Johnson Rice Energy Conference October 2013

Transcription

1 Johnson Rice Energy Conference October 2013

2 2 Noble Energy Differential company with differential results

3 Highlights and Messages Strong operational momentum Delivering Robust Production Growth On target for 2013 average of MBoe/d Midpoint of 3Q 13 guidance range up 20% from 3Q 12 Expanded Onshore U.S. Resource Development Increase in rig count and efficiencies driving record volumes in DJ Basin and Marcellus Significant New Contributions at Tamar and Alen Progressing Additional Major Projects Gulf of Mexico, West Africa, and Eastern Mediterranean Testing Substantial Exploration Upside in 2H 13 Dantzler in GOM, Paraiso in Nicaragua, and first wells in Nevada

4 4 Five-Year Growth Outlook 2012 to 2017 Superior long-term performance Debt-Adjusted Growth per Share* (CAGR) 18% 21% 24% Transparent Growth Profile from Discovered Resources Contributions from All Operating Areas Key Outcomes by 2017 Production 540 MBoe/d Reserves 2.6 BBoe ROACE* 17% $7.4 B discretionary cash flow** Production Reserves Cash Flow Expect Double-Digit Growth Rates for Next Decade * Term defined in appendix ** See appendix for referenced price case

5 5 Onshore Unconventional Developments Expanding core areas Accelerating Horizontal Activity Levels Repeatable, low-risk investments Capturing economies of scale Improving EURs and Recovery Rates Enhancing Performance Through Technology and Operational Efficiencies DJ Basin Premier Liquids Play Crude oil and NGLs represent ~ 65% of total production Marcellus Development Focus Approximately 65% of 2013 drilling activity in wet gas area

6 6 Core Onshore Unconventional Production 1H 13 volumes up nearly 30% from 1H 12 MBoe/d Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 DJ Basin-Vertical DJ Basin-Horizontal Marcellus

7 7 DJ Basin 2013 Operations Focused on oil window with superior economics Accelerating Development Target 300 horizontal wells spud Delineating New Areas of Northern Colorado Wyoming Northern Colorado 230,000 Net Acres 300 MMBoe NRR 1,750 Locations Nebraska Robust economics with 85% liquids Horizontal DJ Production Up 100% from 2012 Increasing Recoveries via Downspacing and Extended-reach Laterals Investing $1.7 Billion or 45% of Total Capital Program 290,000 Net Acres 1,400 MMBoe NRR 6,400 locations 120,000 Net Acres 400 MMBoe NRR 1,350 Locations Wells Ranch Greater Wattenberg NBL Acreage Gas Window Oil Window

8 8 Integrated Development Plans (IDP) Optimizing ultimate resource recovery Economies of Scale Driven by Central Gathering and Processing Facilities Decreasing Capital and Lease Costs Reduced Surface and Environmental Impact and Enhanced Safety Culture Life-cycle Water Management Program Wells Ranch IDP Continue testing downspacing, multi-zone, and long laterals Approximately 1,000 drilling locations remain Connecting multi-well EcoNodes to Central Processing Unit

9 9 Extended-Reach Laterals Wells Ranch Maximizing value per horizontal foot drilled Boe/d 1,200 1, Wells Online and Performing Above Expected Type Curves EURs Average Above 750 Thousand Barrels Equivalent Days 750 MBoe Type Curve 1 MMBoe Type Curve Well Average

10 10 Marcellus 2013 Operations Accelerating drilling and completions in liquid-rich areas Wet Gas Dry Gas NBL Activity O H NBL Operated 176,000 Gross Acres WV CNX Operated 452,000 Gross Acres MD SHL17: 6-well Pad Drilling SHL1,3,6 Producing Marshall County V A WEB 4: 11-well Pad Producing Majorsville Washington County WFN6: 8-well Pad Drilling WFN1: 7-well Pad Completing SHL 8: 11-well Pad Producing Greene County Increase Wet Gas Rig Count to Five and Target 80 Wells Developing Majorsville and delineating new areas in W. Virginia Non-Operated Dry Gas Program Drilling ~ 40 Wells Leveraging Best Practices on Drilling and Completions Testing Longer Laterals Targeting YE 2013 Net Production of 210 MMcfe/d Up over 100% from 2012 avg Majorsville

11 11 Global Offshore Major Projects Meaningful new production and sanctions targeted Exploration Success has Delivered Significant Cash Flow and Substantial Value Strong Track Record of Major Project Delivery 4 major projects online within budget cost and timeframe from Tamar and Alen in 2013 Additional Discoveries Providing Substantial Long-term Growth Rio Grande area and Gunflint in DW GOM lead to new production late 2015 West Africa fields to utilize existing infrastructure Continued natural gas market expansion and exports from Eastern Mediterranean fields

12 12 Rio Grande Area Big Bend and Troubadour Progressing development for near-term impact NBL Operated Development Big Bend Troubadour Big Bend 54%, Troubadour 60% WI Discovered Resources of Between MMBoe 75% oil Targeting Project Sanction in 2013 Planned subsea tie-backs to existing infrastructure Troubadour Assessing multiple host facilities First Production Anticipated Late 2015 Big Bend

13 13 Alen Condensate Project Bringing high-value liquids to production NBL Operated with 45% WI Gas-cycling and reinjection project Commenced Production Late 2Q 13 Start-up ahead of schedule Ramping to Full Operations Utilizing Aseng FPSO for Storage and Offloading Facilities to Provide Hub for Future Gas Monetization

14 14 Eastern Mediterranean Substantial natural gas driving near-term value Seven Discovered Fields Yielding Over 35 Tcf Gross World-Class Tamar Online Leviathan Expected to Supply Domestic Markets in 2016 Cyprus 70% WI Tanin 47% WI Karish 47% WI Tamar 36% WI Dalit 36% WI Strategic Partner Adding Substantial Value to Leviathan Progressing Regional and LNG Export Planning Cyprus Discovery Supports Long-term Growth Profile Leviathan 40% WI Dolphin 40% WI Mari-B, Noa, Pinnacles 47% WI AOT 47% WI

15 Tamar Project Long-term value for all stakeholders Tamar Online with Peak Deliverability Up to 1 Bcf/d First production 2.5 years from sanction industry leading cycle time 10 Tcf gross (NBL 36% WI) Near 100% Field and Facility Uptime World-class reliability Initial Capacity Already Contracted IEC exercised option for additional natural gas beginning in 2015 Expansion to 1.5 Bcf/d Targeted for Compression at Ashdod onshore terminal and system optimizations

16 Global Exploration Portfolio Substantial worldwide resource exposure Inventory of Prospects at Highest Level in Company History Past successes delivering new material production Pursuing additional core area and new venture opportunities Exploration Inventory of 3.7 BBoe Net Risked Resources Testing Significant Resources in the Next Two Years DW GOM, Nevada, Nicaragua, Falkland Islands, Mesozoic oil in the Eastern Mediterranean New Discoveries Additive to Double-Digit Growth Profile Relentlessly Focused on Exploration 16

17 Offshore Nicaragua Significant carbonate and clastic plays 1.8 Million Acres in Two Blocks NBL operated Multiple Oil Prospects and Leads Identified on 3D Seismic 2.7 BBoe gross unrisked resources Paraiso Prospect Currently Drilling Gross unrisked resource range of 210 1,220 MMBoe (P75 P25) Nicaragua Paraiso Gas Chimney Paraiso 17 3D Seismic

18 Dantzler Prospect Mississippi Canyon 738/782 High-impact opportunity in 2013 NBL Operated with 45% WI Louisiana Louisiana Drilling Anticipated to Commence Shortly Mississippi Canyon MMBoe (P75 P25) gross unrisked resources Lower Miocene reservoir against salt Results expected by YE 13 Mississippi Canyon Dantzler 1,000 ft. Offset Well with Oil Shows Offset Well with Oil Shows and 1,200 ft. of Significant Sand in Target Section 18

19 Elko County, N.E. Nevada Next growth opportunity in U.S. Tight Oil Play with Core Area Scale 350,000 net acres 190 1,400 MMBoe (P75 P25) gross unrisked resources 55% geologic chance of success Wilson Project Great Basin Two 3D Surveys Completed to Date Drilling Underway 19 2 wells targeted in 2H 13 Pilot test program to determine reservoir quality and hydrocarbon Production results in less than 12 months 3D Acquisition

20 Mesozoic Oil Play in Levant Basin A play with step-change potential Gross Unrisked Resource Potential Estimated at 3.7 BBoe Drillship for Deep Oil Prospect Expected to Arrive Early 2014 Potential exists under each of existing discovered gas fields High-Liquid Karish Discovery Encouraging for Basin Identified thermogenically sourced hydrocarbons Higher condensate yield than previous discoveries (7-10 Bbls per MMcf) Structural High Leviathan Deep Prospect 20

21 NBL Unique. By Design. Positioned for a decade of growth Diversified and Focused Asset Portfolio Significant contribution from all core areas Offers stability and superior returns Sustainable Industry-leading Exploration Program Yields significant discovered resources Competitive Advantage in Delivering Major Projects Building a track record of outstanding execution Fully Integrated Financial and Risk Strategy Ensures ability to support business value creation Organizational Capacity to Deliver Results 21

22 Forward-looking Statements and Non-GAAP Measures This presentation contains certain forward-looking statements within the meaning of the 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 presentation 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 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, 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 presentation 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 under Investors for reconciliations of the differences between any historical non-gaap measures used in this presentation 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. The Securities and Exchange Commission requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The SEC permits the optional disclosure of probable and possible reserves, however, we have not disclosed our probable and possible reserves in our filings with the SEC. We use certain terms in this presentation, such as net risked resources and gross mean resources. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent Form 10-K and in other reports on file with the SEC, available from Noble Energy s offices or website, 22

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