On Nov 18, we have issued an updated research report on Noble Energy, Inc. (NBL). The company’s steady focus on new discovery, operations at the Denver-Julesburg (DJ) as well as the Marcellus basins and addition of service capacity mainly in the Eastern Mediterranean operations are expected to boost its future performance. However, concerns arising from oil and gas price volatilities and operational disruption due to accidents and natural disaster are potential risks.
Houston, TX-based Noble Energy manages a diversified portfolio of domestic and international assets that offer ultra-high return opportunities. The company is advancing with its exploration program by adding new discoveries, primarily in the GoM, to its portfolio.
Noble Energy also controls a well-balanced portfolio of high-quality oil and gas properties in onshore U.S. The prime DJ and Marcellus basins continue to act as a catalyst for the surge in production volume with the most recent quarter witnessing record horizontal production.
On the downside, Noble Energy’s profit is highly sensitive to price variations in oil and natural gas. The volatile nature of these commodities is due to the effect of economic cycles.
Also, in the third-quarter 2014, Noble Energy reported unimpressive financials with earnings and revenues missing the Zacks Consensus Estimate and also declining year over year. Lower total sales volumes and average realized prices adversely impacted the top and consequently the bottom line.
Noble Energy currently has a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Better-ranked stocks in the oil and gas space include Sandridge Mississippian Trust II (SDR), Cheniere Energy, Inc. (LNG) and Miller Energy Resources, Inc. (MILL). While Sandridge currently sports a Zacks Rank #1 (Strong Buy), Miller Energy and Cheniere Energy carry a Zacks Rank #2 (Buy).
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