Noble Energy Issues Updated Outlook Through 2020

(RTTNews) - Noble Energy Inc. (NBL) provided an updated outlook through 2020, including detailed guidance for 2018.

The company provided an updated outlook through 2020, including scenarios at a $50 per barrel WTI oil price with $3 Henry Hub natural gas, as well as at recent strip pricing.

The company expects to generate a cumulative total of $1.5 billion of excess cash flows through 2020 in the $50 scenario, and an additional $1.5 billion at strip pricing.

The Board-authorized $750 million share repurchase program and current dividend payout will result in more than $1.3 billion in direct shareholder return over the plan period.

Capital expenditures are estimated to be approximately $2.8 billion annually through 2020 in both pricing scenarios, with no changes in activity levels assumed. More than 80 percent of total capital is planned for U.S. onshore assets and in excess of 15 percent will be allocated to the Eastern Mediterranean, primarily for the Leviathan project.

Estimated cash flow from operations is anticipated to grow at a 35 percent compound annual growth rate in the $50 scenario and 40 percent at strip pricing as compared to 2017.

Estimated volumes are anticipated to grow to approximately 525 thousand barrels of oil equivalent per day (MBoe/d) in 2020, a 20 percent compound annual growth rate from 2017. Oil volumes grow at more than a 25 percent compound annual growth rate.

For 2018, Capital expenditures are expected to total between $2.7 and $2.9 billion, with nearly 70 percent allocated to the U.S. onshore program and over 25 percent to the Eastern Mediterranean. Full-year sales volumes, at the midpoint of the Company's expected range, are approximately 12 percent higher than 2017. U.S. onshore volumes are expected to increase more than 20 percent and U.S. onshore oil volumes are anticipated to be up nearly 30 percent with upstream capital investments essentially flat to 2017 levels.