Noble Energy, Inc. (NBL) unveiled its 2014 capital expenditure guidance and estimates for total sales volumes. In addition, the company has revised sales volumes projection for fourth-quarter 2013.
For 2014, Noble Energy projects a capital investment of $4.8 billion. Of the total investment planned, the company intends to invest $3.2 billion for U.S. onshore development activities and $1.5 billion for Global Deepwater programs. The rest will be assigned for corporate activities. In addition, the company provided its 2014 exploration expenses guidance in the range of $0.4 – $0.5 billion.
In U.S. Onshore development projects, Noble Energy intends to allocate 41.7% of the total allocated fund for horizontal drilling and infrastructure development at the Denver/Julesburg (“DJ”) basin. The company plans to invest $1.1 billion in the Marcellus Shale and deploy funds for the development of liquid-rich assets. Noble Energy continues to add new infrastructure, including crude gathering pipeline and rail facility, to its portfolio. The timely completion of the projects will enable the company to improve its transportation capacity, thereby serving more customers.
As far as the Global Deepwater projects are concerned, Noble Energy will be engaged in the development of the onshore compression terminal in Israel and the Tamar Southwest discovery. The company also intends to invest a substantial amount for the development of the Big Bend and Gunflint projects and the new Dantzler discovery, as well as for normal exploration activities at the deepwater Gulf of Mexico. In addition, Noble Energy continues with its sanction and development plan for the Diega venture along with an exploration well in Cameroon. The company will also focus on new offshore projects in Sierra Leone and the Falkland Islands.
The overseas assets are contributing favorably to Noble Energy’s performance. In third-quarter 2013, the company’s earnings surged primarily on the back of higher sales from the company’s Tamar natural gas field in offshore Israel and Alen condensate field in offshore Equatorial New Guinea.
For 2014, Noble Energy expects total average sales volumes in the range of 302 – 322 thousand barrels of oil equivalent per day (“MBoe/d”). Out of this, liquid, U.S. natural gas and international natural gas are expected to comprise 46%, 29% and 25%, respectively. At the midpoint of the guidance, total average sales volumes will likely be 18% higher than the 2013 projection on the heels of strong contribution from the Tamar and the DJ Basin operations. Successful horizontal programs at the Marcellus Shale will contribute to the surge in volumes.
Noble Energy increased its fourth-quarter 2013 guidance for sales volumes from continuing operations by 5 MBoe/d to 286 – 288 MBoe/d. The increased guidance is based on higher-than-expected sales from U.S. Onshore, West Africa and Israel operations.
Steady drilling progress at several prospects is a proof of Noble Energy’s effective project execution capabilities. We believe the company will accumulate significant returns from these properties in the future.
Noble Energy currently has a Zacks Rank #3 (Hold). However, other better-ranked stocks from the same industry include Abraxas Petroleum Corp. (AXAS), Harvest Natural Resources Inc. (HNR) and Clayton Williams Energy, Inc. (CWEI), each with a Zacks Rank #1 (Strong Buy).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment