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December 2013 Analyst Conference – Noble Energy, Inc.

Noble Energy, Inc. · Dec 17, 2013 · 177 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. December 2013 Analyst Conference – Noble Energy, Inc. – slide 1
    ANALYST CONFERENCE December 17, 2013
  2. December 2013 Analyst Conference – Noble Energy, Inc. – slide 2
    Agenda December 17, 2013 Analyst Conference Company Overview Chuck Davidson Chairman and CEO Operations Summary Dave Stover President and COO Financial Review Ken Fisher Executive Vice President and CFO U.S. Onshore Gary…
  3. December 2013 Analyst Conference – Noble Energy, Inc. – slide 3
    Agenda December 17, 2013 Analyst Conference Global Deepwater Susan Cunningham Senior Vice President Gulf of Mexico West Africa Eastern Mediterranean Keith Elliott Senior Vice President Exploration Mike Putnam Vice President…
  4. December 2013 Analyst Conference – Noble Energy, Inc. – slide 4
    Company Overview Chuck Davidson Chairman and CEO
  5. December 2013 Analyst Conference – Noble Energy, Inc. – slide 5
    Noble Energy Unique design and execution delivering a unique future Extending an Outstanding Growth Agenda 2018 production more than 2X 2013* and 3X 2011* 96% of 2018 production from existing discoveries and development programs…
  6. December 2013 Analyst Conference – Noble Energy, Inc. – slide 6
    Positioned For Enduring Growth Getting the portfolio, processes and people right Diversified and Rebalanced the Portfolio Strengthen U.S. position with more lower-risk onshore assets International / U.S. closer to 50/50 Reduced…
  7. December 2013 Analyst Conference – Noble Energy, Inc. – slide 7
    Accomplishments Since 2012 Analyst Conference Continuing to build on success Delivered Three Major Projects Tamar producing 2.5 years from sanction First production from Alen, 6 months ahead of plan First Integrated Development Plan…
  8. December 2013 Analyst Conference – Noble Energy, Inc. – slide 8
    Noble Energys Vision Looking Ahead What is it that we want to make happen And how A Company that is Highly Successful in All Ways Delivering its Purpose Energizing the World, Bettering Peoples Lives A Company that Remains True to…
  9. December 2013 Analyst Conference – Noble Energy, Inc. – slide 9
    Transformational Production Growth Deep investment inventory driving multi-year, double-digit growth MBoe/d 700 629 220% 525 18% CAGR 350 18% 17% 15% 175 0 2011* 2012* 2013* 2014 2018 PF Actuals / 2013 Analyst…
  10. December 2013 Analyst Conference – Noble Energy, Inc. – slide 10
    Key Outcomes by 2018 Delivering superior operational and financial performance Discretionary Cash Flow* Proved Reserves B BBoe 10 2.9 8.3 3 8 2.6 6 7.4 2 4 1 2 0 0 2013 2014 2017 2018 2012 2016 2017 (2012 AC) (2012 AC)…
  11. December 2013 Analyst Conference – Noble Energy, Inc. – slide 11
    Debt-adjusted* and Balance Sheet-adjusted* Growth A premier plan that continues to deliver Compound Annual Growth Rate Production Growth Cash Flow Growth 24% 22% 22% 18% 19% 18% 19% 16% 15% 10% 2011 - 2016 2012 - 2017…
  12. December 2013 Analyst Conference – Noble Energy, Inc. – slide 12
    5-Year Balance Sheet-adjusted Growth Metrics Top performer in value-driven production growth Production Growth* Cash Flow Growth NBL NBL 2013-18 2013-18 15% 19% 20% 20% Stock Return: 200712 CAGR Stock Return: 200712 CAGR…
  13. December 2013 Analyst Conference – Noble Energy, Inc. – slide 13
    Todays Energy Environment U.S. energy security well within reach Technology and Innovation Unlocking Energy Resources and Fueling Energy Renaissance in America Public Must be Assured Development Can be Conducted Safely and…
  14. December 2013 Analyst Conference – Noble Energy, Inc. – slide 14
    Noble Energy Unique by Design Conference themes Unique Purpose Unique Strategy Unique Assets Unique Execution Unique Growth Unique Results Unique Future 15
  15. December 2013 Analyst Conference – Noble Energy, Inc. – slide 15
    Operations Summary Dave Stover President and COO
  16. December 2013 Analyst Conference – Noble Energy, Inc. – slide 16
    Global Operations Unique combination to deliver differential performance Asset Portfolio of a Major Focus on 5 core areas 3 operational regions Scale with running room Execution of a Large Independent Four major projects delivered…
  17. December 2013 Analyst Conference – Noble Energy, Inc. – slide 17
    Operational Leadership Setting new standards for industry performance Leading Safety Record Constructing First Colorado LNG Facility to Fuel NBL Operations Participated with NGO to Develop Colorado Air Emissions Standard Led…
  18. December 2013 Analyst Conference – Noble Energy, Inc. – slide 18
    Living Our Purpose Bettering peoples lives where we work and live 19
  19. December 2013 Analyst Conference – Noble Energy, Inc. – slide 19
    Enhancing Capital Efficiency and Returns 1 B savings over 5 years Ongoing Portfolio Management Aligning Core Businesses Applying learnings and best practices Continuing to Deliver Efficiencies Integrated Development Plans…
  20. December 2013 Analyst Conference – Noble Energy, Inc. – slide 20
    Best-in-Class Project Execution Process delivering repeatable results Exploration, Appraisal, Development and Operations Integrated Early NBL, Partners, Contractors and Consultants Aligned from Project Initiation Function Test each…
  21. December 2013 Analyst Conference – Noble Energy, Inc. – slide 21
    Core Assets Fitting Together Each area contributing to the overall portfolio 22
  22. December 2013 Analyst Conference – Noble Energy, Inc. – slide 22
    A Closer Look at 2014 Delivering growth and investing for the future Double-digit Production Growth Continues DJ up 28%*, Marcellus up 90% Israel up 15% Preparing and Investing for Future Growth Accelerating U.S. onshore…
  23. December 2013 Analyst Conference – Noble Energy, Inc. – slide 23
    2014 Capital Outlook Investing in long-term sustainable growth Expanding DJ Basin and Marcellus Shale Horizontal Programs Allocating nearly 70% to high-return U.S. Onshore developments Increasing facilities investment for long-term…
  24. December 2013 Analyst Conference – Noble Energy, Inc. – slide 24
    2014 Volumes Year-over-year increase of 18% 2014 Production Eastern Other Med. MBoe/d 350 Growth 302 - 322 DJ Basin West Africa 280 Adjustments DJ Basin Marcellus 210 for Property Marcellus Sales Israel Exchanges DW GOM…
  25. December 2013 Analyst Conference – Noble Energy, Inc. – slide 25
    Crude Oil Volume Growth Up over 100% in 3 years MBbl/d 150 Over 45% Priced at Brent or LLS +16% 120 +13% 90 +52% 60 30 0 2011 2012 2013 2014 26 Note: From continuing operations
  26. December 2013 Analyst Conference – Noble Energy, Inc. – slide 26
    Net Risked Resources Increasing predictability and transparency of growth 2013 Net Risked Resources* Discovered Unbooked 6.4 10.4 BBoe Resources 5.1 49% CAGR New Play Proved Types Core Area Expl. 3.3 Discovered Unbooked…
  27. December 2013 Analyst Conference – Noble Energy, Inc. – slide 27
    Organic Cash Capital* Outlook Improving the plan through disciplined investment allocation 2014 - 2018 2014 - 2018 Capital Down 1 B By Core Area vs. 2012 Analyst Conference Other B Eastern Med. 8 West Africa DJ Basin DW GOM 6…
  28. December 2013 Analyst Conference – Noble Energy, Inc. – slide 28
    Production Outlook Delivering growth by executing the plan MBoe/d 700 629 MBoe/d 4% 18% CAGR 19% 525 350 60% 175 17% 0 2013 2014 2015 2016 2017 2018 Base Onshore Horizontal Offshore Projects Exploration 29…
  29. December 2013 Analyst Conference – Noble Energy, Inc. – slide 29
    Discretionary Cash Flow* Outlook Low-risk project base drives material and sustainable cash flow growth 2014 Annual Cash Flow Grows Eastern Other 1 B Per Year Beginning 2015 Med. B West 10 Africa DJ Basin 8 DW GOM…
  30. December 2013 Analyst Conference – Noble Energy, Inc. – slide 30
    Global Operations Summary Creating a unique future Extending Production Growth Rates 2014 production increases 18%* Five year CAGR 18% through 2018 Reducing Capital Requirements 1 B over the next 5 years Enhancing Confidence in…
  31. December 2013 Analyst Conference – Noble Energy, Inc. – slide 31
    Financial Review Ken Fisher Executive Vice President and CFO
  32. December 2013 Analyst Conference – Noble Energy, Inc. – slide 32
    Financial Framework Ensuring delivery of value, mitigating downside risks Balance Sheet and Liquidity* to Support High-return Growth Robust capacity to address volatility and risk Capital Discipline Portfolio Managed for Returns…
  33. December 2013 Analyst Conference – Noble Energy, Inc. – slide 33
    Financial Position Remain well positioned with full flexibility MM Well Managed Maturity Profile 4.1 Billion of Liquidity* 1,500 0.9 B cash 1,200 3.2 B unused revolver 900 Net Debt-to-Capital: 29% 600 Total debt of 4.6 B 300…
  34. December 2013 Analyst Conference – Noble Energy, Inc. – slide 34
    Portfolio Management Repositioned portfolio to deliver superior results B 2.1 B of Non-core 2 Divestment Proceeds U.S. Onshore, 1.6 B of High-impact Core North Sea Area Acquisitions 1 U.S. Onshore Focused Investment in U.S.…
  35. December 2013 Analyst Conference – Noble Energy, Inc. – slide 35
    ROACE* Evolution High-margin core area investments driving corporate returns Noble Energy 17% DJ Basin Eastern Med 10% High-return horizontal Tamar expansion program, depletion of leverages existing legacy vertical capital…
  36. December 2013 Analyst Conference – Noble Energy, Inc. – slide 36
    NBL Dividend Commitment to competitive payout Over Last Decade, Dividend per Share Growth Leads Peer Group with 29% CAGR Payout Ratio Also Compares Favorably to Peer Group 10-Year Dividend Growth Per Share vs. Peers* Dividend…
  37. December 2013 Analyst Conference – Noble Energy, Inc. – slide 37
    Exploration and Production Risk Universe Employing a proactive and comprehensive risk management approach Enterprise Risk Management Cash Flow at Risk* Analysis Strategic Commodity Hedging Program Operational and Reputational…
  38. December 2013 Analyst Conference – Noble Energy, Inc. – slide 38
    Cash Flow at Risk* Commodity Price Stress Test Well positioned to address range of potential outcomes Cash Flow from Operations 2014 - 2016 Cumulative distribution of Monte Carlo simulation 5th Percentile Downside NBL Plan 100%…
  39. December 2013 Analyst Conference – Noble Energy, Inc. – slide 39
    Commodity Hedging Program Results Protecting value ... effective stop loss for crisis scenario MM 500 200 180 400 160 140 300 120 200 100 Commodity prices indexed to 80 January 2008 100 60 40 0 2008 2009 2010…
  40. December 2013 Analyst Conference – Noble Energy, Inc. – slide 40
    Commodity Hedging Program Positions Ensures near-term cash flow predictability well hedged for 2014 and 2015 Management Discretion to Hedge Production for the Current Plus Two Calendar Years Strong Program Governance, Oversight and…
  41. December 2013 Analyst Conference – Noble Energy, Inc. – slide 41
    Potential Grey Swans Effectively mitigated by hedging, insurance and liquidity Incident Duration Probability Severity Velocity NBL Net Cash Flow Exposure ( B) Forward 3 IDC Tax Change 20% High 1 Year Years FPSO Outage and 3…
  42. December 2013 Analyst Conference – Noble Energy, Inc. – slide 42
    Global Insurance Program Comprehensive coverages focused on key risks B 2.0 Insurance Limits Broad Global Coverage Through Oil Insurance Limited (O.I.L.) and Commercial Markets 1.5 Operating assets Assets under construction Well…
  43. December 2013 Analyst Conference – Noble Energy, Inc. – slide 43
    Corporate Structure Flexibly positioned to meet future financing needs Updated to Facilitate Tax Efficient, Global Intercompany Financing Increases flexibility Provides alternative options for new country entries Credit facility…
  44. December 2013 Analyst Conference – Noble Energy, Inc. – slide 44
    Cash Flow Outlook Growing cash flows support investment program Discretionary Cash Flow Growing 1 B Per Year 5-year CAGR of 19% Exceeds Cash Capital Beginning in 2016 B 10 8 6 4 2 0 2013 2014 2015 2016 2017 2018…
  45. December 2013 Analyst Conference – Noble Energy, Inc. – slide 45
    Financial Projections Maintaining metrics well within investment grade range 50% Debt-to-Capital FFO* / Total Debt* 140% 120% 40% 100% 30% 80% 60% 20% 40% 10% 20% 0% 0% 2013 2014 2015 2016 2017 2018 2013 2014 2015…
  46. December 2013 Analyst Conference – Noble Energy, Inc. – slide 46
    Living Our Purpose Finance / IT team impacting Houston, Denver and Ardmore communities 47
  47. December 2013 Analyst Conference – Noble Energy, Inc. – slide 47
    Financial Action Plan Strength to deliver value Maintain Robust Balance Sheet and Liquidity* Levels to Support Growth Ensure flexibility to address evolving business needs Manage Portfolio for Returns and Value Disciplined capital…
  48. December 2013 Analyst Conference – Noble Energy, Inc. – slide 48
    U.S. Onshore Gary Willingham Senior Vice President
  49. December 2013 Analyst Conference – Noble Energy, Inc. – slide 49
    U.S. Onshore Overview Built on Core Growth Assets and New Ventures DJ Basin Marcellus DJ Basin Nevada (Wilson) Marcellus Legacy assets 5.5 BBoe of Net Risked Resources of High Quality, High Margin Assets Expect over 40/BOE in…
  50. December 2013 Analyst Conference – Noble Energy, Inc. – slide 50
    One U.S. Onshore Design Built to leverage shared learnings and drive efficiencies Resource Play Assessment and Exploitation Subsurface modeling Downspacing and multiple horizon targeting Flowback / production optimization to maximize…
  51. December 2013 Analyst Conference – Noble Energy, Inc. – slide 51
    U.S. Onshore Resources 5.5 BBoe of net risked resources in some of the best onshore resource plays Net Risked Resources Credit Suisse Basin ROR Rankings 5.5 BBoe 80% Other Niobrara - Wattenberg DJ Basin 70% 60% Marcellus SW…
  52. December 2013 Analyst Conference – Noble Energy, Inc. – slide 52
    Net Production Growth Early days of a tremendous story Increased 90% Over Expect to Increase 230% the Last 3 Years Over Next 5 Years MBoe/d MBoe/d 150 500 450 125 400 350 100 300 75 250 200 50 150 100 25 50 0 0…
  53. December 2013 Analyst Conference – Noble Energy, Inc. – slide 53
    Capital and Cash Flow Growth Operating cash flow exceeds capital by 2016 Operating Cash Flow Keeping Pace with Production Growth Exceeds Capex by 1.6 B Over the 5 Year Period BT Operating Cash Flow * Organic Cash Capital* B B 7 7…
  54. December 2013 Analyst Conference – Noble Energy, Inc. – slide 54
    U.S. Onshore Operating Strategy Designed to deliver, again and again Leverage Organization to Accelerate Breakthroughs in Unlocking Resource Value Build on Strategic Relationships to Accelerate Development Create New Core Areas and…
  55. December 2013 Analyst Conference – Noble Energy, Inc. – slide 55
    DJ Basin Gary Willingham Senior Vice President Dan Kelly Vice President
  56. December 2013 Analyst Conference – Noble Energy, Inc. – slide 56
    DJ Basin Creating and accelerating value again Built One of the Largest Contiguous Acreage Positions in Onshore Resource Plays Increased Net Risked Resources 24% to 2.6 BBoe Five-Year Production CAGR Increased to 23% Drilling…
  57. December 2013 Analyst Conference – Noble Energy, Inc. – slide 57
    Premier and Unique Acreage Position Recent trade expands a consolidated acreage block Competitive to ANY Onshore Resource Play Northern East Pony Colorado 609,000 Net Acres 87% in the oil window* Two thirds in IDP areas 70-75%…
  58. December 2013 Analyst Conference – Noble Energy, Inc. – slide 58
    Expanding Resource Inventory Doubled resource base since 2011 Net Risked Resources Up 24% to 2.6 BBoe Delivering Strong Well Performance Net Risked Resources with Increasing Well Density (BBoe) Confident in 40-acre spacing in…
  59. December 2013 Analyst Conference – Noble Energy, Inc. – slide 59
    Production Outlook Keeps Getting Better Continuing to deliver 20%+ growth MBoe/d Net Production Increasing 5-year CAGR to 23% 300 2018 Production 20% Higher than 2012 23% CAGR Analyst Conference Forecast 200 Liquids Increasing…
  60. December 2013 Analyst Conference – Noble Energy, Inc. – slide 60
    Accelerating Activity Doubling lateral feet drilled over next 5 years Operated Horizontal Wells Lateral Ft. Well Drilling Over 11 MM Lateral Count (000s) Ft. 2014 - 2018 800 3,000 15% more than 2012 Analyst 2,500 Conference…
  61. December 2013 Analyst Conference – Noble Energy, Inc. – slide 61
    Improving Economics with Extended Reach Laterals Making great wells even better with up to 3.4X the value ERL Compared to Normal (Wells Ranch) Length Economics Wells Continue to Outperform Lateral Type Lateral EUR D&C BT ROR BT…
  62. December 2013 Analyst Conference – Noble Energy, Inc. – slide 62
    Basin Wide Downspacing Tests Maximizing value through testing of optimal spacing Confirmed Minimum 16 Wells per Section in Oil Window Testing Higher Density Spacing with 24 - 32 Wells per Section Determining Optimal Spacing for…
  63. December 2013 Analyst Conference – Noble Energy, Inc. – slide 63
    Integrated Development Plan Bringing it all together unlocks tremendous value 750 Hz Well Count 600 450 Reduced footprint 300 Community partner 150 Less emissions 0 2011 2012 2013 2014 2015 2016 2017 2018 Reduced truck traffic…
  64. December 2013 Analyst Conference – Noble Energy, Inc. – slide 64
    Leveraging Integrated Development Plans Enhancing tremendous growth, value and sustainability Developing Planning Next Up Operations Impact Wells East Greeley Mustang Core Cummins West Pony Ranch Pony Crescent Accelerated pace Net…
  65. December 2013 Analyst Conference – Noble Energy, Inc. – slide 65
    Increasing Value through IDPs Efficiencies drive economic enhancement MM East Pony IDP NPV10 Total East Pony IDP Value B 1.2 Incremental Value per Well 270 MM 3.7 Uncaptured Potential Efficiencies 3.6 B 1.0 3.5 780 MM Operational…
  66. December 2013 Analyst Conference – Noble Energy, Inc. – slide 66
    Strong Economics Across the Basin Huge inventory of low-risk, high-value projects Individual Gross Well IDP Total Remaining Normal BT BT Spacing EUR D&C WI Length IDP Area % Liquid2 NPV10 ROR (Acres / (MBoe)1 ( MM) (%) Equivalent…
  67. December 2013 Analyst Conference – Noble Energy, Inc. – slide 67
    Wells Ranch IDP Executing the plan now 17 miles 61,000 Net Acres Underground Laboratory Confirmed 40-acre Spacing Testing tighter spacing 10 miles 1,000 Remaining Equivalent Wells (+40% ERLs) 300 wells drilled by YE 2013…
  68. December 2013 Analyst Conference – Noble Energy, Inc. – slide 68
    Wells Ranch Centralized Processing Facility Increasing economics with less footprint Transitioned from Gen I to Gen III Econode Gen I Minimized separation facilities Econode Liquids and gas sent to CPF Commissioned October 2013…
  69. December 2013 Analyst Conference – Noble Energy, Inc. – slide 69
    Key Learnings from Underground Laboratory 40 and 80-acre wells performing above type curve 40-acre Spaced Wells Performing in Line with 80-acre Spaced Wells Section 25 18 Months of Production History 25 6 wells at 40-acres (16…
  70. December 2013 Analyst Conference – Noble Energy, Inc. – slide 70
    Realizing Value from Subsurface Excellence Optimizing well spacing and recovery factor Confirmed 16 wells/section Recovery Factor: 7% of 74 MMBOE OOIP Confirmed: 300 ft 16 wells per section generates 70 MM per section in BT…
  71. December 2013 Analyst Conference – Noble Energy, Inc. – slide 71
    Delivering Success in Wells Ranch IDP Great project continues to demonstrate upside 16 Wells per Section Performing Wells Ranch Well Performance to Type Curve Boe/d Testing 24 and 32 wells per section 400 Expect Increased Blend of…
  72. December 2013 Analyst Conference – Noble Energy, Inc. – slide 72
    Ramping up East Pony IDP Initiated in 2013, activity doubling in 2014 12 miles 44,000 Net Acres Acreage obtained from acquisitions in 2010 and 2011 First successful NBL well drilled in 2011 Current Activity 10 MBoe/d gross from…
  73. December 2013 Analyst Conference – Noble Energy, Inc. – slide 73
    East Pony Liquids Rich, High Returns Strong well performance underpins extraordinary project Test Results Confirm Minimum 16 Wells per Section Testing 24 - 32 Wells per Section Boe/d East Pony IDP Well Performance in 2014 600 All…
  74. December 2013 Analyst Conference – Noble Energy, Inc. – slide 74
    Continually Improving D&C Operations Drilling 9,000 laterals in the time it took to drill 4,000 in 2010 Days Spud to Rig Release (4,000 Laterals) Rig Efficiencies and Pad Drilling 20 Continue to Improve Cycle Times 16.2 15.8 Wells…
  75. December 2013 Analyst Conference – Noble Energy, Inc. – slide 75
    DJ Basin Oil and Gas Infrastructure Production growth aligned with infrastructure build-out MMcf/d GWA Gross Operated Gas 600 NBL and Third-Party Infrastructure Gross Operated Production Being Significantly Expanded 500 NBL…
  76. December 2013 Analyst Conference – Noble Energy, Inc. – slide 76
    DJ Basin Oil and Gas Infrastructure Expansions underway Growing Oil Takeaway Capacity WOT oil gathering line online Plains Tampa Rail online EAST KEOTA PLANT/LNG PONY White Cliffs expanding to 150 MBbl/d (mid 2014) BRIGGSDALE OPF…
  77. December 2013 Analyst Conference – Noble Energy, Inc. – slide 77
    Living Our Purpose Operating as environmental stewards CPFs and Gathering System Infrastructure Past Completion Operations IDPs will take 300 - 900 trucks off the road per day Reduced emissions and capture of flash gas Increased…
  78. December 2013 Analyst Conference – Noble Energy, Inc. – slide 78
    DJ Basin Premier asset with limitless possibilities Production Growing at 23% CAGR Resources Continue to Grow Doubled Since 2011 Accelerating Pace of Development IDPs Maximizing Value While Reducing Impact Midstream Infrastructure…
  79. December 2013 Analyst Conference – Noble Energy, Inc. – slide 79
    Marcellus Shale Gary Willingham Senior Vice President Donnie Moore Vice President
  80. December 2013 Analyst Conference – Noble Energy, Inc. – slide 80
    Marcellus Shale Delivering value with an even brighter future ahead Net Risked Resources Increased 30% to 13 Tcfe Five Year Production CAGR Over 45% Efficiencies and Learnings Driving Well Costs Down Recognized 10% in 2013 Rapidly…
  81. December 2013 Analyst Conference – Noble Energy, Inc. – slide 81
    Marcellus Shale Overview Premier acreage position in the heart of the southwest fairway Current Industry Rig Activity 50% of 610,000 Gross Acres in the Southwest Fairway Primary focus of industry activity 87% HBP Acreage Position…
  82. December 2013 Analyst Conference – Noble Energy, Inc. – slide 82
    Net Risked Resources Dramatic growth and still unlocking potential Risked Resources Up 30% to 13 Tcfe Well Performance Continues to Net Risked Resources Improve Adding 0.7 Tcfe (Tcfe) Average EUR increased 15% 13 Increased Lateral…
  83. December 2013 Analyst Conference – Noble Energy, Inc. – slide 83
    2014 and Beyond Rapidly evolving core area MMcfe/d Net Production Production Grows at 46% CAGR 1,200 through 2018 1,000 46% CAGR 2014 production up 90% from 2013 800 7 Billion of Capital 2014 - 2018 600 Developing up to 2 MM…
  84. December 2013 Analyst Conference – Noble Energy, Inc. – slide 84
    Midstream Capacity Robust midstream options provides flow assurance Infrastructure Developing at Rapid Pace Industry capacity in SW Marcellus Net Processing Capacity and over 8 Bcf/d by YE 2015 Production for Wet Gas Areas MMcf/d…
  85. December 2013 Analyst Conference – Noble Energy, Inc. – slide 85
    Premium Market Access in SW PA/WV NBL acreage positioned to receive best prices in the play NE PA and SW PA vs. Henry Hub 80% of NBL Production has Flexibility to Exit the Basin SW PA Texas Eastern and Columbia Gas Favorable Basis…
  86. December 2013 Analyst Conference – Noble Energy, Inc. – slide 86
    Production Growth Underway Improving well performance supporting growth Total Net Production Production Doubled in MMcfe/d 250 Last 6 Months 200 Completion Learnings Driving 150 IP Rates Up 15% in One Year 100 Reservoir…
  87. December 2013 Analyst Conference – Noble Energy, Inc. – slide 87
    Continuous Improvement in Well Cost On track to deliver 20% reductions Realized 10% Total Well Cost Total Well Costs for 5,000 Lateral Reductions on 5,000 Ft. Laterals MM Increased well NPV10 by 10% 10 10% Cost Reduction 8 Cost…
  88. December 2013 Analyst Conference – Noble Energy, Inc. – slide 88
    Optimal Developments Longer laterals adding substantial value HBP Position Enables Operated Avg. Lateral Length Efficient Development Ft. Acreage retention not an issue 10,000 Allows for large-scale development and longer laterals…
  89. December 2013 Analyst Conference – Noble Energy, Inc. – slide 89
    Operational Excellence Tremendous value added in short period of time Rate of Return Doubled Through Efficiencies and Wet Gas Area Historical* Today Future Performance Improvement Laterals 5,000 7,000 7,000 - 10,000 EURs up 60%…
  90. December 2013 Analyst Conference – Noble Energy, Inc. – slide 90
    Key Focus Areas IDP delivering value with upside opportunities Integrated Development Plans (IDPs) Leveraging learnings from DJ Basin Operational excellence Stewardship Airport Value creation with sustainable growth Majorsville…
  91. December 2013 Analyst Conference – Noble Energy, Inc. – slide 91
    Majorsville Core area in liquids-rich region First Operated Area with 49 Wells Online Acreage only 20% developed Well Performance Significantly Improved Normalized well production over initial 120 days up 21% Much flatter declines…
  92. December 2013 Analyst Conference – Noble Energy, Inc. – slide 92
    Majorsville IDP model for the Marcellus Efficient Infrastructure Deployment Centralized processing facilities Common gas and condensate Water Infrastructure gathering lines Water infrastructure and 100% recycling Ideally located…
  93. December 2013 Analyst Conference – Noble Energy, Inc. – slide 93
    Southwest PA Dry Gas Competitive economics underpinning significant growth First Development Area with 130 Producing Hz Wells (CNX Operated) Production Doubled in 2 Years Lateral Length has Increased 50% Since 2011 40 Wells Planned…
  94. December 2013 Analyst Conference – Noble Energy, Inc. – slide 94
    Allegheny County Airport Opportunistic leasing in liquids rich area 8,700 Contiguous Acres (CNX Operated) Acquired in 2013 On trend with local industry activity with great results Ideal for IDP approach Drilling Planned for Late…
  95. December 2013 Analyst Conference – Noble Energy, Inc. – slide 95
    Oxford / Pennsboro / Shirley (OPS) Delineation underway to create the next IDP Promising Liquids-rich Areas 2 Rigs Delineating Prospective IDP 500 Ft. Downspacing Pilot Underway Significant Burkett Potential As thick as Marcellus in…
  96. December 2013 Analyst Conference – Noble Energy, Inc. – slide 96
    Strategic Delineation Areas Opportunities for future IDPs Delineation Activity Underway Minimal testing to date in most areas Downspacing, Burkett Tests and Completion Optimization to Further Improve Economics Near-term Focus…
  97. December 2013 Analyst Conference – Noble Energy, Inc. – slide 97
    Downspacing Opportunities Accessing more resources Rate Transient Analysis Indicates No Production Interference at 750 Ft. Spacing Testing 500 Ft. Well Spacing in Multiple Areas Downspacing Potential Also Being Assessed in Dry Gas…
  98. December 2013 Analyst Conference – Noble Energy, Inc. – slide 98
    Burkett / Upper Devonian Opportunities Accessing more resources by unlocking a new interval Similar Hydrocarbons in Place per PA Stratigraphy Foot as Marcellus Thicker than Marcellus in Some Areas First Test in Dry Gas Area…
  99. December 2013 Analyst Conference – Noble Energy, Inc. – slide 99
    Additional Upside Opportunities Delivering increased performance Mcf/Lateral Cum. Production (Normalized) Positive Results from Reduced Stage Ft. on RSCS Wells and Offsets and Cluster Spacing (RSCS) 100 Average initial rate up to 40%…
  100. December 2013 Analyst Conference – Noble Energy, Inc. – slide 100
    Bolt-on Acquisition Adds 1.8 Tcfe of net risked resource potential Recent Transaction Additive to Current Plan 90,000 Gross Acres in N West Virginia 190 MM acquisition cost (NBL 50%) 50% upfront, 50% when drilled HBP 100%, NRI 80 -…

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