Noble Energy deeply cut expenses, increased revenues and reduced losses last year by 60 percent, according to earnings released on Monday.
Noble, an oil and gas production company based in Houston, posted $252 million in losses in the fourth quarter of 2016, or 59 cents per share, $1.8 billion or almost 90 percent better than the $2 billion in losses over the same period in 2015. The company reported year-end losses of almost $1 billion, $1.4 billion better than the $2.4 billion posted in 2015.
It cut expenses in the fourth quarter by almost 50 percent to $1.4 billion from $2.6 billion in 2015. Year-end spending dropped 15 percent to $4.8 billion last year from $5.7 billion in 2015.
At the same time, the company increased revenues by just under 20 percent in the fourth quarter to $1 billion from $860 million in the last period of 2015. Year-end revenues increased 10 percent to $3.5 billion from $3.2 billion in 2015.
Recent West Texas purchases, such as the $2.7 billion deal for Midland-based Clayton Williams Energy, closed in 2017 and were not included in last year’s earnings.
Fourth quarter oil volumes and sales were above expectations, the company said.
Strong natural gas demand in Israel contributed to a 10 percent increase in sales volumes there, driven by strong demand from industrial customers and displacement of coal to natural gas in Israel’s power generation sector.
And U.S. onshore wells in West Texas Permian Basin and Colorado’s DJ Basin continued to perform at or above expectations.
“In total, we outperformed our original 2016 plans by 10 million barrels of oil equivalent, with significantly less capital,” said chief executive David L. Stover. “We are positioned for a tremendous year in 2017.”