Independent energy company Noble Energy Inc. (NBL) on Thursday posted a profit for the second quarter, fueled by robust volumes and good cost control across its business.
The Houston, Texas-based company's second-quarter net income was $204 million or $1.10 per share, compared to a loss of $57 million or $0.33 per share in the prior-year quarter.
Net income for the quarter included an unrealized commodity derivative gain, as well as a rig contract termination expense.
Adjusted net income for the quarter was $198 million or $1.07 per share, compared to $116 million or $0.66 per share in the same quarter of last year.
On average, 21 analysts polled by Thomson Reuters expected the company to post earnings of $0.75 per share. Analysts' estimates typically exclude special items.
Total revenues for the latest quarter advanced to $751 million from $491 million reported a year earlier, and surpassed the $734.34 million consensus revenue estimate of ten Wall Street analysts.
Charles Davidson, Chairman and CEO, said, "The second quarter was very strong for Noble Energy, as we experienced robust volumes and good cost control across the business. We continued to move forward our major-project developments, with significant field development drilling at Aseng and expectations for a Tamar sanction in the near future."
Noble Energy's sales volumes for the second quarter of 2010 averaged 219 Mboe/d, and production was 214 MBoe/d, with additional liftings in Equatorial Guinea and the North Sea accounting for the higher sales volume. Internationally, average daily sales were 99 MBoe/d, a 5% increase from last year. Significantly higher natural gas sales in Israel resulted from increased demand for electricity and improved market share.
Commodity prices were substantially higher than the previous year, with the company's average crude oil and natural gas realizations up 45% and 37%, respectively. Noble Energy's U.S. crude oil averaged $75 per barrel in the second quarter of 2010, which included a reduction of $1.35 per barrel as a result of previously deferred hedge losses.
In Israel, natural gas realizations rose to $4.33 per thousand cubic feet, and continue to benefit from strong global liquid markets. The company's natural gas liquid or NGL pricing in the U.S. averaged $39.37 per barrel for the second quarter of 2010, about 50% of West Texas Intermediate.
For the six-month period, the company reported net income of $441 million or $2.44 per share, compared to a loss of $245 million or $1.42 per share in the year-ago period.
Year-to-date revenues increased to $1.48 billion from $932 million in the comparable period of the previous year.
Looking forward to the third quarter, the company estimates average daily sales volumes to be between 212 and 220 MBoe/d. Noble Energy anticipates slightly lower crude oil and natural gas production in the U.S. versus the second quarter of 2010, primarily as a result of the onshore asset sale.
For fiscal 2010, the company's volume guidance is now 211 Mboe/d - 217 MBoe/d, updated to include the impact of the U.S. onshore asset sale. Expected to close in early August, the sale would reduce full year volumes by over 2 MBoe/d and lower per barrel lease operating expenses by about 10%. Further, the company lowered its lease operating expense guidance to range from $4.80 to $5.10 per Boe.
Organic capital expenditures are currently estimated at $2.2 billion for the year, down from the original capital budget of $2.5 billion.
NBL closed Wednesday's trading session at $67.58. The stock has been trading between $55.14 and $81.50 in the past 52 weeks period.
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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.