A month has gone by since the last earnings report for Noble Energy Inc. NBL. Shares have lost about 10.5% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Noble Energy Posts Earnings in Q4, Misses on Revenues
Noble Energy reported adjusted earnings of $0.26 per share for the fourth quarter of 2016 against the Zacks Consensus Estimate of a loss of $0.09. Quarterly earnings, however, dropped 40.9% from the year-ago level of $0.44.
On a GAAP basis, the company incurred a loss of $0.59 per share, much narrower than the year-ago loss of $4.73. The difference between adjusted and GAAP figures was due to the combined effect of a loss related to commodity derivative instruments, exploration expenses and asset impairments. These losses were partially offset by a gain on divestiture.
Full-year 2016 adjusted loss came in at $0.58, narrower than the Zacks Consensus Estimate of a loss of $0.94. In 2015, the company had reported earnings of $0.52.
Total Revenue
Noble Energy's total revenue increased around 17.4% year over year to $1,010 million in the fourth quarter. Reported revenues marginally missed the Zacks Consensus Estimate of $1,048 million.
Full-year 2017 revenues were $3,491 million, missing the Zacks Consensus Estimate of $3,600 million by 3%. However, yearly revenues have risen 9.7% from $3,183 million in the year-ago period.
Operational Results
In the quarter under review, sales volumes averaged 410 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 2.8% year-over-year drop. As far as sales components are concerned, liquids comprised 46% of the sales volume, while natural gas accounted for the rest.
U.S. sales accounted for 70% of the total volume, while international sales accounted for the rest.
Lease operating expenses (LOE) were significantly lower at $3.44 per barrel of oil equivalent (BOE), representing a 9% decline from the fourth-quarter 2015 level.
Interest expenses in the quarter were $86 million, up 7.5%.
Realized Prices
Realized crude oil and condensate prices in the quarter increased 22.4% to $47.41 per barrel from the year-ago level of $38.75. Natural gas realizations increased to $2.63 per thousand cubic feet (Mcf) from $2.19 in the year-ago period.
Realized prices for natural gas liquids were up 73.5% to $20.04 per barrel.