Noble Energy prizes petroleum and has the reserves to prove it. Noble Energy looks for oil and natural gas and produces and markets them in the US and internationally. US operations are in Applacahia, the West Coast, Rocky Mountains, Mid-Continent, and Gulf Coast and Gulf of Mexico regions. International operations include onshore and offshore activities in the the Asia/Pacific region, the Middle East, the Mediterranean, West Africa, and the North Sea. In 2013 Noble reported proved reserves of about 1.4 billion barrels of oil equivalent. The company markets natural gas and oil.
Noble's five core areas are the DJ Basin (onshore US); the Marcellus Shale (onshore US); the deepwater Gulf of Mexico (offshore US); offshore West Africa; and offshore Eastern Mediterranean. Outside of the US it has offices in Cameroon, China, Cyprus, Equatorial Guinea, Israel, Nicaragua, and the UK.
The company is a leading independent energy company engaged in worldwide oil and gas exploration and production. Its 2013 proved reserves mix inlcuded 31% global liquids (crude oil and NGLs), 38% international natural gas, and 31% US natural gas. International operations accounted for 42% of its total sales volumes in 2013 and 45% of its proved reserves.
Sales and Marketing
Crude oil, natural gas, condensate and NGLs produced in the US are sold under short-term and long-term contracts at market-based prices adjusted for location and quality. Crude oil and condensate are distributed through pipelines and by trucks and rail cars to gatherers, transportation companies and refineries.
In Israel, Noble sells natural gas from the Mari-B, Noa and Pinnacles fields, and have contracted to sell natural gas from the Tamar field, under long-term contracts.
The company's UK North Sea crude oil production is transported by tanker and sold on the spot market. In China, it sells crude oil into the local market through pipelines under a long-term contract at market-based prices.
Sales to Glencore Energy accounted for 25% of 2013 total oil, gas, and NGL sales. Shell Trading (US) Company and Shell International Trading and Shipping Limited accounted for 13% of 2013 total oil, gas, and NGL sales, or 17% of crude oil sales.
In 2013 the company’s revenue increased to $5.05 billion (from $4.22 billion in 2012) due to oil, gas and NGL sales as a result of higher sales volumes in the DJ Basin thanks to the acceleration of horizontal drilling programs in the Wattenberg area; the addition of sales volumes from Alen, offshore Equatorial Guinea; and higher production from its Galapagos field in the Gulf of Mexico.
After experiencing a huge net income growth in 2012 due to higher revenues and stronger revenues from discontinued operations, in 2013 Noble's net income declined by 5% due to higher operating cost as a result of depreciation, depletion, and amortization charges and higher other expenses.
The company’s operating cash inflow increased to $2.94 billion in 2013 (from $2.93 billion in 2012) due to changes in operating assets and liabilities.
Noble focuses on organic growth from exploration and development drilling and augments that with a periodic, opportunistic new business development (mergers and acquisitions). To manage the portfolio for superior returns and to ensure geographic portfolio diversification, it periodically sells non-core assets.
In 2014 the company signed of a gas sales deal with Arab Potash and Jordan Bromine (both of which are located in Amman, Jordan). Under terms of the agreement, Noble will supply gas from the Tamar field, offshore Israel, to Arab Potash and Jordan Bromine (beginning in 2016 when the natural gas comes onstream) for use in their facilities near the Dead Sea.
That year Noble and CONSOL Energy filed a draft S-1 Registration Statement to the SEC for a proposed initial public offering of a master limited partnership to develop Noble Energy's and CONSOL's jointly-owned natural gas midstream assets in the Marcellus Shale.