Noble Energy Earnings 2019-03-31

NBL 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____to_____

Commission file number: 001-07964

NOBLE ENERGY, INC.

(Exact name of registrant as specified in its charter)



Delaware		73-0785597
(State or other jurisdiction of incorporation or organization)		(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)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer x	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No ý



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	New York Stock Exchange

As of March 31, 2019, there were 478,231,487 shares of the registrant’s common stock, par value $0.01 per share, outstanding.

TABLE OF CONTENTS



Part I. Financial Information	3

Item 1. Financial Statements	3

Consolidated Statements of Operations and Comprehensive (Loss) Income	3

Consolidated Balance Sheets	4

Consolidated Statements of Cash Flows	5

Consolidated Statements of Equity	6

Notes to Consolidated Financial Statements	7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3. Quantitative and Qualitative Disclosures About Market Risk	35

Item 4. Controls and Procedures	36

Part II. Other Information	36

Item 1. Legal Proceedings	36

Item 1A. Risk Factors	36

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 3. Defaults Upon Senior Securities	36

Item 4. Mine Safety Disclosures	36

Item 5. Other Information	36

Item 6. Exhibits	37

Signatures	38

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Part I. Financial Information

Item 1. Financial Statements

Noble Energy, Inc.

Consolidated Statements of Operations and Comprehensive (Loss) Income

(millions, except per share amounts)

(unaudited)



	Three Months Ended March 31,
	2019			2018
Revenues
Oil, NGL and Gas Sales	$	937		$	1,173
Sales of Purchased Oil and Gas	74			53
Other Revenue	41			60
Total	1,052			1,286
Costs and Expenses
Production Expense	305			319
Depreciation, Depletion and Amortization	508			468
General and Administrative	102			104
Cost of Purchased Oil and Gas	87			57
Other Operating Expense, Net	49			50
Gain on Divestitures, Net	—			(588		)
Asset Impairments	—			168
Firm Transportation Exit Cost	92			—
Total	1,143			578
Operating (Expense) Income	(91		)	708
Other Expense
Loss on Commodity Derivative Instruments	212			79
Interest, Net of Amount Capitalized	66			73
Other Non-Operating Expense, Net	4			13
Total	282			165
(Loss) Income Before Income Taxes	(373		)	543
Income Tax Benefit	(84		)	(31		)
Net (Loss) Income and Comprehensive (Loss) Income Including Noncontrolling Interests	(289		)	574
Less: Net Income and Comprehensive Income Attributable to Noncontrolling Interests	24			20
Net (Loss) Income and Comprehensive (Loss) Income Attributable to Noble Energy	$	(313	)	$	554

Net (Loss) Income Attributable to Noble Energy Common Shareholders per Share
Basic	$	(0.65	)	$	1.14
Diluted	$	(0.65	)	$	1.14
Weighted Average Number of Common Shares Outstanding
Basic	478			487
Diluted	478			488

The accompanying notes are an integral part of these consolidated financial statements.

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Noble Energy, Inc.

Consolidated Balance Sheets

(millions)

(unaudited)



	March 31, 2019			December 31, 2018
ASSETS
Current Assets
Cash and Cash Equivalents	$	528		$	716
Accounts Receivable, Net	573			616
Other Current Assets	142			418
Total Current Assets	1,243			1,750
Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method of Accounting)	29,364			29,002
Property, Plant and Equipment, Other	1,012			891
Total Property, Plant and Equipment, Gross	30,376			29,893
Accumulated Depreciation, Depletion and Amortization	(11,675		)	(11,474		)
Total Property, Plant and Equipment, Net	18,701			18,419
Other Noncurrent Assets	1,376			841
Total Assets	$	21,320		$	21,010
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable – Trade	$	1,284		$	1,207
Other Current Liabilities	659			519
Total Current Liabilities	1,943			1,726
Long-Term Debt	6,738			6,574
Deferred Income Taxes	961			1,061
Other Noncurrent Liabilities	1,438			1,165
Total Liabilities	$	11,080		$	10,526
Commitments and Contingencies
Mezzanine Equity
Redeemable Noncontrolling Interest, Net	$	97		$	—
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	8,219			8,203
Accumulated Other Comprehensive Loss	(32		)	(32		)
Treasury Stock, at Cost; 39 Million Shares	(735		)	(730		)
Retained Earnings	1,614			1,980
Noble Energy Share of Equity	9,071			9,426
Noncontrolling Interests	1,072			1,058
Total Shareholders' Equity	10,143			10,484
Total Liabilities, Mezzanine Equity and Shareholders' Equity	$	21,320		$	21,010

The accompanying notes are an integral part of these consolidated financial statements.

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Noble Energy, Inc.

Consolidated Statements of Cash Flows

(millions)

(unaudited)



	Three Months Ended March 31,
	2019			2018
Cash Flows From Operating Activities
Net (Loss) Income Including Noncontrolling Interests	$	(289	)	$	574
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities
Depreciation, Depletion and Amortization	508			468
Deferred Income Tax Benefit	(100		)	(157		)
Loss on Commodity Derivative Instruments	212			79
Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments	14			(28		)
Other Adjustments for Noncash Items Included in Income	28			(2		)
Gain on Divestitures, Net	—			(588		)
Asset Impairments	—			168
Firm Transportation Exit Cost	92			—
Changes in Operating Assets and Liabilities
Decrease in Accounts Receivable	9			89
Increase (Decrease) in Accounts Payable	106			(33		)
Increase in Current Income Taxes Payable	45			14
Other Current Assets and Liabilities, Net	(52		)	(18		)
Other Operating Assets and Liabilities, Net	(45		)	17
Net Cash Provided by Operating Activities	528			583
Cash Flows From Investing Activities
Additions to Property, Plant and Equipment	(763		)	(787		)
Acquisitions, Net of Cash Received	—			(650		)
Additions to Equity Method Investments	(271		)	—
Proceeds from Divestitures, Net	123			865
Net Cash Used in Investing Activities	(911		)	(572		)
Cash Flows From Financing Activities
Proceeds from Revolving Credit Facility	50			245
Repayment of Revolving Credit Facility	(50		)	(475		)
Proceeds from Noble Midstream Services Revolving Credit Facility	345			405
Repayment of Noble Midstream Services Revolving Credit Facility	(175		)	(55		)
Dividends Paid, Common Stock	(53		)	(48		)
Purchase and Retirement of Common Stock	—			(67		)
Contributions from Noncontrolling Interest Owners	10			333
Proceeds from Issuance of Mezzanine Equity, Net of Offering Costs	99			—
Other	(32		)	(40		)
Net Cash Provided by Financing Activities	194			298
(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash	(189		)	309
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	719			713
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	530		$	1,022

The accompanying notes are an integral part of these consolidated financial statements.

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Noble Energy, Inc.

Consolidated Statements of Shareholders' Equity

(millions)

(unaudited)



	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, 2018	$	5	$	8,203		$	(32	)	$	(730	)	$	1,980		$	1,058		$	10,484
Net (Loss) Income	—		—			—			—			(313		)	24			(289		)
Stock-based Compensation	—		14			—			—			—			—			14
Dividends (11 cents per share)	—		—			—			—			(53		)	—			(53		)
Distributions to Noncontrolling Interest Owners	—		—			—			—			—			(17		)	(17		)
Contributions from Noncontrolling Interest Owners	—		—			—			—			—			10			10
Other	—		2			—			(5		)	—			(3		)	(6		)
March 31, 2019	$	5	$	8,219		$	(32	)	$	(735	)	$	1,614		$	1,072		$	10,143

December 31, 2017	$	5	$	8,438		$	(30	)	$	(725	)	$	2,248		$	683		$	10,619
Net Income	—		—			—			—			554			20			574
Stock-based Compensation	—		17			—			—			—			—			17
Dividends (10 cents per share)	—		—			—			—			(48		)	—			(48		)
Purchase and Retirement of Common Stock	—		(67		)	—			—			—			—			(67		)
Clayton Williams Energy Acquisition	—		(25		)	—			—			—			—			(25		)
Distributions to Noncontrolling Interest Owners	—		—			—			—			—			(11		)	(11		)
Contributions from Noncontrolling Interest Owners	—		—			—			—			—			331			331
Other	—		—			1			(6		)	—			2			(3		)
March 31, 2018	$	5	$	8,363		$	(29	)	$	(731	)	$	2,754		$	1,025		$	11,387

The accompanying notes are an integral part of these consolidated financial statements.

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Noble Energy, Inc.

Notes to Consolidated Financial Statements (Unaudited)

Note 1. Organization and Nature of Operations

Noble Energy, Inc. (Noble Energy, we or us) is a leading independent energy company engaged in worldwide crude oil and natural gas exploration and production. Our historical operating areas include: US onshore, primarily the Denver-Julesburg (DJ) Basin, Delaware Basin and Eagle Ford Shale; US offshore Gulf of Mexico (until April 2018); Eastern Mediterranean; and West Africa. Our Midstream segment develops, owns and operates domestic midstream infrastructure assets, as well as invests in other midstream projects, with current focus areas being the DJ and Delaware Basins.

Note 2. Basis of Presentation

Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the US (US GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. The accompanying consolidated financial statements at March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018 contain all normally recurring adjustments considered necessary for a fair presentation of our financial position, results of operations, cash flows and equity for such periods. Certain prior-period amounts have been reclassified to conform to the current period presentation. For the periods presented, net income is materially consistent with comprehensive income or loss.

Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2018.

Consolidation Our consolidated financial statements include our accounts, the accounts of subsidiaries which Noble Energy wholly owns, and the accounts of Noble Midstream Partners LP (Noble Midstream Partners), which is considered a variable interest entity (VIE) for which Noble Energy is the primary beneficiary. In addition, we use the equity method of accounting for investments in entities that we do not control, but over which we exert significant influence. All significant intercompany balances and transactions have been eliminated upon consolidation.

Estimates The preparation of consolidated financial statements in conformity with US GAAP requires us to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment.

Leases We determine whether an arrangement contains a lease based on the conveyed rights and obligations at the inception date. If an agreement contains an operating or financing lease, at the commencement date, we record a right-of-use (ROU) asset and a corresponding lease liability based on the present value of the minimum lease payments.

As most of our leases do not provide an implicit borrowing rate, to determine the present value of lease payments, we use our hypothetical secured borrowing rate based on information available at lease commencement. Further, we make a number of estimates and judgments regarding the lease term and lease payments.

Lease Term 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.

Lease Payments 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. Some of our lease agreements include variable payments that are excluded from our present value calculation. For example, drilling rig ROU assets and lease liabilities are recorded using the contractual standby rate, which is the fixed, minimum monthly payment, as opposed to the operating rate, which varies depending on the asset's use.

Additionally, we have lease agreements that include lease and non-lease components, such as equipment maintenance, which are generally accounted for as a single lease component. For these leases, lease payments include all fixed payments stated within the contract. For office space, lease and non-lease components are accounted for separately. Our lease agreements do not contain any material residual value guarantees that would impact our lease payments.

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Noble Energy, Inc.

Notes to Consolidated Financial Statements (Unaudited)

Revenue Recognition We recognize revenue at an amount that reflects the consideration we expect to be entitled to in exchange for transferring goods or services to a customer, using a five-step process, in accordance with ASC 606 – Revenue from Contracts with Customers (ASC 606).

Under ASC 606, remaining performance obligations represent the transaction price of firm sales arrangements for which volumes have not been delivered. In Israel, certain of our Tamar natural gas contracts have fixed annual sales volumes and fixed base pricing with annual index escalations. The following table includes estimated revenues, as of March 31, 2019, for those agreements. Our actual future sales volumes may exceed future minimum volume commitments.



(millions)	Remainder of 2019		2020		Total
Natural Gas Revenues ⁽¹⁾	$	108	$	116	$	224


⁽¹⁾	The remaining performance obligations are estimated using the contractual base or floor price provision in effect. Future revenues under these contracts will vary from the amounts above due to components of variable consideration exceeding the contractual base or floor price provision.

Redeemable Noncontrolling Interest On March 25, 2019, Noble Midstream Partners secured a $200 million equity commitment (preferred equity) from Global Infrastructure Partners Capital Solutions Fund (GIP), of which $100 million has been funded, with associated offering costs of $3 million. The preferred equity was recorded initially at fair value on the issuance date. As GIP’s redemption right is outside of Noble Midstream Partners' control, the preferred equity is not considered to be a component of equity on the consolidated balance sheet, and such preferred equity is reported as mezzanine equity on the consolidated balance sheet. In addition, because the preferred equity was issued by a subsidiary of Noble Midstream Partners and is held by a third party, it is considered a redeemable noncontrolling interest. Subsequent to issuance, we accrete changes in the redemption value of the preferred equity from the date of issuance to the earliest redemption date of the preferred equity. Accretion for first quarter 2019 was also de minimis. See Note 4. Acquisitions and Divestitures.

Recently Issued Accounting Standards

Financial Instruments: Credit Losses In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-13 (ASU 2016-13): Financial Instruments – Credit Losses, which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more useful information about expected credit losses. The amended standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted, and shall be applied using a modified retrospective approach. From evaluation of our current credit portfolio, which includes receivables for commodity sales, joint interest billings due from partners and other receivables, historical credit losses have been de minimis and we believe that our expected future credit losses will not be significant. As such, based on our current portfolio, we do not believe adoption of the standard will have a material impact on our financial statements. As our implementation team progresses assessment, we will continue to monitor changes in our credit portfolio in light of the provisions in ASU 2016-13.

Intangibles—Goodwill and Other—Internal-Use Software In August 2018, the FASB issued Accounting Standards Update No. 2018-15 (ASU 2018-15): Intangibles—Goodwill and Other—Internal-Use Software, to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amended standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the provisions of ASU 2018-15.

Recently Adopted Accounting Standards

Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (ASU 2016-02), which created Topic 842 – Leases (ASC 842). The standard requires lessees to recognize a ROU asset and lease liability on the balance sheet for the rights and obligations created by leases. ASC 842 also requires disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. This standard does not apply to leases to explore for or use minerals, oil, natural gas or similar nonregenerative resources, including the intangible right to explore for those resources and rights to use the land in in which those natural resources are contained.

The new standard provided a number of optional practical expedients. We elected:


•	the package of 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 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).

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Noble Energy, Inc.

Notes to Consolidated Financial Statements (Unaudited)

We adopted ASC 842 on January 1, 2019 using the modified retrospective approach and, therefore, prior period financial statements were not adjusted. At adoption, we recorded ROU assets and lease liabilities of $282 million and $287 million, respectively, primarily related to operating leases. The difference between amounts recorded for ROU assets and amounts recorded for lease liabilities totaled $5 million. This amount was recognized as other operating expense. Our accounting for finance leases remains substantially unchanged. Adoption did not materially impact our consolidated statement of operations and comprehensive income and had no impact on our consolidated statement of cash flows. See Note 8. Leases.

Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued Accounting Standards Update No. 2017-12 (ASU 2017-12): Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities. The update is intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition to that main objective, ASU 2017-12 makes certain targeted improvements to simplify the application of the hedge accounting guidance in current US GAAP. We adopted this ASU on January 1, 2019. The adoption did not have an impact on our financial statements.

Statements of Operations Information Other statements of operations information is as follows:



	Three Months Ended March 31,
(millions)	2019		2018
Other Revenue
Income from Equity Method Investees	$	17	$	47
Midstream Services Revenues – Third Party	24		13
Total	$	41	$	60
Production Expense
Lease Operating Expense	$	151	$	155
Production and Ad Valorem Taxes	49		54
Gathering, Transportation and Processing Expense	102		93
Other Royalty Expense	3		17
Total	$	305	$	319
Other Operating Expense, Net
Exploration Expense	$	24	$	35
Other, Net	25		15
Total	$	49	$	50

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Noble Energy, Inc.

Notes to Consolidated Financial Statements (Unaudited)

Balance Sheet Information Other balance sheet information is as follows:



(millions)	March 31, 2019			December 31, 2018
Accounts Receivable, Net
Commodity Sales	$	384		$	383
Joint Interest Billings	124			137
Other	80			111
Allowance for Doubtful Accounts	(15		)	(15		)
Total	$	573		$	616
Other Current Assets
Commodity Derivative Assets	$	9		$	180
Inventories, Materials and Supplies	70			55
Assets Held for Sale⁽¹⁾	—			133
Prepaid Expenses and Other Current Assets	63			50
Total	$	142		$	418
Other Noncurrent Assets
Equity Method Investments ⁽²⁾	$	559		$	286
Operating Lease Right-of-Use Assets ⁽³⁾	273			—
Customer-Related Intangible Assets, Net ⁽⁴⁾	302			310
Goodwill ⁽⁴⁾	110			110
Other Assets, Noncurrent	132			135
Total	$	1,376		$	841
Other Current Liabilities
Production and Ad Valorem Taxes	$	106		$	103
Asset Retirement Obligations	118			118
Interest Payable	85			66
Other Liabilities, Current	350			232
Total	$	659		$	519
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	149		$	147
Asset Retirement Obligations	749			762
Operating Lease Liabilities ⁽³⁾	194			—
Firm Transportation Exit Cost Accrual ⁽⁵⁾	156			67
Production and Ad Valorem Taxes	88			83
Other Liabilities, Noncurrent	102			106
Total	$	1,438		$	1,165


⁽¹⁾	Assets held for sale at December 31, 2018 include assets related to the first quarter 2019 divestiture of non-core acreage in Reeves County, Texas. See Note 4. Acquisitions and Divestitures.


⁽²⁾	The 2019 amount includes Noble Midstream Partners' $227 million investment in EPIC Y-Grade, LP and EPIC Crude Holdings, LP and $38 million investment in Delaware Crossing LLC. See Note 4. Acquisitions and Divestitures.


⁽³⁾	Amounts relate to assets and liabilities recorded as a result of ASC 842 adoption in first quarter 2019. See Note 8. Leases.


⁽⁴⁾	Amounts relate to assets acquired in the first quarter 2018 Saddle Butte Acquisition. Intangible asset amounts at March 31, 2019 and December 31, 2018 are net of accumulated amortization of $38 million and $30 million, respectively. See Note 4. Acquisitions and Divestitures.


⁽⁵⁾	See Note 9. Exit Cost – Transportation Commitments.

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Noble Energy, Inc.

Notes to Consolidated Financial Statements (Unaudited)

Reconciliation of Total Cash We define total cash as cash, cash equivalents and restricted cash. The following table provides a reconciliation of total cash:



	Three Months Ended March 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	$	528	$	992
Restricted Cash at End of Period	2		30
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	530	$	1,022

Note 3. Segment Information

We have the following reportable segments: United States (US onshore and Gulf of Mexico (until April 2018)); Eastern Mediterranean (Israel and Cyprus); West Africa (Equatorial Guinea, Cameroon and Gabon); Other International (Canada and New Ventures, including Colombia); and Midstream. The Midstream segment includes the consolidated accounts of Noble Midstream Partners and other US onshore midstream assets.

The geographical reportable segments are in the business of crude oil and natural gas acquisition and exploration, development, and production (Oil and Gas Exploration and Production). The Midstream reportable segment develops, owns, and operates domestic midstream infrastructure assets, as well as invests in other midstream projects. The chief operating decision maker analyzes income before income taxes to assess the performance of Noble Energy's reportable segments as management believes this measure provides useful information in assessing our operating and financial performance across periods.

Corporate level expenses include debt, headquarters depreciation, corporate general and administrative expenses, exit costs and certain costs associated with mitigating the effects of our retained Marcellus Shale firm transportation agreements.



			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
Three Months Ended March 31, 2019
Crude Oil Sales	$	612	$	545	$	1	$	66	$	—	$	—	$	—		$	—
NGL Sales	96		96		—		—		—		—		—			—
Natural Gas Sales	229		108		117		4		—		—		—			—
Total Crude Oil, NGL and Natural Gas Sales	937		749		118		70		—		—		—			—
Sales of Purchased Oil and Gas	74		14		—		—		—		33		—			27
Income from Equity Method Investees	17		—		—		15		—		2		—			—
Midstream Services Revenues – Third Party	24		—		—		—		—		24		—			—
Intersegment Revenues	—		—		—		—		—		106		(106		)	—
Total Revenues	1,052		763		118		85		—		165		(106		)	27
Lease Operating Expense	151		125		10		24		—		1		(9		)	—
Production and Ad Valorem Taxes	49		47		—		—		—		2		—			—
Gathering, Transportation and Processing Expense	102		142		—		—		—		29		(69		)	—
Other Royalty Expense	3		3		—		—		—		—		—			—
Total Production Expense	305		317		10		24		—		32		(78		)	—
Depreciation, Depletion and Amortization	508		439		16		20		—		25		(7		)	15

Table of Contents

Noble Energy, Inc.

Notes to Consolidated Financial Statements (Unaudited)



				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
Cost of Purchased Oil and Gas	87			14			—		—		—			31		—			42
Firm Transportation Exit Cost	92			—			—		—		—			—		—			92
Loss on Commodity Derivative Instruments	212			188			—		24		—			—		—			—
(Loss) Income Before Income Taxes	(373		)	(247		)	84		11		(16		)	73		(14		)	(264		)
Additions to Long-Lived Assets, Excluding Acquisitions	712			511			132		5		10			66		(23		)	11
Investments in Equity Method Investees	271			—			—		—		—			271		—			—
Three Months Ended March 31, 2018
Crude Oil Sales	$	773		$	682		$	2	$	89	$	—		$	—	$	—		$	—
NGL Sales	146			146

Closing Price ($)	Shares Out (MM)	Market Cap ($MM)
$24.34	478	$11,640

10-Q	2019-03-31	Quarter: 2019-03-31
10-K	2018-12-31	Annual: 2018-12-31
10-Q	2018-09-30	Quarter: 2018-09-30
10-Q	2018-06-30	Quarter: 2018-06-30
10-Q	2018-03-31	Quarter: 2018-03-31
10-K	2017-12-31	Annual: 2017-12-31
10-Q	2017-09-30	Quarter: 2017-09-30
10-Q	2017-06-30	Quarter: 2017-06-30
10-Q	2017-03-31	Quarter: 2017-03-31
10-K	2016-12-31	Annual: 2016-12-31
10-Q	2016-09-30	Quarter: 2016-09-30
10-Q	2016-06-30	Quarter: 2016-06-30
10-Q	2016-03-31	Quarter: 2016-03-31
10-K	2015-12-31	Annual: 2015-12-31
10-Q	2015-09-30	Quarter: 2015-09-30
10-Q	2015-06-30	Quarter: 2015-06-30
10-Q	2015-03-31	Quarter: 2015-03-31
10-K	2014-12-31	Annual: 2014-12-31
10-Q	2014-09-30	Quarter: 2014-09-30
10-Q	2014-06-30	Quarter: 2014-06-30
10-Q	2014-03-31	Quarter: 2014-03-31
10-K	2013-12-31	Annual: 2013-12-31

8-K	2019-05-03	Earnings, Regulation FD, Exhibits
8-K	2019-04-25	Regulation FD
8-K	2019-04-23	Shareholder Vote
8-K	2019-02-19	Earnings, Regulation FD, Exhibits
8-K	2018-11-09	Officers
8-K	2018-11-01	Earnings, Regulation FD, Exhibits
8-K	2018-10-24	Officers, Regulation FD, Exhibits
8-K	2018-10-18	Officers
8-K	2018-09-17	Regulation FD
8-K	2018-08-03	Earnings, Regulation FD, Exhibits
8-K	2018-05-31	Officers, Exhibits
8-K	2018-04-24	Shareholder Vote
8-K	2018-03-09	Enter Agreement, Exhibits
8-K	2018-02-05	Officers
8-K	2018-01-29	Officers, Exhibits

COF	Capital One Financial	42,360
TMK	Torchmark	9,580
REGI	Renewable Energy Group	638
BH	Biglari	236
BCLI	Brainstorm Cell Therapeutics	119
NMUS	Nemus Bioscience	0
RIVEX	Rivex Technology	0
DRNE	Drone Aviation Holding	0
GMER	Good Gaming	0
ELJ	Entergy Louisiana Holdings	0

EX-10.1	nbl-20190331x10qxex101.htm
EX-10.2	nbl-20190331x10qxex102.htm
EX-10.3	nbl-20190331x10qxex103.htm
EX-10.4	nbl-20190331x10qxex104.htm
EX-10.5	nbl-20190331x10qxex105.htm
EX-31.1	nbl-20190331x10qxex311.htm
EX-31.2	nbl-20190331x10qxex312.htm
EX-32.1	nbl-20190331x10qxex321.htm
EX-32.2	nbl-20190331x10qxex322.htm