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November 2011 Analyst Conference – Noble Energy, Inc.

Noble Energy, Inc. · Nov 15, 2011 · 187 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. November 2011 Analyst Conference – Noble Energy, Inc. – slide 1
    Noble Energy Analyst Conference November 15, 2011
  2. November 2011 Analyst Conference – Noble Energy, Inc. – slide 2
    Agenda November 15 Analyst Conference Company Overview Chuck Davidson Chairman and CEO Operations Summary Dave Stover President and COO Financial Review Ken Fisher SVP and CFO DJ Basin Ted Brown SVP U.S. Northern Region…
  3. November 2011 Analyst Conference – Noble Energy, Inc. – slide 3
    Agenda November 15 Analyst Conference Gulf of Mexico John Lewis VP U.S. Southern Region West Africa Rodney Cook SVP International Eastern Mediterranean Rodney Cook SVP International Exploration Susan Cunningham SVP…
  4. November 2011 Analyst Conference – Noble Energy, Inc. – slide 4
    Overview Chuck Davidson Chairman and CEO
  5. November 2011 Analyst Conference – Noble Energy, Inc. – slide 5
    Noble Energy in 2011 Positioned for a decade of growth Five Core Areas All with Substantial Growth Each with double-digit production growth Proven reserves projected to increase 150% over 5 years Multiple Major Projects Coming…
  6. November 2011 Analyst Conference – Noble Energy, Inc. – slide 6
    Key Accomplishments Substantial progress in a short period Tamar 1st Deepwater Sanction GOM Permit (Santiago Disc.) Alen Marcellus Carla Sanction JV Discovery 7/10 1/11 7/11 1/12 Non-core 270 MMBoe Accelerate Aseng Asset…
  7. November 2011 Analyst Conference – Noble Energy, Inc. – slide 7
    Leveraging Our Recent Accomplishments Five-year outlook even better than before Exploration Success and Marcellus Addition Providing New High-return Investment Opportunities 5-year capital investment increased from 13 B to 24 B…
  8. November 2011 Analyst Conference – Noble Energy, Inc. – slide 8
    Debt-adjusted* Growth per Share Dramatic progress in just one year Compound Annual Growth Rate 2010 Analyst Day (2010 - 2015) 18% 10% 5% Reserves Production Cash Flow per Share per Share per Share * Terms…
  9. November 2011 Analyst Conference – Noble Energy, Inc. – slide 9
    Debt-adjusted* Growth per Share Dramatic progress in just one year Compound Annual Growth Rate 2010 Analyst Day (2010 - 2015) 2011 Analyst Day (2011 - 2016) 22% 18% 18% 15% 10% 5% Reserves Production Cash Flow per…
  10. November 2011 Analyst Conference – Noble Energy, Inc. – slide 10
    Key Outcomes by 2016 Superior operational and financial performance Production 17% CAGR to 490 MBoe/d Reserves 20% CAGR to 2.7 BBoe 5-Yr F&D of 10/Boe Cash Flow BTax Cash Margin* Up 15% to 44/Boe Returns ROACE 17% in…
  11. November 2011 Analyst Conference – Noble Energy, Inc. – slide 11
    Conference Themes Depth and Quality of Opportunities Material in scale and scope Value of a Diversified Portfolio Retaining flexibility and balance Capacity and Capabilities of Organization Allowing Capture of Full Value…
  12. November 2011 Analyst Conference – Noble Energy, Inc. – slide 12
    Operations Summary Dave Stover President and COO
  13. November 2011 Analyst Conference – Noble Energy, Inc. – slide 13
    Operating Strategy Focus on Five Core Operating Areas DJ Basin, Marcellus, Deepwater GOM, Eastern Mediterranean and West Africa Convert Discovered Resources to Production Excel on major project execution Accelerate U.S. onshore…
  14. November 2011 Analyst Conference – Noble Energy, Inc. – slide 14
    Environment, Health and Safety Initiatives Creating value through responsible leadership Global EHS Management System Local Stakeholders Engagement Deepwater Well Control Containment System Participant in Carbon Disclosure…
  15. November 2011 Analyst Conference – Noble Energy, Inc. – slide 15
    Operational Highlights U.S. DJ Basin Record well results De-risked Wattenberg horizontal program Accelerating activity levels Marcellus Results already better than expected Activity accelerating Prepared to operate Deepwater…
  16. November 2011 Analyst Conference – Noble Energy, Inc. – slide 16
    Operational Highlights International West Africa Aseng on production with world-class project execution Alen development benefitting from Aseng experiences Testing exploration potential Eastern Mediterranean Tamar on schedule…
  17. November 2011 Analyst Conference – Noble Energy, Inc. – slide 17
    Net Resources Over six times proved reserves Risked Resources (BBoe) New Deepwater 14.0 Ventures DJ Basin Marcellus GOM Other Eastern Med 7.4 West Africa 1.2 Proved Reserves* Risked Resources Unrisked Resources…
  18. November 2011 Analyst Conference – Noble Energy, Inc. – slide 18
    Net Risked Resource Substantial growth and de-risking in opportunity set Net Risked Resource (BBoe) 7.4 75% 4.2 45% 2.9 2008 2010 2011 Proved Reserves Discovered Unbooked Core Area Exploration New Play Types 7
  19. November 2011 Analyst Conference – Noble Energy, Inc. – slide 19
    Net Risked Resource Changes Since 2010 High-quality investment opportunities Net Risked Resources (BBoe) 1.0 7.4 1.3 New Ventures and Other Additions 0.4 0.6 Marcellus Horizontal JV 4.2 Niobrara Leviathan De-risked…
  20. November 2011 Analyst Conference – Noble Energy, Inc. – slide 20
    Proved Reserves Outlook Increasing 150% over the next five years Proved Reserves (BBoe) All-in Reserve Replacement* Proven track record over 2.7 last 5 years 20% CAGR Expecting performance to accelerate 400% 177% 1.1 2006 -…
  21. November 2011 Analyst Conference – Noble Energy, Inc. – slide 21
    Production Outlook Growth in all core areas Projected Annual Growth Rates (2011 2016) MBoe/d 600 126% 17% CAGR 500 32% 400 300 20% 200 15% 14% 100 0 2011 2012 2013 2014 2015 2016 DJ Basin Marcellus DW GOM W…
  22. November 2011 Analyst Conference – Noble Energy, Inc. – slide 22
    Onshore U.S. Divestments Results in highly concentrated operations Less than 10% of Global Portfolio 23 MBoe/d of current net production 88 MMBoe net proved reserves 70% natural gas, 30% liquids Expect to conclude in 2012…
  23. November 2011 Analyst Conference – Noble Energy, Inc. – slide 23
    Volume Profile Maintaining diversified commodity exposure 2016 Brent, LLS WTI U.S. Gas 2011 Intl Gas Brent, LLS U.S. Gas Alba LNG Gas WTI Intl Alba Gas LNG Gas U.S. Contribution Increases from 53% to 66% 12
  24. November 2011 Analyst Conference – Noble Energy, Inc. – slide 24
    Capital Investment Outlook Annual organic cash capital* grows from 3 to 5 B By Area Deepwater DJ Basin GOM B By Year West 6 Africa Marcellus Eastern Med Other 4 By Type 2 Other Offshore Development Major Projects…
  25. November 2011 Analyst Conference – Noble Energy, Inc. – slide 25
    Capital Changes Since 2010 Increases driven by success Average Annual Organic Cash Capital* 2011 2016 (B) 0.4 (0.2) 4.5 0.7 Other Leviathan Discovery, 1.0 Carry Eastern Med. Horizontal Exploration Niobrara De-risked…
  26. November 2011 Analyst Conference – Noble Energy, Inc. – slide 26
    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…
  27. November 2011 Analyst Conference – Noble Energy, Inc. – slide 27
    Keys to NBLs Success Executing Major Projects Leveraging learnings across all projects Clearly Defined Objectives Industry Subsea Cost Benchmark for Experienced and Empowered West Africa Aseng Subsea Systems Project Teams 80%…
  28. November 2011 Analyst Conference – Noble Energy, Inc. – slide 28
    Major Project Impact Generates significant production and cash flow Projects Projected Net B MBoe/d 6 400 Impact in 2016 Production 340 MBoe/d 300 4 Operating cash flow* 5 B Free cash flow* 1.6 B 200 2 Self-funding Over Five…
  29. November 2011 Analyst Conference – Noble Energy, Inc. – slide 29
    Operations Summary Risked Resources Six Times Proved Reserves Project Execution on Track Reserves Projected to Increase 150% by 2016 Production Projected to More than Double Over the Next Five Years Portfolio Remains Well…
  30. November 2011 Analyst Conference – Noble Energy, Inc. – slide 30
    Financial Review Ken Fisher, SVP and CFO
  31. November 2011 Analyst Conference – Noble Energy, Inc. – slide 31
    Financial Imperatives Built capital structure to support business value creation Ensure Ability to Fund Attractive Opportunities Through the Commodity Cycle Long-cycle, long-life major projects Onshore horizontal programs…
  32. November 2011 Analyst Conference – Noble Energy, Inc. – slide 32
    Discretionary Cash Flow* Growth Projected 22% CAGR to 2016 B 7 6 5 4 3 2 1 0 2011 2012 2013 2014 2015 2016 * Term defined in appendix 3
  33. November 2011 Analyst Conference – Noble Energy, Inc. – slide 33
    Capital Structure Robust to ensure delivery of value Strong Liquidity Robust to Commodity Price Cycle Conservative Balance Sheet and Investment Grade Rating Maintain Baa2 / BBB ratings Proactive Funding Strategy Cash on hand and…
  34. November 2011 Analyst Conference – Noble Energy, Inc. – slide 34
    Financial Position 3Q 2011 Moving forward from a position of strength Well Managed Maturity Profile 1.3 B Cash on Hand MM 1,600 3.0 B Liquidity 1,200 800 Strong Ratios Debt-to-book capital 34% 400 Net debt-to-book…
  35. November 2011 Analyst Conference – Noble Energy, Inc. – slide 35
    Liquidity Maintaining strong liquidity Liquidity as a % of Total Assets S&P Liquidity Metric 30% 2.50 Strong to Exceptional Liquidity 3.6 B 2.09 1.5X to 2.0X 25% 2.00 20% 1.50 15% 1.00 10% 0.50 5% 0% 0.00 NBL A…
  36. November 2011 Analyst Conference – Noble Energy, Inc. – slide 36
    Credit Facility Renewal Scaled up to meet growth funding needs Facility Size to Company Size Total Assets Correlation New Facility Closed During (B) October 2011 3.0 B facility 50 2 R = 0.7707 1.0 B accordion feature 5-year term…
  37. November 2011 Analyst Conference – Noble Energy, Inc. – slide 37
    2012 Outlook Maintaining strong position moving forward Liquidity* Debt-to-cap B and 4 80% FFO*-to-debt 70% 68% 61% 3 60% 50% 2 40% 34% 32% 29% 30% 26% 1 20% 10% 0 0% 3Q 2011 2012 Projected Q3 2011 2012…
  38. November 2011 Analyst Conference – Noble Energy, Inc. – slide 38
    Enterprise Risk Management Integrated program across entire company Proactive Program in Place Identify, Quantify, Prioritize, Manage and Mitigate Key Risks Linked to Key Business Processes Portfolio risks Annual budget / long…
  39. November 2011 Analyst Conference – Noble Energy, Inc. – slide 39
    Commodity Hedging Proactively hedged through 2013 Global Oil U.S. Gas 4Q11 2012 2013 4Q11 2012 2013 60% 50% 49% 44% 37% 35% 37% 38% 30% 25% 15% 6% NBL Peers NBL Peers NBL Peers NBL Peers NBL Peers NBL Peers Downside…
  40. November 2011 Analyst Conference – Noble Energy, Inc. – slide 40
    Cash Flow at Risk Modeling Robust across a wide range of business scenarios Cumulative Operating Cash Flow Monte Carlo Simulation 2011 2016, B 5,000 scenarios 95% Confidence Commodity Price Range of Executing Strategic Projects…
  41. November 2011 Analyst Conference – Noble Energy, Inc. – slide 41
    Financial Projections Targeting strong liquidity as company scale grows B 5 4 3 2 1 0 2009 2010 2011 2012 2013 2014 2015 2016 Liquidity* NBL Liquidity Target * Term defined in appendix 12
  42. November 2011 Analyst Conference – Noble Energy, Inc. – slide 42
    Financial Projections Maintaining metrics well within investment grade range Debt-to-capital Ratios 100% FFO* / Total Debt* 45% 80% 30% 60% A Rating 40% BBB Rating 15% 20% 0% 0% 2009 2010 2011 2012 2013…
  43. November 2011 Analyst Conference – Noble Energy, Inc. – slide 43
    Financial Summary Continued Strong Financial Discipline Deploying growth capital at attractive returns Proactively Managing Capital Structure and Business Risks Maintaining Ample Liquidity and Conservative Balance Sheet for…
  44. November 2011 Analyst Conference – Noble Energy, Inc. – slide 44
    Denver-Julesberg Basin Ted Brown SVP U.S. Northern Region
  45. November 2011 Analyst Conference – Noble Energy, Inc. – slide 45
    DJ Basin Dramatic growth underway Leader in Innovation and Technology Application Significant Resource Potential Now Being Exploited Operational Performance Continues to Improve Defined Development Plan to Accelerate…
  46. November 2011 Analyst Conference – Noble Energy, Inc. – slide 46
    NBLs Top Ten Niobrara Breakthroughs A leader in the horizontal play 1. Best Producing Well in Wattenberg 2. Proved Horizontal Viability in Vertically Developed Areas 3. Longest Extended Reach Lateral 4. Record Drill Time 5.…
  47. November 2011 Analyst Conference – Noble Energy, Inc. – slide 47
    DJ Basin Position Double-digit production growth over next five years Provides Huge Potential Over 840,000 net acres Net risked resources of 1.3 BBoe Significant Future Growth Strong production base of 67 MBoe/d, net S.E.…
  48. November 2011 Analyst Conference – Noble Energy, Inc. – slide 48
    DJ Basin Resource Opportunity Net risked resources increased over 60% to 1.3 BBoe Net Risked Resources Horizontal Niobrara Driving (BBoe) Growth 1.3 Further exploitation in vertically developed areas of Wattenberg field 0.8…
  49. November 2011 Analyst Conference – Noble Energy, Inc. – slide 49
    Wattenberg Horizontal Niobrara Entire area de-risked for development Superior Acreage Position Extension Area 25 Wells Completed Over 400,000 net acres 480 Boe/d Avg. 30-day IP 70 - 90% liquids 58 Producing Wells To-date 18…
  50. November 2011 Analyst Conference – Noble Energy, Inc. – slide 50
    Wattenberg Horizontal Niobrara Production Curves Operational learnings generating better performance Gross Production Boe/d 800 600 18 Wells Avg. EUR 355 MBoe 25% 400 23 Wells Avg. EUR 290 MBoe 200 0 0 30 Days 60…
  51. November 2011 Analyst Conference – Noble Energy, Inc. – slide 51
    Wattenberg Horizontal Niobrara Production More than tripled in last six months MBoe/d Net Horizontal Production EUR (MBoe) 355 16 315 270 12 8 120 4 0 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 First Well First 8 Wells Avg. 30…
  52. November 2011 Analyst Conference – Noble Energy, Inc. – slide 52
    Wattenberg Horizontal Niobrara Well Economics Strong returns continuing to improve Recent Results Exceeding Previous Type Curves Technical and Operational Learnings Enhancing Economics High Liquid Content Benefits Each Area After…
  53. November 2011 Analyst Conference – Noble Energy, Inc. – slide 53
    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 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11…
  54. November 2011 Analyst Conference – Noble Energy, Inc. – slide 54
    Wattenberg Horizontal Niobrara Field Tests Proof of concepts yield confidence and ability to deliver High Density Areas No Interference Extended Reach Lateral Better Capital Efficiency More Frac Stages Improving Recovery Low…
  55. November 2011 Analyst Conference – Noble Energy, Inc. – slide 55
    Horizontal Drilling in High Density Areas Lack of interference proves it is working Greeley 12
  56. November 2011 Analyst Conference – Noble Energy, Inc. – slide 56
    Repeatable Gemini Type Well Substantial potential within vertically developed areas Tanner K33-65HN UPRC 5F UPRC 6F NBL 100% WI Heitman 5 956 ft. UPRC 7F UPRC 8F 733 ft. 5,300 ft. lateral with 466 ft. 478 ft. 366 ft. 21-stage…
  57. November 2011 Analyst Conference – Noble Energy, Inc. – slide 57
    Extended Reach Lateral Results Encouraging 20% improvement in F&D costs Boe/d Wells Ranch AE29 68HN 1000 800 NBL Operated with 100% WI 600 Spud to rig release in 17 days 400 9,120 ft. lateral with 39-stage completion 200…
  58. November 2011 Analyst Conference – Noble Energy, Inc. – slide 58
    Complex Areas of Niobrara Unlocked 3D seismic improves technical capabilities Target Multiple Stacked Pay Zones Niobrara B and C chalks Codell sandstone Possibly Greenhorn chalks Detailed Subsurface Understanding Identify faults…
  59. November 2011 Analyst Conference – Noble Energy, Inc. – slide 59
    DJ Basin Niobrara Comparison Niobrara contains significant amounts oil and gas DJ Basin Pierre Shale Stratigraphy Property Niobrara Eagleford Bakken Sussex (Terry) SS Pierre Shale Depth 5,500 - 8,200 ft. 6,000 - 8,000 ft. 7,000 -…
  60. November 2011 Analyst Conference – Noble Energy, Inc. – slide 60
    Historical Wattenberg Development Plan Increased vertical density yielded a low recovery factor OOIP Recovery Conventional Plan of 100% Development Increase Vertical Well Density Early Approach 32-acre 80% Well Spacing (20…
  61. November 2011 Analyst Conference – Noble Energy, Inc. – slide 61
    Wattenberg Current State Adding horizontal wells with 160-acre spacing OOIP Recovery Early Success with Gemini in Heavily Drilled Section 100% (18 wells) Demonstrated Repeatability 80% GEMINI with Over 50 Wells BHL X SHL…
  62. November 2011 Analyst Conference – Noble Energy, Inc. – slide 62
    Wattenberg Future State Pad drilling, 80-acre spacing and EcoNodes OOIP Recovery Currently Evaluating 1 Mile Viability of 80-acre 5 Well 100% Pad Horizontal Well Spacing EcoNode Facility Pad Piloting 9 horizontal wells in 1…
  63. November 2011 Analyst Conference – Noble Energy, Inc. – slide 63
    Drilling Pads with EcoNode Centralized Facilities Providing operational efficiency 8-well pad with EcoNode in background Efficient Pad Concept with Facilities on Central Site Water Pumped to Well Pads for Drilling and Hydraulic…
  64. November 2011 Analyst Conference – Noble Energy, Inc. – slide 64
    Wattenberg Horizontal Niobrara Development Plan Addressing the supply chain increases the certainty of execution Approximately 3,900 Potential Locations Rig Count and Completions to Double within Two Years Horizontal Niobrara…
  65. November 2011 Analyst Conference – Noble Energy, Inc. – slide 65
    DJ Basin Takeaway Capacity Third parties expanding to meet producers needs Natural Gas Processing Expansions DCP completed Mewbourn II expansion, next is LaSalle for 100 MMcf/d by mid 2013 Others expected to add 500 MMcf/d of…
  66. November 2011 Analyst Conference – Noble Energy, Inc. – slide 66
    Central DJ Basin Niobrara Significant acreage position outside Wattenberg Approximately 440,000 Net Acres Seismic Low entry cost - 480 per acre Outlines Largely operated by NBL Capitalizing on Industry Knowledge to Expand…
  67. November 2011 Analyst Conference – Noble Energy, Inc. – slide 67
    DJ Basin Production Outlook Liquids content and horizontal activity drives growth Horizontal Production Increases Nine Times Liquid Production Doubles Net Production 2012 2016 Capital MBoe/d 150 8 B Other 100 Vertical…
  68. November 2011 Analyst Conference – Noble Energy, Inc. – slide 68
    DJ Basin Positioned for dramatic growth 1.3 BBoe of Net Risked Resources Horizontal Resource Potential Could Increase Through Tighter Well-spacing Increase Niobrara recovery to 6 - 12% OOIP Production Doubles in Five Years…
  69. November 2011 Analyst Conference – Noble Energy, Inc. – slide 69
    Marcellus John Lewis VP U.S. Southern Region
  70. November 2011 Analyst Conference – Noble Energy, Inc. – slide 70
    Marcellus Great strategic fit for NBL High-quality, Well-positioned Asset Lowest cost U.S. gas play Innovative JV Structure and Aligned Partner Manageable Multi-year Development Plan Operating results already showing…
  71. November 2011 Analyst Conference – Noble Energy, Inc. – slide 71
    Marcellus JV Position Significant scale and impact Large Acreage Position Within Marcellus Fairway PA 50% of 628,000 net acres as G Located in both wet and dry gas windows et W OH High NRI (88%) as G 87% of Acreage…
  72. November 2011 Analyst Conference – Noble Energy, Inc. – slide 72
    Benefits of Partnering with CNX Built in efficiencies to jump-start operations Well-established Appalachian Operator Experienced Land and Permitting Staff Excellent Safety and Environmental Record Unique Synergies Coordinated…
  73. November 2011 Analyst Conference – Noble Energy, Inc. – slide 73
    Marcellus Sweet Spot Initial activity concentrated in SW PA Industry Recognized Sweet Spot in SW PA SW PA Sweet Spot Key Geologic Attributes Systematic Development and Expansion Adds Efficiency Continue to Test Other…
  74. November 2011 Analyst Conference – Noble Energy, Inc. – slide 74
    Early Results Exceeding Expectations New pad adding significant production Hutchinson 10-well Pad Pad Location Initial production rates 5 - 12 MMcf/d 5 wells 5 - 8 MMcf/d SW PA Sweet Spot 5 wells 9 - 12 MMcf/d Potentially…
  75. November 2011 Analyst Conference – Noble Energy, Inc. – slide 75
    Marcellus Well Results Comparison CNX wells improving, now exceeding industry average CNX Wells in SW PA Yield 21% More Production Over 500 Days Gross Wellhead Gas Production Mcf/d 4,000 3,000 2,000 1,000 0 0 100…
  76. November 2011 Analyst Conference – Noble Energy, Inc. – slide 76
    Marcellus Individual Well Economics Innovative deal structure maintains returns at low gas price AT ROR % 50 No Carry Carry 40 30 20 10 0 3.00 4.00 5.00 6.00 Flat Gas Price (MMBtu) Note: Assumes 6 MM well cost, 7…
  77. November 2011 Analyst Conference – Noble Energy, Inc. – slide 77
    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…
  78. November 2011 Analyst Conference – Noble Energy, Inc. – slide 78
    Marcellus JV Work Process Utilize major project expertise Long-term, Systematic Approach Joint rolling 3-year plans Systematic development of wells and infrastructure Semi-annual Best Practices Workshops Defined joint technical…
  79. November 2011 Analyst Conference – Noble Energy, Inc. – slide 79
    Marcellus JV Drilling Plan Controlled and steady ramp-up Wells 400 300 200 100 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CNX NBL 11
  80. November 2011 Analyst Conference – Noble Energy, Inc. – slide 80
    NBLs Near-term Drilling Plan HBP and fee acreage enables efficient development Focused Infrastructure Development Pad Drilling Locations Identified Through 2015 2012 Washington County 39 wells drilled with 1 2014 2015 rig…
  81. November 2011 Analyst Conference – Noble Energy, Inc. – slide 81
    CNXs Near-term Drilling Plan Pad drilling for efficiency and cost control PA CNXs 2012 and 2013 OH Drilling Program Focused on N Nineveh 2 MD Greene and Washington WV VA Counties in PA Wet Gas Dry Gas N Nineveh 1 Water…
  82. November 2011 Analyst Conference – Noble Energy, Inc. – slide 82
    Water Sourcing Plan for SW PA Supply established and infrastructure build out underway Sufficient for 16 Frac Alex Paris Booster Alex Paris Stages per Day Project 800 GPM Ohio River via Moving Water by Pipeline Shoemaker Mine N.…
  83. November 2011 Analyst Conference – Noble Energy, Inc. – slide 83
    Gas Gathering System Plan for SW PA Systematic expansion to stay ahead of drilling activity PA Gas Gathering System Installed OH or Under Construction to Support 2012 Drilling MD Pad Drilling Allows for Lower WV VA Number of…
  84. November 2011 Analyst Conference – Noble Energy, Inc. – slide 84
    NBLs Impact on JV Applying our core competencies and transferring learnings Experience with Wattenberg Unconventional Reservoirs Integrated Subsurface Approach Project Management Skills Supply Chain Management Complementary…
  85. November 2011 Analyst Conference – Noble Energy, Inc. – slide 85
    NBL Operational Readiness Prepared for operations January 1 Opened Office in Canonsburg, PA Core Operations Staff on the Ground Designed Organization and Processes Using Wattenberg Best Practices Service Contracts Established…
  86. November 2011 Analyst Conference – Noble Energy, Inc. – slide 86
    2011 Marcellus JV Production Net NBL production has doubled since initial announcement Net Production MMcf/d 90 80 69 60 50 35 30 0 Announcement Closing Today Projected 8/18/2011 9/30/2011 11/15/2011 12/31/2011 18
  87. November 2011 Analyst Conference – Noble Energy, Inc. – slide 87
    Marcellus JV Production Outlook Rapid growth with long plateau Net Production 2012 2016 Capital 6 B MMcfe/d 1,000 Drilling 800 Carry 600 400 Other Facilities 200 0 2011 2013 2015 2017 2019 2021 19
  88. November 2011 Analyst Conference – Noble Energy, Inc. – slide 88
    Marcellus Fifth impact area for NBL Unique Opportunity in Lowest Cost Gas Play Synergies and Alignment Between CNX and NBL Enhances Value Net Production Reaches 600 MMcfe/d in 2015 7.4 Tcfe of Net Risked Resources and…
  89. November 2011 Analyst Conference – Noble Energy, Inc. – slide 89
    Gulf of Mexico John Lewis VP U.S. Southern Region
  90. November 2011 Analyst Conference – Noble Energy, Inc. – slide 90
    Gulf of Mexico NBL committed to the deepwater Deepwater Returning to a New Normal NBL Led the Industry Back Progress Occurred on Numerous Fronts During the Moratorium Development Projects Will Soon Deliver Significant…
  91. November 2011 Analyst Conference – Noble Energy, Inc. – slide 91
    Deepwater Gulf of Mexico A New normal Last Year Now All deepwater activity suspended Moratorium lifted, multiple activities under moratorium underway MMS under scrutiny, future BOEM systematically processing permitting system…
  92. November 2011 Analyst Conference – Noble Energy, Inc. – slide 92
    Deepwater Gulf of Mexico NBL led the industry back NBL Industry Firsts Post Macondo 1st blowout preventer certification 1st completion permit 1st drilling permit 1st new production from exploration (Santiago) Organized and Led…
  93. November 2011 Analyst Conference – Noble Energy, Inc. – slide 93
    Galapagos Subsea Development Significant progress in the last year Louisiana 132 MMBoe Gross Resources 36 MMBoe, net NBL 29% Average WI Mississippi Canyon Operates Santa Cruz and Santiago Accomplishments Over the NaKika Last…
  94. November 2011 Analyst Conference – Noble Energy, Inc. – slide 94
    Galapagos Field Layout Subsea tieback development 6,500 ft. water depth Dual 8 in. pipe-in-pipe flowlines NaKika Initial 3-well development Santiago Santa Cruz Isabela 6
  95. November 2011 Analyst Conference – Noble Energy, Inc. – slide 95
    Galapagos Production Outlook Sustained production plateau Net Production MBoe/d 20 Development well at Isabela / Development well at Isabela 15 Sleeve Shift at Santa Cruz 10 5 0 2012 2013 2014 2015 2016 2017…
  96. November 2011 Analyst Conference – Noble Energy, Inc. – slide 96
    Galapagos Project Economics Strong cash flow and returns Initially Three Well Cum B MM Subsea Tieback 400 2.0 Base Case Economic 300 1.5 Summary 200 1.0 Net resources 36 MMBoe Net capital 462 MM 100 0.5 F&D 12.70/Boe 0…
  97. November 2011 Analyst Conference – Noble Energy, Inc. – slide 97
    Galapagos Additional Resource Potential Complementary follow-on upside MC 519 Four Offsets Identified To-date Well Locations Santiago Oil and gas potential Discoveries 40 MMBoe gross mean Prospects resource potential Shallow…
  98. November 2011 Analyst Conference – Noble Energy, Inc. – slide 98
    Gunflint Discovery NBLs largest GOM find to-date Louisiana NBL Operated with 26% WI Complex Subsalt Miocene Structure Mississippi Canyon Encountered Over 550 ft. of Net Pay Tubular Bells Kodiak Devils Tower High-quality…
  99. November 2011 Analyst Conference – Noble Energy, Inc. – slide 99
    Gunflint Well Log M-53 Over 550 ft. of net pay M-50 M-54 M-48 11
  100. November 2011 Analyst Conference – Noble Energy, Inc. – slide 100
    Gunflint Discovery Finalized equity determination Interest Holders in All Gunflint Area Blocks Agreed to Final Joint Equity NBL Designated as Operator with 26% WI Added Blocks 992 and 993 to the Project Area Advantages to…

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