A month has gone by since the last earnings report for Noble Energy (NBL). Shares have added about 10.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Noble due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Noble Energy Posts Narrower-Than-Expected Loss in Q2
Noble Energy, Inc. incurred an adjusted loss of 10 cents per share in second-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 13 cents.
Total Revenues
Noble Energy's total revenues declined 11.1% year over year to $1,093 million in the second quarter. Nevertheless, the top line outpaced the Zacks Consensus Estimate of $1,049 million by 4.2%.
Operational Results
In the quarter under review, sales volume averaged 349 thousand barrels of oil equivalent per day (MBoe/d). U.S. onshore volumes averaged 263 MBoe/d. U.S. onshore assets contributed 75.3% to total sales volume in the second quarter.
The company generated operating income of $32 million compared with $343 million in the year-ago quarter.
Realized Prices
U.S. onshore realized crude oil and condensate prices in the reported quarter dropped 10% to $58.13 per barrel from the year-ago quarter’s level of $64.62.
U.S. onshore natural gas prices were $1.61 per thousand cubic feet, down 29.7% year over year.
U.S. onshore realized prices for natural gas liquids declined 40.4% to $14.54 per barrel.
Financial Highlights
Noble Energy's cash and cash equivalents as of Jun 30, 2019, were $470 million compared with $716 million on Dec 31, 2018.
Long-term debt was $6,866 million as of Jun 30 compared with $6,574 million on Dec 31, 2018.
Cash flow from operating activities in the quarter under review was $564 million, up from $496 million in the prior-year quarter.
Guidance
Considering its impressive run in the first half of the year, the company raised its 2019 sales volume guidance in the range of 353-363MBoe/d from 345-365 MBoe/d.
For the third quarter of 2019, Noble Energy expects U.S. onshore oil volumes in the range of 282-294 MBoe/d. The company anticipates total third-quarter volumes in the range of 370-385 MBoe/d.
Furthermore, the company intends to make organic capital expenditures worth $600-$675 million in the third quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted 13.35% due to these changes.