Thursday, independent energy company Noble Energy, Inc. (NBL) reported lower earnings for the third quarter hurt by losses from hedging and lower oil and gas prices. Adjusted earnings for the quarter came in ahead of analysts' consensus, though revenue fell short of estimates.
The Houston, Texas-based oil and natural gas company reported net income for the quarter of $107 million or $0.61 per share, down from $974 million or $5.37 per share in the corresponding period last year.
On adjusted basis, net income was $193 million down from $395 million in the year-ago quarter. Earnings per share declined to $1.10 from $2.08 per share in the same period last year, but came in above the $0.82 per share projected by twenty-one analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.
GAAP results for the most recent quarter were reduced by certain items totaling $86 million after-tax, including previously disclosed unrealized commodity derivative loss.
In the preceding second quarter, Noble reported a net loss of $57 million or $0.33 per share, compared to net loss of $144 million or $0.84 per share a year ago. Results included unrealized losses on commodity derivative instruments of $190 million, and a gain on sale of Argentina assets of $16 million.
Total revenues for the quarter under review plunged to $621 million from $1.1 billion in the year-ago quarter and came in below ten Street analysts' consensus estimate of 657.31 million.
Revenues from crude oil and condensate declined to $377 millions from $629 million in the prior year period, while natural gas revenues plunged to $172 million from $361 million a year earlier. Revenues from natural gas liquid or NGLs decreased to $24 million from $50 million in the year-ago quarter. Income from equity method investees fell to $25 million from $40 million a year earlier.
Total sales volumes averaged 217 thousand barrels of oil equivalent per day for the quarter, an increase of 3% from the same period last year, primarily due to higher volumes in the U.S and West Africa. Domestically, higher volumes were supported by ongoing development activity at Wattenberg, the return to full production of Ticonderoga, and the impact of the Raton gas project in the deepwater Gulf of Mexico.
Commodity price realizations for the quarter declined from the same period last year. During the quarter, the company's global crude oil and natural gas prices averaged $63.36 per barrel and $2.41 per thousand cubic feet. Crude oil realizations during the quarter were reduced by $1.89 and $5.32 per barrel in the U.S. and West Africa, respectively, as a result of previously deferred hedge losses.
Cash costs were $9.22 per barrel of oil equivalent or Boe compared with $11.44 per Boe for the same period last year. Lease operating expenses averaged $4.41 per Boe, down 13% from the third quarter of 2008 primarily due to continued cost cutting measures, fewer workover activities onshore in the U.S., and reduced process handling fees in the deepwater Gulf of Mexico. Furthermore, exploration expense declined over the prior year quarter due to continued drilling success and lower seismic expenditures.
Noble said initial results from its Texas Haynesville drilling program have been positive and expects to resume deepwater Gulf of Mexico exploration program during the fourth quarter.
Charles Davidson, Noble Energy's Chairman and Chief Executive Officer said, "We also made important progress on our long-term growth projects, sanctioning oil projects at Aseng and Isabela/Santa Cruz and moving forward the development plans at Tamar offshore Israel."
NBL is currently up $0.96 or 0.97% and trades at $67.58.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.