit Recognized
|
$
|
(14
|
)
|
|
$
|
(13
|
)
|
|
$
|
(36
|
)
|
(1)
|
2019 amount excludes $8 million capitalized to property, plant and equipment.
|
•
|
Expected term Represents the period of time that options granted are expected to be outstanding, which is the grant date to the date of expected exercise or other expected settlement for options granted. The hypothetical midpoint scenario we use considers our actual exercise and post-vesting cancellation history and expectations for future periods, which assumes that all vested, outstanding options are settled halfway between the current date and their expiration date.
|
•
|
Expected volatility Represents the extent to which our stock price is expected to fluctuate between the grant date and the expected term of the award. We use the historical volatility of our common stock for a period equal to the expected term of the option prior to the date of grant. We believe that historical volatility produces an estimate that is representative of our expectations about the future volatility of our common stock over the expected term.
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
•
|
Risk-free rate Represents the implied yield available on US Treasury securities with a remaining term equal to the expected term of the option. We base our risk-free rate on a weighting of five and seven year US Treasury securities as of the date of grant.
|
•
|
Dividend yield Represents the value of our stock’s annualized dividend as compared to our stock’s average price for the three-year period ended prior to the date of grant. It is calculated by dividing one full year of our expected dividends by our average stock price over the three-year period ended prior to the date of grant.
|
|
Year Ended December 31,
|
||||||||||
(weighted averages)
|
2019
|
|
2018
|
|
2017
|
||||||
Expected Term (in Years)
|
6.9
|
|
|
6.7
|
|
|
6.4
|
|
|||
Expected Volatility
|
33.8
|
%
|
|
33.4
|
%
|
|
33.2
|
%
|
|||
Risk-Free Rate
|
2.7
|
%
|
|
2.6
|
%
|
|
2.2
|
%
|
|||
Expected Dividend Yield
|
1.4
|
%
|
|
1.2
|
%
|
|
0.9
|
%
|
|||
Weighted Average Grant-Date Fair Value
|
$
|
7.57
|
|
|
$
|
10.47
|
|
|
$
|
13.26
|
|
|
Options
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual Term
|
|
Aggregate Intrinsic Value
|
|||||
|
|
|
(per share)
|
|
(years)
|
|
(millions)
|
|||||
Outstanding at December 31, 2018
|
13,852,020
|
|
|
$
|
44.04
|
|
|
|
|
|
||
Granted
|
461,311
|
|
|
22.15
|
|
|
|
|
|
|||
Forfeited
|
(51,100
|
)
|
|
34.72
|
|
|
|
|
|
|||
Expired
|
(1,686,478
|
)
|
|
35.26
|
|
|
|
|
|
|||
Outstanding at December 31, 2019
|
12,575,753
|
|
|
$
|
44.62
|
|
|
4.2
|
|
$
|
1
|
|
Exercisable at December 31, 2019
|
11,373,846
|
|
|
$
|
46.11
|
|
|
3.7
|
|
$
|
—
|
|
|
Year Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Number of Simulations
|
10,000,000
|
|
|
10,000,000
|
|
|
500,000
|
|
Expected Volatility
|
37.5
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Risk-Free Rate
|
2.5
|
%
|
|
2.3
|
%
|
|
1.5
|
%
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
|
Subject to Time Vesting
|
|
Subject to Market Conditions
|
||||||||||
|
Number of Shares
|
|
Weighted Average Award Date Fair Value
|
|
Number of Shares
|
|
Weighted Average Award Date Fair Value
|
||||||
|
|
|
(per share)
|
|
|
|
(per share)
|
||||||
Outstanding at December 31, 2018
|
3,172,891
|
|
|
$
|
32.72
|
|
|
1,385,634
|
|
|
$
|
21.74
|
|
Awarded
|
2,464,682
|
|
|
22.33
|
|
|
1,138,730
|
|
|
13.50
|
|
||
Vested
|
(906,485
|
)
|
|
34.11
|
|
|
—
|
|
|
—
|
|
||
Forfeited
|
(486,733
|
)
|
|
27.97
|
|
|
(347,948
|
)
|
|
21.20
|
|
||
Outstanding at December 31, 2019
|
4,244,355
|
|
|
$
|
27.02
|
|
|
2,176,416
|
|
|
$
|
17.52
|
|
|
Subject to Time Vesting
|
|
Subject to Market Conditions
|
||||||||||
|
Number of Units
|
|
Weighted Average Award Date Fair Value
|
|
Number of Units
|
|
Weighted Average Award Date Fair Value
|
||||||
|
|
|
(per share)
|
|
|
|
(per share)
|
||||||
Outstanding at December 31, 2018
|
467,365
|
|
|
$
|
31.65
|
|
|
150,296
|
|
|
$
|
6.82
|
|
Awarded
|
803,606
|
|
|
22.39
|
|
|
—
|
|
|
—
|
|
||
Vested
|
(462,823
|
)
|
|
31.65
|
|
|
—
|
|
|
—
|
|
||
Forfeited
|
(92,762
|
)
|
|
22.55
|
|
|
(150,296
|
)
|
|
6.82
|
|
||
Outstanding at December 31, 2019
|
715,386
|
|
|
$
|
22.39
|
|
|
—
|
|
|
$
|
—
|
|
Noble Energy, Inc.
|
|
|
Notes to Consolidated Financial Statements
|
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
|
|
Crude Oil and Condensate
|
||||||||||
(MMBbls)
|
|
United States
|
|
Equatorial Guinea
|
|
Israel
|
|
Total
|
||||
December 31, 2016
|
|
296
|
|
|
34
|
|
|
3
|
|
|
333
|
|
Price Revisions
|
|
12
|
|
|
2
|
|
|
—
|
|
|
14
|
|
Non-Price Revisions
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
Extensions, Discoveries and Other Additions
|
|
104
|
|
|
—
|
|
|
6
|
|
|
110
|
|
Purchase of Minerals in Place
|
|
43
|
|
|
—
|
|
|
—
|
|
|
43
|
|
Sale of Minerals in Place
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
Production
|
|
(41
|
)
|
|
(7
|
)
|
|
—
|
|
|
(48
|
)
|
December 31, 2017
|
|
419
|
|
|
29
|
|
|
9
|
|
|
457
|
|
Price Revisions
|
|
10
|
|
|
4
|
|
|
—
|
|
|
14
|
|
Non-Price Revisions
|
|
(41
|
)
|
|
(1
|
)
|
|
—
|
|
|
(42
|
)
|
Extensions, Discoveries and Other Additions
|
|
98
|
|
|
3
|
|
|
—
|
|
|
101
|
|
Sale of Minerals in Place
|
|
(24
|
)
|
|
—
|
|
|
(1
|
)
|
|
(25
|
)
|
Production
|
|
(42
|
)
|
|
(6
|
)
|
|
—
|
|
|
(48
|
)
|
December 31, 2018
|
|
420
|
|
|
29
|
|
|
8
|
|
|
457
|
|
Price Revisions
|
|
(27
|
)
|
|
(1
|
)
|
|
—
|
|
|
(28
|
)
|
Non-Price Revisions
|
|
(44
|
)
|
|
3
|
|
|
—
|
|
|
(41
|
)
|
Extensions, Discoveries and Other Additions
|
|
74
|
|
|
1
|
|
|
1
|
|
|
76
|
|
Sale of Minerals in Place
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
Production
|
|
(44
|
)
|
|
(5
|
)
|
|
—
|
|
|
(49
|
)
|
December 31, 2019
|
|
377
|
|
|
27
|
|
|
9
|
|
|
413
|
|
Proved Developed Reserves as of:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
138
|
|
|
34
|
|
|
3
|
|
|
175
|
|
December 31, 2017
|
|
176
|
|
|
29
|
|
|
3
|
|
|
208
|
|
December 31, 2018
|
|
165
|
|
|
26
|
|
|
2
|
|
|
193
|
|
December 31, 2019
|
|
176
|
|
|
25
|
|
|
9
|
|
|
210
|
|
Proved Undeveloped Reserves as of:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
158
|
|
|
—
|
|
|
—
|
|
|
158
|
|
December 31, 2017
|
|
243
|
|
|
—
|
|
|
6
|
|
|
249
|
|
December 31, 2018
|
|
255
|
|
|
3
|
|
|
6
|
|
|
264
|
|
December 31, 2019
|
|
201
|
|
|
2
|
|
|
—
|
|
|
203
|
|
•
|
2017 revisions were primarily attributable to the Delaware Basin due to continued optimization of well development and improved producing well performance.
|
•
|
2018 revisions included 30 MMBbls for changes in expected recoveries and increased operating and capital costs in the Delaware Basin and 11 MMBbls for changes in the previously adopted development plans in the Eagle Ford Shale and DJ Basin.
|
•
|
2019 revisions included a 41 MMBbls revision (29 MMBbls of PUDs and 12 MMBbls of proved developed) in the Delaware Basin for changes in development plans and performance.
|
•
|
2017 included additions of 59 MMBbls and 42 MMBbls in the Delaware and DJ Basins, respectively, primarily due to the addition of planned new locations and activity.
|
•
|
2018 extensions relate to drilling plans for new wells and primarily include 55 MMBbls and 38 MMBbls in the Delaware and DJ Basins, respectively.
|
•
|
2019 additions of 52 MMBbls and 22 MMBbls in the DJ Basin and Delaware Basin, respectively, related to drilling plans for new wells.
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
•
|
2017 sales included Marcellus Shale upstream assets and other non-strategic US onshore assets.
|
•
|
2018 sales included 16 MMBbls related to our Gulf of Mexico assets and 8 MMBbls related to other non-strategic US onshore assets.
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
|
|
NGLs
|
|||||||
(MMBbls)
|
|
United States
|
|
Equatorial Guinea
|
|
Total
|
|||
December 31, 2016
|
|
207
|
|
|
12
|
|
|
219
|
|
Price Revisions
|
|
6
|
|
|
—
|
|
|
6
|
|
Non-Price Revisions
|
|
25
|
|
|
1
|
|
|
26
|
|
Extensions, Discoveries and Other Additions
|
|
32
|
|
|
—
|
|
|
32
|
|
Purchase of Minerals in Place
|
|
7
|
|
|
—
|
|
|
7
|
|
Sale of Minerals in Place
|
|
(38
|
)
|
|
—
|
|
|
(38
|
)
|
Production
|
|
(21
|
)
|
|
(2
|
)
|
|
(23
|
)
|
December 31, 2017
|
|
218
|
|
|
11
|
|
|
229
|
|
Price Revisions
|
|
5
|
|
|
—
|
|
|
5
|
|
Non-Price Revisions
|
|
16
|
|
|
—
|
|
|
16
|
|
Extensions, Discoveries and Other Additions
|
|
48
|
|
|
—
|
|
|
48
|
|
Sale of Minerals in Place
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
Production
|
|
(23
|
)
|
|
(2
|
)
|
|
(25
|
)
|
December 31, 2018
|
|
257
|
|
|
9
|
|
|
266
|
|
Price Revisions
|
|
(12
|
)
|
|
(1
|
)
|
|
(13
|
)
|
Non-Price Revisions
|
|
(4
|
)
|
|
3
|
|
|
(1
|
)
|
Extensions, Discoveries and Other Additions
|
|
47
|
|
|
5
|
|
|
52
|
|
Production
|
|
(25
|
)
|
|
(1
|
)
|
|
(26
|
)
|
December 31, 2019
|
|
263
|
|
|
15
|
|
|
278
|
|
Proved Developed Reserves as of:
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
113
|
|
|
12
|
|
|
125
|
|
December 31, 2017
|
|
119
|
|
|
11
|
|
|
130
|
|
December 31, 2018
|
|
121
|
|
|
9
|
|
|
130
|
|
December 31, 2019
|
|
138
|
|
|
10
|
|
|
148
|
|
Proved Undeveloped Reserves as of:
|
|
|
|
|
|
|
|||
December 31, 2016
|
|
94
|
|
|
—
|
|
|
94
|
|
December 31, 2017
|
|
99
|
|
|
—
|
|
|
99
|
|
December 31, 2018
|
|
136
|
|
|
—
|
|
|
136
|
|
December 31, 2019
|
|
125
|
|
|
5
|
|
|
130
|
|
•
|
2017 US revisions included 11 MMBbls in the Delaware Basin, 8 MMBbls in the Eagle Ford Shale and 6 MMBbls in the DJ Basin, due to continued optimization of well development and improved producing well performance.
|
•
|
2018 revisions included positive revisions of 35 MMBbls in the DJ Basin primarily due to ASC 606 adoption, offset by negative revisions of 19 MMBbls, primarily in the Eagle Ford Shale due to changes in the previously adopted development plan.
|
•
|
2017 extensions in US reserves included 19 MMBbls in the DJ Basin, 9 MMBbls in the Delaware Basin and 4 MMBbls in the Eagle Ford Shale primarily due to the addition of planned new locations and activity.
|
•
|
2018 extensions related to the addition of planned new locations and activity, of which 25 MMBbls, 15 MMBbls and 8 MMBbls related to the DJ Basin, Delaware Basin and Eagle Ford Shale, respectively.
|
•
|
2019 extensions included additions of 40 MMBbls in the DJ Basin due to drilling plans for new wells.
|
•
|
2017 sales included the Marcellus Shale upstream assets and other non-strategic US onshore assets.
|
•
|
2018 sales included 1 MMBbl from Gulf of Mexico assets and 6 MMBbls for certain non-core US onshore assets.
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
|
|
Natural Gas
|
||||||||||
(Bcf)
|
|
United States
|
|
Israel
|
|
Equatorial Guinea
|
|
Total
|
||||
December 31, 2016
|
|
2,838
|
|
|
1,984
|
|
|
486
|
|
|
5,308
|
|
Price Revisions
|
|
53
|
|
|
—
|
|
|
13
|
|
|
66
|
|
Non-Price Revisions
|
|
71
|
|
|
292
|
|
|
—
|
|
|
363
|
|
Extensions, Discoveries and Other Additions
|
|
299
|
|
|
3,271
|
|
|
—
|
|
|
3,570
|
|
Purchase of Minerals in Place
|
|
46
|
|
|
—
|
|
|
—
|
|
|
46
|
|
Sale of Minerals in Place
|
|
(1,264
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1,265
|
)
|
Production
|
|
(222
|
)
|
|
(99
|
)
|
|
(87
|
)
|
|
(408
|
)
|
December 31, 2017
|
|
1,821
|
|
|
5,448
|
|
|
411
|
|
|
7,680
|
|
Price Revisions
|
|
44
|
|
|
—
|
|
|
5
|
|
|
49
|
|
Non-Price Revisions
|
|
(43
|
)
|
|
2
|
|
|
17
|
|
|
(24
|
)
|
Extensions, Discoveries and Other Additions
|
|
373
|
|
|
68
|
|
|
2
|
|
|
443
|
|
Sale of Minerals in Place
|
|
(79
|
)
|
|
(502
|
)
|
|
—
|
|
|
(581
|
)
|
Production
|
|
(172
|
)
|
|
(86
|
)
|
|
(78
|
)
|
|
(336
|
)
|
December 31, 2018
|
|
1,944
|
|
|
4,930
|
|
|
357
|
|
|
7,231
|
|
Price Revisions
|
|
(81
|
)
|
|
—
|
|
|
7
|
|
|
(74
|
)
|
Non-Price Revisions
|
|
(33
|
)
|
|
226
|
|
|
77
|
|
|
270
|
|
Extensions, Discoveries and Other Additions
|
|
377
|
|
|
520
|
|
|
167
|
|
|
1,064
|
|
Production
|
|
(188
|
)
|
|
(81
|
)
|
|
(71
|
)
|
|
(340
|
)
|
December 31, 2019
|
|
2,019
|
|
|
5,595
|
|
|
537
|
|
|
8,151
|
|
Proved Developed Reserves as of:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
1,817
|
|
|
1,600
|
|
|
486
|
|
|
3,903
|
|
December 31, 2017
|
|
983
|
|
|
1,793
|
|
|
411
|
|
|
3,187
|
|
December 31, 2018
|
|
929
|
|
|
1,295
|
|
|
355
|
|
|
2,579
|
|
December 31, 2019
|
|
1,055
|
|
|
5,463
|
|
|
355
|
|
|
6,873
|
|
Proved Undeveloped Reserves as of:
|
|
|
|
|
|
|
|
|
||||
December 31, 2016
|
|
1,021
|
|
|
384
|
|
|
—
|
|
|
1,405
|
|
December 31, 2017
|
|
838
|
|
|
3,655
|
|
|
—
|
|
|
4,493
|
|
December 31, 2018
|
|
1,015
|
|
|
3,635
|
|
|
2
|
|
|
4,652
|
|
December 31, 2019
|
|
964
|
|
|
132
|
|
|
182
|
|
|
1,278
|
|
•
|
2017 US revisions included 81 Bcf in the Eagle Ford Shale and 31 Bcf in the Delaware Basin, partially offset by negative performance revisions of 49 Bcf in the DJ Basin primarily associated vertical well locations. The Israel revision was associated with the integration of the Tamar 8 well results in our geologic modeling across the reservoir.
|
•
|
2018 US revisions included positive revisions of 70 Bcf in the DJ Basin primarily due to ASC 606 adoption, offset by negative revisions of 71 Bcf in the Eagle Ford Shale due to changes in the previously adopted development plan and 42 Bcf primarily in the Delaware Basin due to changes in expected recoveries and increased operating and capital costs. Additional reserves of 17 Bcf in Equatorial Guinea and 2 Bcf in Israel relate to improved recoveries on existing wells.
|
•
|
2019 revisions in US onshore included a 41 Bcf negative revision in the Eagle Ford Shale due to performance, partially offset by positive revisions due to performance in the DJ Basin. In Israel, revisions to our Tamar field included positive revisions to developed reserves of 460 Bcf, partially offset by revisions to PUD reserves of 241 Bcf. The Tamar field PUDs were reclassified to developed reserves based on our determination the reserves are accessible with limited further development. Equatorial Guinea revisions relate to the sanction of the Alen Gas Monetization project, which extends the life of the Alba field as certain natural gas volumes are now economic to produce.
|
•
|
2017 extensions in US reserves included additions of 224 Bcf in the DJ Basin, 53 Bcf in the Delaware Basin and 22 Bcf in
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
•
|
2018 extensions related to drilling plans for new wells. Increases in the US included 254 Bcf, 77 Bcf and 42 Bcf in the DJ Basin, Delaware Basin and Eagle Ford Shale, respectively, and the increase in Israel of 68 Bcf related to the Tamar field.
|
•
|
2019 extensions in US onshore included additions of 345 Bcf in the DJ Basin due to drilling plans for new wells. Israel additions relate to the Leviathan field and are due to closing of the EMG Pipeline transaction and signing of amendments to our natural gas sales agreements with Egyptian customers, which significantly increase our firm sales commitments in the region. Additions in Equatorial Guinea relate to sanction of the Alen Gas Monetization project in second quarter 2019.
|
•
|
2017 sales included our Marcellus Shale upstream assets and other non-strategic US onshore assets.
|
•
|
2018 sales included 20 Bcf for our Gulf of Mexico assets, 59 Bcf for other non-strategic US onshore assets and 502 Bcf for a 7.5% working interest in the Tamar field, offshore Israel.
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
(millions)
|
United States
|
|
Israel
|
|
Equatorial Guinea
|
|
Other Int'l
|
|
Total
|
||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenues
|
$
|
3,253
|
|
|
$
|
457
|
|
|
$
|
372
|
|
|
$
|
—
|
|
|
$
|
4,082
|
|
Production Costs (1)
|
1,284
|
|
|
48
|
|
|
90
|
|
|
1
|
|
|
1,423
|
|
|||||
Exploration Expense (2)
|
57
|
|
|
103
|
|
|
4
|
|
|
38
|
|
|
202
|
|
|||||
Depreciation, Depletion and Amortization
|
1,907
|
|
|
67
|
|
|
83
|
|
|
1
|
|
|
2,058
|
|
|||||
Asset Impairments (3)
|
1,160
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,160
|
|
|||||
Marketing Expense
|
27
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|||||
(Loss) Income before Income Taxes
|
(1,182
|
)
|
|
233
|
|
|
195
|
|
|
(40
|
)
|
|
(794
|
)
|
|||||
Income Tax (Benefit) Expense (4)
|
(248
|
)
|
|
54
|
|
|
49
|
|
|
—
|
|
|
(145
|
)
|
|||||
Results of Operations (5)
|
$
|
(934
|
)
|
|
$
|
179
|
|
|
$
|
146
|
|
|
$
|
(40
|
)
|
|
$
|
(649
|
)
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
3,590
|
|
|
$
|
480
|
|
|
$
|
543
|
|
|
$
|
—
|
|
|
$
|
4,613
|
|
Production Costs (1)
|
1,276
|
|
|
37
|
|
|
110
|
|
|
2
|
|
|
1,425
|
|
|||||
Exploration Expense
|
48
|
|
|
2
|
|
|
1
|
|
|
78
|
|
|
129
|
|
|||||
Depreciation, Depletion and Amortization
|
1,642
|
|
|
60
|
|
|
115
|
|
|
2
|
|
|
1,819
|
|
|||||
Loss (Gain) on Divestitures, Net (6)
|
36
|
|
|
(376
|
)
|
|
—
|
|
|
—
|
|
|
(340
|
)
|
|||||
Asset Impairments (3)
|
169
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
169
|
|
|||||
Marketing Expense
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|||||
Gain on Asset Retirement Obligation Revisions
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(17
|
)
|
|
(25
|
)
|
|||||
Income (Loss) before Income Taxes
|
379
|
|
|
765
|
|
|
317
|
|
|
(65
|
)
|
|
1,396
|
|
|||||
Income Tax Expense (4)
|
80
|
|
|
176
|
|
|
79
|
|
|
—
|
|
|
335
|
|
|||||
Results of Operations (5)
|
$
|
299
|
|
|
$
|
589
|
|
|
$
|
238
|
|
|
$
|
(65
|
)
|
|
$
|
1,061
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
3,156
|
|
|
$
|
534
|
|
|
$
|
370
|
|
|
$
|
—
|
|
|
$
|
4,060
|
|
Production Costs (1)
|
1,199
|
|
|
49
|
|
|
103
|
|
|
2
|
|
|
1,353
|
|
|||||
Exploration Expense
|
102
|
|
|
—
|
|
|
1
|
|
|
85
|
|
|
188
|
|
|||||
Depreciation, Depletion and Amortization
|
1,739
|
|
|
76
|
|
|
146
|
|
|
4
|
|
|
1,965
|
|
|||||
Loss on Marcellus Shale Upstream Divestiture and Other (5)
|
2,286
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,286
|
|
|||||
Asset Impairments (3)
|
63
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
70
|
|
|||||
Marketing Expense
|
47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|||||
Gain on Asset Retirement Obligation Revisions
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
(42
|
)
|
|||||
(Loss) Income before Income Taxes
|
(2,280
|
)
|
|
409
|
|
|
120
|
|
|
(56
|
)
|
|
(1,807
|
)
|
|||||
Income Tax (Benefit) Expense (4)
|
(798
|
)
|
|
98
|
|
|
30
|
|
|
—
|
|
|
(670
|
)
|
|||||
Results of Operations (5)
|
$
|
(1,482
|
)
|
|
$
|
311
|
|
|
$
|
90
|
|
|
$
|
(56
|
)
|
|
$
|
(1,137
|
)
|
(1)
|
Production costs consist of lease operating expense, production and ad valorem taxes, royalty expense, transportation and gathering expense, and general and administrative expense supporting oil and gas operations.
|
(2)
|
Amount for Israel includes $100 million for the write-off of the Leviathan Deep prospect.
|
(3)
|
(4)
|
Income tax (benefit) expense is based upon respective corporate statutory tax rates. During all periods presented, we incurred exploration expense in currently non-commercial other international locations; therefore, no tax benefit was included in income tax expense for other international as we could not conclude it was more likely than not that some portion or all of the deferred tax assets would be realized.
|
(5)
|
Results of operations exclude the mark-to-market gain or loss on commodity derivative instruments, corporate activities, exit costs and certain costs associated with mitigating the effects of our retained Marcellus Shale firm transportation agreements, and overhead and interest costs.
|
(6)
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
(millions)
|
|
United States
|
|
Israel
|
|
Equatorial Guinea
|
|
Other Int'l
|
|
Total
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Property Acquisition Costs
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Proved (1)
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Unproved (1)
|
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Exploration Costs (2)
|
|
67
|
|
|
14
|
|
|
16
|
|
|
43
|
|
|
140
|
|
|||||
Development Costs (3)
|
|
1,483
|
|
|
522
|
|
|
60
|
|
|
—
|
|
|
2,065
|
|
|||||
Total Consolidated Operations
|
|
$
|
1,591
|
|
|
$
|
536
|
|
|
$
|
76
|
|
|
$
|
43
|
|
|
$
|
2,246
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Property Acquisition Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Proved (1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Unproved (1)
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|||||
Exploration Costs (2)
|
|
58
|
|
|
12
|
|
|
10
|
|
|
73
|
|
|
153
|
|
|||||
Development Costs (3)
|
|
2,303
|
|
|
663
|
|
|
20
|
|
|
(16
|
)
|
|
2,970
|
|
|||||
Total Consolidated Operations
|
|
$
|
2,402
|
|
|
$
|
675
|
|
|
$
|
30
|
|
|
$
|
57
|
|
|
$
|
3,164
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Property Acquisition Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Proved (1)
|
|
$
|
839
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
839
|
|
Unproved (1)
|
|
1,817
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,817
|
|
|||||
Exploration Costs (2)
|
|
59
|
|
|
6
|
|
|
4
|
|
|
90
|
|
|
159
|
|
|||||
Development Costs (3)
|
|
1,870
|
|
|
483
|
|
|
33
|
|
|
(39
|
)
|
|
2,347
|
|
|||||
Total Consolidated Operations
|
|
$
|
4,585
|
|
|
$
|
489
|
|
|
$
|
37
|
|
|
$
|
51
|
|
|
$
|
5,162
|
|
(1)
|
2019 and 2018 unproved property acquisition costs include US onshore undeveloped leasehold activity during the year.
|
(2)
|
2019 and 2018 exploration costs primarily relate to lease rentals, seismic and staffing expense. 2019 costs exclude $100 million of dry hole expense related to the Leviathan Deep prospect as the associated unproved capital costs were incurred in prior years.
|
(3)
|
2019 costs to develop our PUDs totaled $1.5 billion. Of this amount, $1.1 billion, $399 million and $48 million related to the conversion of year end 2018 PUDs to proved developed reserves in US onshore, the Leviathan field and the Aseng crude oil well, respectively. In addition, we spent $131 million to convert unproved reserves to proved developed reserves in US onshore and $24 million progressing PUDs that have not yet been converted to proved developed reserves. Development costs also included a decrease of $9 million in ARO, consisting of downward revisions of $57 million in US onshore partially offset by additions of $40 million in Israel related to Leviathan.
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
|
|
December 31,
|
||||||
(millions)
|
|
2019
|
|
2018
|
||||
Unproved Undeveloped Leasehold and Other (1)
|
|
$
|
2,152
|
|
|
$
|
2,321
|
|
Unproved Capitalized Exploratory Well Costs (1)
|
|
280
|
|
|
348
|
|
||
Proved Oil and Gas Properties (2)
|
|
26,658
|
|
|
24,607
|
|
||
Total Oil and Gas Properties
|
|
29,090
|
|
|
27,276
|
|
||
Accumulated Depreciation, Depletion and Amortization
|
|
(13,353
|
)
|
|
(10,867
|
)
|
||
Net Capitalized Costs
|
|
$
|
15,737
|
|
|
$
|
16,409
|
|
(1)
|
(2)
|
At December 31, 2019, includes asset retirement costs of $954 million and assets held for sale of $14 million.
|
(millions)
|
|
United States
|
|
Israel (1)
|
|
Equatorial Guinea
|
|
Other Int'l (2)
|
|
Total
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Future Cash Inflows (3)
|
|
$
|
27,965
|
|
|
$
|
30,865
|
|
|
$
|
2,760
|
|
|
$
|
—
|
|
|
$
|
61,590
|
|
Future Production Costs (4)
|
|
(12,453
|
)
|
|
(2,945
|
)
|
|
(1,172
|
)
|
|
—
|
|
|
(16,570
|
)
|
|||||
Future Development Costs (5)
|
|
(4,966
|
)
|
|
(418
|
)
|
|
(269
|
)
|
|
(23
|
)
|
|
(5,676
|
)
|
|||||
Future Income Tax Expense (6)
|
|
(466
|
)
|
|
(13,877
|
)
|
|
(338
|
)
|
|
—
|
|
|
(14,681
|
)
|
|||||
Future Net Cash Flows
|
|
10,080
|
|
|
13,625
|
|
|
981
|
|
|
(23
|
)
|
|
24,663
|
|
|||||
10% Annual Discount for Estimated Timing of Cash Flows
|
|
(4,110
|
)
|
|
(8,360
|
)
|
|
(211
|
)
|
|
—
|
|
|
(12,681
|
)
|
|||||
Standardized Measure of Discounted Future Net Cash Flows
|
|
$
|
5,970
|
|
|
$
|
5,265
|
|
|
$
|
770
|
|
|
$
|
(23
|
)
|
|
$
|
11,982
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Future Cash Inflows (3)
|
|
$
|
38,542
|
|
|
$
|
27,559
|
|
|
$
|
2,528
|
|
|
$
|
—
|
|
|
$
|
68,629
|
|
Future Production Costs (4)
|
|
(14,793
|
)
|
|
(2,478
|
)
|
|
(1,180
|
)
|
|
—
|
|
|
(18,451
|
)
|
|||||
Future Development Costs (5)
|
|
(5,793
|
)
|
|
(1,038
|
)
|
|
(170
|
)
|
|
(32
|
)
|
|
(7,033
|
)
|
|||||
Future Income Tax Expense
|
|
(2,061
|
)
|
|
(12,185
|
)
|
|
(277
|
)
|
|
—
|
|
|
(14,523
|
)
|
|||||
Future Net Cash Flows
|
|
15,895
|
|
|
11,858
|
|
|
901
|
|
|
(32
|
)
|
|
28,622
|
|
|||||
10% Annual Discount for Estimated Timing of Cash Flows
|
|
(6,493
|
)
|
|
(8,037
|
)
|
|
(158
|
)
|
|
4
|
|
|
(14,684
|
)
|
|||||
Standardized Measure of Discounted Future Net Cash Flows
|
|
$
|
9,402
|
|
|
$
|
3,821
|
|
|
$
|
743
|
|
|
$
|
(28
|
)
|
|
$
|
13,938
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Future Cash Inflows (3)
|
|
$
|
30,061
|
|
|
$
|
29,998
|
|
|
$
|
2,028
|
|
|
$
|
—
|
|
|
$
|
62,087
|
|
Future Production Costs (4)
|
|
(11,020
|
)
|
|
(2,517
|
)
|
|
(932
|
)
|
|
—
|
|
|
(14,469
|
)
|
|||||
Future Development Costs (5)
|
|
(5,941
|
)
|
|
(1,706
|
)
|
|
(109
|
)
|
|
(51
|
)
|
|
(7,807
|
)
|
|||||
Future Income Tax Expense
|
|
(948
|
)
|
|
(13,088
|
)
|
|
(216
|
)
|
|
—
|
|
|
(14,252
|
)
|
|||||
Future Net Cash Flows
|
|
12,152
|
|
|
12,687
|
|
|
771
|
|
|
(51
|
)
|
|
25,559
|
|
|||||
10% Annual Discount for Estimated Timing of Cash Flows
|
|
(5,202
|
)
|
|
(8,993
|
)
|
|
(113
|
)
|
|
7
|
|
|
(14,301
|
)
|
|||||
Standardized Measure of Discounted Future Net Cash Flows
|
|
$
|
6,950
|
|
|
$
|
3,694
|
|
|
$
|
658
|
|
|
$
|
(44
|
)
|
|
$
|
11,258
|
|
(1)
|
During 2018, we reduced our ownership in the Tamar field, offshore Israel, to 25% through the sale of a 7.5% interest. Amounts at December 31, 2019 and December 31, 2018 reflect a 25% interest while amounts at December 31, 2017 reflect a 32.5% working interest. See Note 4. Acquisitions and Divestitures. In 2017, we sanctioned the first phase of development of the Leviathan field.
|
(2)
|
Other International represents changes in North Sea abandonment costs.
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
(3)
|
Excludes future methanol sales.
|
(4)
|
Production costs include lease operating expense, production and ad valorem taxes, transportation expense and general and administrative expense supporting crude oil and natural gas operations.
|
(5)
|
Future development costs include future abandonment costs for each location. See Note 7. Asset Retirement Obligations.
|
(6)
|
Future income tax expense includes the effect of statutory tax rates and the impact of tax deductions, tax credits and allowances relating to our proved reserves. Future income tax expense for Israel includes the effect of estimated future profit levy taxes and changes to corporate income tax rates.
|
|
|
United States
|
|
Israel
|
|
Equatorial Guinea (1)
|
|
Total
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Average Crude Oil and Condensate Price per Bbl
|
|
$
|
56.00
|
|
|
$
|
57.42
|
|
|
$
|
59.33
|
|
|
$
|
56.25
|
|
Average NGL Price per Bbl
|
|
13.24
|
|
|
—
|
|
|
30.53
|
|
|
14.18
|
|
||||
Average Natural Gas Price per Mcf
|
|
1.74
|
|
|
5.42
|
|
|
1.24
|
|
|
4.23
|
|
||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Average Crude Oil and Condensate Price per Bbl
|
|
66.66
|
|
|
63.94
|
|
|
70.92
|
|
|
66.88
|
|
||||
Average NGL Price per Bbl
|
|
24.48
|
|
|
—
|
|
|
45.15
|
|
|
25.19
|
|
||||
Average Natural Gas Price per Mcf
|
|
2.17
|
|
|
5.49
|
|
|
0.27
|
|
|
4.34
|
|
||||
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Average Crude Oil and Condensate Price per Bbl
|
|
47.81
|
|
|
46.82
|
|
|
53.12
|
|
|
48.13
|
|
||||
Average NGL Price per Bbl
|
|
22.32
|
|
|
—
|
|
|
37.23
|
|
|
23.02
|
|
||||
Average Natural Gas Price per Mcf
|
|
2.83
|
|
|
5.43
|
|
|
0.27
|
|
|
4.54
|
|
(1)
|
Natural gas from the Alba field is sold for $0.25 per MMBtu and is adjusted for energy content. In 2019, we recorded natural gas PUDs associated with the Alen Gas Monetization project with future cash inflows from LNG sales estimated based upon pricing linked principally to the ICE Brent index.
|
Noble Energy, Inc.
|
|
|
Supplemental Oil and Gas Information
|
|
|
|
(Unaudited)
|
|
|
|
Year Ended December 31,
|
||||||||||
(millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Standardized Measure of Discounted Future Net Cash Flows, Beginning of Year
|
|
$
|
13,938
|
|
|
$
|
11,258
|
|
|
$
|
5,686
|
|
Changes in Standardized Measure of Discounted Future Net Cash Flows
|
|
|
|
|
|
|
||||||
Sales of Oil and Gas Produced, Net of Production Costs
|
|
(2,660
|
)
|
|
(3,190
|
)
|
|
(2,674
|
)
|
|||
Net Changes in Prices and Production Costs (1)
|
|
(4,748
|
)
|
|
2,327
|
|
|
2,436
|
|
|||
Extensions, Discoveries and Improved Recovery, Less Related Costs
|
|
1,858
|
|
|
2,036
|
|
|
3,711
|
|
|||
Changes in Estimated Future Development Costs (2)
|
|
729
|
|
|
(738
|
)
|
|
(537
|
)
|
|||
Development Costs Incurred During the Period
|
|
2,070
|
|
|
2,986
|
|
|
1,975
|
|
|||
Revisions of Previous Quantity Estimates
|
|
(483
|
)
|
|
(9
|
)
|
|
1,462
|
|
|||
Purchases of Minerals in Place (3)
|
|
—
|
|
|
—
|
|
|
423
|
|
|||
Sales of Minerals in Place (4)
|
|
(28
|
)
|
|
(1,873
|
)
|
|
(643
|
)
|
|||
Accretion of Discount
|
|
1,807
|
|
|
1,538
|
|
|
778
|
|
|||
Net Change in Income Taxes (5)
|
|
(35
|
)
|
|
(11
|
)
|
|
(1,669
|
)
|
|||
Change in Timing of Estimated Future Production and Other
|
|
(466
|
)
|
|
(386
|
)
|
|
310
|
|
|||
Aggregate Change in Standardized Measure of Discounted Future Net Cash Flows
|
|
$
|
(1,956
|
)
|
|
$
|
2,680
|
|
|
$
|
5,572
|
|
Standardized Measure of Discounted Future Net Cash Flows, End of Year
|
|
$
|
11,982
|
|
|
$
|
13,938
|
|
|
$
|
11,258
|
|
(1)
|
The decrease in 2019 and increases in 2018 and 2017 were driven primarily by 12-month average commodity prices.
|
(2)
|
The decrease in 2019 relates to primarily to capital efficiencies in our US onshore program and changes in development plans in the Delaware Basin.
|
(3)
|
Purchase of minerals in 2017 relates to reserves acquired in the Clayton Williams Energy Acquisition.
|
(4)
|
(5)
|
2019 increase in future income tax expense relates primarily to higher future cash flows from the Leviathan and Tamar fields and from cash flows attributable to Alen Gas Monetization, partially offset by a decrease in US income tax expense due to lower future taxable income.
|
Noble Energy, Inc.
|
|
|
Supplemental Quarterly Financial Information
|
|
|
|
(Unaudited)
|
|
|
Quarter Ended
|
|
|
||||||||||||||||
(millions except per share amounts)
|
March 31,
|
|
June 30,
|
|
Sep 30,
|
|
Dec 31,
|
|
Total
|
||||||||||
2019 (1) (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
1,052
|
|
|
$
|
1,093
|
|
|
$
|
1,119
|
|
|
$
|
1,174
|
|
|
$
|
4,438
|
|
(Loss) Income Before Income Taxes
|
(373
|
)
|
|
28
|
|
|
51
|
|
|
(1,482
|
)
|
|
(1,776
|
)
|
|||||
Net (Loss) Income Including Noncontrolling Interests
|
(289
|
)
|
|
8
|
|
|
36
|
|
|
(1,188
|
)
|
|
(1,433
|
)
|
|||||
Less: Net Income Attributable to Noncontrolling Interests
|
24
|
|
|
18
|
|
|
19
|
|
|
18
|
|
|
79
|
|
|||||
Net (Loss) Income Attributable to Noble Energy
|
(313
|
)
|
|
(10
|
)
|
|
17
|
|
|
(1,206
|
)
|
|
(1,512
|
)
|
|||||
Net (Loss) Income Per Share, Basic
|
(0.65
|
)
|
|
(0.02
|
)
|
|
0.04
|
|
|
(2.52
|
)
|
|
(3.16
|
)
|
|||||
Net (Loss) Income Per Share, Diluted
|
(0.65
|
)
|
|
(0.02
|
)
|
|
0.04
|
|
|
(2.52
|
)
|
|
(3.16
|
)
|
|||||
2018 (2) (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
1,286
|
|
|
$
|
1,230
|
|
|
$
|
1,273
|
|
|
$
|
1,197
|
|
|
$
|
4,986
|
|
Income (Loss) Before Income Taxes
|
543
|
|
|
10
|
|
|
307
|
|
|
(720
|
)
|
|
140
|
|
|||||
Net Income (Loss) Including Noncontrolling Interests
|
574
|
|
|
(6
|
)
|
|
248
|
|
|
(802
|
)
|
|
14
|
|
|||||
Less: Net Income Attributable to Noncontrolling Interests
|
20
|
|
|
17
|
|
|
21
|
|
|
22
|
|
|
80
|
|
|||||
Net Income (Loss) Attributable to Noble Energy
|
554
|
|
|
(23
|
)
|
|
227
|
|
|
(824
|
)
|
|
(66
|
)
|
|||||
Net Income (Loss) Per Share, Basic
|
1.14
|
|
|
(0.05
|
)
|
|
0.47
|
|
|
(1.72
|
)
|
|
(0.14
|
)
|
|||||
Net Income (Loss) Per Share, Diluted
|
1.14
|
|
|
(0.05
|
)
|
|
0.47
|
|
|
(1.72
|
)
|
|
(0.14
|
)
|
•
|
Proved property impairment charge of $1.2 billion in the Eagle Ford Shale. See Note 10. Impairments; and
|
•
|
$100 million dry hole cost. See Note 6. Capitalized Exploratory Well Costs and Undeveloped Leasehold Costs.
|
•
|
•
|
$168 million impairment expense related to Gulf of Mexico asset divestiture. See Note 4. Acquisitions and Divestitures; and
|
•
|
$145 million discrete tax benefit, net, related to changes in federal income tax regulations. See Note 13. Income Taxes.
|
(a)
|
The following documents are filed as a part of this report:
|
(1)
|
Financial Statements: The consolidated financial statements and related notes, together with the reports of KPMG LLP, Independent Registered Public Accounting Firm, appear in Part II, Item 8, Financial Statements and Supplementary Data, of this Form 10-K.
|
(2)
|
Financial Statement Schedules: All schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instruction or are inapplicable and, therefore, have been omitted.
|
(3)
|
Exhibits: The exhibits listed below on the Index to Exhibits are filed or incorporated by reference as part of this Form 10-K.
|
Exhibit Number
|
Exhibit
|
|
2.1
|
—
|
|
2.2
|
—
|
|
3.1
|
—
|
|
3.2
|
—
|
|
3.3
|
—
|
|
3.4
|
—
|
|
4.1
|
—
|
|
4.2
|
—
|
|
4.3
|
—
|
|
4.4
|
—
|
|
4.5
|
—
|
|
4.6
|
—
|
|
4.7
|
—
|
|
4.8
|
—
|
Indenture dated as of October 14, 1993 between the Registrant and US Trust Company of Texas, N.A., as Trustee, relating to the Registrant’s 7.25% Notes Due 2023 (including the form of 2023 Notes) (filed in paper with the SEC as Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1993 on November 12, 1993 (File No. 001-07964) and incorporated herein by reference).
|
4.9
|
—
|
4.10
|
—
|
|
4.11
|
—
|
|
10.1
|
—
|
|
10.2
|
—
|
|
10.3
|
—
|
|
10.4
|
—
|
|
10.5
|
—
|
|
10.6
|
—
|
|
10.7*
|
—
|
|
10.8*
|
—
|
|
10.9*
|
—
|
|
10.10*
|
—
|
Form of Indemnity Agreement entered into between the Registrant and each of the Registrant’s directors and bylaw officers (filed in paper with the SEC as Exhibit 10.18 to the Registrant’s Annual Report on Form 10-K405 for the year ended December 31, 1995 on March 25, 1996 (File No. 001-07964) and incorporated herein by reference).
|
10.11*
|
—
|
|
10.12*
|
—
|
10.13*
|
—
|
|
10.14*
|
—
|
|
10.15*
|
—
|
|
10.16*
|
—
|
|
10.17*
|
—
|
|
10.18*
|
—
|
|
10.19*
|
—
|
|
10.20*
|
—
|
|
10.21*
|
—
|
|
10.22*
|
—
|
|
10.23*
|
—
|
|
10.24*
|
—
|
|
10.25*
|
—
|
|
10.26*
|
—
|
|
10.27*
|
—
|
|
10.28*
|
—
|
|
10.29*
|
—
|
|
10.30*
|
—
|
|
10.31*
|
|
10.32*
|
—
|
|
10.33*
|
—
|
|
10.34*
|
—
|
|
10.35*
|
—
|
|
10.36*
|
—
|
|
10.37*
|
—
|
|
10.38*
|
—
|
|
10.39*
|
—
|
|
10.40*
|
—
|
|
10.41*
|
—
|
|
10.42*
|
—
|
|
10.43*
|
—
|
|
10.44*
|
—
|
|
10.45*
|
—
|
|
10.46*
|
—
|
|
10.47*
|
—
|
|
10.48*
|
—
|
|
10.49*
|
—
|
|
10.50*
|
—
|
10.51*
|
—
|
|
10.52*
|
—
|
|
10.53*
|
—
|
|
10.54*
|
—
|
|
10.55*
|
—
|
|
10.56*
|
—
|
|
10.57*
|
—
|
|
10.58*
|
—
|
|
10.59
|
—
|
|
10.60
|
—
|
|
10.61
|
—
|
|
10.62
|
—
|
|
10.63
|
—
|
|
10.64
|
—
|
|
10.65*
|
—
|
|
21.1
|
—
|
|
23.1
|
—
|
|
23.2
|
—
|
|
31.1
|
—
|
31.2
|
—
|
|
32.1
|
—
|
|
32.2
|
—
|
|
99.1
|
—
|
|
101
|
—
|
The following materials from the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Operations and Comprehensive Income (Loss); (ii) Consolidated Balance Sheets; (iii) Consolidated Statements of Cash Flows; (iv) Consolidated Statements of Equity; and (v) Notes to Consolidated Financial Statements.
|
104
|
—
|
Cover Page Interactive Data File (formatted in iXBRL and contained in Exhibit 101).
|
*
|
Management contract or compensatory plan or arrangement required to be filed as an exhibit hereto.
|
Bbl
|
|
Barrel
|
BBoe
|
|
Billion barrels oil equivalent
|
Bcf
|
|
Billion cubic feet
|
Bcf/d
|
|
Billion cubic feet per day
|
BCM
|
|
Billion cubic meters
|
BOE
|
|
Barrels oil equivalent. Natural gas is converted on the basis of six Mcf of gas per one barrel of crude oil equivalent. This ratio reflects an energy content equivalency and not a price or revenue equivalency. Given commodity price disparities, the price for a barrel of crude oil equivalent for natural gas is significantly less than the price for a barrel of crude oil. The price for a barrel of NGL is also less than the price for a barrel of crude oil.
|
Boe/d
|
|
Barrels oil equivalent per day
|
Btu
|
|
British thermal unit
|
FPSO
|
|
Floating production, storage and offloading vessel
|
GHG
|
|
Greenhouse gas emissions
|
GSPA
|
|
Gas Sales Purchase Agreement
|
HH
|
|
Henry Hub index
|
IDP
|
|
Integrated Development Plan
|
LNG
|
|
Liquefied natural gas
|
LPG
|
|
Liquefied petroleum gas
|
MBbl/d
|
|
Thousand barrels per day
|
MBoe/d
|
|
Thousand barrels oil equivalent per day
|
Mcf
|
|
Thousand cubic feet
|
MMBbls
|
|
Million barrels
|
MMBoe
|
|
Million barrels oil equivalent
|
MMBtu
|
|
Million British thermal units
|
MMBtu/d
|
|
Million British thermal units per day
|
MMcf/d
|
|
Million cubic feet per day
|
MMcfe/d
|
|
Million cubic feet equivalent per day
|
MMgal
|
|
Million gallons
|
Mt
|
|
Metric ton
|
Mt/d
|
|
Metric tons per day
|
NGLs
|
|
Natural gas liquids
|
NYMEX
|
|
The New York Mercantile Exchange
|
OPEC
|
|
The Organization of Petroleum Exporting Countries
|
PSC
|
|
Production sharing contract
|
Tcf
|
|
Trillion cubic feet
|
US GAAP
|
|
United States generally accepted accounting principles
|
WTI
|
|
West Texas Intermediate index
|
|
|
NOBLE ENERGY, INC.
|
|
|
(Registrant)
|
|
|
|
Date:
|
February 12, 2020
|
By: /s/ David L. Stover
|
|
|
David L. Stover,
|
|
|
Chairman of the Board and Chief Executive Officer
|
|
|
|
Date:
|
February 12, 2020
|
By: /s/ Kenneth M. Fisher
|
|
|
Kenneth M. Fisher,
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
Date:
|
February 12, 2020
|
By: /s/ Dustin A. Hatley
|
|
|
Dustin A. Hatley,
|
|
|
Vice President, Chief Accounting Officer and Controller
|
Signature
|
|
Capacity in which signed
|
|
Date
|
|
|
|
|
|
/s/ David L. Stover
|
|
Chairman of the Board and Chief Executive Officer
|
|
February 12, 2020
|
David L. Stover
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ Kenneth M. Fisher
|
|
Executive Vice President, Chief Financial Officer
|
|
February 12, 2020
|
Kenneth M. Fisher
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Dustin A. Hatley
|
|
Vice President, Chief Accounting Officer and Controller
|
|
February 12, 2020
|
Dustin A. Hatley
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
/s/ Jeffrey L. Berenson
|
|
Director
|
|
February 12, 2020
|
Jeffrey L. Berenson
|
|
|
|
|
|
|
|
|
|
/s/ Michael A. Cawley
|
|
Director
|
|
February 12, 2020
|
Michael A. Cawley
|
|
|
|
|
|
|
|
|
|
/s/ James E. Craddock
|
|
Director
|
|
February 12, 2020
|
James E. Craddock
|
|
|
|
|
|
|
|
|
|
/s/ Barbara J. Duganier
|
|
Director
|
|
February 12, 2020
|
Barbara J. Duganier
|
|
|
|
|
|
|
|
|
|
/s/ Thomas J. Edelman
|
|
Director
|
|
February 12, 2020
|
Thomas J. Edelman
|
|
|
|
|
|
|
|
|
|
/s/ Holli C. Ladhani
|
|
Director
|
|
February 12, 2020
|
Holli C. Ladhani
|
|
|
|
|
|
|
|
|
|
/s/ Scott D. Urban
|
|
Director
|
|
February 12, 2020
|
Scott D. Urban
|
|
|
|
|
|
|
|
|
|
/s/ William T. Van Kleef
|
|
Director
|
|
February 12, 2020
|
William T. Van Kleef
|
|
|
|
|
|
|
|
|
|
/s/ Martha B. Wyrsch
|
|
Director
|
|
February 12, 2020
|
Martha B. Wyrsch
|
|
|
|
|
(1)
|
the cash or fair market value of the consideration per share to be received by holders of Common Stock is not less than or equal to the highest per share price paid by such other entity in acquiring any of its holdings of Common Stock;
|
(2)
|
after completion of the transaction that resulted in the other entity acquiring 20% of the outstanding shares of stock of the Company entitled to vote in the election of directors and before consummation of the proposed business transaction, the other entity has not acquired any newly issued shares of stock, directly or indirectly, from the Company (except in the case of convertible securities acquired by it prior to obtaining 20% of the outstanding shares of stock of the Company entitled to vote in the election of directors or as part of the transaction which results in the other entity acquiring its 20% or greater interest or as a result of a pro rata stock dividend or stock split); and
|
(3)
|
the other entity has not (i) received the benefit, directly or indirectly (except proportionately as a shareholder), of any loans, advances, guarantees, pledges or other financial assistance or tax credits provided by the Company, or (ii) made any major change in the Company’s business or equity capital structure prior to the consummation of the proposed business transaction.
|
|
NOBLE ENERGY, INC
|
By:
|
/s/ David L. Stover
|
Name:
|
David L. Stover
|
Title:
|
Chairman and Chief Executive
|
Participant Name:
|
|
|
|
Number of RSUs Awarded:
|
|
|
|
Award Date:
|
|
Vesting Schedule:
|
The RSUs and Dividend Equivalent Cash Rights will be subject to a restricted period (the “Restricted Period”) that will commence on the Award Date and end on the third anniversary of the Award Date. During the Restricted Period, the RSUs and Dividend Equivalent Cash Rights will be subject to the restrictions described in the Agreement, provided, however, that the restrictions will be removed (and such RSUs and Dividend Equivalent Cash Rights will “vest”) as to:
|
(i)
|
one third (1/3) of the RSUs and related Dividend Equivalent Cash Rights on the first anniversary of the Award Date, provided Participant is in the continuous employ or service of Noble Energy, Inc. (“Noble”) or an Affiliate until such date;
|
(ii)
|
an additional (1/3) of the RSUs and related Dividend Equivalent Cash Rights on the second anniversary of the Award Date, provided Participant is in the continuous employ or service of Noble or an Affiliate until such date; and
|
(iii)
|
the remaining RSUs and related Dividend Equivalent Cash Rights on the third anniversary of the Award Date, provided Participant is in the continuous employ or service of Noble or an Affiliate until such date.
|
PARTICIPANT:
|
|
NOBLE ENERGY, INC.
|
|
|
|
(Signature of Participant)
|
|
David L. Stover
|
|
|
President and CEO
|
Participant Name:
|
|
|
|
Number of RSUs Awarded:
|
|
|
|
Award Date:
|
|
|
|
Vesting Date:
|
The third anniversary of the Award Date
|
PARTICIPANT:
|
|
NOBLE ENERGY, INC.
|
|
|
|
(Signature of Participant)
|
|
David L. Stover
|
|
|
President and CEO
|
Participant Name:
|
|
|
|
Number of Performance
Shares Awarded:
|
|
|
|
Award Date:
|
|
|
|
Vesting Date:
|
The third anniversary of the Award Date
|
|
|
Percentage of Performance Shares subject to the TSR Performance Goal:
|
60%
|
|
|
Percentage of Performance
Shares subject to the CROCE
Performance Goal:
|
20%
|
|
|
Percentage of Performance
Shares subject to the ESG
Performance Goal:
|
20%
|
PARTICIPANT:
|
|
NOBLE ENERGY, INC.
|
|
|
|
(Signature of Participant)
|
|
David L. Stover
|
|
|
President and CEO
|
Participant Name:
|
|
|
|
Number of Restricted Shares Awarded:
|
|
|
|
Award Date:
|
|
Vesting Schedule:
|
The Restricted Shares will be subject to a restricted period (the “Restricted Period”) that will commence on the Award Date and end on the third anniversary of the Award Date. During the Restricted Period, the Restricted Shares will be subject to the restrictions described in the Agreement, provided, however, that the restrictions will be removed as to:
|
(i)
|
one third (1/3) of the Restricted Shares on the first anniversary of the Award Date, provided Participant is in the continuous employ or service of Noble Energy, Inc. (“Noble”) or an Affiliate until such date;
|
(ii)
|
one third (1/3) of the Restricted Shares on the second anniversary of the Award Date, provided Participant is in the continuous employ or service of Noble or an Affiliate until such date; and
|
(iii)
|
the remaining Restricted Shares on the third anniversary of the Award Date, provided Participant is in the continuous employ or service of Noble or an Affiliate until such date.
|
PARTICIPANT:
|
|
NOBLE ENERGY, INC.
|
|
|
|
(Signature of Participant)
|
|
David L. Stover
|
|
|
President and CEO
|
Participant Name:
|
|
|
|
Number of Restricted Shares Awarded:
|
|
|
|
Award Date:
|
|
|
|
Vesting Date:
|
The third anniversary of the Award Date
|
PARTICIPANT:
|
|
NOBLE ENERGY, INC.
|
|
|
|
(Signature of Participant)
|
|
David L. Stover
|
|
|
President and CEO
|
NAME
|
|
JURISDICTION OF ORGANIZATION
|
Advantage Pipeline Holdings LLC*
|
|
Delaware
|
Advantage Pipeline Logistics LLC*
|
|
Texas
|
Advantage Pipeline Management, LLC*
|
|
Texas
|
Advantage Pipeline, L.L.C.*
|
|
Texas
|
Alba Associates LLC*
|
|
Cayman Islands
|
Alba Plant LLC*
|
|
Cayman Islands
|
AMPCO Marketing, L.L.C.*
|
|
Michigan
|
AMPCO Services, L.L.C.*
|
|
Michigan
|
Atlantic Methanol Associates LLC*
|
|
Cayman Islands
|
Atlantic Methanol Production Company LLC*
|
|
Cayman Islands
|
Atlantic Methanol Services B.V.*
|
|
Netherlands
|
Black Diamond Cushing LLC*
|
|
Delaware
|
Black Diamond Gathering Holdings LLC*
|
|
Delaware
|
Black Diamond Gathering LLC*
|
|
Delaware
|
Black Diamond Rockies Midstream LLC*
|
|
Delaware
|
Black Diamond Rockies Storage and Terminals LLC*
|
|
Delaware
|
Blanco River LLC*
|
|
Delaware
|
Clayton Williams Pipeline LLC*
|
|
Delaware
|
Colorado River LLC*
|
|
Delaware
|
Delaware Crossing Holdings LLC*
|
|
Delaware
|
Delaware Crossing LLC*
|
|
Delaware
|
Delaware Crossing Operating LLC*
|
|
Delaware
|
Dos Rios Crude Holdings LLC*
|
|
Delaware
|
Dos Rios Crude Intermediate LLC*
|
|
Delaware
|
Dos Rios Delaware Holdings LLC*
|
|
Delaware
|
Dos Rios DevCo LLC*
|
|
Delaware
|
Dos Rios Y-Grade Holdings LLC*
|
|
Delaware
|
DX Constellation LLC*
|
|
Delaware
|
East Mediterranean Gas Company S.A.E.*
|
|
Egypt
|
EDC Ecuador Ltd.
|
|
Delaware
|
EMED Pipeline B.V.*
|
|
Netherlands
|
Energy Development Corporation (Argentina), Inc.
|
|
Delaware
|
Energy Development Corporation (China), Inc.
|
|
Delaware
|
EPIC Crude Holdings GP, LLC*
|
|
Delaware
|
EPIC Crude Holdings, LP*
|
|
Delaware
|
EPIC Y-Grade GP, LLC*
|
|
Delaware
|
EPIC Y-Grade, LP*
|
|
Delaware
|
Green River DevCo LLC*
|
|
Delaware
|
Gunnison River DevCo GP LLC*
|
|
Delaware
|
Gunnison River DevCo LP*
|
|
Delaware
|
Laramie River LLC*
|
|
Delaware
|
Leviathan Transportation System Ltd.*
|
|
Israel
|
MachalaPower Cia. Ltda.
|
|
Cayman Islands
|
NBL Congo Holding LLC
|
|
Delaware
|
NBL Congo Limited
|
|
Cayman Islands
|
NBL Cumbia Limited
|
|
Cayman Islands
|
NBL Eastern Mediterranean Marketing Limited
|
|
Cayman Islands
|
NBL Energy Royalties, Inc.
|
|
Delaware
|
NBL International B.V.
|
|
Netherlands
|
NBL International Risk Management Limited
|
|
Cayman Islands
|
NBL Jordan Marketing Limited*
|
|
Cayman Islands
|
NBL Mexico Holding, LLC
|
|
Delaware
|
NBL Mexico, Inc.
|
|
Delaware
|
NBL Midstream Holdings LLC*
|
|
Delaware
|
NBL Midstream, LLC
|
|
Delaware
|
NBL North American Risk Management, LLC
|
|
Delaware
|
NBL Permian Water LLC
|
|
Delaware
|
NBL Rhea Limited
|
|
Cayman Islands
|
NBL Texas, LLC
|
|
Delaware
|
NCWYO Assets LLC
|
|
Delaware
|
NEML Leviathan Finance Company Ltd.
|
|
Israel
|
Noble Energy (ISE) Limited
|
|
United Kingdom
|
Noble Energy (Oilex) Limited
|
|
United Kingdom
|
Noble Energy Cameroon Limited
|
|
Cayman Islands
|
Noble Energy Canada Inc.
|
|
Delaware
|
Noble Energy Canada ULC
|
|
Canada
|
Noble Energy Capital Limited
|
|
United Kingdom
|
Noble Energy Colombia Holding LLC
|
|
Delaware
|
Noble Energy Colombia Limited
|
|
Cayman Islands
|
Noble Energy EG Ltd.
|
|
Cayman Islands
|
Noble Energy Egypt Holding LLC
|
|
Delaware
|
Noble Energy Egypt Limited
|
|
Cayman Islands
|
Noble Energy Egypt Marketing LLC
|
|
Egypt
|
Noble Energy EMEA Ventures Limited
|
|
Cayman Islands
|
Noble Energy EMed Midstream Limited
|
|
Cayman Islands
|
Noble Energy Falklands Holding, LLC
|
|
Delaware
|
Noble Energy Falklands Limited
|
|
United Kingdom
|
Noble Energy Gabon Holding Company, LLC
|
|
Delaware
|
Noble Energy Gabon Limited
|
|
Cayman Islands
|
Noble Energy Global Ventures Ltd.
|
|
Cayman Islands
|
Noble Energy International Holdings, Inc.
|
|
Delaware
|
Noble Energy International Ltd
|
|
Cyprus
|
Noble Energy International Trading Limited
|
|
Cayman Islands
|
Noble Energy International Ventures Limited
|
|
Cayman Islands
|
Noble Energy Jordan Limited
|
|
Cayman Islands
|
Noble Energy Mediterranean Ltd.
|
|
Cayman Islands
|
Noble Energy Mexico, S. de R.L. de C.V.
|
|
Mexico
|
Noble Energy New Ventures, LLC
|
|
Delaware
|
Noble Energy Services, Inc.
|
|
Delaware
|
Noble Energy Sierra Leone Holdings, LLC
|
|
Delaware
|
Noble Energy SL Limited
|
|
United Kingdom
|
Noble Energy US Holdings, LLC
|
|
Delaware
|
Noble Energy WyCo, LLC
|
|
Delaware
|
Noble Midstream GP LLC
|
|
Delaware
|
Noble Midstream Marketing LLC*
|
|
Delaware
|
Noble Midstream Partners LP*
|
|
Delaware
|
Noble Midstream Services, LLC*
|
|
Delaware
|
Optimized Energy Solutions, LLC*
|
|
Delaware
|
Rocinante Ventures LLC
|
|
Delaware
|
Rosetta Resources Holdings, LLC
|
|
Delaware
|
Rosetta Resources Offshore, LLC
|
|
Delaware
|
Rosetta Resources Operating GP, LLC
|
|
Delaware
|
Rosetta Resources Operating LP
|
|
Delaware
|
Samedan Methanol
|
|
Cayman Islands
|
Samedan of North Africa, LLC
|
|
Delaware
|
San Juan River LLC
|
|
Delaware
|
Seven Oaks Insurance Limited
|
|
Bermuda
|
Tamar 10 Inch Pipeline Ltd.
|
|
Israel
|
Trinity River DevCo LLC*
|
|
Delaware
|
West Coast Energy Properties GP, LLC
|
|
Texas
|
White Star Insurance LLC
|
|
Texas
|
Yam Tethys Ltd.*
|
|
Israel
|
|
|
|
|
|
NETHERLAND, SEWELL & ASSOCIATES, INC.
|
||
|
|
|
|
|
By:
|
/s/ Danny D. Simmons
|
|
|
|
Danny D. Simmons, P.E.
|
|
|
|
President and Chief Operating Officer
|
|
|
|
|
|
Houston, Texas
|
|
|
|
February 12, 2020
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of Noble Energy, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
Date:
|
February 12, 2020
|
|
|
|
|
|
|
/s/ David L. Stover
|
|
||
David L. Stover
|
|
||
Chief Executive Officer
|
|
1.
|
I have reviewed this annual report on Form 10-K of Noble Energy, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
Date:
|
February 12, 2020
|
|
|
|
|
|
|
/s/ Kenneth M. Fisher
|
|
||
Kenneth M. Fisher
|
|
||
Chief Financial Officer
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
February 12, 2020
|
|
/s/ David L. Stover
|
|
|
|
David L. Stover
|
|
|
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
February 12, 2020
|
|
/s/ Kenneth M. Fisher
|
|
|
|
Kenneth M. Fisher
|
|
|
|
Chief Financial Officer
|
|
|
Net Reserves
|
|||||||
|
|
Oil
|
|
NGL
|
|
Gas
|
|||
Category
|
|
(MBBL)
|
|
(MBBL)
|
|
(MMCF)
|
|||
|
|
|
|
|
|
|
|||
Proved Developed Producing
|
|
209,991.5
|
|
|
147,232.1
|
|
|
6,323,671.4
|
|
Proved Developed Non-Producing
|
|
818.9
|
|
|
227.3
|
|
|
548,745.3
|
|
Proved Undeveloped
|
|
202,604.4
|
|
|
130,126.0
|
|
|
1,278,743.6
|
|
|
|
|
|
|
|
|
|||
Total Proved
|
|
413,414.7
|
|
|
277,585.4
|
|
|
8,151,160.4
|
|
|
|
Oil/NGL
|
|
Gas
|
||||||||||
|
|
Pricing Index
|
|
Average Spot Price
|
|
Average Realized Prices
(US$/Barrel)
|
|
Pricing Index
|
|
Average Price
|
|
Average Realized Price
|
||
Country
|
|
|
(US$/Barrel)
|
|
Oil
|
|
NGL
|
|
|
(US$/MMBTU)
|
|
(US$/MCF)
|
||
United States
|
|
West Texas Intermediate
|
|
55.69
|
|
56.00
|
|
13.24
|
|
Henry Hub
|
|
2.578
|
|
1.738
|
Equatorial Guinea
|
|
Brent
|
|
63.15
|
|
59.33
|
|
30.53
|
|
Contract
|
|
(1)
|
|
1.243
|
Israel
|
|
Brent
|
|
63.15
|
|
57.42
|
|
N/A
|
|
Contract
|
|
(2)
|
|
5.422
|
(1)
|
For the Alba Field properties, the gas price used is the fixed contract price of US$0.25 per MMBTU and is adjusted for energy content. For the Alen Field properties, the contract gas price used is calculated from the Brent spot price using a formula provided by Noble and is adjusted for energy content, transportation fees, and market differentials.
|
(2)
|
For the Israel properties, gas prices used are based on a weighted average of all sales contracts according to their relative volume; these contract prices are derived from various formulae that include indexation to the Consumer Price Index or the Public Utility Authority.
|
Please be advised that the digital document you are viewing is provided by Netherland, Sewell & Associates, Inc. (NSAI) as a convenience to our clients. The digital document is intended to be substantively the same as the original signed document maintained by NSAI. The digital document is subject to the parameters, limitations, and conditions stated in the original document. In the event of any differences between the digital document and the original document, the original document shall control and supersede the digital document.
|