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Howard Weil 40th Annual Energy Conference – Noble Energy, Inc.

Noble Energy, Inc. · Mar 10, 2012 · 49 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 1
    Charles Davidson Chairman, CEO Howard Weil 40th Annual Energy Conference Noble Energy March 2012
  2. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 2
    Noble Energy Our Future is NOW 2
  3. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 3
    Five-year Outlook 2011 to 2016 Superior performance from all core areas Projected Annual Growth Production Rates 126% f Transparent Growth Profile 32% f Contributions from All Operating Areas 20% 15% 14% f Key Outcomes by 2016…
  4. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 4
    Noble Energy Positioned for a decade of growth f Diversified and Focused Asset Portfolio Offers stability and superior returns f Industry-leading Exploration Program Yields significant discovered resources f Portfolio of High…
  5. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 5
    Balanced and Diversified Portfolio Provides stability and strength Reserves YE 2011 1.2 BBoe f Leverage to U.S. and International United States f Exposure to Crude Oil and Natural Gas Access to premium markets International f…
  6. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 6
    Noble Energy Exploration World-class exploration performance f Uncovering Opportunities Missed by Others Finding Cost 2006 2010 (/Boe) f Thoughtful and Disciplined Approach Incorporating exploration technology and processes in all…
  7. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 7
    Industry-leading Exploration Program Yielded significant discovered resources f Geoscience Excellence Focused on impact opportunities Resources Finding Found Costs Disciplined risk assessment (MMBoe) (/Boe) 1,200 4 f Discovered…
  8. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 8
    Net Risked Resources of Eight Billion Boe Over six times proved reserves f Increased 8% Since November f 3.8 BBoe of Discovered 2011 Analyst Conference Unbooked Resources f Over 60% Proved and Over 80% Being Actively Appraised or…
  9. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 9
    Major Development Project Line-up High value growth Bubble Size Represents Relative Full-cycle NPV Marcellus Horizontal Leviathan Niobrara Resources Tamar Aseng Gunflint WA Gas Diega Galapagos Alen Predominant…
  10. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 10
    Robust Financial Platform Well-positioned to fund long-term growth plans Well-managed Maturity Profile MM f 4.5 Billion of Liquidity 1,600 1.5 B cash on hand 1,200 3.0 B unused revolver 800 f Debt to Book Cap Ratio, Net of Cash,…
  11. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 11
    Commodity Environment Hedges in place to support 2012 cash flow f Only 20% of Volumes Tied to 2012 Volumes Unhedged U.S. Natural Gas U.S. Gas Liquids Hedged Unhedged 2012 Hedge Position U.S. Gas Unhedged 42% Liquids 39% Hedged…
  12. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 12
    2012 Capital Program Continuing to build for the future Allocation f Organic Capital Budget of 3.5 Billion Eastern West Med. Africa f Production Growth of 13% GOM U.S. f Executing on Major Projects Onshore DJ Basin U.S. Onshore…
  13. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 13
    DJ Basin Double-digit production growth over next five years f Premier Liquids-rich Acreage S.E. Wyoming Position with Huge Potential Now over 880,000 net acres Net risked resources total 1.4 BBoe f Current Production up 32% over…
  14. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 14
    Horizontal Niobrara Performance Dramatic production increase dominated by liquids 35,000 Net HZ Niobrara Production (Boe/d) f Delivering Impactful 30,000 Current Growth 25,000 Level Current production 3-fold 20,000 increase in a…
  15. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 15
    Wattenberg Horizontal Niobrara Opportunity for increased density and additional zones Extension Area f All Areas Delivering Positive, 480 Boe/d Avg. 30-day IP 75% liquids Repeatable Results Average EUR of 310+ MBoe Core Area 550…
  16. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 16
    Wattenberg Horizontal Niobrara Drilling Continuous improvement Days Spud to Rig Release Horizontal Completions 24 30 18 20 12 10 6 0 0 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11…
  17. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 17
    Wattenberg Development Strategy Continuing to evolve and access additional resources Wells Ranch Section 25 f Testing Increased Density of 40 and 80-acre Spacing 4 Well Pad B Chalk Well Wells as close as 300 ft. apart C Chalk Well…
  18. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 18
    Impressive Extended-reach Lateral Results Dramatic improvement in returns and recoveries Boe/d Gross Production f Wells Ranch AE29 68HN 1,200 78% Liquids Spud to rig release in 17 days 1,000 100+% AT ROR 9,120 ft. lateral with…
  19. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 19
    Horizontal Niobrara Success in Northern Colorado Significant study and execution has opened the next development area f Recent 4 Wells Experiencing Wyoming Nebraska Results Comparable to Weld County, Colorado Extension Area 30-day…
  20. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 20
    Horizontal Niobrara Well Economics Strongest returns in Extension Area and Northern Colorado f Recent Results Exceeding Previous Type Curves f Technical and Operational Learnings Enhancing Economics f High Liquid Content Benefits Each…
  21. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 21
    Wattenberg Horizontal Niobrara Production Curves Operational learnings generating better performance Boe/d Gross Production 800 600 18 Wells Avg. EUR 355 MBoe 25% 400 23 Wells 200 Avg. EUR 290 MBoe Early Results…
  22. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 22
    Marcellus JV Position Significant scale and growth impact f Large Acreage Position within Marcellus Fairway PA 50% of 628,000 net acres About 20% located in wet gas window OH Nearly 100% WI with NRI of 88% 87% of acreage HBP…
  23. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 23
    Benefits of Partnering with CNX Built in efficiencies to jump-start operations f Well-established Appalachian Operator f Experienced Land and Permitting Staff f Excellent Safety and Environmental Record f Unique Synergies f…
  24. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 24
    Marcellus JV Near-term Plans Initially concentrated in SW PA f High-graded Drilling Activity in 2012 Washington County, PA 60 dry gas wells focused on high EUR and NRI (95%) areas Ramping up wet gas program with 39 operated…
  25. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 25
    Marcellus JV Economics Attractive today with potential to improve f Todays Learnings Applied to After Tax Future Program ROR 75% Transferring DJ Basin techniques f Continued Cost Improvement 65% Improving drilling efficiency…
  26. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 26
    Marcellus Well Results Comparison CNX wells improving, now exceeding industry average f Over 500-day period, CNX Wells in SW PA Yield 21% More Production Gross Wellhead Gas Production Mcf/d 4000 3000 2000 1000 0 0…
  27. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 27
    Marcellus Drilling and Completion Cost Lateral lengths increasing while gaining efficiencies Ft. Lateral Length 5,000 4,000 3,000 2,000 1,000 2009 2010 2011 /Ft. Drilling Cost M/Stage Completion Cost 250 350 300 200 250…
  28. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 28
    Seeking Next Growth Option in U.S. Captured new unconventional oil play f 316,000 Net Acres Located in Western U.S. with Extensive Running Room 500 MMBoe net risked resources Entry cost less than 200/acre f Identified Through…
  29. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 29
    Deepwater Gulf of Mexico New production and significant exploration upside f Production Adds in 2012 South Raton online at 3 MBbl/d net NBL Interests Louisiana Galapagos first production expected Producing 2Q at 10 MBbl/d net…
  30. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 30
    Gunflint Appraisal Determining the ultimate resource size Louisiana f NBL Operated Development with 26% WI f Significant Oil Discovery Multiple high-quality reservoirs Mississippi Canyon More than 550 feet net pay Resources of…
  31. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 31
    Galapagos Subsea Development Substantial near-term impact Louisiana f NBL 29% Average WI f Operated Portion of Project Essentially Complete Mississippi Canyon Final topside hook-ups at NaKika and commissioning remain NaKika f…
  32. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 32
    Galapagos Project Economics Strong cash flow and returns f Initially Three Well MM Cum B Subsea Tieback 400 2.0 f Base Case Economic 300 1.5 Summary 200 1.0 Gross resources 134 MMBoe F&D 12.91/Boe 100 0.5 AT ROR 41% 0 0.0 AT…
  33. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 33
    Troubadour and Big Bend Prospects Potential near-term impact f Combined Gross Mean Louisiana Resources of 90+ MMBoe f NBL Operated: Mississippi Canyon Big Bend Troubadour WI 54% 87.5% Pg 35% 54% Mississippi Canyon f…
  34. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 34
    Deepwater GOM Exploration Portfolio Substantial resource opportunity f Continue to Mature Prospect Inventory Internally generated prospects Largely operated with high WI f Focused on Subsalt Miocene and Proven Amplitude Plays…
  35. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 35
    Eastern Mediterranean A new global gas basin f Six Consecutive Discoveries 3 world-class in resource size Tanin 47% WI Tamar Over 35 Tcf gross resources, 36% WI 12 Tcf net Cyprus f Domestic Development 70% WI Projects Being…
  36. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 36
    Mari-B Field Reliable and low cost operations f Safe, Reliable Operations Nearly 100% reliability since startup in 2004 f Outstanding Field Performance Record daily, quarterly and annual sales in 2011 f Low-cost Structure LOE…
  37. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 37
    Tamar Development Moving ahead on scheduled timeline f Resource Estimated at 9 Tcf Gross, 2.8 Tcf Net NBL operated with 36% WI f Initial Phase with 1 Bcf/d of Deliverability f Work Progressing on Schedule Commissioning started by…
  38. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 38
    Leviathan Discovery Worlds largest offshore gas discovery in 2010 f Resource Estimated at 17 Tcf Gross, 6 Tcf Net NBL operated with 40% WI 1 Drilled and Evaluated f High Quality Reservoir 2 Clean sand with 500 millidarcy 3…
  39. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 39
    Israel Gas Demand Outlook Robust growth outlook with significant upside potential f Base Demand Growth Driven by Power Generation and Industrials f Potential for Converting Coal-fired Power Generation to Gas MMcf/d Annual Average…
  40. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 40
    Eastern Mediterranean LNG Scale of discoveries driving export projects f Competitively Positioned in Global Markets High-quality reservoirs contribute to TURKEY low cost developments Located to access to both Europe and Asian…
  41. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 41
    West Africa Generating multiple growth opportunities West Africa f Strong Production at Alba Field Net volumes 240 MMcf/d, 20 MBbls/d Gas sales to LNG and methanol plants f First Oil from Aseng in November 2011 Cameroon…
  42. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 42
    West Africa Aseng Field Delivering breakthrough execution and performance f Sanction to Production in Less Than 3 Years First oil 7 months ahead of schedule Investment 13% under approved levels Best-in-class safety…
  43. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 43
    Alen Development Liquid gas-cycling project f NBL Operated with 45% WI f Implementing Proven Aseng Project Philosophy f Major Contracts Awarded, Drilling in Progress f On Schedule for First Production in 4Q 2013 Initial rate 37…
  44. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 44
    West Africa Exploration Multi-year inventory of prospects f 7 Discoveries Out of 8 Prospects 1.1 BBoe gross resources, 350 MMBoe net f Recent Carla Discovery Block O Cameroon 45% WI 35 100 MMBoe gross resources, 80% liquids f…
  45. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 45
    Noble Energy We can see the future NOW f High-quality and Diversified Portfolio f Sustainable Industry-leading Exploration f Organizational Capability to Execute f Robust Financial Framework f Highly Transparent Path…
  46. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 46
    Appendix
  47. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 47
    2012 Guidance Positioned to accelerate growth Original f Capital Allocated to Crude Oil and High Value Natural Sales (MBoe/d) 244 256 Gas Projects Capital (B) 3.5 f Production Up 13% Driven Equity Investment Income 185 215 by Crude…
  48. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 48
    Defined Terms Term Definition After Tax Cash Flow (ATCF) Revenue less capital, lease operating expenses, production taxes, transportation, and income taxes Before Tax Cash Margin Revenue less lease operating expenses, production taxes,…
  49. Howard Weil 40th Annual Energy Conference – Noble Energy, Inc. – slide 49

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