Delaware
|
73-0785597
|
|
(State
of incorporation)
|
(I.R.S.
employer identification number)
|
|
100
Glenborough Drive, Suite 100
|
||
Houston,
Texas
|
77067
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Large
accelerated filer [X]
|
Accelerated
filer [ ]
|
Non-accelerated
filer [ ]
|
Smaller
reporting company [ ]
|
(Do
not check if a smaller reporting
company)
|
PART
I. FINANCIAL INFORMATION
|
||||||||
ITEM
1. FINANCIAL STATEMENTS
|
||||||||
Noble
Energy, Inc. and Subsidiaries
|
||||||||
Consolidated
Statements of Operations
|
||||||||
(in
millions, except per share amounts)
|
||||||||
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Revenues
|
||||||||
Oil,
gas and NGL sales
|
$ | 406 | $ | 944 | ||||
Income
from equity method investees
|
11 | 62 | ||||||
Other
revenues
|
24 | 19 | ||||||
Total
|
441 | 1,025 | ||||||
Costs
and Expenses
|
||||||||
Lease
operating expense
|
100 | 82 | ||||||
Production
and ad valorem taxes
|
18 | 43 | ||||||
Transportation
expense
|
12 | 13 | ||||||
Exploration
expense
|
42 | 40 | ||||||
Depreciation,
depletion and amortization
|
200 | 203 | ||||||
General
and administrative
|
59 | 60 | ||||||
Asset
impairments
|
437 | - | ||||||
Other
operating (income) expense, net
|
(6 | ) | 27 | |||||
Total
|
862 | 468 | ||||||
Operating
Income (Loss)
|
(421 | ) | 557 | |||||
Other
(Income) Expense
|
||||||||
(Gain)
loss on commodity derivative instruments
|
(73 | ) | 237 | |||||
Interest,
net of amount capitalized
|
18 | 17 | ||||||
Other
(income) expense, net
|
8 | (13 | ) | |||||
Total
|
(47 | ) | 241 | |||||
Income
(Loss) Before Income Taxes
|
(374 | ) | 316 | |||||
Income
Tax Provision (Benefit)
|
(186 | ) | 101 | |||||
Net
Income (Loss)
|
$ | (188 | ) | $ | 215 | |||
Earnings
(Loss) Per Share
|
||||||||
Basic
|
$ | (1.09 | ) | $ | 1.25 | |||
Diluted
|
(1.09 | ) | 1.20 | |||||
Weighted
average number of shares outstanding
|
||||||||
Basic
|
173 | 172 | ||||||
Diluted
|
173 | 175 | ||||||
The
accompanying notes are an integral part of these financial
statements.
|
Noble
Energy, Inc. and Subsidiaries
|
|||||||
Consolidated
Balance Sheets
|
|||||||
(in
millions)
|
|||||||
(unaudited)
|
|||||||
March
31,
|
December
31,
|
||||||
2009
|
2008
|
||||||
ASSETS
|
|||||||
Current
Assets
|
|||||||
Cash
and cash equivalents
|
$ |
1,017
|
$ |
1,140
|
|||
Accounts
receivable, net
|
493
|
423
|
|||||
Commodity
derivative instruments
|
403
|
437
|
|||||
Other
current assets
|
134
|
158
|
|||||
Total
current assets
|
2,047
|
2,158
|
|||||
Property,
plant and equipment
|
|||||||
Oil
and gas properties (successful efforts method of
accounting)
|
11,921
|
11,963
|
|||||
Other
property, plant and equipment
|
176
|
175
|
|||||
Total
property, plant and equipment
|
12,097
|
12,138
|
|||||
Accumulated
depreciation, depletion and amortization
|
(3,328)
|
(3,134)
|
|||||
Total
property, plant and equipment, net
|
8,769
|
9,004
|
|||||
Goodwill
|
757
|
759
|
|||||
Other
noncurrent assets
|
469
|
463
|
|||||
Total
Assets
|
$ |
12,042
|
$ |
12,384
|
|||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|||||||
Current
Liabilities
|
|||||||
Accounts
payable - trade
|
$
|
509
|
$ |
579
|
|||
Income
taxes payable
|
165
|
130
|
|||||
Deferred
income taxes
|
121
|
142
|
|||||
Other
current liabilities
|
354
|
323
|
|||||
Total
current liabilities
|
1,149
|
1,174
|
|||||
Long-term
debt
|
2,357
|
2,241
|
|||||
Deferred
income taxes
|
1,901
|
2,174
|
|||||
Other
noncurrent liabilities
|
510
|
486
|
|||||
Total
Liabilities
|
5,917
|
6,075
|
|||||
Commitments
and Contingencies
|
|||||||
Shareholders’
Equity
|
|||||||
Preferred
stock - par value $1.00; 4 million shares authorized, none
issued
|
-
|
-
|
|||||
Common stock - par
value $3.33 1/3; 250 million shares authorized;
193 million and 192 million
shares issued, respectively
|
645
|
641
|
|||||
Capital
in excess of par value
|
2,215
|
2,193
|
|||||
Accumulated
other comprehensive loss
|
(100)
|
(110)
|
|||||
Treasury
stock, at cost; 19 million shares
|
(615)
|
(614)
|
|||||
Retained
earnings
|
3,980
|
4,199
|
|||||
Total
Shareholders’ Equity
|
6,125
|
6,309
|
|||||
Total
Liabilities and Shareholders’ Equity
|
$
|
12,042
|
$ |
12,384
|
|||
The
accompanying notes are an integral part of these financial
statements.
|
Noble
Energy, Inc. and Subsidiaries
|
||||||||
Consolidated
Statements of Cash Flows
|
||||||||
(in
millions)
|
||||||||
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Cash
Flows From Operating Activities
|
||||||||
Net
income (loss)
|
$ | (188 | ) | $ | 215 | |||
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
||||||||
Depreciation,
depletion and amortization
|
200 | 203 | ||||||
Asset
impairments
|
437 | - | ||||||
Deferred
income taxes
|
(301 | ) | 35 | |||||
Income
from equity method investees
|
(11 | ) | (62 | ) | ||||
Dividends
from equity method investees
|
- | 76 | ||||||
Unrealized
loss on commodity derivative instruments
|
80 | 218 | ||||||
Settlement
of previously recognized hedge losses
|
- | (62 | ) | |||||
Allowance
for doubtful accounts
|
(40 | ) | 3 | |||||
Other
|
24 | 17 | ||||||
Changes
in operating assets and liabilities:
|
||||||||
(Increase)
in accounts receivable
|
(34 | ) | (137 | ) | ||||
(Increase)
in other current assets
|
(1 | ) | (5 | ) | ||||
(Decrease)
in accounts payable
|
(35 | ) | (61 | ) | ||||
Increase
in other current liabilities
|
54 | 66 | ||||||
Net
Cash Provided by Operating Activities
|
185 | 506 | ||||||
Cash
Flows From Investing Activities
|
||||||||
Additions
to property, plant and equipment
|
(399 | ) | (464 | ) | ||||
Proceeds
from sale of property, plant and equipment
|
- | 109 | ||||||
Net
Cash Used in Investing Activities
|
(399 | ) | (355 | ) | ||||
Cash
Flows From Financing Activities
|
||||||||
Exercise
of stock options
|
11 | 10 | ||||||
Excess
tax benefits from stock-based awards
|
3 | 9 | ||||||
Cash
dividends paid
|
(31 | ) | (21 | ) | ||||
Purchase
of treasury stock
|
(1 | ) | (2 | ) | ||||
Proceeds
from credit facilities
|
180 | 200 | ||||||
Repayment
of credit facilities
|
(1,060 | ) | (200 | ) | ||||
Proceeds
from issuance of 8 ¼% senior notes
|
989 | - | ||||||
Net
Cash Provided by (Used in) Financing Activities
|
91 | (4 | ) | |||||
(Decrease)
Increase in Cash and Cash Equivalents
|
(123 | ) | 147 | |||||
Cash
and Cash Equivalents at Beginning of Period
|
1,140 | 660 | ||||||
Cash
and Cash Equivalents at End of Period
|
$ | 1,017 | $ | 807 | ||||
The
accompanying notes are an integral part of these financial
statements.
|
||||||||
Noble
Energy, Inc. and Subsidiaries
|
||||||||
Consolidated
Statements of Shareholders' Equity
|
||||||||
(in
millions)
|
||||||||
(unaudited)
|
||||||||
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Common
Stock
|
||||||||
Balance,
beginning of period
|
$ | 641 | $ | 636 | ||||
Exercise
of stock options
|
2 | 2 | ||||||
Restricted
stock awards, net
|
2 | 1 | ||||||
Balance,
end of period
|
645 | 639 | ||||||
Capital
in Excess of Par Value
|
||||||||
Balance,
beginning of period
|
2,193 | 2,106 | ||||||
Stock-based
compensation expense
|
12 | 9 | ||||||
Exercise
of stock options
|
9 | 8 | ||||||
Tax
benefits related to exercise of stock options
|
3 | 9 | ||||||
Restricted
stock awards, net
|
(2 | ) | (1 | ) | ||||
Rabbi
trust shares sold
|
- | 2 | ||||||
Balance,
end of period
|
2,215 | 2,133 | ||||||
Accumulated
Other Comprehensive Loss
|
||||||||
Balance,
beginning of period
|
(110 | ) | (284 | ) | ||||
Oil
and gas cash flow hedges:
|
||||||||
Realized
amounts reclassified into earnings
|
11 | 38 | ||||||
Interest
rate cash flow hedges:
|
||||||||
Unrealized
change in fair value
|
- | (27 | ) | |||||
Net
change in other
|
(1 | ) | (1 | ) | ||||
Balance,
end of period
|
(100 | ) | (274 | ) | ||||
Treasury
Stock at Cost
|
||||||||
Balance,
beginning of period
|
(614 | ) | (613 | ) | ||||
Purchases
of treasury stock
|
(1 | ) | (2 | ) | ||||
Rabbi
trust shares sold
|
- | 2 | ||||||
Balance,
end of period
|
(615 | ) | (613 | ) | ||||
Retained
Earnings
|
||||||||
Balance,
beginning of period
|
4,199 | 2,964 | ||||||
Net
income (loss)
|
(188 | ) | 215 | |||||
Cash
dividends ($0.18 per share and $0.12 per share,
respectively)
|
(31 | ) | (21 | ) | ||||
Balance,
end of period
|
3,980 | 3,158 | ||||||
Total
Shareholders' Equity
|
$ | 6,125 | $ | 5,043 | ||||
The
accompanying notes are an integral part of these financial
statements.
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
millions)
|
||||||||
Other
Revenues
|
||||||||
Electricity
sales (1)
|
$ | 20 | $ | 15 | ||||
Gathering,
marketing and processing (GMP) revenues
|
4 | 4 | ||||||
Total
|
$ | 24 | $ | 19 | ||||
Other
Operating (Income) Expense, net
|
||||||||
Electricity
generation expense (1)
|
$ | (30 | ) | $ | 15 | |||
Gathering,
marketing and processing (GMP) expense
|
6 | 5 | ||||||
Other
operating expense, net
|
18 | 7 | ||||||
Total
|
$ | (6 | ) | $ | 27 | |||
Other
(Income) Expense, net
|
||||||||
Deferred
compensation expense (income)
|
$ | 5 | $ | (7 | ) | |||
Interest
income
|
- | (6 | ) | |||||
Other
expense, net
|
3 | - | ||||||
Total
|
$ | 8 | $ | (13 | ) |
(1)
|
Includes
amounts related to our 100%-owned Ecuador integrated power project. The
project includes the Amistad natural gas field, offshore Ecuador, which
supplies natural gas to fuel the Machala power plant located in Machala,
Ecuador. Electricity generation expense includes depreciation, depletion
and amortization expense (DD&A) and changes in the allowance for
doubtful accounts. We recognized a net decrease of $42 million in the
Ecuador allowance during first quarter 2009 and a net increase of $3
million during first quarter 2008. See Allowance for Doubtful Accounts
below.
|
Balance Sheet Information
– Other balance sheet information is as
follows:
|
March
31,
|
December
31,
|
||||||
2009
|
2008
|
||||||
(in
millions)
|
|||||||
Other
Current Assets
|
|||||||
Inventories
|
$ | 116 | $ | 105 | |||
Asset
held for sale (1)
|
- | 26 | |||||
Prepaid
expenses and other current assets
|
18 | 27 | |||||
Total
|
$ | 134 | $ | 158 | |||
Other
Noncurrent Assets
|
|||||||
Equity
method investments
|
$ | 323 | $ | 311 | |||
Mutual
fund investments
|
77 | 84 | |||||
Commodity
derivative instruments
|
24 | 33 | |||||
Other
noncurrent assets
|
45 | 35 | |||||
Total
|
$ | 469 | $ | 463 | |||
Other
Current Liabilities
|
|||||||
Accrued
and other current liabilities
|
$ | 202 | $ | 215 | |||
Commodity
derivative instruments
|
34 | 23 | |||||
Short-term
borrowings
|
25 | 25 | |||||
Asset
retirement obligations
|
44 | 27 | |||||
Interest
payable
|
25 | 9 | |||||
Deferred
gain on asset sale
|
24 | 24 | |||||
Total
|
$ | 354 | $ | 323 | |||
Other
Noncurrent Liabilities
|
|||||||
Deferred
compensation liabilities
|
$ | 164 | $ | 159 | |||
Asset
retirement obligations
|
185 | 184 | |||||
Accrued
benefit costs
|
83 | 81 | |||||
Commodity
derivative instruments
|
12 | 2 | |||||
Other
noncurrent liabilities
|
66 | 60 | |||||
Total
|
$ | 510 | $ | 486 |
(1)
|
See
Asset Held for
Sale below.
|
March
31,
|
December
31,
|
|||||||||||||||
2009
|
2008
|
|||||||||||||||
Debt
|
Interest
Rate
|
Debt
|
Interest
Rate
|
|||||||||||||
(in
millions, except percentages)
|
||||||||||||||||
Credit
facility
|
$ | 726 | 0.81 | % | $ | 1,606 | 0.80 | % | ||||||||
5
¼% Senior Notes, due April 15, 2014
|
200 | 5.25 | % | 200 | 5.25 | % | ||||||||||
8
¼% Senior Notes, due March 1, 2019
|
1,000 | 8.25 | % | - | - | |||||||||||
7
¼% Notes, due October 15, 2023
|
100 | 7.25 | % | 100 | 7.25 | % | ||||||||||
8%
Senior Notes, due April 1, 2027
|
250 | 8.00 | % | 250 | 8.00 | % | ||||||||||
7
¼% Senior Debentures, due August 1, 2097
|
89 | 7.25 | % | 89 | 7.25 | % | ||||||||||
Long-term
debt
|
2,365 | 2,245 | ||||||||||||||
Installment
payments, due May 11, 2009
|
25 | 1.76 | % | 25 | 4.18 | % | ||||||||||
Total
debt
|
2,390 | 2,270 | ||||||||||||||
Unamortized
discount
|
(8 | ) | (4 | ) | ||||||||||||
Total
debt, net of discount
|
$ | 2,382 | $ | 2,266 |
Variable
to Fixed Price Swaps
|
Collars
|
||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
|||||||||||||||||||
Production
|
Bbls
|
Average
|
Bbls
|
Average
|
Average
|
||||||||||||||||
Period
|
Index
|
Per
Day
|
Fixed
Price
|
Index
|
Per
Day
|
Floor
Price
|
Ceiling
Price
|
||||||||||||||
2009
|
NYMEX
WTI
|
9,000
|
$ |
88.43
|
NYMEX
WTI
|
6,700
|
$
|
79.70
|
$ |
90.60
|
|||||||||||
2009
|
Dated
Brent
|
2,000
|
87.98
|
Dated
Brent
|
5,074
|
70.62
|
87.93
|
||||||||||||||
2009
Average
|
11,000
|
88.35
|
11,774
|
75.79
|
89.45
|
||||||||||||||||
2010
|
NYMEX
WTI
|
10,500
|
61.10
|
76.73
|
Collars
|
|||||||||||||
MMBtu
|
Weighted
Average
|
Weighted
Average
|
|||||||||||
Production
Period
|
Index
|
Per
Day
|
Floor
Price
|
Ceiling
Price
|
|||||||||
2009
|
NYMEX
HH
|
170,000
|
$ |
9.15
|
$ |
10.81
|
|||||||
2009
|
IFERC
CIG (1)
|
15,000
|
6.00
|
9.90
|
|||||||||
2009
Average
|
185,000
|
8.90
|
10.73
|
||||||||||
2010
|
NYMEX
HH
|
40,000
|
5.88
|
6.50
|
|||||||||
2010
|
IFERC
CIG
|
15,000
|
6.25
|
8.10
|
|||||||||
2010
Average
|
55,000
|
5.98
|
6.94
|
Basis
Swaps
|
||||||||||||||
Index
Less
|
MMBtu
|
Weighted
Average
|
||||||||||||
Production
Period
|
Index
|
Differential
|
Per
Day
|
Differential
|
||||||||||
2009
|
IFERC
CIG
|
NYMEX
HH
|
140,000 | $ | (2.49 | ) | ||||||||
2010
|
IFERC
CIG
|
NYMEX
HH
|
80,000 | (1.77 | ) |
Derivative
Instruments Not Designated as Hedging Instruments Under SFAS
133
|
|||||||||||||||||||||
Asset
Derivative Instruments
|
Liability
Derivative Instruments
|
||||||||||||||||||||
March
31,
|
December
31,
|
March
31,
|
December
31,
|
||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||||||||||||
(in
millions)
|
Balance
Sheet
Location
|
Fair
Value
|
Balance
Sheet
Location
|
Fair
Value
|
Balance
Sheet
Location
|
Fair
Value
|
Balance
Sheet
Location
|
Fair
Value
|
|||||||||||||
Commodity
derivative instruments
|
|||||||||||||||||||||
Current
|
Current
|
Current
|
Current
|
||||||||||||||||||
assets
|
$ | 403 |
assets
|
$ | 437 |
liabilities
|
$ | 34 |
liabilities
|
$ | 23 | ||||||||||
Noncurrent
|
Noncurrent
|
Noncurrent
|
Noncurrent
|
||||||||||||||||||
assets
|
24 |
assets
|
33 |
liabilities
|
12 |
liabilities
|
2 | ||||||||||||||
Total
|
$ | 427 | $ | 470 | $ | 46 | $ | 25 |
Derivative
Instruments Not Designated as Hedging Instruments Under SFAS
133
|
||||||||||
Location
of (Gain) Loss Rcognized in Income
on
Derivative Instrument
|
Amount
of (Gain) Loss
Recognized
in Income
on
Derivative Instrument
|
|||||||||
Three
Months Ended
|
||||||||||
March
31,
|
||||||||||
2009
|
2008
|
|||||||||
(in
millions)
|
||||||||||
Commodity
derivative instruments
|
||||||||||
Realized
mark-to-market (gain) loss
|
(Gain)
loss on commodity derivative instruments
|
$ | (153 | ) | $ | 19 | ||||
Unrealized
mark-to-market loss
|
(Gain)
loss on commodity derivative instruments
|
80 | 218 | |||||||
Total
|
$ | (73 | ) | $ | 237 |
Derivative
Instruments in Previously Designated SFAS 133 Cash Flow Hedging
Relationships
|
||||||||||||||||
Amount
of (Gain) Loss Recognized in OCI on Derivative Instrument
|
Location
of (Gain) Loss Reclassified from AOCL into Income
|
Amount
of (Gain) Loss Reclassified from AOCL on Derivative
Instrument
|
||||||||||||||
Three
Months Ended
|
Three
Months Ended
|
|||||||||||||||
March
31,
|
March
31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(in
millions)
|
(in
millions)
|
|||||||||||||||
Commodity
derivative instruments (1)
|
||||||||||||||||
Crude
oil
|
$ |
-
|
$ |
-
|
Oil,
gas and NGL sales
|
$ |
17
|
$ |
97
|
|||||||
Natural
gas
|
-
|
-
|
Oil,
gas and NGL sales
|
-
|
(37
|
) | ||||||||||
Treasury
rate locks
|
-
|
43
|
-
|
-
|
-
|
|||||||||||
Total
|
$ |
-
|
$ |
43
|
$ |
17
|
$ |
60
|
(1)
|
Includes
effect of commodity derivative instruments previously accounted for as
cash flow hedges. Net derivative gains and losses that were deferred in
AOCL as of January 1, 2008, as a result of previous cash flow hedge
accounting, are reclassified to earnings in future periods as the original
hedged transactions occur.
|
AOCL – As of March 31,
2009, the balance in AOCL included net deferred losses of $38 million
related to the fair value of commodity derivative instruments previously
accounted for as cash flow hedges. The net deferred losses are net of
deferred income tax benefits of $23 million. Approximately $29 million of
deferred losses (net of tax) related to the fair values of the commodity
derivative instruments previously designated as cash flow hedges and
remaining in AOCL at March 31, 2009 will be reclassified to earnings
during the next 12 months as the forecasted transactions occur, and will
be recorded as a reduction in oil and gas sales of approximately $46
million before tax. All forecasted transactions currently being hedged and
for which amounts remain in AOCL at March 31, 2008, are expected to occur
by December 2010.
|
Fair
Value Measurements Using
|
||||||||||||||||
Quoted
Prices in Active Markets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
Adjustment
(1)
|
Fair
Value
Measurement
|
||||||||||||
(in
millions)
|
||||||||||||||||
As
of March 31, 2009
|
||||||||||||||||
Financial
assets:
|
||||||||||||||||
Mutual
fund investments
|
$ |
77
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
77
|
||||||
Commodity
derivative instruments
|
-
|
445
|
-
|
(18
|
) |
427
|
||||||||||
Financial
liabilities:
|
||||||||||||||||
Commodity
derivative instruments
|
-
|
(64
|
) |
-
|
18
|
(46
|
) | |||||||||
Liability
under Patina deferred compensation plan
|
(122
|
) |
-
|
-
|
-
|
(122
|
) | |||||||||
As
of December 31, 2008
|
||||||||||||||||
Financial
assets:
|
||||||||||||||||
Mutual
fund investments
|
84
|
-
|
-
|
-
|
84
|
|||||||||||
Commodity
derivative instruments
|
-
|
492
|
-
|
(22
|
) |
470
|
||||||||||
Financial
liabilities:
|
||||||||||||||||
Commodity
derivative instruments
|
-
|
(47
|
) |
-
|
22
|
(25
|
) | |||||||||
Liability
under Patina deferred compensation plan
|
(123
|
) |
-
|
-
|
-
|
(123
|
) | |||||||||
(1)
Amount represents the impact of master netting agreements that allow
us to net cash settle asset and liability positions with the same
counterparty.
|
Fair
Value Measurements Using
|
||||||||||||||||
Description
|
Fair
Value Measurement
|
Quoted
Prices in
Active
Markets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
Total
Impairment
Loss
|
|||||||||||
(in
millions)
|
||||||||||||||||
Three
Months Ended March 31, 2009
|
||||||||||||||||
Impaired
US oil and gas properties
|
$ |
316
|
-
|
-
|
$ |
316
|
$ |
(437
|
) | |||||||
Asset retirement
obligations incurred in current period
|
1
|
-
|
-
|
1
|
-
|
|||||||||||
Three
Months Ended March 31, 2008
|
||||||||||||||||
Asset retirement
obligations incurred in current period
|
14
|
-
|
-
|
14
|
-
|
Three
Months Ended
|
|||
March
31, 2009
|
|||
(in
millions)
|
|||
Capitalized
exploratory well costs, beginning of period
|
$ | 501 | |
Additions
to capitalized exploratory well costs pending determination of proved
reserves
|
68 | ||
Reclassified
to property, plant and equipment based on determination of proved
reserves
|
(88 | ) | |
Capitalized
exploratory well costs charged to expense
|
(4 | ) | |
Capitalized
exploratory well costs, end of period
|
$ | 477 |
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(in
millions)
|
||||||||
Exploratory
well costs capitalized for a period of one year or less
|
$ | 255 | $ | 256 | ||||
Exploratory
well costs capitalized for a period greater than one year after
completion of drilling
|
222 | 245 | ||||||
Balance
at end of period
|
$ | 477 | $ | 501 | ||||
Number
of projects with exploratory well costs that have been capitalized
for a period greater than one year after completion of
drilling
|
4 | 6 |
Suspended
Since
|
||||||||||||||||
2006
|
||||||||||||||||
Total
|
2008
|
2007
|
&
Prior
|
|||||||||||||
(in
millions)
|
||||||||||||||||
Project
|
||||||||||||||||
West
Africa
|
$ | 168 | $ | 8 | $ | 140 | $ | 20 | ||||||||
Redrock
(deepwater Gulf of Mexico)
|
17 | - | - | 17 | ||||||||||||
Flyndre
(North Sea)
|
15 | - | 12 | 3 | ||||||||||||
Selkirk
(North Sea)
|
22 | - | 22 | - | ||||||||||||
Total exploratory
well costs capitalized for a period greater that one year after
completion of drilling
|
$ | 222 | $ | 9 | $ | 174 | $ | 40 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in millions) | ||||||||
Asset
retirement obligations, beginning of period
|
$ | 211 | $ | 144 | ||||
Liabilities
incurred in current period
|
1 | 14 | ||||||
Liabilities
settled in current period
|
(2 | ) | (4 | ) | ||||
Revisions
|
16 | 3 | ||||||
Accretion
expense
|
3 | 2 | ||||||
Asset
retirement obligations, end of period
|
$ | 229 | $ | 159 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
millions)
|
||||||||
Service
cost
|
$ | 3 | $ | 3 | ||||
Interest
cost
|
3 | 3 | ||||||
Expected
return on plan assets
|
(3 | ) | (3 | ) | ||||
Other
|
1 | - | ||||||
Net
periodic benefit cost
|
$ | 4 | $ | 3 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
millions)
|
||||||||
Stock-based
compensation expense
|
$ | 12 | $ | 9 | ||||
Tax
benefit recognized
|
(4 | ) | (3 | ) |
Three
Months Ended March 31,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||
Net
|
Average
|
Net
|
Average
|
|||||||||||||
(Loss)
|
Shares
|
Income
|
Shares
|
|||||||||||||
(in
millions, except per share amounts)
|
||||||||||||||||
Net
income (loss)
|
$ | (188 | ) | 173 | $ | 215 | 172 | |||||||||
Basic
Earnings (Loss) Per Share
|
$ | (1.09 | ) | $ | 1.25 | |||||||||||
Net
income (loss)
|
$ | (188 | ) | 173 | $ | 215 | 172 | |||||||||
Plus
incremental shares from assumed conversions:
|
||||||||||||||||
Dilutive
options, restricted stock awards and shares
of
common stock in rabbi trust
|
- | - | (4 | ) | 3 | |||||||||||
Net
income (loss) available to common shareholders
|
$ | (188 | ) | 173 | $ | 211 | 175 | |||||||||
Diluted
Earnings (Loss) Per Share
|
$ | (1.09 | ) | $ | 1.20 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
millions)
|
||||||||
Current
|
$ | 115 | $ | 66 | ||||
Deferred
|
(301 | ) | 35 | |||||
Total
income tax provision (benefit)
|
$ | (186 | ) | $ | 101 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
millions)
|
||||||||
Net
income (loss)
|
$ | (188 | ) | $ | 215 | |||
Other
items of comprehensive income (loss)
|
||||||||
Oil
and gas cash flow hedges
|
||||||||
Realized
amounts reclassified into earnings
|
17 | 60 | ||||||
Less
tax provision
|
(6 | ) | (22 | ) | ||||
Interest
rate cash flow hedges
|
||||||||
Unrealized
change in fair value
|
- | (43 | ) | |||||
Less
tax provision
|
- | 16 | ||||||
Net
change in other
|
(1 | ) | (1 | ) | ||||
Other
comprehensive income
|
10 | 10 | ||||||
Comprehensive
income (loss)
|
$ | (178 | ) | $ | 225 |
Other
Int'l,
|
||||||||||||||||||||||||
United
|
West
|
North
|
Corporate,
|
|||||||||||||||||||||
Consolidated
|
States
|
Africa
|
Sea
|
Israel
|
Marketing
|
|||||||||||||||||||
(in
millions)
|
||||||||||||||||||||||||
Three
Months Ended March 31, 2009
|
||||||||||||||||||||||||
Revenues
from third parties
|
$ | 447 | $ | 237 | $ | 58 | $ | 34 | $ | 28 | $ | 90 | ||||||||||||
Reclassification
from AOCL (1)
|
(17 | ) | (9 | ) | (8 | ) | - | - | - | |||||||||||||||
Intersegment
revenue
|
- | 52 | - | - | - | (52 | ) | |||||||||||||||||
Income
from equity method
investees
|
11 | - | 11 | - | - | - | ||||||||||||||||||
Total
Revenues
|
441 | 280 | 61 | 34 | 28 | 38 | ||||||||||||||||||
DD&A
|
200 | 169 | 9 | 9 | 5 | 8 | ||||||||||||||||||
Asset
impairments
|
437 | 437 | - | - | - | - | ||||||||||||||||||
Gain
on commodity derivative instruments
|
(73 | ) | (67 | ) | (6 | ) | - | - | - | |||||||||||||||
Income
(loss) before income taxes
|
(374 | ) | (409 | ) | 42 | 11 | 21 | (39 | ) | |||||||||||||||
Three
Months Ended March 31, 2008
|
||||||||||||||||||||||||
Revenues
from third parties
|
1,023 | $ | 577 | $ | 141 | $ | 92 | $ | 40 | $ | 173 | |||||||||||||
Reclassification
from AOCL (1)
|
(60 | ) | (48 | ) | (12 | ) | - | - | - | |||||||||||||||
Intersegment
revenue
|
- | 116 | - | - | - | (116 | ) | |||||||||||||||||
Income
from equity method
investees
|
62 | - | 62 | - | - | - | ||||||||||||||||||
Total
Revenues
|
1,025 | 645 | 191 | 92 | 40 | 57 | ||||||||||||||||||
DD&A
|
203 | 164 | 9 | 16 | 6 | 8 | ||||||||||||||||||
Loss
on commodity derivative instruments
|
237 | 209 | 28 | - | - | - | ||||||||||||||||||
Income
(loss) before income taxes
|
316 | 145 | 150 | 55 | 31 | (65 | ) | |||||||||||||||||
Total
assets at March 31, 2009
(2)
|
$ | 12,042 | $ | 9,008 | $ | 1,590 | $ | 581 | $ | 407 | $ | 456 | ||||||||||||
Total
assets at December 31, 2008 (2)
|
12,384 | 9,212 | 1,614 | 775 | 366 | 417 |
(1)
|
Revenues
include decreases resulting from hedging activities. The decreases
resulted from hedge gains and losses that were deferred in AOCL, as a
result of previous cash flow hedge accounting, and subsequently
reclassified to revenues.
|
(2)
|
The
US reporting unit includes goodwill of $757 million at March 31, 2009 and
$759 million at December 31, 2008.
|
·
|
FSP
SFAS 157-4 –
FASB Staff Position No. 157-4,
“Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability has Significantly Decreased and Identifying
Transactions That Are Not Orderly” provides guidance on how to determine
the fair value of assets and liabilities under SFAS 157 in the current
economic environment and reemphasizes that the objective of a fair value
measurement remains the price that would be received to sell an asset or
paid to transfer a liability at the measurement
date.
|
|
·
|
FSP SFAS 115-2 and SFAS 124-2
– FASB Staff Position No. 115-2 and 124-2, “Recognition and
Presentation of Other-Than-Temporary Impairments” modifies the
requirements for recognizing other-than-temporarily impaired debt
securities and significantly changes the existing impairment model for
such securities. It also modifies the presentation of other-than-temporary
impairment losses and increases the frequency of and expands already
required disclosures about other-than-temporary impairment for debt and
equity securities.
|
|
·
|
FSP
SFAS 107-1 and APB 28-1 – FASB Staff Position No. 107-1 and APB
28-1, “Interim Disclosures about Fair Value of Financial Instruments”
requires disclosures of the fair value of financial instruments within the
scope of SFAS 107 in interim financial statements, adding to the current
requirement to make those disclosures in annual financial statements. The
staff position also requires that companies disclose the method or methods
and significant assumptions used to estimate the fair value of financial
instruments and a discussion of changes, if any, in the method or methods
and significant assumptions during the
period.
|
·
|
Commodity
Prices – Economic producibility of reserves and discounted cash flows will
be based on a 12-month average commodity price unless contractual
arrangements designate the price to be
used.
|
|
·
|
Disclosure
of Unproved Reserves – Probable and possible reserves may be disclosed
separately on a voluntary
basis.
|
|
·
|
Proved
Undeveloped Reserve Guidelines – Reserves may be classified as proved
undeveloped if there is a high degree of confidence that the quantities
will be recovered.
|
|
·
|
Reserve
Estimation Using New Technologies – Reserves may be estimated through the
use of reliable technology in addition to flow tests and production
history.
|
|
·
|
Reserve
Personnel and Estimation Process – Additional disclosure is required
regarding the qualifications of the chief technical person who oversees
our reserves estimation process. We will also be required to
provide a general discussion of our internal controls used to assure the
objectivity of the reserves
estimate.
|
|
·
|
Disclosure
by Geographic Area – Reserves in foreign countries or continents must be
presented separately if they represent more than 15% of our total oil and
gas proved reserves.
|
|
·
|
Non-Traditional
Resources – The
definition of oil and gas producing activities will expand and focus on
the marketable product rather than the method of
extraction.
|
|
·
|
$437
million of asset impairment
charges;
|
|
·
|
collection
of Ecuador power receivable, resulting in a $46 million reversal of the
allowance for doubtful accounts;
|
|
·
|
diluted
loss per share of $1.09, as compared with diluted earnings per share of
$1.20 for first quarter 2008;
|
|
·
|
cash
flow provided by operating activities of $185 million, as compared with
$506 million for first quarter
2008;
|
|
·
|
issuance
of $1 billion in 10-year unsecured notes;
and
|
|
·
|
repatriation
of $180 million of earnings from foreign
subsidiaries.
|
|
·
|
exploration
success offshore Israel at Tamar, our largest discovery to date;
|
|
·
|
additional
natural gas discovery offshore Israel at
Dalit;
|
|
·
|
our
first oil discovery on Block O offshore Equatorial Guinea at the Carmen
prospect;
|
|
·
|
successful
high bidder on 24 deepwater blocks in Central Gulf of Mexico lease sale
208; and
|
|
·
|
deepwater
Gulf of Mexico discovery at Santa
Cruz.
|
|
·
|
overall
level and timing of capital expenditures, as discussed below, which,
dependent upon our drilling success, are expected to result in near-term
production growth;
|
|
·
|
natural
field decline in the deepwater Gulf of Mexico, Gulf Coast and
Mid-continent areas of our US operations and the North
Sea;
|
|
·
|
higher
sales of natural gas from the Alba field in Equatorial
Guinea;
|
|
·
|
potential
hurricane-related volume curtailments in the Gulf of Mexico and Gulf Coast
areas of our US operations as occurred with Hurricanes Gustav and Ike in
2008;
|
|
·
|
the
restoration of pipeline and facilities necessary to increase our Gulf of
Mexico production;
|
|
·
|
potential
winter storm-related volume curtailments in the Northern region of our US
operations;
|
|
·
|
potential
pipeline and processing facility capacity constraints in the Rocky
Mountains area of our US operations and timing of start-up of a new
interstate crude oil transportation pipeline system which will run from
Weld County, Colorado to Cushing,
Oklahoma;
|
|
·
|
growth
in demand for natural gas in
Israel;
|
|
·
|
Israeli
seasonal demand;
|
|
·
|
competing
natural gas deliveries in Israel from Egypt, which could lower our sales
volumes;
|
|
·
|
potential
downtime at the methanol, LPG and/or LNG plants in Equatorial
Guinea;
|
|
·
|
seasonal
variations in rainfall in Ecuador that affect our natural gas-to-power
project; and
|
|
·
|
timing
of significant project completion and initial
production.
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
millions)
|
||||||||
Crude
oil and condensate sales
|
$ | 202 | $ | 527 | ||||
Natural
gas sales
|
183 | 371 | ||||||
NGL
sales
|
21 | 46 | ||||||
Total
|
$ | 406 | $ | 944 |
Sales
Volumes
|
Average
Realized Sales Prices
|
|||||||||||||||||||||||
Crude
Oil &
|
Natural
|
Crude
Oil &
|
Natural
|
|||||||||||||||||||||
Condensate
|
Gas
|
NGLs
|
Condensate
|
Gas
|
NGLs
|
|||||||||||||||||||
(MBopd)
|
(MMcfpd)
|
(MBpd)
|
(Per
Bbl)
|
(Per
Mcf)
|
(Per
Bbl)
|
|||||||||||||||||||
Three
Months Ended March 31, 2009
|
||||||||||||||||||||||||
United
States (1)
|
35 | 411 | 9 | $ | 35.65 | $ | 3.93 | $ | 24.74 | |||||||||||||||
West
Africa (2)
(3)
|
13 | 243 | - | 39.41 | 0.27 | - | ||||||||||||||||||
North
Sea
|
7 | 5 | - | 45.91 | 8.17 | - | ||||||||||||||||||
Israel
|
- | 112 | - | - | 2.81 | - | ||||||||||||||||||
Ecuador
(4)
|
- | 30 | - | - | - | - | ||||||||||||||||||
Other
International
|
4 | - | - | 36.89 | - | - | ||||||||||||||||||
Total
Consolidated Operations
|
59 | 801 | 9 | 37.81 | 2.64 | 24.74 | ||||||||||||||||||
Equity
Investees (5)
|
2 | - | 7 | 41.76 | - | 26.89 | ||||||||||||||||||
Total
|
61 | 801 | 16 | $ | 37.91 | $ | 2.64 | $ | 25.62 | |||||||||||||||
Three
Months Ended March 31, 2008
|
||||||||||||||||||||||||
United
States (1)
|
43 | 393 | 9 | $ | 71.33 | $ | 8.97 | $ | 55.15 | |||||||||||||||
West
Africa (2)
(3)
|
15 | 220 | - | 88.79 | 0.27 | - | ||||||||||||||||||
North
Sea
|
9 | 6 | - | 100.46 | 9.65 | - | ||||||||||||||||||
Israel
|
- | 145 | - | - | 3.04 | - | ||||||||||||||||||
Ecuador
(4)
|
- | 23 | - | - | - | - | ||||||||||||||||||
Other
International
|
6 | - | - | 73.37 | - | - | ||||||||||||||||||
Total
Consolidated Operations
|
73 | 787 | 9 | 78.89 | 5.34 | 55.15 | ||||||||||||||||||
Equity
Investees (5)
|
2 | - | 6 | 98.55 | - | 60.78 | ||||||||||||||||||
Total
|
75 | 787 | 15 | $ | 79.43 | $ | 5.34 | $ | 57.47 |
(1)
|
Average
realized crude oil and condensate prices reflect reductions of $2.70 per
Bbl for first quarter 2009 and $21.81 per Bbl for first quarter 2008 from
hedging activities. Average realized natural gas prices reflect a
reduction of $0.01 for first quarter 2009 and an increase of $1.05 per Mcf
for first quarter 2008 from hedging activities. The price
reductions and increase resulted from hedge gains and losses that were
previously deferred in AOCL.
|
(2)
|
Average
realized crude oil and condensate prices reflect reductions of $7.08 per
Bbl for first quarter 2009 and $8.62 per Bbl for first quarter 2008 from
hedging activities. The price reductions resulted from hedge
losses that were previously deferred in
AOCL.
|
(3)
|
Natural
gas from the Alba field in Equatorial Guinea is under contract for
$0.25 per MMBtu to a methanol plant, an LPG plant and an LNG plant. The
methanol and LPG plants are owned by affiliated entities accounted for
under the equity method of
accounting. Natural gas volumes sold to the LNG plant totaled
188 MMcfpd during first quarter 2009 and 173 MMcfpd during first quarter
2008.
|
(4)
|
The
natural gas-to-power project in Ecuador is 100% owned by our subsidiaries
and intercompany natural gas sales are eliminated for accounting purposes.
Electricity sales are included in other revenues. See Item 1. Financial
Statements – Note 2 – Basis of
Presentation.
|
(5)
|
Volumes
represent sales of condensate and LPG from the Alba plant in Equatorial
Guinea. See Equity Method Investees
below.
|
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
(MBopd)
|
||||||||
United
States
|
35
|
43 | ||||||
West
Africa
|
15
|
15 | ||||||
North
Sea
|
8
|
11 | ||||||
Other
International
|
4
|
6 | ||||||
Total
Consolidated Operations
|
62
|
75 | ||||||
Equity
Investees
|
2 | 2 | ||||||
Total
|
64 | 77 |
Three
Months Ended March 31,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Crude
Oil &
|
Natural
|
Crude
Oil &
|
Natural
|
|||||||||||||
Condensate
|
Gas
|
Condensate
|
Gas
|
|||||||||||||
(Per
Bbl)
|
(Per
Mcf)
|
(Per
Bbl)
|
(Per
Mcf)
|
|||||||||||||
United
States
|
$ | 56.78 | $ | 5.51 | $ | 70.02 | $ | 8.63 | ||||||||
West
Africa
|
64.21 | 0.27 | 87.39 | 0.27 | ||||||||||||
Total
Consolidated Operations
|
55.65 | 3.48 | 77.83 | 5.16 | ||||||||||||
Total
|
55.32 | 3.48 | 78.40 | 5.16 |
|
·
|
increase
in production from the Wattenberg, Piceance and Tri-state areas of our
North America operations; and
|
|
·
|
increase
in volumes sold to the LNG plant in Equatorial
Guinea;
|
|
·
|
decrease
in Israel sales volumes due to power plant downtime and milder weather
conditions; and
|
|
·
|
continued
Hurricane Ike-related shut-ins of certain deepwater Gulf of Mexico
assets.
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Net
income (in millions):
|
||||||||
AMPCO
and affiliates
|
$ | - | $ | 28 | ||||
Alba
Plant
|
11 | 34 | ||||||
Distributions/dividends
(in millions):
|
||||||||
AMPCO
and affiliates
|
$ | - | $ | 34 | ||||
Alba
Plant
|
- | 42 | ||||||
Production
volumes:
|
||||||||
Methanol
(MMgal)
|
40 | 34 | ||||||
Condensate
(MBopd)
|
2 | 2 | ||||||
LPG
(MBpd)
|
6 | 6 | ||||||
Sales
volumes:
|
||||||||
Methanol
(MMgal)
|
35 | 34 | ||||||
Condensate
(MBopd)
|
2 | 2 | ||||||
LPG
(MBpd)
|
7 | 6 | ||||||
Average
realized prices:
|
||||||||
Methanol
(per gallon)
|
$ | 0.46 | $ | 1.63 | ||||
Condensate
(per Bbl)
|
41.76 | 98.55 | ||||||
LPG
(per Bbl)
|
26.89 | 60.78 |
United
|
West
|
North
|
Other
Int'l,
|
|||||||||||||||||||||
Total
|
States
|
Africa
|
Sea
|
Israel
|
Corporate(1)
|
|||||||||||||||||||
(in
millions)
|
||||||||||||||||||||||||
Three
Months Ended March 31, 2009
|
||||||||||||||||||||||||
Oil
and gas operating costs (2)
|
$ | 93 | $ | 71 | $ | 9 | $ | 9 | $ | 1 | $ | 3 | ||||||||||||
Workover
and repair expense
|
7 | 6 | - | 1 | - | - | ||||||||||||||||||
Lease
operating expense
|
100 | 77 | 9 | 10 | 1 | 3 | ||||||||||||||||||
Production
and ad valorem taxes
|
18 | 18 | - | - | - | - | ||||||||||||||||||
Transportation
expense
|
12 | 10 | - | 1 | - | 1 | ||||||||||||||||||
Total
production costs
|
130 | 105 | 9 | 11 | 1 | 4 | ||||||||||||||||||
Three
Months Ended March 31, 2008
|
||||||||||||||||||||||||
Oil
and gas operating costs (2)
|
76 | 49 | 9 | 11 | 2 | 5 | ||||||||||||||||||
Workover
and repair expense
|
6 | 6 | - | - | - | - | ||||||||||||||||||
Lease
operating expense
|
82 | 55 | 9 | 11 | 2 | 5 | ||||||||||||||||||
Production
and ad valorem taxes
|
43 | 33 | - | - | - | 10 | ||||||||||||||||||
Transportation
expense
|
13 | 11 | - | 2 | - | - | ||||||||||||||||||
Total
production costs
|
$ | 138 | $ | 99 | $ | 9 | $ | 13 | $ | 2 | $ | 15 |
(1)
|
Other
international includes Ecuador, China, and Argentina (through February
2008).
|
(2)
|
Oil
and gas operating costs include labor, fuel, repairs, replacements,
saltwater disposal and other related lifting
costs.
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Oil
and gas operating costs
|
$ | 5.09 | $ | 3.88 | ||||
Workover
and repair expense
|
0.41 | 0.33 | ||||||
Lease
operating expense
|
5.50 | 4.21 | ||||||
Production
and ad valorem taxes
|
1.00 | 2.23 | ||||||
Transportation
expense
|
0.63 | 0.68 | ||||||
Total
production costs (1)
(2)
|
$ | 7.13 | $ | 7.12 |
(1)
|
Consolidated
unit rates exclude sales volumes and costs attributable to equity method
investees. Sales volumes include natural gas sales to an LNG plant in
Equatorial Guinea. The inclusion of these volumes reduced the unit rate by
$1.30 per BOE for first quarter 2009 and $1.11 per BOE for first quarter
2008.
|
United
|
West
|
North
|
Other
Int'l/
|
|||||||||||||||||||||
Total
|
States
|
Africa
|
Sea
|
Israel
|
Corporate
(1)
|
|||||||||||||||||||
(in
millions)
|
||||||||||||||||||||||||
Three
Months Ended March 31, 2009
|
||||||||||||||||||||||||
Dry
hole expense
|
$ | 2 | $ | (1 | ) | $ | 4 | $ | - | $ | - | $ | (1 | ) | ||||||||||
Seismic
|
23 | 23 | - | - | - | - | ||||||||||||||||||
Staff
expense
|
15 | 4 | 3 | 1 | - | 7 | ||||||||||||||||||
Other
|
2 | 2 | - | - | - | - | ||||||||||||||||||
Total
exploration expense
|
$ | 42 | $ | 28 | $ | 7 | $ | 1 | $ | - | $ | 6 | ||||||||||||
Three
Months Ended March 31, 2008
|
||||||||||||||||||||||||
Dry
hole expense
|
$ | 7 | $ | (1 | ) | $ | - | $ | 8 | $ | - | $ | - | |||||||||||
Seismic
|
13 | 13 | - | - | - | - | ||||||||||||||||||
Staff
expense
|
16 | 11 | - | 1 | 1 | 3 | ||||||||||||||||||
Other
|
4 | 4 | - | - | - | - | ||||||||||||||||||
Total
exploration expense
|
$ | 40 | $ | 27 | $ | - | $ | 9 | $ | 1 | $ | 3 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
millions, except unit rate)
|
||||||||
DD&A
expense
|
$ | 197 | $ | 201 | ||||
Accretion
of discount on asset retirement obligations
|
3 | 2 | ||||||
Total
DD&A expense
|
$ | 200 | $ | 203 | ||||
Unit
rate per BOE
(1)
|
$ | 11.01 | $ | 10.42 |
(1)
|
Consolidated
unit rates exclude sales volumes and costs attributable to equity method
investees. Sales volumes include natural gas sales to an LNG plant in
Equatorial Guinea. The inclusion of these volumes reduced the unit rate by
$1.67 per BOE for first quarter 2009 and $1.32 per BOE for first quarter
2008.
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
G&A
expense (in millions)
|
$ | 59 | $ | 60 | ||||
Unit
rate per BOE (1)
|
$ | 3.23 | $ | 3.09 |
(1)
|
Consolidated
unit rates exclude sales volumes and costs attributable to equity method
investees. Sales volumes include natural gas sales to an LNG plant in
Equatorial Guinea. The inclusion of these volumes reduced the unit rate by
$0.59 per BOE for first quarter 2009 and $0.48 per BOE for first quarter
2008.
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
millions)
|
||||||||
Interest
expense
|
$ | 24 | $ | 27 | ||||
Capitalized
interest
|
(6 | ) | (10 | ) | ||||
Interest
expense, net
|
$ | 18 | $ | 17 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Income
tax provision (benefit) (in millions)
|
$ | (186 | ) | $ | 101 | |||
Effective
rate
|
50 | % | 32 | % |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
millions)
|
||||||||
Total
cash provided by (used in):
|
||||||||
Operating
activities
|
$ | 185 | $ | 506 | ||||
Investing
activities
|
(399 | ) | (355 | ) | ||||
Financing
activities
|
91 | (4 | ) | |||||
Increase
(decrease) in cash and cash equivalents
|
$ | (123 | ) | $ | 147 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
millions)
|
||||||||
Acquisition,
Capital and Exploration Expenditures
|
||||||||
Unproved
property acquisition
|
$ | 16 | $ | 176 | ||||
Exploration
|
95 | 45 | ||||||
Development
|
231 | 246 | ||||||
Corporate
and other
|
44 | 19 | ||||||
Total
|
$ | 386 | $ | 486 |
Interest
Rate Risk
|
Foreign
Currency Risk
|
·
|
the extent
and effect of any hedging activities engaged in by
us;
|
|
·
|
our
growth strategies;
|
|
·
|
our
ability to successfully and economically explore for and develop crude oil
and natural gas resources;
|
|
·
|
anticipated
trends in our business;
|
|
·
|
our
future results of operations;
|
|
·
|
effect
of current volatility in the credit
markets;
|
|
·
|
our
liquidity and ability to finance our exploration and development
activities;
|
|
·
|
market
conditions in the oil and gas
industry;
|
|
·
|
our
ability to make and integrate acquisitions;
and
|
|
·
|
the
impact of governmental regulation.
|
Period
|
Total
Number
of
Shares
Purchased
(1)
|
Average
Price
Paid
Per
Share
|
Total
Number of
Shares
Purchased
as
Part of Publicly Announced Plans
or
Programs
|
Approximate
Dollar
Value
of Shares that
May
Yet Be
Purchased
Under the
Plans
or Programs
|
||||||||||||
(in
thousands)
|
||||||||||||||||
01/01/09
- 01/31/09
|
786 | $ | 51.02 | - | - | |||||||||||
02/01/09
- 02/28/09
|
16,724 | 50.21 | - | - | ||||||||||||
03/01/09
- 03/31/09
|
- | - | - | - | ||||||||||||
Total
|
17,510 | $ | 50.24 | - | - |
(1)
|
Stock
repurchases during the period related to stock received by us from
employees for the payment of withholding taxes due on shares issued under
stock-based compensation plans.
|
ITEM
4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
None.
|
NOBLE
ENERGY, INC.
|
|
(Registrant)
|
Date
|
April
30, 2009
|
/s/
CHRIS TONG
|
|
CHRIS
TONG
Senior
Vice President and Chief Financial Officer
|
|||
31.1
|
Certification
of the Company’s Chief Executive Officer Pursuant To Section 302 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
7241).
|
31.2
|
Certification
of the Company’s Chief Financial Officer Pursuant To Section 302 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
7241).
|
32.1
|
Certification
of the Company’s Chief Executive Officer Pursuant To Section 906 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
1350).
|
32.2
|
Certification
of the Company’s Chief Financial Officer Pursuant To Section 906 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
1350).
|