Noble Energy Announces 2008 Plans

HOUSTON, Feb. 27 /PRNewswire-FirstCall/ -- Noble Energy, Inc. today announced its capital budget and guidance for 2008.

Noble Energy's capital investment program is set at approximately $1.6 billion with 74 percent designated for development activities, 24 percent on exploration efforts and the remainder for corporate expenditures and other items. Development spending will focus on the company's extensive low-risk project inventory in the Rocky Mountain region, existing deepwater Gulf of Mexico discoveries and the expansion of producing assets in the North Sea and China. The exploration budget will focus on significant resource potential in the deepwater Gulf of Mexico, West Africa, Israel and Suriname.

"The goal of this year's investment program is to build upon the solid foundation we have established, focusing on the areas that have yielded our outstanding successes to date," said Charles D. Davidson, Noble Energy's Chairman, President and CEO. "A substantial amount of capital is allocated to exploration, which is almost entirely directed to high-impact prospects. Our disciplined investment approach is expected to once again generate free cash flow that should provide us flexibility to take advantage of incremental opportunities during the year."

The capital program should enable Noble Energy to deliver sales volumes of 205 to 216 thousand barrels of oil equivalent per day (MBoepd) in 2008. Using the midpoint of the estimate, this represents a six percent increase over 2007, or seven percent after adjusting for the sale of Argentina assets. Volumes in the United States are anticipated to increase five percent largely driven by active drilling programs in the Wattenberg, Piceance and Niobrara areas in the Rocky Mountain region. International volumes are expected to be up seven percent primarily due to a full year of natural gas sales from the Alba field to the LNG facility in Equatorial Guinea.

2008 GUIDANCE

Additional detailed operational and financial information covering the 2008 Guidance is included on the following pages.

CONFERENCE CALL

Noble Energy's fourth quarter and year-end 2007 conference call will be available today via live audio webcast at 9 a.m. Central Time. To listen, log on to http://www.nobleenergyinc.com/ and click on the Investor Relations tab. Dial in numbers are (877) 852-6579 or (719) 325-4802. The pass code is Noble Energy 2007 Fourth Quarter Results. The conference call replay will be available until May 31, 2008. To access the replay, go to http://www.nobleenergyinc.com/ and click on the Investor Relations tab. You can also access the replay by dialing (888) 203-1112 or (719) 457-0820. The pin code is 6119428.

Noble Energy is one of the nation's leading independent energy companies and operates throughout major basins in the United States including Colorado's Wattenberg field and Piceance basin, the Mid-continent region of western Oklahoma and the Texas Panhandle, the San Juan basin in New Mexico, the Gulf Coast and the deepwater Gulf of Mexico. In addition, Noble Energy operates internationally in China, Ecuador, the Mediterranean Sea, the North Sea, and West Africa (Equatorial Guinea and Cameroon). Visit Noble Energy online at http://www.nobleenergyinc.com/.

This news release may include projections and other "forward-looking statements" within the meaning of the federal securities laws. Any such projections or statements reflect Noble Energy's current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected, and actual results may differ materially from those projected. Important factors that could cause the actual results to differ materially from those projected include, without limitation, the volatility in commodity prices for oil and 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 action, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's business that are detailed in its Securities and Exchange Commission filings.

Noble Energy, Inc 2008 Operational and Financial Guidance VOLUMES AND PRICES

For 2008, total volumes are estimated to average between 205 to 216 MBoepd, which includes equity method investment volumes -- condensate and liquid petroleum gas (LPG). Volumes are expected to begin the year well above fourth quarter 2007 levels and then stay relatively flat for the remainder of the year. The ramp-up in the first quarter is largely attributable to the deepwater Gulf of Mexico developments at Swordfish, Lost Ark and Ticonderoga, and the liquefied natural gas (LNG) plant in Equatorial Guinea returning to operations after some maintenance in the fourth quarter 2007.

In the United States, the Rocky Mountain region is expected to be up substantially for the year and show a steady increase from the continued drilling activity in the Wattenberg, Piceance and Niobrara areas. Mid-continent and Gulf Coast areas are expected to show declines related to reduced activity and capital funding. Deepwater Gulf of Mexico volumes are anticipated to increase during the first half of 2008 due to existing development projects including Raton, which is scheduled to come online in the second quarter. For the year, the deepwater Gulf of Mexico should average slightly ahead of 2007.

Internationally, operations in Equatorial Guinea are forecasted to be steady during 2008 with some downtime planned in the third quarter. Israel natural gas sales are assumed to be flat versus last year and should see the normal seasonal variances. Growth in Israel will depend heavily on the timing of the start-up of two natural gas converted power plants and the degree of new natural gas supplies from Egypt. The North Sea should see natural declines until phase two drilling at Dumbarton provides incremental volumes late in 2008.

Beginning in 2008, Noble Energy will report natural gas liquids (NGL) revenue and volume separately anywhere the company has contractual rights to take-in-kind the liquids recovered from its natural gas processed at third-party plants. In those instances, the related natural gas revenues and volumes will be proportionately reduced; however, the combined values will remain the same. Where take-in-kind rights do not exist, processing revenues will continue to be included in natural gas revenues and realized prices. Equity investee liquids will also be split and reported as crude oil and condensate, and NGL.

Noble Energy, Inc 2008 Operational and Financial Guidance CRUDE OIL AND CONDENSATE (MBopd) -- United States 37 - 43 -- West Africa 13 - 15 -- West Africa - equity method investment 1 - 2 -- North Sea 8 - 11 -- China 3 - 4

The price differential for crude oil in the United States is expected to range from $4.00 to $5.00 per barrel below WTI. International crude oil differentials based off dated Brent, are premiums that should range from $1.00 to $2.00 per barrel for West Africa and $2.00 to $3.00 per barrel for the North Sea. Crude oil differentials for China should be $12.50 to $14.50 per barrel below WTI. All price information excludes the impact of hedge positions. Condensate recovered at the LPG plant in Equatorial Guinea is reported under equity method accounting and included in total volumes with its related income benefits in equity method investments.

NATURAL GAS (MMcfpd) -- United States 400 - 430 -- West Africa 210 - 240 -- Israel 100 - 110 -- North Sea 5 - 10 -- Ecuador 20 - 25

United States natural gas volumes have been reduced to reflect the recognition of take-in kind NGL volumes. The natural gas price differential for the United States is expected to range from $0.25 to $1.00 per Mcf below NYMEX Henry Hub, and includes a Btu processing uplift where applicable. The North Sea differential should average from $0.50 to $1.00 per Mcf below NYMEX Henry Hub. Price realizations for West Africa are estimated to be $0.27 per Mcf and for Israel are anticipated to range from $2.75 to $2.85 per Mcf. Ecuador natural gas revenues associated with the natural gas-to-power project are reflected in electricity margins. All price information excludes the impact of hedge positions.

NATURAL GAS LIQUIDS (MBpd) -- United States 6 - 9 -- West Africa - equity method investment 5 - 6

The NGL price realizations for United States should average around 55 to 65 percent of WTI. NGLs recovered at the LPG plant in Equatorial Guinea are reported under equity method accounting and included in total volumes with its related income benefit in equity investments.

Noble Energy, Inc 2008 Operational and Financial Guidance OTHER REVENUES AND OPERATION MARGINS -- Electricity margin $2 - $6 million -- Gathering, processing and marketing margin $5 - $10 million -- Equity method investments $150 - $180 million

Margins are calculated as revenues less expenses. The electricity margin is associated with the natural gas-to-power project in Ecuador. Equity method investments include income generated from the methanol operations, and the condensate and gas liquids recovered at the LPG plant in Equatorial Guinea.

COST AND EXPENSES -- Oil and gas lease operating $4.30 - $4.80 per Boe -- Transportation $0.60 - $0.80 per Boe -- Depreciation, depletion and amortization $10.40 - $11.00 per Boe -- Production and ad valorem taxes 4.0 - 4.5% of oil, gas and ngl revenues -- Exploration $240 - $310 million -- General and administrative $205 - $250 million -- Interest (net) $80 - $100 million

Beginning with 2008, accretion on discount of asset retirement obligations will be reported in depreciation, depletion and amortization. General and administrative includes approximately $30 to $50 million of stock-based compensation. Capitalized interest is estimated to be about $10 to $15 million.

OTHER ITEMS -- Effective tax rate 30 - 34% -- Deferred tax ratio 35 - 45% -- Outstanding shares - diluted 174 - 176 million Noble Energy, Inc 2008 Operational and Financial Guidance CAPITAL PROGRAM

Capital program is budgeted at approximately $1.6 billion. A breakdown of the capital allocation is as follows:

By Geographic Area By Category Type Wattenberg 26% Development drilling 50% Rockies 20% Equipment and facilities 24% Deepwater United States 19% Other United States 9% Exploration drilling 17% West Africa 9% Seismic, lease acquisition 7% North Sea and Israel 11% Other international 4% Corporate and other 2% Corporate and other 2% Noble Energy, Inc 2008 Operational and Financial Guidance COMMODITY HEDGES

Effective January 1, 2008, the company voluntarily discontinued cash flow hedge accounting on all existing commodity derivative instruments. The existing hedges were valued as of December 31, 2007 resulting in deferred derivative losses that will be reclassified to earnings in future periods as the original hedge dictated. For 2008, $331 million will be recorded to oil and natural gas sales as shown in the accompanying schedule. Going forward all hedge gains and losses will be recognized in the period they occur and reported through a separate line on the income statement.

Accumulated Other Comprehensive Loss Roll Off Schedule Increase (Decrease) to Oil and Gas Sales As of December 31, 2007 (Dollars in Thousands) Crude Oil Natural Gas Total Previous recognized loss - Gulf of Mexico shelf sale 23,210 162,232 185,442 Deferred loss on unsettled derivative contracts (464,266) (129,503) (593,769) $(441,056) $32,729 $(408,327) Crude Oil Natural Gas Total 1Q 2008 (97,107) 37,568 (59,539) 2Q 2008 (92,525) (2,130) (94,655) 3Q 2008 (89,229) (4,179) (93,408) 4Q 2008 (85,780) 2,522 (83,258) Total 2008 (364,641) 33,781 (330,860) 1Q 2009 (16,543) (323) (16,866) 2Q 2009 (15,065) 395 (14,670) 3Q 2009 (13,681) 283 (13,398) 4Q 2009 (12,371) (101) (12,472) Total 2009 (57,660) 254 (57,406) 1Q 2010 (4,725) (867) (5,592) 2Q 2010 (4,697) 142 (4,555) 3Q 2010 (4,683) (16) (4,699) 4Q 2010 (4,650) (565) (5,215) Total 2010 (18,755) (1,306) (20,061) Total Remaining $(441,056) $32,729 $(408,327) Noble Energy, Inc 2008 Operational and Financial Guidance

Since September 2007, Noble Energy has entered into additional fixed price swaps covering 2,000 Bopd for the calendar year 2008 and 10,000 Bopd for 2009. The company has also entered into 2-way costless collars covering 50,000 MMbtupd for the calendar year 2009. Summaries of the company's hedge position are presented below.

Crude Oil Fixed Price Swaps 2-way Collars Weighted Average Weighted Average Production Volumes Price Volumes Price($ per Bbl) Period Index (Bopd) ($ per Bbl) Index (Bopd) Floor Ceiling FY 2008 WTI 16,500 $38.23 WTI 3,100 $60.00 - $72.40 FY 2008 Brent 2,000 $88.18 Brent 4,066 $45.00 - $66.52 FY 2009 WTI 8,000 $87.15 WTI 3,700 $60.00 - $70.00 FY 2009 Brent 2,000 $87.98 Brent 3,074 $45.00 - $63.04 FY 2010 WTI 3,500 $55.00 - $73.80 Natural Gas Fixed Price Swaps 2-way Collars Weighted Average Weighted Average Price Price Production Volumes ($ per Volumes ($ per MMBtu) Period Index (MMBtupd) MMBtu) Index (MMBtupd) Floor Ceiling FY 2008 NYMEX 170,000 $5.67 CIG 14,000 $6.75 - $8.70 FY 2009 NYMEX 50,000 $8.27 - $10.08 CIG 15,000 $6.00 - $9.90 FY 2010 CIG 15,000 $6.25 - $8.10 Natural Gas Differential versus NYMEX Basis Swaps Weighted Production Volumes Average Price Period Index (MMBtupd) ($ per MMBtu) FY 2008 CIG 100,000 ($1.66) FY 2008 ANR 40,000 ($1.01) FY 2008 PEPL 10,000 ($0.98)