Noble Energy Announces Fourth Quarter And Full Year 2012 Results, Including Record Sales Volumes And Cash Flow

 Noble Energy Announces Fourth Quarter And Full Year 2012 Results, Including
                      Record Sales Volumes And Cash Flow

PR Newswire

HOUSTON, Feb. 7, 2013

HOUSTON, Feb. 7, 2013 /PRNewswire/ -- Noble Energy, Inc. (NYSE: NBL) reported
today fourth quarter 2012 net income of $251 million, or $1.39 per share
diluted, and net income from continuing operations(1) of $277 million, or
$1.54 per share diluted. Excluding the impact of an unrealized commodity
derivatives gain and an asset impairment charge, fourth quarter 2012 adjusted
net income from continuing operations(2) was $296 million, or $1.65 per share
diluted. During the fourth quarter 2011, the Company had a net loss from
continuing operations of $314 million, or $1.77 per share diluted, and
adjusted net income from continuing operations(2) of $277 million, or $1.55
per share diluted.

Discretionary cash flow from continuing operations(2) for the fourth quarter
2012 was a record $824 million compared to $710 million for the same quarter
in 2011. Net cash provided by operating activities was $762 million and
capital expenditures(3) for the quarter were $1.1 billion.

Key highlights for the fourth quarter of 2012 include:

  oRecord quarterly cash flow of $824 million and record annual cash flow of
    $2.9 billion for 2012
  oRecord sales volume from continuing operations of 255 thousand barrels of
    oil equivalent per day (MBoe/d) and 239 MBoe/d for the year
  oDJ Basin volumes increased to 86 MBoe/d with horizontal production
    contributing 39 MBoe/d, 45 percent of the total volumes
  oProduction in the Marcellus Shale averaged 121 million cubic feet
    equivalent per day (MMcfe/d) net, a 19 percent increase over third quarter
    2012
  oDiscovery at Big Bend in the Gulf of Mexico
  oNew reservoir discovery at Carla offshore Equatorial Guinea
  oTamar platform installed and commissioning process initiated
  oAnnounced a strategic partner in the Leviathan leases offshore Israel

Noble Energy reported full year 2012 net income of $1.0 billion, or $5.71 per
share diluted, compared to net income of $453 million, or $2.54 per share
diluted, in 2011. Adjusted net income from continuing operations(1) for 2012
was $889 million, or $4.95 per share diluted, compared to $904 million, or
$5.06 per share diluted, in 2011. Discretionary cash flow from continuing
operations(1) was $2.9 billion for the year, up 21 percent from 2011, and net
cash provided by operating activities for the year was $2.9 billion, up 32
percent from 2011. Total year capital expenditures(2) were $3.6 billion.

Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "Delivering
record quarterly cash flow of more than $800 million in the fourth quarter was
an excellent culmination to an exciting year of growth for Noble Energy and
has set the stage for an even better year in 2013. Record sales, with liquids
accounting for 47 percent of the volumes, were a strong contributor to the
quarterly results. In particular, crude and condensate sales grew more than
17 percent from the previous quarter. In 2013, we anticipate another exciting
year of growth as we deliver 20 percent production growth over 2012 after
adjusting for our 2012 property sales. We plan to bring Tamar and Alen to
first production while continuing to grow our U.S. production from the DJ
Basin and Marcellus. To support future growth, we intend to sanction this
year another wave of major projects that will likely include a Phase 2 of
Tamar in Israel, a Phase 1 of Leviathan also in Israel, Carla offshore West
Africa, and Gunflint and Big Bend in the Gulf of Mexico. While we move these
projects into development, we will also be testing significant exploration
prospects including the Paraiso well offshore Nicaragua, Leviathan deep
offshore Israel, and multiple prospects in the Gulf of Mexico."

Fourth quarter 2012 sales volumes from continuing operations averaged 255
MBoe/d, up 18 percent from the fourth quarter 2011, after adjusting for assets
divested in 2012. Production volumes were 254 MBoe/d with the difference
attributable to the timing of crude oil liftings in Equatorial Guinea. The
sales volume split for the quarter was 47 percent liquids, 24 percent
international natural gas, and 29 percent U.S. natural gas.

U.S. volumes totaled 149 MBoe/d for the fourth quarter 2012, up 31 percent
from the same quarter last year excluding volumes from divested assets. The
increase was attributed to growth from the horizontal plays in the DJ Basin
and Marcellus, and from the Gulf of Mexico largely due to the addition of
Galapagos. Natural production declines were experienced in the remaining
non-core U.S. assets.

Sales volumes from international assets were 106 MBoe/d for the final quarter
of 2012, an increase of 9 percent from the fourth quarter of 2011, excluding
volumes from discontinued operations in the UK. The increase was due to
production from the Aseng oil project offshore Equatorial Guinea offset
slightly by lower natural gas sales in Israel. 

Crude oil prices averaged $97.98 per barrel, down 2 percent versus the fourth
quarter 2011. Natural gas realizations in the U.S. averaged $3.09 per
thousand cubic feet (Mcf), down 10 percent from the fourth quarter of 2011,
and averaged $5.29 per Mcf in Israel. Natural gas liquid pricing in the U.S.
averaged $36.86 per barrel for the quarter, representing 40 percent of the
Company's average U.S. crude oil realization. 

Total production costs per barrel of oil equivalent (Boe), including lease
operating expense (LOE), production and ad valorem taxes, and transportation
were $7.97 per Boe, up 1 percent from the last quarter of 2011. LOE and
depreciation, depletion, and amortization (DD&A) per Boe were $5.20 and
$16.33, respectively. LOE rates were impacted primarily by an increase in
facilities costs in the Gulf of Mexico. The increase in DD&A rates were due
to increased liquids production from the DJ Basin and Gulf of Mexico, as well
as the addition of natural gas production from the Noa and Pinnacles fields
offshore Israel. Exploration expense for the fourth quarter 2012 was $86
million, which included costs associated with seismic acquisition in Nevada
and offshore Falkland Islands. General and administrative expenses were up
primarily due to increased staffing for major development and exploration
activities. The Company recorded a $31 million asset impairment related to
Mari-B offshore Israel. The adjusted effective tax rate for the fourth
quarter 2012 was 19 percent with 45 percent deferred.

OPERATIONS UPDATE

In the DJ Basin, production averaged 86 MBoe/d for the fourth quarter, a 15
percent increase over last quarter. The horizontal program accounted for 39
MBoe/d of production, 45 percent of the total. Crude oil and other liquid
sales rose to 51 thousand barrels of oil per day (MBbl/d) or 59 percent. In
the quarter, 53 wells were drilled and 63 were completed – contributing to
full year totals of 200 wells drilled and 193 completed. Six of the wells
drilled in the quarter were extended-reach lateral wells. Average production
from three initial extended-reach lateral wells is showing minimal decline and
appears to be exceeding the 750 thousand Boe type curve. All 15 wells in the
40-acre spacing pilot program were completed and are in early stages of
flowback operations. The Company operated eight rigs in the DJ Basin with two
in Northern Colorado and six in the Greater Wattenberg Area. To support the
development programs in Northern Colorado, the Company sanctioned the
development of the Keota Gas Plant with a processing capacity of 30 million
cubic feet per day (MMcf/d). Noble Energy will operate the plant, which is
scheduled to start up in the second quarter of 2014.

In the Marcellus Shale, net production averaged 121 MMcfe/d for the fourth
quarter, up 19 percent from last quarter. The Company operated three
horizontal rigs in the wet gas area where 20 wells from three pads are
online. Production from the wet gas area was 14 MMcfe/d net for the quarter.
In the dry gas area, Consol operated two rigs and production averaged 107
MMcf/d net for the quarter. Noble Energy and Consol drilled a total of 25
wells and brought 13 online during the quarter contributing to full year
totals of 89 and 71 wells, respectively.

In the Eastern Mediterranean, contribution from the Noa and Pinnacles fields
resulted in production of 118 MMcf/d net, essentially unchanged from the
previous quarter. The Tamar jacket and topside facilities were installed in
December and commissioning operations have begun. Initial production is
scheduled to commence in April and be combined with Mari-B platform production
to meet the growing domestic demand. The appraisal of Leviathan continues
with the Leviathan 4 well currently drilling.

PROVED RESERVES

Estimated reserves at year-end 2012 were approximately 1.2 billion barrels of
oil equivalent (BBoe), up 3 percent after adjusting for non-core asset
divestitures. Reserves in the U.S. accounted for 49 percent of the total,
with International contributing the remaining 51 percent. Reserves are split
30 percent global liquids, 42 percent international natural gas, and 28
percent U.S. natural gas.

Noble Energy added total proved reserves of 121 million barrels of oil
equivalent (MMBoe) in 2012, including revisions. These additions replaced 136
percent of 2012 production.

U.S. net additions of 105 MMBoe resulted in 207 percent replacement of U.S.
production and were driven by the horizontal drilling programs in the DJ Basin
and Marcellus Shale. These net additions included negative revisions of 94
MMBoe associated with the termination of the vertical program in Wattenberg
and 26 MMBoe associated with dry gas fields due to lower natural gas prices.

The international portfolio added net 16 MMBoe of reserves, or 42 percent
replacement of international production, with most of the additions due to
strong reservoir performance at Aseng and further appraisal of Tamar. No
proved reserves have been booked for major projects expected to be sanctioned
in 2013, including Leviathan.

UPDATED GUIDANCE

The full year volume guidance range for 2013 remains unchanged at 270 to 282
MBoe/d. First quarter 2013 volumes are expected to average 238 to 242
MBoe/d. The volume forecast for the first quarter includes over 4 thousand
barrels of oil per day underliftings in West Africa and the impact of
maintenance at Swordfish in the Gulf of Mexico. Volumes will ramp up
throughout the year with the initiation of production at Tamar in April and at
Alen in the third quarter, as well as from the continued acceleration of
activity in the DJ Basin and the Marcellus Shale wet gas area.

Expense guidance ranges for the year are also unchanged. Unit rates in the
first quarter for LOE are expected to average $6.20 to $6.60 per Boe.

    Noble Energy has divested the majority of its North Sea properties and has
    reclassified the results of its entire North Sea operations as
(1) discontinued operations for all accounting periods presented in this
    release. See Schedule 7 for a financial summary of discontinued
    operations.
(2) A Non-GAAP measure, see attached Reconciliation Schedules
(3) Capital expenditures exclude the second installment payment associated
    with the Marcellus acquisition

WEBCAST AND CONFERENCE CALL INFORMATION

Noble Energy, Inc. will host a webcast and conference call at 9:00 a.m.
Central time today. The webcast is accessible on the 'Investors' page at
www.nobleenergyinc.com. Conference call numbers for participation are
888-293-6979 or 719-325-2289 with the passcode 4391329. A replay will be
available on the website.

Noble Energy is a leading independent energy company engaged in worldwide oil
and gas exploration and production. The Company has core operations onshore in
the U.S., primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf
of Mexico, offshore Eastern Mediterranean, and offshore West Africa. Noble
Energy is listed on the New York Stock Exchange and is traded under the ticker
symbol NBL. Further information is available at www.nobleenergyinc.com.

This news release contains certain "forward-looking statements" within the
meaning of federal securities law. Words such as "anticipates," "believes,"
"expects," "intends," "will," "should," "may," and similar expressions may be
used to identify forward-looking statements. Forward-looking statements are
not statements of historical fact and reflect Noble Energy' s current views
about future events. They include estimates of oil and natural gas reserves
and resources, estimates of future production, assumptions regarding future
oil and natural gas pricing, planned drilling activity, future results of
operations, projected cash flow and liquidity, business strategy and other
plans and objectives for future operations. No assurances can be given that
the forward-looking statements contained in this news release will occur as
projected, and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and
assumptions that involve a number of risks and uncertainties that could cause
actual results to differ materially from those projected. These risks include,
without limitation, the volatility in commodity prices for crude oil and
natural gas, the presence or recoverability of estimated reserves, the ability
to replace reserves, environmental risks, drilling and operating risks,
exploration and development risks, competition, government regulation or other
actions, the ability of management to execute its plans to meet its goals and
other risks inherent in Noble Energy's business that are discussed in its most
recent annual report on Form 10-K and in other reports on file with the
Securities and Exchange Commission. These reports are also available from
Noble Energy's offices or website, http://www.nobleenergyinc.com.
Forward-looking statements are based on the estimates and opinions of
management at the time the statements are made. Noble Energy does not assume
any obligation to update forward-looking statements should circumstances or
management's estimates or opinions change.

This news release also contains certain historical and forward-looking
non-GAAP measures of financial performance that management believes are good
tools for internal use and the investment community in evaluating Noble
Energy's overall financial performance. These non-GAAP measures are broadly
used to value and compare companies in the crude oil and natural gas industry.
Please also see Noble Energy's website at http://www.nobleenergyinc.comunder
"Investors" for reconciliations of the differences between any historical
non-GAAP measures used in this news release and the most directly comparable
GAAP financial measures. The GAAP measures most comparable to the
forward-looking non-GAAP financial measures are not accessible on a
forward-looking basis and reconciling information is not available without
unreasonable effort.

Schedule 1
Noble Energy, Inc.
Reconciliation of Net Income to Adjusted Net Income from Continuing Operations
(in millions, except per share amounts, unaudited)

                Three Months Ended December    Year Ended December 31,
                31,
                      Per            Per             Per            Per
                2012  Share,   2011   Share,   2012   Share,   2011   Share,
                      Diluted         Diluted         Diluted         Diluted
Net Income      $     $ 1.39   $      $        $      $ 5.71   $ 453  $ 2.54
                251            (296)  (1.67)   1,027
Discontinued
Operations, Net 26    0.15     (18)   (0.10)   (62)   (0.34)   (41)   (0.23)
of Tax
Income from
Continuing      277   1.54     (314)  (1.77)   965    5.37     412    2.31
Operations
Unrealized
(gains) losses
on commodity    (36)  (0.20)   162    0.91     (109)  (0.61)   22     0.12
derivative
instruments
(Gain) loss on
divestitures    13    0.07     1      0.01     (154)  (0.85)   (25)   (0.14)
[1]
Asset           31    0.18     620    3.48     104    0.58     757    4.24
impairments [2]
Drilling rig    -     -        -      -        -      -        18     0.10
expense [3]
Other           -     -        (1)    (0.01)   -      -        4      0.02
adjustments
Total
adjustments     8     0.05     782    4.39     (159)  (0.88)   776    4.34
before tax
Income Tax
Effect of       11    0.06     (191)  (1.07)   83     0.46     (284)  (1.59)
Adjustments [4]
Adjusted Net
Income from     $     $ 1.65   $ 277  $ 1.55   $ 889  $ 4.95   $ 904  $ 5.06
Continuing      296
Operations
Weighted
average number
of shares
outstanding
Diluted         180            177             180             179

      Adjusted net income from continuing operations should not be considered
      a substitute for net income as reported in accordance with GAAP.
      Adjusted net income from continuing operations is provided for
      comparison to earnings forecasts prepared by analysts and other third
NOTE: parties. Our management believes, and certain investors may find, that
      adjusted net income from continuing operations is beneficial in
      evaluating our financial performance as it excludes the impact of
      significant non-cash items. We believe such measures can facilitate
      comparisons of operating performance between periods and with our peers.
      See Schedule 2: Summary Statement of Operations.
     During the third quarter of 2012, we completed the sale of certain
[1]  non-core onshore U.S. properties as well as certain North Sea properties.
     During the second quarter of 2011, we completed the transfer of assets
     and exit from Ecuador.
     Amount for 2012 represents impairments of our South Raton assets in the
     Deepwater Gulf of Mexico, due to declines in near-term crude oil prices,
     our Piceance development onshore U.S., because of recent declines in
     realized natural gas prices, and the fourth quarter impairment of our
[2]  Mari-B, Pinnacles and Noa fields, offshore Israel due to end-of-field
     life declines in production. Amount for 2011 represents impairments of
     certain of our onshore U.S. developments, primarily in East Texas due to
     field performance combined with a significant decline in natural gas
     prices, specifically during fourth quarter 2011.
     Amount for 2011 represents stand-by rig expense incurred prior to
[3]  receiving permits to resume drilling activities, which were suspended
     under the Federal Deepwater Moratorium, in the deepwater Gulf of Mexico.
     The net tax effects are determined by calculating the tax provision for
     GAAP Net Income, which includes the adjusting items, and comparing the
     results to the tax provision for adjusted earnings from continuing
[4]  operations, which excludes the adjusting items. The difference in the tax
     provision calculations represents the tax impact of the adjusting items
     listed here. The calculation is performed at the end of each quarter and,
     as a result, the tax rates for each discrete period may be different.



Schedule 2
Noble Energy, Inc.
Summary Statement of Operations
(in millions, except per share amounts, unaudited)
                               Three Months Ended        Year Ended
                               December 31,              December 31,
                               2012         2011         2012       2011
Revenues
Crude oil and condensate       $       $       $      $    
                                 866        571       3,205    2,034
Natural gas                    191          213          620        883
NGLs                           55           67           212        262
Income from equity method      55           46           186        193
investees
Other revenues                 -            -            -          32
Total revenues                 1,167        897          4,223      3,404
Operating Expenses
Lease operating expense        122          96           431        346
Production and ad valorem      39           38           151        146
taxes
Transportation and gathering   26           19           91         66
expense
Exploration expense            86           85           409        277
Depreciation, depletion and    383          259          1,370      878
amortization
General and administrative     98           87           384        339
(Gain) loss on divestitures    13           1            (154)      (25)
Asset impairments              31           620          104        757
Other operating (income)       8            39           25         86
expense, net
Total operating expenses       806          1,244        2,811      2,870
Operating Income               361          (347)        1,412      534
Other (Income) Expense
(Gain) Loss on commodity       (29)         136          (75)       (42)
derivative instruments
Interest, net of amount        30           14           125        65
capitalized
Other (income) expense, net    4            25           6          9
Total other (income) expense   5            175          56         32
Income (Loss) from Continuing  356          (522)        1,356      502
Operations Before Taxes
Income Tax Provision (Benefit) 79           (208)        391        90
Income (Loss) from Continuing  277          (314)        965        412
Operations
Discontinued Operations, Net   (26)         18           62         41
of Tax [1]
Net Income (Loss)             $       $       $      $    
                                 251       (296)       1,027      453
Earnings Per Share
Basic
Income (Loss) from continuing  $       $       $      $    
operations                      1.56      (1.77)        5.43    2.34
Discontinued operations, net   (0.15)       0.10         0.34       0.23
of tax
Net Income (Loss)              $       $       $      $    
                                1.41      (1.67)        5.77    2.57
Diluted
Income (Loss) from continuing  $       $       $      $    
operations                      1.54      (1.77)        5.37    2.31
Discontinued operations, net   (0.15)       0.10         0.34       0.23
of tax
Net Income (Loss)              $       $       $      $    
                                1.39      (1.67)        5.71    2.54
Weighted average number of
shares outstanding
Basic                          178          177          178        176
Diluted                        180          177          180        179

[1] Represents our North Sea operations reclassified as held for sale at June
     30, 2012. See Schedule 7: Discontinued Operations.



Schedule 3
Noble Energy, Inc.
Volume and Price Statistics
(unaudited)
                           Three Months Ended        Year Ended
                           December 31,              December 31,
                           2012         2011         2012         2011
Crude Oil and Condensate
Sales Volumes (MBbl/d)
United States              58           39           49           38
Equatorial Guinea          34           19           33           14
China                      4            4            4            4
Total consolidated         96           62           86           56
operations
Equity method investee     2            2            2            2
Total sales volumes        98           64           88           58
Crude Oil and Condensate
Realized Prices ($/Bbl)
United States              $       $       $       $     
                            91.08       95.45       94.69       95.19
Equatorial Guinea          108.62       105.90       110.14       107.57
China                      106.06       109.37       114.54       106.19
Consolidated average       $       $       $       $     
realized prices             97.98       99.62      101.52        99.17
Natural Gas Sales Volumes
(MMcf/d)
United States              447          432          438          388
Equatorial Guinea          245          250          235          245
Israel                     118          150          101          173
Total consolidated         810          832          774          806
operations
Natural Gas Realized
Prices ($/Mcf)
United States              $       $       $       $     
                             3.09       3.42       2.61       3.90
Equatorial Guinea          0.27         0.27         0.27         0.27
Israel                     5.29         5.10         4.85         4.86
Consolidated average       $       $       $       $     
realized prices              2.56       2.78       2.19       3.00
Natural Gas Liquids (NGL)
Sales Volumes (MBbl/d)
United States              17           16           16           15
Equity method investee     5            6            5            5
Total sales volumes        22           22           21           20
Natural Gas Liquids
Realized Prices ($/Bbl)
United States              $       $       $       $     
                            36.86       46.11       35.36       48.35
Barrels of Oil Equivalent
Volumes (MBoe/d)
United States              149          127          139          117
Equatorial Guinea          75           61           72           56
Israel                     20           25           17           29
China                      4            4            4            4
Total consolidated         248          217          232          206
operations
Equity method investee     7            7            7            7
Total barrels of oil
equivalent from continuing 255          224          239          213
operations
Total barrels of oil
equivalent from            2            9            5            9
discontinued operations
[1]
Total barrels of oil       257          233          244          222
equivalent

[1] Represents our North Sea operations reclassified as held for sale at June
     30, 2012. See Schedule 7: Discontinued Operations.



Schedule 4
Noble Energy, Inc.
Condensed Balance Sheets
(in millions)
                                     December 31,         December 31,
                                     2012                 2011
ASSETS
Current Assets
Cash and cash equivalents            $           $         
                                     1,387               1,455
Accounts receivable, net             964                  783
Other current assets                 420                  180
Total current assets                 2,771                2,418
Net property, plant and equipment    13,551               12,782
Goodwill                             635                  696
Other noncurrent assets              597                  548
Total Assets                         $            $        
                                     17,554              16,444
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable - trade             $           $         
                                     1,508               1,343
Other current liabilities            1,024                925
Total current liabilities            2,532                2,268
Long-term debt                       3,736                4,100
Deferred income taxes                2,218                2,059
Other noncurrent liabilities         810                  752
Total Liabilities                    9,296                9,179
Total Shareholders' Equity           8,258                7,265
Total Liabilities and Shareholders'  $            $        
Equity                               17,554              16,444



Schedule 5
Noble Energy, Inc.
Discretionary Cash Flow from Continuing Operations and Reconciliation to
Operating Cash Flow
(in millions, unaudited)
                                   Three Months Ended    Year Ended
                                   December 31,          December 31,
                                   2012       2011       2012       2011
Adjusted Net Income from           $      $      $      $    
Continuing Operations [1]             296     277     889     904
Adjustments to reconcile adjusted
net income from continuing
operations to discretionary cash
flow from continuing operations:
Depreciation, depletion and        383        259        1,370      878
amortization
Exploration expense                86         86         409        277
(Income)/Dividends from equity     3          7          7          30
method investments, net
Deferred compensation (income)     8          23         6          8
expense
Deferred income taxes              32         34         149        207
Stock-based compensation expense   16         15         65         58
Other                              -          9          (1)        10
Discretionary Cash Flow from       $      $      $      $    
Continuing Operations                 824     710   2,894    2,372
Reconciliation to Operating Cash
Flows
Net changes in working capital     (7)        (259)      134        (156)
Cash exploration costs             (66)       (35)       (193)      (173)
Current tax expense of earnings    18         5          -          -
adjustments
Drilling rig expense [2]           -          -          -          (18)
Impact of Discontinued Operations  (9)        (36)       82         126
Other adjustments                  2          -          16         19
Net Cash Provided by Operating     $      $      $      $    
Activities                            762     385   2,933    2,170
Capital expenditures (accrual      $      $      $      $    
based)                              1,083    1,041    3,626    3,026
Marcellus Shale Asset              -          75         -          1,308
Acquisition[3]
Increase in FPSO lease obligation  -          10         -          66
Total Capital Expenditures         $      $      $      $    
(Accrual Based)                     1,083    1,126    3,626    4,400

      The table above reconciles discretionary cash flow from continuing
      operations to net cash provided by operating activities. While
      discretionary cash flow from continuing operations is not a GAAP measure
      of financial performance, our management believes it is a useful tool
      for evaluating our overall financial performance. Among our management,
NOTE: research analysts, portfolio managers and investors, discretionary cash
      flow from continuing operations is broadly used as an indicator of a
      company's ability to fund exploration and production activities and meet
      financial obligations. Discretionary cash flow from continuing
      operations is also commonly used as a basis to value and compare
      companies in the oil and gas industry.
[1]  See Schedule1: Reconciliation of Net Income to Adjusted Net Income from
     Continuing Operations.
     Amount for 2011 represents stand-by rig expense incurred prior to
[2]  receiving permits to resume drilling activities, which were suspended
     under the Federal Deepwater Moratorium, in the deepwater Gulf of Mexico.
[3]  Includes $73 million representing our initial investment in CONE
     Gathering LLC for year-ended December 31, 2011.



Schedule 6
Noble Energy, Inc.
Effect of Commodity Derivative Instruments
(in millions, unaudited)
                           Three Months Ended        Year Ended
                           December 31,              December 31,
                           2012         2011         2012         2011
(Gain) Loss on Commodity
Derivative Instruments
Crude Oil
Realized                   $       $       $       $     
                            15           8        83         44
Unrealized                 (24)         173          (120)        5
Total Crude Oil            (9)          181          (37)         49
Natural Gas
Realized                   (9)          (33)         (49)         (108)
Unrealized                 (12)         (11)         11           17
Total Natural Gas          (21)         (44)         (38)         (91)
Total (Gain) Loss on       $       $       $       $     
Commodity Derivative        (30)        137         (75)        (42)
Instruments



Schedule 7
Noble Energy, Inc.
Discontinued Operations
(in millions, except volume amounts, unaudited)
                           Three Months Ended        Year Ended
                           December 31,              December 31,
                           2012         2011         2012         2011
Summary Statement of
Discontinued Operations:
Oil and gas revenues       $       $       $       $     
                             14        86        208         357
Production expense         5            15           44           58
Exploration expense        26           -            29           2
Depreciation, depletion    -            25           33           87
and amortization
General and administrative 1            -            3            2
Asset impairments          -            -            -            2
Other (income) expense,    (3)          (6)          (2)          (9)
net
Income (Loss) Before       (15)         52           101          215
Income Taxes
Current tax expense        16           31           80           175
Deferred tax expense       (11)         3            (25)         (1)
(benefit)
Operating Income (Loss),   (20)         18           46           41
Net of Tax
Gain (Loss) on Sale, Net   (6)          -            16           -
of Tax
Income (Loss) From         $       $       $       $     
Discontinued Operations     (26)        18         62         41
Volume and Price
Statistics:
Crude Oil and Condensate   1            8            5            8
Sales Volumes (MBbl/d)
Crude Oil and Condensate   $        $         $         $    
Realized Prices ($/Bbl)    109.56       112.90      112.94      112.97
Natural Gas Sales Volumes  5            4            4            5
(MMcf/d)
Natural Gas Realized       $       $       $       $     
Prices ($/Mcf)              9.39       9.09        8.62         8.11



Schedule 8
Noble Energy, Inc.
Supplemental Data
(in millions, unaudited)
2012 Costs Incurred in Oil and Gas    United States  Int'l [1]    Total
Activities
Unproved property acquisition costs   $        $       $     
                                      68             28         96
Exploration costs                     335            354          689
Development costs [2]                 1,839          1,154        2,993
Total costs incurred                  $          $        $    
                                      2,242          1,536        3,778
Reconciliation to Capital Spending
(accrual basis)
Total costs incurred                                              $    
                                                                  3,778
Exploration overhead                                              (110)
Lease rentals                                                     (7)
Asset retirement obligations                                      (145)
Total oil and gas spending                                        3,516
CONE LLC investment                                               41
Other capital                                                     69
Total capital spending (accrual                                   $    
basis)                                                            3,626
Proved Reserves [3]                   United States  Int'l [4]    Total
Total Barrel Oil Equivalents (MMBoe)
Beginning reserves - December 31,     573            636          1,209
2011
Revisions of previous estimates       (101)          4            (97)
Extensions, discoveries and other     206            12           218
additions
Purchase of minerals in place         -              -            -
Sale of minerals in place             (52)           (5)          (57)
Production                            (51)           (38)         (89)
Ending reserves - December 31, 2012   575            609          1,184
Proved Developed Reserves (MMBoe)
December 31, 2011                     333            171          504
December 31, 2012                     303            158          461

    International includes Cameroon, China, Cyprus, Equatorial Guinea,
[1] Falkland Islands, Israel, the North Sea, Senegal/Guinea-Bissau, Nicaragua,
    Sierra Leone and other new ventures.
[2] Includes ARO costs of $73 million for United States and $72 million for
    Int'l.
    Netherland, Sewell & Associates, Inc. performed a reserves audit for 2012
    and concluded that the Company's estimates of proved reserves were, in the
[3] aggregate, reasonable and have been prepared in accordance with Standards
    Pertaining to the Estimating and Auditing of Oil and Gas Reserves
    Information promulgated by the Society of Petroleum Engineers.
[4] International includes China, Equatorial Guinea, Israel, and The North
    Sea.

SOURCE Noble Energy

Website: http://www.nobleenergyinc.com
Contact: Investor - David Larson, +1-281-872-3125, dlarson@nobleenergyinc.com,
or Eric Schneider, CFA, +1-281-872-2640, eschneider@nobleenergyinc.com; Media
- Communications and Government Relations, +1-281-876-8873,
media@nobleenergyinc.com
 
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