Houston, Sept. 25, 2017 (GLOBE NEWSWIRE) — Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or “the Company”) today provided an updated outlook for the third quarter of 2017.
- Sales volumes for the third quarter have been raised to range between 352 and 358 thousand barrels of oil equivalent per day (MBoe/d), representing a 3 percent uplift or 10 MBoe/d increase at the midpoint of expectations.
- Total Company oil volumes are increased to 126 – 130 thousand barrels per day (MBbl/d), up more than 4 percent from prior expectation.
- Natural gas volumes are anticipated higher at 965 – 990 million cubic feet of natural gas per day, while natural gas liquids (NGLs) are expected between 63 and 65 MBbl/d.
- Capital expenditures for the third quarter have been maintained within the original range of $625 to $725 million.
Total U.S. onshore equivalent volumes are trending slightly above the high end of the Company’s original guidance range, with both oil and natural gas volumes above the high end and NGLs slightly below the original range of expectation. The revised onshore outlook primarily reflects better than expected DJ Basin volumes as a result of continued strong new well performance in Wells Ranch and East Pony and an increasing oil contribution. Combined Wells Ranch and East Pony volumes are anticipated higher by more than 10 percent from the second quarter to the third quarter of 2017. Higher natural gas volumes in the basin more than offset lower expected NGLs. Better than anticipated pipeline pressures throughout the DJ Basin are also benefitting overall production.
In Texas, sales volumes for the third quarter are consistent with expectations, reflecting the planned number of wells drilled, completed, and turned into production. The impact to production and operations, as a result of third quarter hurricanes, was limited and primarily related to third-party downstream issues. Strong sequential volume increases in the Eagle Ford for the third quarter as compared to the second quarter reflect continued robust well performance from South Gates Ranch activity. In the Delaware Basin, volumes are growing as expected. The Company’s first central gathering facility, capturing produced oil, natural gas and water, commenced operation late in July and has recently been connected to the Advantage Pipeline taking crude volumes to Crane County, Texas.
Gulf of Mexico sales volumes are expected at the high end of the Company’s original guidance range, reflecting strong field and facility performance and limited hurricane impacts. Offshore West Africa, oil and NGL liftings are occurring as planned, while natural gas volumes are above expectation at the Alba field.
Third quarter volumes in Israel are trending within the expected original range. Tamar field production during the months of July and August averaged more than 1 billion cubic feet of natural gas per day, gross. While undergoing planned maintenance procedures to the Tamar platform in late September, the Company identified minor modifications necessary to the venting system which resulted in a controlled full-field shut-down. All facility maintenance is anticipated to be completed within the next few days, and there is no substantial impact to planned production volumes.
Fourth quarter 2017 guidance is unchanged from prior expectations. The increase in third quarter expected volumes raises full year 2017 sales volumes to range between 342 and 352 MBoe/d, proforma for asset divestments executed earlier in the year. The Company is reaffirming its prior outlook of 40 percent U.S. onshore oil growth from the first quarter to the fourth quarter of 2017.
Noble Energy (NYSE: NBL) is an independent oil and natural gas exploration and production company with a diversified high-quality portfolio of both U.S. unconventional and global offshore conventional assets spanning three continents. Founded more than 80 years ago, the company is committed to safely and responsibly delivering our purpose: Energizing the World, Bettering People’s Lives®. For more information, visit https://www.nblenergy.com.