NBL - Embedded Expectations Analysis - 2020 02 13
Noble Energy, Inc. (NBL:USA) currently trades at a discount to UAFRS-based (Uniform) Assets, with a 0.9x Uniform P/B. At these levels, the market has somewhat bullish expectations for the firm, and management generated multiple excitement markers about their development mix and cost savings, and is confident about their oil equivalent production.Specifically, management generated an excitement marker when saying their Wells Ranch, East Pony and Mustang development mix will be similar to this past year. In addition, they generated an excitement marker when saying they were within $1mn of average per well cost savings fairly early in the year. Moreover, they are confident their US onshore team delivered a 30,000 barrel of oil equivalent per day increase over the second quarter and that they are continuing to optimize Delaware basin completions.
Noble Energy is an independent energy company, engaged in crude oil and natural gas exploration and production. The company's operating areas include: U.S. onshore, primarily the DJ Basin, Delaware Basin and Eagle Ford Shale; U.S. offshore Gulf of Mexico; Eastern Mediterranean; and West Africa. The company's Midstream segment develops, owns, operates and acquires domestic midstream infrastructure assets, or invests in other midstream entities, with existing focus areas being the DJ and Delaware Basins. The company's activities include geophysical and geological evaluation; analysis of commercial, regulatory and political risks; and exploratory and development drilling leading to production, where appropriate.
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