UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 15, 2018 NOBLE ENERGY, INC. (Exact name of Registrant as specified in its charter) Delaware 001-07964 73-0785597 (State or other jurisdiction of incorporation or organization) Commission File Number (I.R.S. Employer Identification No.) 1001 Noble Energy Way, Houston, Texas 77070 (Address of principal executive offices) (Zip Code) Registrant s telephone number, including area code: (281) 872-3100 (Former name, former address and former fiscal year, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) o o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 ( 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ( 240.12b-2 of this chapter). Emerging growth company o If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition. On February 20, 2018, Noble Energy, Inc. (the Company ) issued a press release announcing results for the fiscal year and fiscal quarter ended December 31, 2017. A copy of the press release issued by the Company is furnished as Exhibit 99.1 to this Current Report and will be published on the Company's website at www.nblenergy.com. The Company s press release announcing its financial results for its fiscal year and fiscal quarter ended December 31, 2017 contains non-gaap financial measures. Generally, a non-gaap financial measure is a numerical measure of a company s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles, or GAAP. The Company has provided quantitative reconciliations within the press release of the non-gaap financial measures to the most directly comparable GAAP financial measures. In accordance with General Instruction B.2. of Form 8-K, the information set forth herein and in the press release as Exhibit 99.1 is deemed to be "furnished" and shall not be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Item 7.01. Regulation FD Disclosure. On February 20, 2018, we will present certain information in connection with our call with stockholders, analysts and others relating to our results of operations, discussed above, and 2018 guidance. Attached hereto as Exhibit 99.2 are the fourth quarter 2017 supplemental slides that will be presented at that time. On February 20, 2018, the Company issued a press release with respect to it 2017 year-end reserves. A copy of the Company's press release is furnished as Exhibit 99.3 to this current report on Form 8-K and incorporated herein by reference. On February 20, 2018, the Company issued a press release with respect to it 2018 capital budget and operational and financial guidance. A copy of the Company's press release is furnished as Exhibit 99.4 and supplemental slides as Exhibit 99.5 to this current report on Form 8-K and incorporated herein by reference. On February 15, 2018, the Company issued a press release announcing that its Board of Directors authorized a share repurchase program under which the Company may repurchase up to $750 million of its outstanding common stock, such purchases to be from time to time on the open market or in negotiated transactions. A copy of the Company's press release is furnished as Exhibit 99.6 to this current report on Form 8-K and incorporated herein by reference. On February 19, 2018, the Company issued a press release announcing execution of two independent gas sale agreements for export of natural gas to Egypt. A copy of the Company's press release is furnished as Exhibit 99.7 to this current report on Form 8-K and incorporated herein by reference. The information included in this Current Report under Item 7.01, including Exhibits 99.2, 99.3, 99.4, 99.5, 99.6 and 99.7, is deemed to be furnished and shall not be filed for purposes of Section 18 of the Exchange Act. Item 8.01. Other Events. On February 15, 2018, the Company announced that its Board of Directors authorized the repurchase of up to $750 million of its outstanding common stock. The authorization extends through the end of 2020. Item 9.01. Financial Statements and Exhibits. (d) Exhibits. The following exhibit is furnished as part of this Current Report on Form 8-K: 99.1 Press Release dated February 20, 2018 announcing results for the fiscal year and fiscal quarter ended December 31, 2017. 99.2 Fourth quarter 2017 supplemental slide presentation. 99.3 Press Release dated February 20, 2018 announcing 2017 year-end reserves. 99.4 Press Release dated February 20, 2018 announcing the 2018 capital budget and operational and financial guidance. 99.5 2018 capital budget and operation and financial guidance supplemental slide presentation. 99.6 Press Release dated February 15, 2018 announcing Noble Energy share repurchase program and divestiture of Gulf of Mexico assets. 99.7 Press Release dated February 19, 2018 announcing execution of gas sale agreements to Egypt.
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. NOBLE ENERGY, INC. Date: February 20, 2018 By: /s/ Kenneth M. Fisher Kenneth M. Fisher Executive Vice President, Chief Financial Officer
INDEX TO EXHIBITS 99.1 Press Release dated February 20, 2018 announcing results for the fiscal year and fiscal quarter ended December 31, 2017. 99.2 Fourth quarter 2017 supplemental slide presentation. 99.3 Press Release dated February 20, 2018 announcing 2017 year-end reserves. 99.4 Press Release dated February 20, 2018 announcing the 2018 capital budget and operational and financial guidance. 99.5 2018 capital budget and operation and financial guidance supplemental slide presentation. 99.6 Press Release dated February 15, 2018 announcing Noble Energy share repurchase program and divestiture of Gulf of Mexico assets. 99.7 Press Release dated February 19, 2018 announcing execution of gas sale agreements to Egypt.
Exhibit 99.1 NEWS RELEASE NOBLE ENERGY ANNOUNCES FOURTH QUARTER AND FULL-YEAR 2017 RESULTS HOUSTON (February 20, 2018) -- Noble Energy, Inc. (NYSE: NBL) ( Noble Energy or the "Company ) today announced fourth quarter and full-year 2017 financial and operating results. Highlights include: Strengthened the balance sheet through non-core asset divestitures and retired approximately $570 million of Noble Energy debt in the fourth quarter. Delivered record quarterly U.S. onshore oil volumes and growth of over 40 percent (1) from first quarter to fourth quarter 2017. Increased fourth quarter 2017 total company liquids composition to 56 percent compared to 46 percent in the fourth quarter 2016. U.S. onshore liquids grew to 67 percent of total U.S. onshore production. Grew fourth quarter combined Texas volumes to 130 MBoe/d, and increased oil as a percentage of DJ Basin volumes to a record 55 percent. Commenced operation at the Company s second Central Gathering Facility in the Delaware Basin. Reduced unit operating expenses eight percent from the third quarter 2017 to $8.10 per BOE in the fourth quarter. Proved reserves added replaced approximately 625 percent of 2017 production. David L. Stover, Noble Energy s Chairman, President and CEO, commented, For Noble Energy, 2017 was a transformative year as we repositioned our portfolio and executed on our strategy to drive capital efficiency in our high-margin, high-return basins. We significantly advanced the development of our U.S. onshore assets as we reduced drilling costs and enhanced well productivity, while materially increasing the scale of our Texas operations. In addition, the value of our midstream business expanded through the build-out of multiple facilities to support the Company's future upstream production plans. Our world-class Leviathan project was one of the largest offshore projects sanctioned in 2017, and we commenced project execution, taking advantage of a low point in the cycle for offshore costs. All of this was accomplished with record safety performance across the Company. The results delivered in 2017 provide significant momentum as we enter 2018 and deliver growing value for shareholders." Fourth Quarter and Full-Year 2017 Results Fourth quarter net income attributable to Noble Energy totaled $494 million, or $1.01 per diluted share. The Company reported adjusted net income (2) and adjusted net income per share (2) attributable to Noble Energy for the quarter of $156 million, or $0.32 per diluted share, which excludes the impact of certain items typically not considered by analysts in formulating estimates. Adjusted EBITDAX (2) was $789 million. During the fourth quarter, the Company invested $579 million in its upstream operations and funded $76 million for onshore midstream assets. Approximately 80 percent was deployed to our U.S. onshore plays and 17 percent was spent in Israel primarily for Leviathan development.
Total Company sales volumes for the fourth quarter 2017 were 380 thousand barrels of oil equivalent per day (MBoe/d), an increase of 25 MBoe/d from the third quarter 2017 and up nearly 50 MBoe/d (1) from the fourth quarter of last year. Volumes for the fourth quarter of 2017 were impacted by approximately 7 MBoe/d as a result of winter storms and third-party facility impacts in the Company's Texas operations. U.S. onshore volumes were up approximately 40 percent (1) from the fourth quarter of 2016 while combined sales volumes from the Gulf of Mexico and West Africa were down approximately 20 percent due to natural field decline. In Israel, net volumes were slightly lower than the fourth quarter of last year, driven by the impact of planned maintenance work in October 2017. Unit operating expenses for the fourth quarter 2017 totaled $8.10 per BOE, including lease operating expenses (LOE), production taxes, gathering and transportation expenses and marketing costs. LOE decreased by three percent from third quarter 2017 to $4.49 per BOE. Production tax expense for the period totaled 1.7 percent of oil, gas, and NGL revenues and benefited from finalizing prior years property tax returns. Depreciation, depletion and amortization was reduced to $14.28 per BOE, down 11 percent from the fourth quarter of last year primarily as a result of increased reserve bookings from our enhanced onshore well performance. Equity method and other income for the quarter of $59 million was greater than expected primarily due to the strength of liquids prices at the methanol and LPG plants in Equatorial Guinea. Adjustments to net income attributable to Noble Energy for the quarter include the removal of the gain on the sale of mineral interests, unrealized mark to market loss on commodity hedges, and the net impact from the recently enacted Tax Cuts and Jobs Act, among other items. There is no significant near-term cash impact to Noble Energy resulting from the new tax law. 1
Full-year 2017 net loss attributable to Noble Energy totaled $1,118 million, or $2.38 per diluted share. The Company reported adjusted net income (2) and adjusted net income per share (2) attributable to Noble Energy for the year of $147 million, or $0.31 per diluted share. Adjusted EBITDAX (2) was $2,648 million for full-year 2017. The Company achieved full year reported sales volumes of 381 MBoe/d, an increase of seven percent (1) upstream capital expenditures and midstream investments funded by the Company totaled $2,556 million for the year. from 2016. Organic Strengthening the Balance Sheet In November 2017, the Company closed the sale of non-core mineral and royalty interests, including approximately 4 MBoe/d of net production for $340 million. In December 2017, the Company closed the sale of approximately 30,200 net acres of its DJ Basin position in Weld County, Colorado, which included approximately 3 MBoe/d. Noble Energy received $568 million from the initial close of the DJ Basin sale and anticipates the remaining funds of approximately $40 million to be received in a final closing by mid- 2018. During the fourth quarter, the Company paid off its term loan balance of $550 million and certain legacy Rosetta Resources notes of approximately $20 million, bringing full-year 2017 Noble Energy debt retirement to approximately $1.2 billion, inclusive of Clayton Williams Energy debt retired at the time of acquisition. The Company ended 2017 with $4.5 billion in total financial liquidity, comprised of cash and Noble Energy's available credit facility borrowing capacity. Significant U.S. Onshore Growth Total sales volumes across the Company s U.S. onshore assets averaged 249 MBoe/d in the fourth quarter 2017, up approximately 40 percent (1) from the fourth quarter of 2016. U.S. onshore oil volumes totaled a record 104 MBbl/d, up over 40 percent (1) from the first quarter 2017. Fourth quarter 2017 volumes reflect record quarterly volumes in the Company s Eagle Ford and Delaware Basin assets. Texas volumes were reduced approximately 7 MBoe/d in the fourth quarter due to winter storms in December and third-party facility impacts. The DJ Basin averaged 115 MBoe/d, an increase of three percent from the fourth quarter of last year driven by strong well performance in the Company s Wells Ranch and East Pony areas. Oil volumes in the DJ Basin totaled 63 MBbl/d, or 55 percent of total basin production, up five percentage points from the fourth quarter of last year. 2
Noble Energy's Texas volumes increased by more than 75 MBoe/d in the fourth quarter as compared to the fourth quarter 2016. Production from the Eagle Ford doubled from the fourth quarter 2016 to an average of 92 MBoe/d through development of the Lower Eagle Ford in South Gates Ranch. Delaware Basin production of 38 MBoe/d was nearly four times that of the fourth quarter 2016 as the Company continued to accelerate the pace of development and delivered strong well performance. The second Delaware Basin central gathering facility, operated by Noble Midstream Partners, started up at the beginning of December 2017. During the fourth quarter, the Company averaged eight operated drilling rigs (two DJ, five Delaware and one Eagle Ford) and four completion crews (two DJ and two Delaware). Fourth quarter operated wells brought online included 22 in the DJ Basin, 10 in the Eagle Ford and 21 in the Delaware. Strong Performance in Israel Net sales volumes totaled 262 million cubic feet of natural gas equivalent per day (MMcfe/d) during the fourth quarter of 2017. Gross production from the Company s assets in Israel averaged 911 MMcfe/d. The Company completed planned maintenance at Tamar ahead of schedule in the early part of the fourth quarter, contributing to 98 percent uptime during the quarter. Currently, development of the Leviathan project is approximately 40 percent complete. Construction of the production platform is underway, preparations to mobilize the drilling rig commenced and the project remains on budget and schedule with first gas sales anticipated by the end of 2019. Offshore Assets Sales volumes for West Africa were 64 MBoe/d (30 percent oil) which were equal to produced volumes. Quarterly sales volumes in the Gulf of Mexico averaged 23 MBoe/d, with 78 percent oil contribution, reflecting continued strong field performance and facility uptime. Additional details for the fourth quarter and year-end results can be found in the quarterly supplement on the Company s website, www.nblenergy.com. (1) Pro forma for asset divestments. (2) A Non-GAAP measure, please see the respective earnings release schedules included herein for reconciliations. Webcast and Conference Call Information Noble Energy, Inc. will host a live audio webcast and conference call at 8:00 a.m. Central Time on February 20, 2018. The webcast link is accessible on the 'Investors' page at www.nblenergy.com. A replay will be 3
available on the website. Conference call numbers for participation during the question and answer session are: Toll Free Dial in: 800-289-0438 International Dial in: 323-994-2083 Conference ID: 4328087 Noble Energy (NYSE: NBL) is an independent oil and natural gas exploration and production company with a diversified highquality portfolio of both U.S. unconventional and global offshore conventional assets. Founded more than 85 years ago, the Company is committed to safely and responsibly delivering our purpose: Energizing the World, Bettering People s Lives. For more information, visit www.nblenergy.com. Investor Contacts Brad Whitmarsh (281) 943-1670 Brad.Whitmarsh@nblenergy.com Megan Dolezal (281) 943-1861 Megan.Dolezal@nblenergy.com Lauren Brown (281) 872-3208 Lauren.Brown@nblenergy.com Media Contacts Reba Reid (713) 412-8441 media@nblenergy.com Paula Beasley (281) 876-6133 media@nblenergy.com This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes", "expects", "intends", "will", "should", "may", and similar expressions may be used to identify forwardlooking statements. Forward-looking statements are not statements of historical fact and reflect Noble Energy's current views about future events. Such forward-looking statements may include, but are not limited to, future financial and operating results, and other statements that are not historical facts, including 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 and uncertainties 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 4
regulation or other actions, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's businesses that are discussed in Noble Energy's most recent annual reports on Form 10-K, respectively, and in other Noble Energy reports on file with the Securities and Exchange Commission (the "SEC"). These reports are also available from the sources described above. 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 any forward-looking statements should circumstances or management s estimates or opinions change. This news release also contains certain historical 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 see Noble Energy s respective earnings release for reconciliations of the differences between any historical non-gaap measures used in this news release and the most directly comparable GAAP financial measures. 5
Revenues Schedule 1 Summary Statement of Operations (in millions, except per share amounts, unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2017 2016 2017 2016 Crude Oil and Condensate $ 709 $ 564 $ 2,346 $ 1,854 Natural Gas Liquids 164 92 493 296 Natural Gas 269 323 1,221 1,239 Income from Equity Method Investees and Other 59 31 196 102 Total Revenues 1,201 1,010 4,256 3,491 Operating Expenses Lease Operating Expense 157 130 571 542 Production and Ad Valorem Taxes 19 5 138 78 Gathering, Transportation and Processing Expense 99 126 432 480 Marketing Expense 8 19 47 58 Exploration Expense 52 549 188 925 Depreciation, Depletion and Amortization 499 595 2,053 2,454 General and Administrative 111 106 415 399 Loss on Marcellus Shale Upstream Divestiture 53 2,379 Asset Impairments 63 92 70 92 Other Operating Income, Net (321) (249) (235) (161) Total Operating Expenses 740 1,373 6,058 4,867 Operating Income (Loss) 461 (363) (1,802) (1,376) Other Expense Loss (Gain) on Commodity Derivative Instruments 82 87 (63) 139 Loss (Gain) on Extinguishment of Debt 98 (80) Interest, Net of Amount Capitalized 83 86 354 328 Other Non-Operating Expense, Net 4 5 9 Total Other Expense 169 178 389 396 Income (Loss) Before Income Taxes 292 (541) (2,191) (1,772) Income Tax Benefit (224) (301) (1,141) (787) Net Income (Loss) Including Noncontrolling Interests 516 (240) (1,050) (985) Less: Net Income Attributable to Noncontrolling Interests (1) 22 12 68 13 Net Income (Loss) Attributable to Noble Energy $ 494 $ (252) $ (1,118) $ (998) Net Income (Loss) Attributable to Noble Energy Per Share of Common Stock Income (Loss) Per Share, Basic and Diluted $ 1.01 $ (0.59) $ (2.38) $ (2.32) Weighted Average Number of Shares Outstanding Basic 487 430 469 430 Diluted 488 430 469 430 (1) The Company consolidates Noble Midstream Partners LP (NBLX), a publicly traded subsidiary of Noble Energy, as a variable interest entity for financial reporting purposes. The public's ownership interest in NBLX is reflected as a noncontrolling interest in the financial statements. These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 20, 2018. 6
Assets Current Assets Schedule 2 Condensed Balance Sheets (in millions, unaudited) December 31, 2017 December 31, 2016 Cash and Cash Equivalents $ 675 $ 1,180 Accounts Receivable, Net 748 615 Other Current Assets 780 160 Total Current Assets 2,203 1,955 Net Property, Plant and Equipment 17,502 18,548 Goodwill 1,310 Other Noncurrent Assets 461 508 Total Assets $ 21,476 $ 21,011 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable - Trade $ 1,161 $ 736 Other Current Liabilities 578 742 Total Current Liabilities 1,739 1,478 Long-Term Debt 6,746 7,011 Deferred Income Taxes 1,127 1,819 Other Noncurrent Liabilities 1,245 1,103 Total Liabilities 10,857 11,411 Total Shareholders' Equity 9,936 9,288 Noncontrolling Interests (1) 683 312 Total Equity 10,619 9,600 Total Liabilities and Equity $ 21,476 $ 21,011 (1) The Company consolidates Noble Midstream Partners LP (NBLX), a publicly traded subsidiary of Noble Energy, as a variable interest entity for financial reporting purposes. The public's ownership interest in NBLX is reflected as a noncontrolling interest in the financial statements. These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 20, 2018. 7
Cash Flows From Operating Activities Schedule 3 Condensed Statement of Cash Flows (in millions, unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2017 2016 2017 2016 Net Income (Loss) Including Noncontrolling Interests (1) $ 516 $ (240) $ (1,050) $ (985) Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities Depreciation, Depletion and Amortization 499 595 2,053 2,454 Asset Impairments 63 92 70 92 Loss on Marcellus Shale Upstream Divestiture 53 2,379 Deferred Income Tax Benefit (239) (285) (1,227) (984) Dry Hole Cost 7 474 9 579 Undeveloped Leasehold Impairment 11 12 62 93 Loss (Gain) on Extinguishment of Debt 98 (80) Loss (Gain) on Commodity Derivative Instruments 82 87 (63) 139 Net Cash (Used) Received in Settlement of Commodity Derivative Instruments (5) 114 13 569 Gain on Divestitures (326) (261) (326) (238) Stock Based Compensation 21 16 104 77 Other Adjustments for Noncash Items Included in Income (26) (18) (21) 95 Net Changes in Working Capital (123) (289) (150) (460) Net Cash Provided by Operating Activities 533 297 1,951 1,351 Cash Flows From Investing Activities Additions to Property, Plant and Equipment (693) (377) (2,649) (1,541) Proceeds from Divestitures 916 455 2,073 1,241 Clayton Williams Energy Acquisition (616) Other Acquisitions (327) Other - Investing (19) (123) (87) (131) Net Cash Provided by (Used in) Investing Activities 204 (45) (1,606) (431) Cash Flows From Financing Activities Dividends Paid, Common Stock (49) (43) (190) (172) Proceeds from Revolving Credit Facility 1,585 Repayment of Credit Facility (45) (1,355) Repayment of Clayton Williams Energy Long-term Debt (595) Repayment of Term Loan Facility (550) (850) (550) (850) (Repayment) Proceeds from Long Term Debt, Net (18) (28) 17 Proceeds from Noble Midstream Partners Revolving Credit Facility 80 325 Issuance of Noble Midstream Partners Common Units, Net of Offering Costs (195) (240) Proceeds from Noble Midstream Partners Revolving Credit Facility 174 312 299 Other - Financing (23) 2 (114) (62) Net Cash Used in Financing Activities (626) (891) (850) (768) Increase (Decrease) in Cash and Cash Equivalents 111 (639) (505) 152 Cash and Cash Equivalents at Beginning of Period 564 1,819 1,180 1,028 Cash and Cash Equivalents at End of Period $ 675 $ 1,180 $ 675 $ 1,180 8
(1) The Company consolidates Noble Midstream Partners LP (NBLX), a publicly traded subsidiary of Noble Energy, as a variable interest entity for financial reporting purposes. For the quarter and year ended December 31, 2017 and 2016, Net Income (Loss) includes Net Income Attributable to Noncontrolling Interests in NBLX. These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in Noble Energy's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 20, 2018. 9
Schedule 4 Volume and Price Statistics (unaudited) Three Months Ended December 31, Twelve Months Ended December 31, Sales Volumes 2017 2016 2017 2016 Crude Oil and Condensate (MBbl/d) United States Onshore 104 74 90 74 United States Gulf of Mexico 18 28 21 25 Equatorial Guinea 17 27 18 26 Equity Method Investee - Equatorial Guinea 2 2 2 2 Total 141 131 131 127 Natural Gas Liquids (MBbl/d) United States Onshore 62 49 56 53 United States Gulf of Mexico 2 1 2 1 Equity Method Investee - Equatorial Guinea 6 6 6 5 Total 70 56 64 59 Natural Gas (MMcf/d) United States Onshore 494 784 586 861 United States Gulf of Mexico 22 32 21 20 Israel 260 272 272 281 Equatorial Guinea 236 250 239 235 Total 1,012 1,338 1,118 1,397 Total Sales Volumes (MBoe/d) United States Onshore 249 254 244 271 United States Gulf of Mexico 23 33 26 30 Israel 44 46 46 47 Equatorial Guinea 56 69 57 65 Equity Method Investee - Equatorial Guinea 8 8 8 7 Total Sales Volumes (MBoe/d) 380 410 381 420 Total Sales Volumes (MBoe) 34,946 37,726 139,050 153,540 Price Statistics - Realized Prices (1) Crude Oil and Condensate ($/Bbl) United States Onshore $ 53.83 $ 46.69 $ 48.88 $ 39.46 United States Gulf of Mexico 58.08 45.52 50.05 39.99 Equatorial Guinea 60.83 51.39 53.68 43.54 Natural Gas Liquids ($/Bbl) United States Onshore $ 27.77 $ 19.83 $ 23.34 $ 14.82 United States Gulf of Mexico 32.79 34.76 25.76 18.62 Natural Gas ($/Mcf) United States Onshore $ 2.87 $ 2.45 $ 3.02 $ 2.10 United States Gulf of Mexico 3.09 2.93 3.16 2.58 Israel 5.31 5.27 5.32 5.21 Equatorial Guinea 0.27 0.27 0.27 0.27 (1) Average realized prices do not include gains or losses on commodity derivative instruments. 10
Schedule 5 Reconciliation of Net Income (Loss) Attributable to Noble Energy and Per Share (GAAP) to Adjusted Income (Loss) Attributable to Noble Energy and Per Share (Non-GAAP) (in millions, except per share amounts, unaudited) Adjusted income (loss) attributable to Noble Energy and per share (Non-GAAP) should not be considered an alternative to, or more meaningful than, net income (loss) attributable to Noble Energy and per share (GAAP) or any other measure as reported in accordance with GAAP. Our management believes, and certain investors may find, that adjusted income (loss) attributable to Noble Energy and per share (Non-GAAP) is beneficial in evaluating our operating and financial performance because it eliminates the impact of certain noncash and/or nonrecurring items that management does not consider to be indicative of our performance from period to period. We believe this Non-GAAP measure is used by analysts and investors to evaluate and compare our operating and financial performance across periods. As a performance measure, adjusted income (loss) attributable to Noble Energy and per share (Non-GAAP) may be useful for comparison of earnings and per share to forecasts prepared by analysts and other third parties. However, our presentation of adjusted income (loss) attributable to Noble Energy and per share (Non-GAAP), may not be comparable to similar measures of other companies in our industry. 11
Three Months Ended December 31, Twelve Months Ended December 31, 2017 2016 2017 2016 Net Income (Loss) Attributable to Noble Energy (GAAP) $ 494 $ (252) $ (1,118) $ (998) Adjustments to Net Income (Loss) Loss on Marcellus Shale Upstream Divestiture 53 2,379 Loss (Gain) on Commodity Derivative Instruments, Net of Cash Settlements 77 201 (50) 708 Leasehold Impairment 11 484 62 591 Gain on Divestitures (324) (261) (326) (238) Clayton Williams Energy Acquisition Expenses 2 100 Asset Impairments 63 92 70 92 Other Adjustments 14 (3) 139 (21) Total Adjustments Before Tax (104) 513 2,374 1,132 Current Income Tax Effect of Adjustments (1) (66) 45 Deferred Income Tax Effect of Adjustments (1) 36 (82) (839) (427) Adjustments to Net Income (Loss), After Tax $ (68) $ 365 $ 1,535 $ 750 Adjusted Income (Loss) Attributable to Noble Energy (Non-GAAP), Before Tax Reform Impact 426 113 417 (248) Tax Reform Impact (2) (270) (270) Adjusted Income (Loss) Attributable to Noble Energy (Non-GAAP) $ 156 $ 113 $ 147 $ (248) Net Income (Loss) Attributable to Noble Energy Per Share, Basic and Diluted (GAAP) $ 1.01 $ (0.59) $ (2.38) $ (2.32) Loss on Marcellus Shale Upstream Divestiture 0.11 5.05 Loss (Gain) on Commodity Derivative Instruments, Net of Cash Settlements 0.16 0.46 (0.11) 1.65 Leasehold Impairment 0.02 1.13 0.13 1.37 Gain on Divestitures (0.67) (0.61) (0.70) (0.55) Clayton Williams Energy Acquisition Expenses 0.21 Asset Impairments 0.13 0.21 0.15 0.21 Other Adjustments 0.04 0.32 (0.05) Current Income Tax Effect of Adjustments (1) (0.15) 0.10 Deferred Income Tax Effect of Adjustments (1) 0.07 (0.19) (1.79) (0.99) Adjusted Income (Loss) Attributable to Noble Energy Per Share, Diluted (Non-GAAP) $ 0.87 $ 0.26 $ 0.88 $ (0.58) Tax Reform Impact (2) (0.55) (0.57) Adjusted Income (Loss) Attributable to Noble Energy Per Share, Diluted (Non-GAAP) 0.32 0.26 0.31 (0.58) Weighted Average Number of Shares Outstanding, Basic 487 430 469 430 Incremental Dilutive Shares 1 3 2 Weighted Average Number of Shares Outstanding, Diluted 488 433 471 430 (1) Amount represents the income tax effect of adjustments, determined for each major tax jurisdiction for each adjusting item, including the impact of timing and magnitude of divestiture activities and the change in the indefinite reinvestment assertion related to accumulated undistributed earnings of foreign subsidiaries. (2) On December 22, 2017, U.S. Congress enacted the Tax Cuts and Jobs Act (Tax Reform Legislation), making significant changes to U.S. federal income tax law impacting us. Provisions of the Tax Reform Legislation include, among others: a decrease in the federal corporate tax rate to 21% beginning in 2018, a transition tax on a one-time deemed repatriation of accumulated foreign earnings, repeal and carryover of the corporate alternative minimum tax (AMT), and a phase-down of the bonus depreciation percentage. There is no significant near-term cash impact to Noble Energy resulting from the new tax law. 12
Schedule 6 Reconciliation of Net Income (Loss) Attributable to Noble Energy (GAAP) to Adjusted Income (Loss) Attributable to Noble Energy (Non- GAAP) and Adjusted EBITDAX (Non-GAAP) (in millions, unaudited) Adjusted Earnings Before Interest Expense, Income Taxes, Depreciation, Depletion and Amortization, and Exploration Expenses (Adjusted EBITDAX) (Non- GAAP) should not be considered an alternative to, or more meaningful than, net income (loss) attributable to Noble Energy (GAAP) or any other measure as reported in accordance with GAAP. Our management believes, and certain investors may find, that Adjusted EBITDAX (Non-GAAP) is beneficial in evaluating our operating and financial performance because it eliminates the impact of certain noncash and/or nonrecurring items that management does not consider to be indicative of our performance from period to period. We believe these Non-GAAP measures are used by analysts and investors to evaluate and compare our operating and financial performance across periods. As a performance measure, Adjusted EBITDAX (Non-GAAP) may be useful for comparison to forecasts prepared by analysts and other third parties. However, our presentation of Adjusted EBITDAX (Non-GAAP) may not be comparable to similar measures of other companies in our industry. Three Months Ended December 31, Twelve Months Ended December 31, 2017 2016 2017 2016 Net Income (Loss) Attributable to Noble Energy (GAAP) $ 494 $ (252) $ (1,118) $ (998) Adjustments to Net Income (Loss), After Tax (1) (338) 365 1,265 750 Adjusted Income (Loss) Attributable to Noble Energy (Non-GAAP) 156 113 147 (248) Adjustments to Adjusted Income (Loss) Attributable to Noble Energy Depreciation, Depletion, and Amortization 499 595 2,053 2,454 Exploration Expense (2) 41 65 126 334 Interest, Net of Amount Capitalized 83 86 354 328 Current Income Tax Expense (3) 15 50 86 152 Deferred Income Tax Benefit (3) (5) (203) (118) (557) Adjusted EBITDAX (Non-GAAP) $ 789 $ 706 $ 2,648 $ 2,463 (1) See Schedule 5: Reconciliation of Net Income (Loss) Attributable to Noble Energy (GAAP) to Adjusted Income (Loss) Attributable to Noble Energy (Non-GAAP). (2) Represents remaining Exploration Expense after reversal of Adjustments to Net Income (Loss), After Tax, above. (3) Represents remaining Income Tax Expense (Benefit) after reversal of Adjustments to Net Income (Loss), After Tax, above. Capital Expenditures (in millions, unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2017 2016 2017 2016 Organic Capital Expenditures, Attributable to Noble Energy (Accrual Based) $ 655 $ 404 $ 2,556 $ 1,339 Marcellus Shale Acreage Exchange Consideration 234 234 Acquisition Capital (4) 2 2,740 NBLX Funded Capital Expenditures (5) 61 294 Increase in Capital Lease Obligations 5 Total Reported Capital Expenditures (Accrual Based) $ 718 $ 638 $ 5,590 $ 1,578 (4) Acquisition costs for the three months ended December 31, 2017 include purchase price adjustments related to the Clayton Williams Energy Acquisition. (5) NBLX Funded Capital Expenditures for the twelve months ended December 31, 2017 include capital related to Advantage Pipeline. 13
Schedule 7 Supplemental Data (in millions, unaudited) 2017 Costs Incurred in Oil and Gas Activities United States Int l (1) Total Proved property acquisition costs $ 839 $ $ 839 Unproved property acquisition costs 1,817 1,817 Exploration costs 59 100 159 Development costs (2) 1,870 477 2,347 Total costs incurred $ 4,585 $ 577 $ 5,162 Reconciliation to Capital Spending (accrual basis) Total costs incurred $ 5,162 Exploration overhead (76) Lease rentals (24) Asset retirement obligations 39 Total oil and gas spending 5,101 Midstream capital spending 481 Investment in equity method investee 68 Corporate and other capital (60) Total capital spending (accrual basis) $ 5,590 Proved Reserves (3) United States Int l (1) Total Total Barrel Oil Equivalents (MMBoe) Beginning reserves - December 31, 2016 976 461 1,437 Price-related revisions 26 4 30 Other non-price-related revisions 56 49 105 Extensions, discoveries and other additions 185 551 736 Purchase of minerals in place 57 57 Sale of minerals in place (261) (261) Production (99) (40) (139) Ending reserves - December 31, 2017 940 1,025 1,965 Proved Developed Reserves (MMBoe) December 31, 2016 554 397 951 December 31, 2017 458 410 868 (1) International primarily includes Israel and Equatorial Guinea. (2) Includes decrease of $17 million in ARO costs due to revisions for United States and excludes capital expenditures from our midstream segment. (3 ) Netherland, Sewell & Associates, Inc. performed a reserves audit for 2017 and concluded that the Company's estimates of proved reserves were, in the aggregate, reasonable and have been prepared in accordance with Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers. 14
N B L F o u rth Q u a rte r2 0 1 7 S u p p le m e n t F e b ru a ry 2 0 1 8
2 N B L O U T P E R F O R M E D 2 0 1 7 G O A L S A c c e le ra te O n s h o re A c tiv itie s a n d D riv e C a p ita l E fic ie n c ie s D e liv e re d > 4 0 % U.S.O n s h o re o il g ro w th fro m 1 Q 1 7 to 4 Q 1 7 (1 ) In c re a s e d o p e ra tin g c a s h flo w p e rb O E ~ 8 0 % fro m 2 0 1 6 Im p ro v e d re tu rn s fro m d rilin g e fic ie n c ie s a n d p ro d u c tiv ity D e m o n s tra te d le a d in g s a fe ty a n d e n v iro n m e n tp e rfo rm a n c e G o a ls A c c o m p lis h m e n ts S u c c e s s fu l In te g ra tio n o f C WE Iin to N B L C o m m e n c e L e v ia th a n D e v e lo p m e n t T a rg e to v e r$ 1 B ilio n in P o rtfo lio P ro c e e d s F o c u s E x p lo ra tio n o n L o n g -te rm V a lu e C re a tio n E s ta b lis h e d th e la rg e s ts o u th e rn D e la w a re a c re a g e p o s itio n C o m m e n c e d fu l d e v e lo p m e n tp la n a n d c a p tu re d s y n e rg ie s E n h a n c e d m id s tre a m v a lu e th ro u g h N B L X a c re a g e d e d ic a tio n S a n c tio n e d o n e o fth e la rg e s t2 0 1 7 o fs h o re p ro je c ts C o m p le te d > 4 0 % o fp h a s e Id e v e lo p m e n tc u re n tly E x p a n d e d m id s tre a m th ro u g h p u tin 2 0 1 7 th ro u g h N B L d e v e lo p m e n ta n d th ird -p a rty b u s in e s s e x p a n s io n C o m m e n c e d o p e ra tio n o f2 D e la w a re C G F s C o m p le te d a tra c tiv e d ro p d o w n to N B L X G ro w V a lu e o fm id s tre a m to N B L C o n tin u e d to m a tu re p o rtfo lio,p ro g re s s in g lo w -c o s t,lo n g - te rm o p p o rtu n itie s D e liv e re d > $ 2.3 B in p ro c e e d s a n d re tire d ~ $ 1.2 B N B L d e b t D iv e s te d n o n -s tra te g ic M a rc e lu s,ro y a lty a n d o th e ra s s e ts F o c u s e d p o rtfo lio o n h ig h -m a rg in,h ig h -re tu rn a s s e ts (1 )A d ju s te d fo rd iv e s tm e n ts. T ra n s fo rm a tiv e y e a ra s N B L s h a rp e n e d fo c u s
3 N B L D e la w a re u p 1 9 0 % D J u p 1 5 % S U B S T A N T IA L IN C R E A S E IN P R O V E D R E S E R V E S N o te :T h e 2 0 1 7 p ric e d e c k fo rc a lc u la tin g p ro v e d re s e rv e s,b e fo re a d ju s tin g fo rd ife re n tia ls,w a s $ 5 1.3 4 /B b l WT Ic ru d e o il a n d $ 2.9 8 /M M B tu H e n ry H u b n a tu ra l g a s. (1 )In c lu d e s a d d itio n s,e x te n s io n s,d is c o v e rie s,p e rfo rm a n c e a n d p ric e re v is io n s.(2 )E x c lu d e s M a rc e lu s p ro v e d re s e rv e s. 0.5 1.0 1.5 2.0 Y E 2 0 1 6 D iv e s tm e n ts P ro d u c tio n A d d itio n s P e rfo rm a n c e R e v is io n s A c q u is itio n s P ric e R e v is io n s Y E 2 0 1 7 1.9 7 1.4 4 P ro v e d R e s e rv e s B B o e K e y H ig h lig h ts N e a rly 2 B B o e P ro v e d R e s e rv e s w ith a n O rg a n ic R e s e rv e R e p la c e m e n tr a tio (1 )o f ~ 6 2 5 % C o m p o s itio n is 3 5 % liq u id s,1 5 % U.S. g a s a n d 5 0 % in t l g a s O rg a n ic R e s e rv e A d d itio n s a n d R e v is io n s (1 ) o f8 7 1 M M B o e a tl o w C o s to f~ $ 2.9 0 /B O E 6.3 x 2 0 1 7 p ro d u c tio n U.S.O n s h o re B u s in e s s : In c re a s e o f3 0 % in U.S.o n s h o re liq u id s 2 6 5 M M B o e a d d itio n s a n d re v is io n s (1 ) ~ 3 0 0 % o rg a n ic re s e rv e re p la c e m e n ta t a c o s to f~ $ 7.0 0 /B O E T e x a s p ro v e d re s e rv e s in c re a s e d > 6 0 % fro m y e a r-e n d 2 0 1 6 Is ra e l B u s in e s s : ~ 3.3 T c fe n a tu ra l g a s a d d e d a s a re s u lt o fth e L e v ia th a n s a n c tio n 2 9 2 B c fe n a tu ra l g a s a d d e d d u e to T a m a rp e rfo rm a n c e 3 7 % g ro w th in p ro v e d re s e rv e s d riv e n b y h ig h -re tu rn U.S.O n s h o re a n d Is ra e l a s s e ts D e la w a re D J E a g le F o rd 6 8 5 M M B o e P ro v e d R e s e rv e s Y E 1 6 (2 ) U.S.O n s h o re R e s e rv e s 9 1 3 M M B o e P ro v e d R e s e rv e s Y E 1 7
4 N B L 4 Q 1 7 K E Y H IG H L IG H T S E x c e p tio n a l a n d d ife re n tia l o p e ra tio n a l e x e c u tio n S ig n ific a n tl iq u id s G ro w th E x c e p tio n a l In c re a s e in P ro v e d R e s e rv e s to N e a rly 2 B B o e M id s tre a m In te g ra tio n P ro v id in g O p e ra tio n a l A d v a n ta g e s Im p ro v e d O p e ra tin g E x p e n s e s a n d B a la n c e S h e e t T o ta l v o lu m e s o f3 8 0 M B o e /d,a n in c re a s e o fn e a rly 5 0 M B o e /d fro m 4 Q 1 6 (1 )a n d 2 5 M B o e /d fro m 3 Q 1 7 D e liv e re d U.S.o n s h o re o il g ro w th o f> 4 0 % fro m 1 Q 4 Q 2 0 1 7 (1 ) R e c o rd o v e ra l c o m p a n y liq u id s c o m p o s itio n o f5 6 % c o m p a re d to 4 6 % in 4 Q 1 6 O rg a n ic re s e rv e a d d itio n s,in c lu d in g p e rfo rm a n c e a n d p ric e re v is io n s o f8 7 1 M M B o e a t~ $ 2.9 0 /B O E 2 6 5 M M B o e o fth e a d d itio n s fro m U.S.O n s h o re a n d 6 0 0 M M B o e fro m w o rld -c la s s E M e d V a lu e o fu tu re c a s h flo w s fro m p ro v e d re s e rv e s,d is c o u n te d a t1 0 % in c re a s e d ~ 1 0 0 % fro m Y E 1 6 to ~ $ 1 1 B S tre n g th e n e d b a la n c e s h e e th ro u g h n o n -c o re a s s e td iv e s titu re s a n d re tire d ~ $ 5 7 0 M M o fn B L d e b t R e d u c e d o p e ra tin g e x p e n s e s 8 % fro m 3 Q 1 7 to $ 8.1 0 /B O E R e d u c e d D D & A to $ 1 4.2 8 /B O E p rim a rily d riv e n b y in c re a s e d re s e rv e b o o k in g s S e c o n d c e n tra l g a th e rin g fa c ility (o p e ra te d b y N B L X )o n lin e in D e la w a re B a s in in D e c e m b e r2 0 1 7 w ith 1 1 w e ls c u re n tly flo w in g th ro u g h th e s y s te m R e c o rd 1 2 2 M B o e /d o il a n d g a s g a th e rin g v o lu m e s fro m N B L X o p e ra te d s y s te m s in c lu d in g 3 rd p a rty (1 )A d ju s te d fo rd iv e s tm e n ts.
5 N B L 4 Q 1 7 A C T U A L S V S.G U ID A N C E B e a tv s.e x p e c ta tio n o n re v e n u e s a n d lo w e rc o s ts F in a n c ia l & O p e ra tin g M e tric s 4 Q G u id a n c e 4 Q A c tu a ls T o ta l S a le s V o lu m e s (M B o e /d )3 8 0 3 9 0 3 8 0 O il (M B b l/d )1 4 0 1 4 6 1 4 1 N a tu ra l G a s L iq u id s (M B b l/d )6 9 7 4 7 0 N a tu ra l G a s (M M c f/d )1,0 0 5 1,0 4 5 1,0 1 2 O rg a n ic C a p ita l(1 )($ M M )6 0 0 7 0 0 6 5 5 E q u ity In v e s tm e n t& O th e r In c o m e ($ M M ) 4 0 4 5 5 9 L e a s e O p e ra tin g ($ /B O E )4.3 0 4.6 0 4.4 9 G a th e rin g,t ra n s p o rta tio n & P ro c e s s in g ($ /B O E ) 3.0 0 3.2 5 2.8 3 D D & A ($ /B O E )1 5.0 0 1 6.0 0 1 4.2 8 P ro d u c tio n T a x e s (% O il,n G L,G a s R e v e n u e s ) 4.0 4.5 1.7 M a rk e tin g ($ M M )1 0 2 0 8 E x p lo ra tio n ($ M M )4 0 6 0 4 1 (2 ) G & A ($ M M )9 5 1 1 0 1 1 1 In te re s t,n e t($ M M )8 0 9 0 8 3 E a rn in g s R e c o n c ilia tio n 4 Q ($ M M ) N e tin c o m e a trib u ta b le to N B L (G A A P )4 9 4 A d ju s tm e n ts to N e tin c o m e,b e fo re T a x (1 0 4 ) A d ju s te d N e tin c o m e a trib u ta b le to N B L, B e fo re T a x 3 9 0 C u re n tt a x E fe c to fa d ju s tm e n ts - D e fe re d T a x E fe c to fa d ju s tm e n ts 3 6 T a x R e fo rm Im p a c t(2 7 0 ) A d ju s te d N e tin c o m e A trib u ta b le to N B L (3 ) (N o n -G A A P ) 1 5 6 A d ju s te d E B IT D A X 4 Q ($ M M ) A d ju s te d N e tin c o m e A trib u ta b le to N B L (3 ) (N o n -G A A P ) 1 5 6 In te re s t,n e t8 3 C u re n tt a x E x p e n s e,a d ju s te d 1 5 D e fe re d T a x B e n e fit,a d ju s te d (5 ) D D & A 4 9 9 E x p lo ra tio n 4 1 (2 ) A d ju s te d E B IT D A X (3 )(N o n -G A A P )7 8 9 (1 )E x c lu d e s N B L X fu n d e d c a p ita l e x p e n d itu re s.(2 )E x c lu d e s c e rta in e x p irin g le a s e s in th e G u lfo fm e x ic o. (3 )N o n -G A A P re c o n c ilia tio n to G A A P m e a s u re a v a ila b le in 4 Q 1 7 e a rn in g s re le a s e.
6 N B L U.S.O N S H O R E E x e c u tin g to p la n,d e liv e rin g ro b u s tv o lu m e a n d c a s h flo w g ro w th 4 Q 1 7 A c tiv ity D J B a s in D e la w a re E a g le F o rd O th e rt o ta l O il (M B b l/d )6 3 2 6 1 3 2 1 0 4 N G L (M B b l/d )1 9 6 3 7 1 6 3 G a s (M M c f/d )1 9 9 3 4 2 5 3 8 4 9 4 T o ta l S a le s (M B o e /d )1 1 5 3 8 9 2 4 2 4 9 U p s tre a m C a p ita l ($ M M )1 7 5 2 1 5 5 7-4 4 7 M id s tre a m C a p ita l(2 )($ M M )1 8 5 8-7 6 A v g.o p e ra te d R ig s 2 5 1-8 We ls D rile d (3 )2 4 2 0 8-5 2 A v g.l a te ra l L e n g th (ft)1 0,9 0 0 9,3 0 0 6,0 0 0-9,5 0 0 We ls C o m p le te d (3 )2 0 1 4 5-3 9 We ls B ro u g h to n lin e (3 )2 2 2 1 1 0-5 3 A v g.l a te ra l L e n g th (ft)9,6 0 0 7,2 0 0 7,1 0 0-8,2 0 0 D J B a s in D e la w a re B a s in E a g le F o rd 4 Q 1 7 K e y H ig h lig h ts O p e ra tin g C a s h F lo w p e rb O E u p ~ 4 0 % fro m 3 Q 1 7 a n d ~ 8 0 % fro m F u l-y e a r2 0 1 6 U.S.O n s h o re O il R e c o rd o f1 0 4 M B b l/d D e liv e re d > 4 0 % o il g ro w th fro m 1 Q 1 7 to 4 Q 1 7 (1 ) G re w T e x a s V o lu m e s to a R e c o rd 1 3 0 M B o e /d R o b u s te a g le F o rd ra m p w ith v o lu m e s u p 2 1 % fro m 3 Q 1 7 4 Q 1 7 T e x a s v o lu m e s re d u c e d b y ~ 7 M B o e /d d u e to w e a th e ra n d th ird -p a rty fa c ility im p a c ts S a le s V o lu m e s in We ls R a n c h a n d E a s tp o n y in D J B a s in G re w to 8 5 M B o e /d ;T o ta l B a s in R e c o rd H ig h O il M ix o f5 5 % E x e c u te d N o n -c o re D iv e s titu re s in 4 Q 1 7, S tre n g th e n in g th e B a la n c e S h e e t C lo s e d m in e ra ls a n d ro y a lty s a le fo r $ 3 4 0 M M a n d D J B a s in s a le o f3 0,2 0 0 n e ta c re s fo r$ 5 6 8 M M A n n o u n c e d s a le o f5 0 % in te re s tin C N X M g e n e ra l p a rtn e rfo r$ 3 0 5 M M (1 )A d ju s te d fo rd iv e s tm e n ts.(2 )E x c lu d e s N B L X fu n d e d c a p ita l e x p e n d itu re s.(3 )R e p re s e n ts N B L o p e ra te d a c tiv ity.
7 N B L 0 5 1 0 1 5 2 0 2 5 0 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 1 Q 1 7 2 Q 1 7 3 Q 1 7 4 Q 1 7 V o lu m e We ls O n lin e P e rq tr. D E L A WA R E B A S IN F o c u s e d o n fu l d e v e lo p m e n tm o d e D e la w a re B a s in A c tiv ity 3 Q 1 7 4 Q 1 7 T o ta l S a le s V o lu m e (M B o e /d )2 7 3 8 U p s tre a m C a p ita l ($ M M )2 1 4 2 1 5 A v g.o p e ra te d R ig s 5 5 We ls D rile d (1 )1 7 2 0 A v g.l a te ra l L e n g th (ft)8,3 0 0 9,3 0 0 We ls C o m p le te d (1 )1 4 1 4 We ls B ro u g h to n lin e (1 )1 4 2 1 A v g.l a te ra l L e n g th (ft)7,3 0 0 7,2 0 0 C a s h F lo w a n d V o lu m e G ro w th E x ite d 4 Q 1 7 w ith re c o rd p ro d u c tio n > 4 5 M B o e /d 4 Q 1 7 s a le s v o lu m e s u p > 4 0 % fro m 3 Q 1 7 S tro n g o p e ra tin g c a s h flo w g ro w th C a la m ity J a n e 7 -w e l p a d o n lin e w ith s tro n g e a rly p e rfo rm a n c e P ro g re s s in g M id s tre a m B u ild -o u ts u p p o rts U p s tre a m G ro w th T X E x e c u tin g to P la n F o u r-fo ld in c re a s e fro m 4 Q 1 6 M B o e /d 2 0 1 7 We ls O n lin e (1 )R e p re s e n ts N B L o p e ra te d a c tiv ity. 0 2 5 5 0 7 5 1 0 0 1 2 3 4 C e n tra l G a th e rin g F a c ility (C G F ) G ro s s O il C a p a c ity N B L o w n s 6 0 % o f D e la w a re M id s tre a m In fra s tru c tu re M B b l/d 3 Q 1 7 4 Q 1 7 M id -2 0 1 8 E 1 5 3 0 9 0
8 N B L T X D E L A WA R E B A S IN R e s u lts d e m o n s tra te c o n fid e n c e in d e v e lo p m e n tp la n H ig h lig h ts C u re n td e v e lo p m e n tp la n S u p p o rte d b y S tro n g 2 0 1 7 R e s u lts C a la m ity J a n e 7 -w e l p a d o u tp e rfo rm in g e x p e c ta tio n s E a rly d a ta s h o w in g n o e v id e n c e o f c o m m u n ic a tio n b e tw e e n w e ls M ic ro s e is m ic in d ic a tin g h ig h ly e fe c tiv e c o n ta in m e n tw ith in 3 rd B o n e S p rin g a n d Wo lfc a m p A E x te n d e d p ro d u c tio n h is to ry o n M o n ro e a n d T rig g e rs p a c in g te s ts c o n firm c u re n t d e v e lo p m e n tp la n L o n g e rla te ra ls c o n tin u e to e x h ib it fla te rd e c lin e s C o le Y o u n g e rwo lfc a m p B A c h ie v in g E q u iv a le n t R a te to Wo lfc a m p A U p p e r 3,8 0 0 fo o tla te ra l,o n lin e la te 3 Q 1 7 9 0 d a y c u m u la tiv e p ro d u c tio n o f1 1 9 M B o e L a u ra Wild e rwe ls E x h ib itin g T o p T ie rr e s u lts R e e v e s J e s s e J a m e s C G F 2 n d C G F o n lin e 4 Q 1 7 T rig g e r3 We l P a d 2 Wo lfc a m p A U p p e r,9 0 - d a y a v g.ip ~ 2,1 0 0 B o e /d 1 Wo lfc a m p A L o w e r,9 0 - d a y a v g.ip ~ 1,6 0 0 B o e /d O n lin e la te 3 Q 1 7,7,9 0 0 a v g.la te ra le n g th,7 2 % o il L a u ra Wild e r2 We l P a d Wo lfc a m p A U p p e r,3 0 -d a y IP ~ 3,4 0 0 B o e /d Wo lfc a m p A L o w e r,3 0 -d a y IP ~ 2,3 0 0 B o e /d O n lin e 4 Q 1 7,8,4 0 0 a v g. la te ra le n g th,6 7 % o il C a la m ity J a n e 7 We l P a d 2 3 rd B o n e S p rin g s,3 0 -d a y a v g.ip ~ 2,6 0 0 B o e /d 3 Wo lfc a m p A U p p e r,3 0 - d a y a v g.ip ~ 2,0 0 0 B o e /d 2 Wo lfc a m p A L o w e r,3 0 - d a y a v g.ip ~ 1,0 0 0 B o e /d O n lin e la te 4 Q 1 7,7,0 0 0 a v g.la te ra le n g th,7 0 % o il Wo lfc a m p A U p p e r Wo lfc a m p A L o w e r L o w e r3 rd B o n e S p rin g C a la m ity J a n e M u lti-z o n e S p a c in g D e v e lo p m e n t 8 8 0 8 8 0 1,3 2 0 } 1 3 0 1 0 0
9 N B L D J B A S IN F o c u s a re a s d riv in g s u s ta in e d h ig h e ro il m ix D J B a s in A c tiv ity 3 Q 1 7 4 Q 1 7 T o ta l S a le s V o lu m e (M B o e /d )1 1 2 1 1 5 U p s tre a m C a p ita l ($ M M )2 0 6 1 7 5 A v g.o p e ra te d R ig s 2 2 We ls D rile d (1 )3 2 2 4 A v g.l a te ra l L e n g th (ft)8,2 0 0 1 0,9 0 0 We ls C o m p le te d (1 )1 7 2 0 We ls B ro u g h to n lin e (1 )3 2 2 2 A v g.l a te ra l L e n g th (ft)9,2 0 0 9,6 0 0 C O 0 1 5 3 0 4 5 6 0 7 5 9 0 4 Q 1 6 1 Q 1 7 2 Q 1 7 3 Q 1 7 4 Q 1 7 We ls R a n c h a n d E a s tp o n y M o re th a n 3 5 % g ro w th o v e rla s ty e a r C o n tin u e d S tro n g P ro d u c tiv ity D riv e n b y h ig h -m a rg in n e w w e l p e rfo rm a n c e a n d lo w G O R d e v e lo p m e n t 4 Q 1 7 o il v o lu m e s u p 1 4 % fro m 1 Q 1 7 C o m b in e d We ls R a n c h a n d E a s tp o n y v o lu m e s u p 1 2 % fro m 3 Q 1 7 to 8 5 M B o e /d A c tiv ity in M u s ta n g E x e c u tin g to P la n E x ite d th e y e a rw ith > 3 0 w e ls d rile d F irs tw e ls to s a le s b y m id -y e a r2 0 1 8 T im in g M u s ta n g w e ls in c o o rd in a tio n w ith in fra s tru c tu re b u ild -o u t (1 )R e p re s e n ts N B L o p e ra te d a c tiv ity. M B o e /d 5 0 % 5 2 % 5 3 % 5 4 % 5 5 % 4 6 % 4 8 % 5 0 % 5 2 % 5 4 % 5 6 % 4 Q 1 6 1 Q 1 7 2 Q 1 7 3 Q 1 7 4 Q 1 7 G ro w in g D J B a s in O il M ix
1 0 N B L N O B L E M ID S T R E A M (N B L X ) T o p -tie rd is trib u tio n g ro w th w ith s tro n g c o v e ra g e a n d lo w le v e ra g e F u l Q u a rte rc o n trib u tio n fro m B ily M in e ric G F 2 n d N B L X o p e ra te d C G F o n lin e e a rly D e c e m b e r 4 Q 1 7 A v e ra g e T h ro u g h p u to n A d v a n ta g e C ru d e O il S y s te m o f6 0 M B b l/d ;J a n u a ry 2 0 1 8 N o m in a tio n s o f9 0 M B b l/d J e s s e J a m e s C G F c o n n e c tio n to A d v a n ta g e P ip e lin e c o m m e n c e d o p e ra tio n in 4 Q 1 7 S ig n ific a n t2 0 1 8 V o lu m e T h ro u g h p u tg ro w th A n tic ip a te d fro m N B L D e v e lo p m e n t C o n s tru c tio n o f3 a d d itio n a l C G F s e x p a n d in g c ru d e o il c a p a c ity to 9 0 M B b l/d b y m id -2 0 1 8 We ls R a n c h a n d E a s tp o n y O il a n d G a s G a th e rin g V o lu m e s G re w T h ro u g h o u t2 0 1 7 G a th e rin g a n d F re s h Wa te rd e liv e ry S y s te m s O n lin e fo rt h ird -p a rty C u s to m e rs C o n s tru c tio n U n d e rw a y o n M u s ta n g ID P G a th e rin g In fra s tru c tu re,o n lin e b y M id -2 0 1 8 F re s h w a te rs y s te m o p e ra tio n a la te 4 Q 1 7 F o rm e d B la c k D ia m o n d J V to A c q u ire S a d d le B u te R o c k ie s M id s tre a m in 4 Q 1 7 N B L a n d T h ird -p a rty We l C o n n e c tio n s D riv e F u rth e r G a th e rin g G ro w th in 2 0 1 8 D J B a s in H ig h lig h ts D e la w a re B a s in H ig h lig h ts 2 9 % in c re a s e in 4 Q 1 7 o il a n d g a s g a th e rin g v o lu m e c o m p a re d to 3 Q 1 7 8 1 % p ro d u c e d w a te rg a th e rin g g ro w th in 4 Q 1 7 c o m p a re d to 3 Q 1 7 2 0 % ta rg e te d a n n u a l d is trib u tio n g ro w th 2.4 x d is trib u tio n c o v e ra g e w ith a s tro n g b a la n c e s h e e t
1 1 N B L E A G L E F O R D S H A L E S o lid e x e c u tio n d e liv e rin g c a s h flo w ra m p T X E a g le F o rd A c tiv ity 3 Q 1 7 4 Q 1 7 T o ta l S a le s V o lu m e (M B o e /d )7 6 9 2 U p s tre a m C a p ita l ($ M M )7 3 5 7 A v g.o p e ra te d R ig s -1 We ls D rile d (1 )-8 A v g.l a te ra l L e n g th (ft)-6,0 0 0 We ls C o m p le te d (1 )1 1 5 We ls B ro u g h to n lin e (1 )1 2 1 0 A v g.l a te ra l L e n g th (ft)6,1 0 0 7,1 0 0 D e liv e re d S u b s ta n tia l P ro d u c tio n R a m p 0 5 1 0 1 5 2 0 2 5 0 2 0 4 0 6 0 8 0 1 0 0 1 Q 1 7 2 Q 1 7 3 Q 1 7 4 Q 1 7 V o lu m e We ls O n lin e P e rq tr. M B o e /d We ls O n lin e H ig h ly -p ro lific S o u th G a te s R a n c h D e v e lo p m e n t R e c o rd q u a rte rly s a le s v o lu m e s o f9 2 M B o e /d 1 0 w e ls o n lin e in 4 Q 1 7 d riv in g s ig n ific a n t v o lu m e ra m p V o lu m e s m o re th a n d o u b le d fro m 4 Q 1 6 N o rth G a te s R a n c h C o -d e v e lo p m e n t R e s u lts C o n tin u e to c o -d e v e lo p U p p e ra n d L o w e re a g le F o rd w e ls L o w e re a g le F o rd p e rfo rm a n c e c o n s is te n tw ith e x p e c ta tio n s U p p e re a g le F o rd w e ls s ig n ific a n tly o u tp e rfo rm in g h is to ric a l c o m p le tio n s A d d e d 2 R ig s L a te in 2 0 1 7 N e w w e ls o n lin e 2 Q 2 0 1 8 F o c u s in g o n c o -d e v e lo p m e n tin N o rth G a te s R a n c h (1 )R e p re s e n ts N B L o p e ra te d a c tiv ity.
1 2 N B L E A S T E R N M E D IT E R R A N E A N S tro n g n a tu ra l g a s d e m a n d in Is ra e l w ith a s ta b le lo n g -te rm c a s h flo w p ro file Is ra e l 3 Q 1 7 4 Q 1 7 N e tg a s S a le s (M M c fe /d )2 8 5 2 6 2 G ro s s G a s S a le s (M M c fe /d )9 9 7 9 1 1 O rg a n ic C a p ita l ($ M M )1 2 6 1 1 2 4 Q 1 7 K e y H ig h lig h ts G ro s s S a le s V o lu m e s o f9 1 1 M M c fe /d ;N e t2 6 2 M M c fe /d C o m p le te d m a in te n a n c e a tt a m a ra h e a d o f s c h e d u le S tro n g p ric e re a liz a tio n s o f$ 5.3 1 /M c f L e v ia th a n D e v e lo p m e n tp ro g re s s in g ~ 4 0 % c o m p le te w ith z e ro re c o rd a b le in c id e n ts C o n s tru c tio n o fth e p la tfo rm is u n d e rw a y C o m m e n c e d p re p a ra tio n s to m o b iliz e d rilin g rig P ro je c tre m a in s o n s c h e d u le a n d o n b u d g e t A n n o u n c e d 7.5 % T a m a rd iv e s titu re fo rt o ta l C o n s id e ra tio n o f~ $ 8 0 0 M M in J a n u a ry 2 0 1 8 C lo s in g e x p e c te d b y th e e n d o f1 Q 1 8 (1 )R e p re s e n ts w o rk in g in te re s ta s o fd e c e m b e r3 1,2 0 1 7. C o n s tru c tio n o fl e v ia th a n P la tfo rm T a m a r 3 2.5 % WI(1 ) T a m a rs W 3 2.5 % WI(1 )T e l A v iv A s h d o d Is ra e l E g y p t A p h ro d ite 3 5 % WI L e v ia th a n 3 9.7 % WI D o r D is c o v e ry E x is tin g P ip e lin e P la n n e d P ip e lin e F ie ld D e v e lo p m e n t N B L In te re s ts P ro d u c in g
1 3 N B L 5 0 7 5 1 0 0 1 Q 1 7 2 Q 1 7 3 Q 1 7 4 Q 1 7 2 0 1 7 Q u a rte rly S a le s V o lu m e s O T H E R G L O B A L O F F S H O R E C o n tin u e d e x c e p tio n a l o p e ra tio n a l a n d s a fe ty p e rfo rm a n c e K e y H ig h lig h ts H ig h -m a rg in,p re m iu m -p ric e d O il P ro d u c tio n R e p re s e n te d ~ 2 5 % o fto ta l c o m p a n y o il v o lu m e s A s e n g F ie ld R e a c h e d C u m u la tiv e O il P ro d u c tio n M ile s to n e o f9 0 M M B b ls C o n tin u e d E x c e p tio n a l S a fe ty P e rfo rm a n c e 3 + y e a rs w ith o u tlo s t-tim e in c id e n tin We s ta fric a O n e m ilio n m a n h o u rs w ith o u ta re c o rd a b le in c id e n tin G u lfo fm e x ic o G u lfo fm e x ic o E q u a to ria l G u in e a 3 Q 1 7 4 Q 1 7 3 Q 1 7 4 Q 1 7 O il (M B b l/d )2 1 1 8 1 3 1 7 E q u ity M e th o d -2 2 N G L (M B b l/d )1 2 - E q u ity M e th o d -7 6 G a s (M M c f/d )2 0 2 2 2 4 6 2 3 6 T o ta l S a le s (M B o e /d )2 5 2 3 6 3 6 4 O rg a n ic C a p ita l ($ M M )3-3 N o te :P ro d u c e d v o lu m e s d ife rfro m s a le s in E q u a to ria l G u in e a d u e to th e tim in g o fliftin g s. A le n P la tfo rm,we s ta fric a M B o e /d
1 4 N B L F o rw a rd -L o o k in g S ta te m e n ts a n d O th e rm a te rs T h is p re s e n ta tio n c o n ta in s c e rta in "fo rw a rd -lo o k in g s ta te m e n ts "w ith in th e m e a n in g o fe d e ra l s e c u ritie s la w s.wo rd s s u c h a s "a n tic ip a te s ","b e lie v e s,"e x p e c ts ","in te n d s ", "w il","s h o u ld ","m a y ",a n d s im ila re x p re s s io n s m a y b e u s e d to id e n tify fo rw a rd -lo o k in g s ta te m e n ts.f o rw a rd -lo o k in g s ta te m e n ts a re n o ts ta te m e n ts o fh is to ric a l fa c ta n d re fle c tn o b le E n e rg y 's c u re n tv ie w s a b o u tfu tu re e v e n ts.s u c h fo rw a rd -lo o k in g s ta te m e n ts m a y in c lu d e,b u ta re n o tlim ite d to,fu tu re fin a n c ia l a n d o p e ra tin g re s u lts,a n d o th e rs ta te m e n ts th a ta re n o th is to ric a l fa c ts,in c lu d in g e s tim a te s o fo il a n d n a tu ra l g a s re s e rv e s a n d re s o u rc e s,e s tim a te s o fu tu re p ro d u c tio n,a s s u m p tio n s re g a rd in g fu tu re o il a n d n a tu ra l g a s p ric in g,p la n n e d d rilin g a c tiv ity,fu tu re re s u lts o fo p e ra tio n s,p ro je c te d c a s h flo w a n d liq u id ity,b u s in e s s s tra te g y a n d o th e rp la n s a n d o b je c tiv e s fo rfu tu re o p e ra tio n s.n o a s s u ra n c e s c a n b e g iv e n th a th e fo rw a rd -lo o k in g s ta te m e n ts c o n ta in e d in th is p re s e n ta tio n w il o c c u ra s p ro je c te d a n d a c tu a l re s u lts m a y d ife rm a te ria ly fro m th o s e p ro je c te d.f o rw a rd -lo o k in g s ta te m e n ts a re b a s e d o n c u re n te x p e c ta tio n s,e s tim a te s a n d a s s u m p tio n s th a tin v o lv e a n u m b e ro fris k s a n d u n c e rta in tie s th a tc o u ld c a u s e a c tu a l re s u lts to d ife rm a te ria ly fro m th o s e p ro je c te d.t h e s e ris k s a n d u n c e rta in tie s in c lu d e,w ith o u tlim ita tio n,th e v o la tility in c o m m o d ity p ric e s fo rc ru d e o il a n d n a tu ra l g a s,th e p re s e n c e o re c o v e ra b ility o fe s tim a te d re s e rv e s,th e a b ility to re p la c e re s e rv e s,e n v iro n m e n ta l ris k s,d rilin g a n d o p e ra tin g ris k s,e x p lo ra tio n a n d d e v e lo p m e n tris k s,c o m p e titio n,g o v e rn m e n tre g u la tio n o ro th e ra c tio n s,th e a b ility o fm a n a g e m e n to e x e c u te its p la n s to m e e tits g o a ls a n d o th e ris k s in h e re n tin N o b le E n e rg y 's b u s in e s s e s th a ta re d is c u s s e d in N o b le E n e rg y 's m o s tre c e n ta n n u a l re p o rts o n F o rm 1 0 -K,re s p e c tiv e ly,a n d in o th e rn o b le E n e rg y re p o rts o n file w ith th e S e c u ritie s a n d E x c h a n g e C o m m is s io n (th e "S E C ").T h e s e re p o rts a re a ls o a v a ila b le fro m th e s o u rc e s d e s c rib e d a b o v e.f o rw a rd -lo o k in g s ta te m e n ts a re b a s e d o n th e e s tim a te s a n d o p in io n s o fm a n a g e m e n ta th e tim e th e s ta te m e n ts a re m a d e.n o b le E n e rg y d o e s n o ta s s u m e a n y o b lig a tio n to u p d a te a n y fo rw a rd -lo o k in g s ta te m e n ts s h o u ld c irc u m s ta n c e s o rm a n a g e m e n t s e s tim a te s o ro p in io n s c h a n g e. T h is p re s e n ta tio n a ls o c o n ta in s c e rta in h is to ric a l n o n -G A A P m e a s u re s o fin a n c ia l p e rfo rm a n c e th a tm a n a g e m e n tb e lie v e s a re g o o d to o ls fo rin te rn a l u s e a n d th e in v e s tm e n t c o m m u n ity in e v a lu a tin g N o b le E n e rg y s o v e ra l fin a n c ia l p e rfo rm a n c e.t h e s e n o n -G A A P m e a s u re s a re b ro a d ly u s e d to v a lu e a n d c o m p a re c o m p a n ie s in th e c ru d e o il a n d n a tu ra l g a s in d u s try.p le a s e s e e N o b le E n e rg y s re s p e c tiv e e a rn in g s re le a s e fo re c o n c ilia tio n s o fth e d ife re n c e s b e tw e e n a n y h is to ric a l n o n -G A A P m e a s u re s u s e d in th is p re s e n ta tio n a n d th e m o s td ire c tly c o m p a ra b le G A A P fin a n c ia l m e a s u re s.
Exhibit 99.3 NEWS RELEASE NOBLE ENERGY INCREASES PROVED RESERVES 37 PERCENT TO TOTAL NEARLY 2 BBOE HOUSTON (February 20, 2018) -- Noble Energy, Inc. (NYSE: NBL) ( Noble Energy or the Company ) today announced total proved reserves of 1.965 billion barrels of oil equivalent as of December 31, 2017, a net increase of 528 million barrels of oil equivalent (MMBoe) versus year-end 2016. Organic reserve additions, comprised of extensions, discoveries and performance and price revisions, totaled 871 MMBoe and were added at a cost of approximately $2.90 per barrel of oil equivalent (BOE). These additions represent approximately 6.3 times 2017 production. The value of future after-tax net cash flows from the Company s proved reserves, according to U.S. Securities and Exchange Commission price guidelines and discounted at 10 percent, increased to more than $11 billion, up nearly 100 percent from 2016. Gary W. Willingham, Noble Energy s Executive Vice President, Operations, commented, We had an exceptionally strong year for reserves growth in 2017 with an organic replacement ratio (1) of approximately 625 percent and extremely low finding and development costs. Sanctioning and commencing development of the Leviathan project was a major accomplishment in 2017. Our reserve bookings reflect positive performance improvements in all three U.S. onshore business units. Our reserve life has increased to more than 10 years in the onshore business and to over 14 years for the total company, providing a strong visibility of long-term value growth. Changes in the Company s proved reserves are summarized below: 1
Proved Reserves (MMBoe) United States Israel West Africa Beginning as of December 31, 2016 976 334 127 1,437 Revisions of previous estimates 56 49-105 Price-related revisions 26-4 30 Extensions, discoveries and other additions 185 551-736 Acquisitions 57 - - 57 Divestitures (261) - - (261) Production (99) (17) (23) (139) Proved reserves as of December 31, 2017 940 917 108 1,965 Total The composition of reserves was approximately 35 percent liquids, 50 percent international natural gas and 15 percent U.S. natural gas. Proved developed reserves totaled 868 MMBoe, an increase of nearly 15 percent from the end of 2016, excluding Marcellus Shale reserves which were divested in 2017. In the Company s U.S. onshore business, organic reserve additions and revisions excluding acquisitions, totaled 265 MMBoe. U.S. onshore reserve replacement (1) was approximately 300 percent at a cost of approximately $7.00 per BOE. The composition of U.S. onshore reserves was approximately two-thirds liquids in 2017, up from 50 percent at the end of 2016. The Company s onshore reserve additions were primarily driven by activity and performance in the DJ Basin and Delaware Basin. Reserve replacement (1) in the DJ Basin and Delaware Basin was approximately 285 percent and 1,135 percent, respectively. Improved well performance drove DJ Basin reserve additions and revisions of 146 MMBoe, before the removal of 31 MMBoe associated with legacy vertical wells. Excluding acquisitions, reserve additions and revisions totaled 108 MMBoe in the Delaware Basin driven by the pace of development and enhanced completion results. The Company also added 57 MMBoe to its Delaware Basin reserves primarily through the acquisition of Clayton Williams Energy in 2017. Several non-core asset sales were completed in 2017, including the divestment of the Marcellus upstream assets, noncore acreage in the DJ Basin and various mineral interests, resulting in a total reduction of 261 MMBoe. In the Company s Israel business, 3.3 trillion cubic feet of natural gas reserves were added as a result of the sanction of the Company s world-class Leviathan project. An additional 292 billion cubic feet of natural gas reserves was added from performance revisions at the Tamar field. 2
The 2017 price deck for calculating proved reserves, before adjusting for differentials, was $51.34 per barrel of WTI crude oil and $2.98 per million British thermal unit of Henry Hub natural gas. Total development and exploration costs incurred for upstream oil and gas activities, excluding acquisitions, was approximately $2.5 billion for full-year 2017. (1) Calculated as extensions, discoveries, and performance and price revisions divided by production. Noble Energy (NYSE: NBL) is an independent oil and natural gas exploration and production company with a diversified highquality portfolio of both U.S. unconventional and global offshore conventional assets. Founded more than 85 years ago, the Company is committed to safely and responsibly delivering our purpose: Energizing the World, Bettering People s Lives. For more information, visit www.nblenergy.com. Investor Contacts Brad Whitmarsh (281) 943-1670 Brad.Whitmarsh@nblenergy.com Megan Dolezal (281) 943-1861 Megan.Dolezal@nblenergy.com Lauren Brown (281) 872-3208 Lauren.Brown@nblenergy.com Media Contacts Reba Reid (713) 412-8441 media@nblenergy.com Paula Beasley (281) 876-6133 media@nblenergy.com 3
Exhibit 99.4 NEWS RELEASE NOBLE ENERGY PROVIDES UPDATED OUTLOOK THROUGH 2020 FOCUSED ON CASH FLOW GROWTH AND SHAREHOLDER RETURN HOUSTON (February 20, 2018) -- Noble Energy, Inc. (NYSE: NBL) ( Noble Energy or the Company ) today provided an updated outlook through 2020, including detailed guidance for 2018. Outlook Through 2020 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 (1). Key highlights and outcomes include: The Company expects to generate a cumulative total of $1.5 billion of excess cash flows (2) through 2020 in the $50 scenario, and an additional $1.5 billion at strip pricing. 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 (3) 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 (3) from 2017. Oil volumes grow at more than a 25 percent compound annual growth rate (3). Type curves in near-term development areas have been increased by an average of 25 percent in the DJ Basin and 15 percent in the Delaware Basin. As compared to the Company s January 2017 plan, increased productivity has led to similar anticipated production growth for the Texas and Colorado assets with $500 million less in expected capital expenditures through 2020. 1
Leverage (net debt to EBITDA (4) ) is anticipated to be reduced below 1.5 times in 2020 in the $50 scenario, or in 2019 in the strip pricing scenario. David L. Stover, Noble Energy's Chairman, President and CEO, commented, "The transformative portfolio repositioning we have executed over the last several years, along with increased capital efficiency and enhanced well productivity, has positioned Noble Energy to deliver attractive multi-year volume growth and even more attractive cash flow growth. Today s updated outlook demonstrates the Company s high-quality portfolio, operational excellence and financial strength, which will drive top-tier, debtadjusted per share growth and create substantial value for our shareholders in 2018 and beyond. Mr. Stover continued, The combination of our recently-announced share repurchase program and current dividend is expected to return over $1.3 billion to shareholders over the next three years. With substantial cash flow growth, we anticipate additional return to shareholders through future dividend growth. The strength of our Company extends well beyond 2020. The high-quality nature and depth of our investment opportunities across our U.S. onshore and Eastern Mediterranean assets, combined with superior operational execution and financial strength, provide a differential long-term value proposition for our shareholders. 2018 Guidance Key highlights and outcomes include: 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 (3). U.S. onshore volumes are expected to increase more than 20 percent (3) and U.S. onshore oil volumes are anticipated to be up nearly 30 percent (3) with upstream capital investments essentially flat to 2017 levels. For 2018, U.S. onshore upstream capital investments are expected to be approximately $1.8 billion at the midpoint of the Company s annual range. Noble Energy plans to invest approximately $165 million for midstream infrastructure buildout. In the Eastern Mediterranean, the Company s expected capital expenditures are $750 million to progress the Leviathan development towards first production late next year. The remaining $85 million is primarily related to exploration. Full-year 2018 reported sales volumes are expected to average between 343 and 353 MBoe/d. The 2018 expected volume range is consistent with the Company s prior plan outlined in January 2017, after adjusting 2
for divestments. Noble Energy has provided a divestment-adjusted volumes table reflecting the impact for all transactions in 2017 and 2018 in the appendix of the Company s Multi-year Outlook presentation deck. The Company expects to average nine operated onshore rigs throughout 2018 (1.5 DJ Basin, 6 Delaware Basin, and 1.5 Eagle Ford Shale), with approximately 200 operated wells across the U.S. onshore business anticipated to commence production. The majority of the U.S. onshore growth will be driven by the Delaware Basin development program, which should result in Delaware Basin production growth and U.S. onshore oil growth every quarter. Full-year Eagle Ford Shale volumes are expected to be similar to full year 2017 volumes, although decline is expected through 2018. In the DJ Basin, production in the second half of 2018 is expected to be higher than the first half of the year, reflecting third-party gas processing expansion and Mustang development. Gross sales volumes at Tamar are anticipated to increase slightly from 2017. Reported net volumes in Israel are anticipated to be slightly lower than 2017, reflecting the Tamar 7.5 percent working interest divestiture, which is anticipated to close late in the first quarter of 2018. The divestment of the Gulf of Mexico assets announced early in 2018 is anticipated to close in the second quarter of 2018. West Africa volumes are lower by approximately 20 percent. First quarter volumes are anticipated to be between 358 MBoe/d and 368 MBoe/d. As compared to the fourth quarter 2017, first quarter volumes are anticipated lower by 11 MBoe/d due to the impact of divestitures in the U.S. onshore (8 MBoe/d) and the previously announced divestiture of Tamar (3 MBoe/d). First quarter 2018 West Africa volumes are lower due to maintenance downtime at the Alba field. Additional full-year and first quarter 2018 guidance details are available in the Multi-year Outlook presentation deck provided on the Investors page of the Company s website, www.nblenergy.com. (1) Strip pricing as of the end of January 2018. (2) Excess cash flow is defined as GAAP cash flow from operations plus anticipated portfolio proceeds less capital investments less dividends/distributions. (3) Pro forma for asset divestments. (4) GAAP earnings before interest, taxes, depreciation, depletion and amortization. Noble Energy (NYSE: NBL) is an independent oil and natural gas exploration and production company with a diversified highquality portfolio of both U.S. unconventional and global offshore conventional assets. Founded more than 85 years ago, the Company is committed to safely and responsibly delivering our purpose: Energizing the World, Bettering People's Lives. For more information, visit www.nblenergy.com. Investor Contacts 3
Brad Whitmarsh (281) 943-1670 Brad.Whitmarsh@nblenergy.com Megan Dolezal (281) 943-1861 Megan.Dolezal@nblenergy.com Lauren Brown (281) 872-3208 Lauren.Brown@nblenergy.com Media Contacts Reba Reid (713) 412-8441 media@nblenergy.com Paula Beasley (281) 876-6133 media@nblenergy.com This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates", "believes", "expects", "intends", "will", "should", "may", and similar expressions may be used to identify forwardlooking statements. Forward-looking statements are not statements of historical fact and reflect Noble Energy's current views about future events. Such forward-looking statements may include, but are not limited to, future financial and operating results, and other statements that are not historical facts, including 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 and uncertainties 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 businesses that are discussed in Noble Energy's most recent annual reports on Form 10-K, respectively, and in other Noble Energy reports on file with the Securities and Exchange Commission (the "SEC"). These reports are also available from the sources described above. 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 any forward-looking statements should circumstances or management s estimates or opinions change. 4
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w w w.n b le n e rg y.c o m N Y S E :N B L 4 P o rtfo lio T ra n s fo rm a tio n E n h a n c e d fo c u s o n h ig h -m a rg in a s s e ts w ith s tre n g th e n e d fin a n c ia l p o s itio n S tra te g ic A c tio n s E n te re d liq u id s -ric h E a g le F o rd a n d D e la w a re B a s in th ro u g h R O S E M e rg e r. A c h ie v e d C o re D e la w a re S c a le w ith C WE IA c q u is itio n. O p tim iz e d D J B a s in P o s itio n th ro u g h A c re a g e E x c h a n g e s a n d G e n e ra te d O v e r$ 1 B in T a il In v e n to ry P ro c e e d s. S a n c tio n e d In itia l P h a s e o fl e v ia th a n D e v e lo p m e n t. E x ite d M a rc e lu s U p s tre a m a n d M id s tre a m, A c c e le ra tin g V a lu e o fa s s e ts N o ta tra c tin g C a p ita l. E x ite d G u lfo fm e x ic o,a c c e le ra tin g C a s h F lo w s. M a in ta in e d In v e s tm e n tg ra d e C re d itr a tin g 2 0 2 0 E 2 0 1 8 E 2 0 1 5 0 % 2 5 % 5 0 % 7 5 % 1 0 0 % U S O L iq u id s E M e d U S O G a s O th e r In c re a s e d U S O L iq u id s a n d E M e d M ix fro m 4 0 % to 7 0 % o ft o ta l P ro d u c tio n R e d u c e d D e b t~ $ 2 B S in c e 2 0 1 5 2 4 6 8 1 0 Y E 1 5 Y E 1 7 $ B C WE I A s s u m e d D e b t D e b t R e tire m e n t
w w w.n b le n e rg y.c o m N Y S E :N B L 5 M u lti-y e a ro u tlo o k K e y H ig h lig h ts D e liv e rin g le a d in g p e rfo rm a n c e a n d s tro n g re tu rn s to s h a re h o ld e rs S e e p ric e d e c k in a p p e n d ix.(1 )T e rm d e fin e d in a p p e n d ix. (2 )F o rp u rp o s e s o fc A G R c a lc u la tio n,d iv e s tm e n t-a d ju s te d 2 0 1 7 re p re s e n ts b a s e fo rth re e -y e a rp la n o u tc o m e. E n h a n c e d S h a re h o ld e rr e tu rn B o a rd a u th o riz e d $ 7 5 0 M M s h a re re p u rc h a s e p ro g ra m P ro g re s s iv e d iv id e n d g ro w th w ith c a s h flo w e x p a n s io n L e a d in g P e rfo rm a n c e O u tc o m e s (2 0 1 8-2 0 2 0 ) C u m u la tiv e E x c e s s C a s h F lo w (1 ) C a s h F lo w F ro m O p e ra tio n s C A G R (2 ) 2 0 2 0 S a le s V o lu m e s N e td e b t/e B IT D A (1 ) R O A C E (1 )in 2 0 2 0 A t$ 5 0 ~ $ 1.5 B ~ 3 5 % ~ 5 2 5 M B o e /d < 1.5 x in 2 0 2 0 ~ 1 0 % A ts trip ~ $ 3.0 B ~ 4 0 % ~ 5 2 5 M B o e /d < 1.5 x in 2 0 1 9 ~ 1 1 %
w w w.n b le n e rg y.c o m N Y S E :N B L 6 O u tlo o k T h ro u g h 2 0 2 0 K e y c h a n g e s fro m J a n u a ry 2 0 1 7 p la n (1 )F o rp u rp o s e s o fc A G R c a lc u la tio n,d iv e s tm e n t-a d ju s te d 2 0 1 7 re p re s e n ts b a s e fo rth re e -y e a rp la n o u tc o m e. P la n n in g fo r $ 5 0 lo n g -te rm D e c re a s e o f$ 5 WT I/B re n t L iq u id s N o w ~ 7 0 % U S O V o lu m e s E x ite d M a rc e lu s S a n c tio n e d L e v ia th a n In c re a s e d 2 0 2 0 g ro s s v o lu m e s to ~ 8 0 0 M M c f/d A n n o u n c e d S h a re R e p u rc h a s e P ro g ra m T o ta lin g $ 7 5 0 M M U S O T y p e C u rv e s A v e ra g e In c re a s e 1 5-2 5 % 2 0 1 8-2 0 2 0 C a s h F lo w F ro m O p e ra tio n s C A G R (1 ) U p ~ 1 0 % p o in ts
w w w.n b le n e rg y.c o m N Y S E :N B L 2 0 2 0 O u tc o m e s Im p ro v e d :C u re n tv s.p rio rp la n P ric e n o rm a liz e d to $ 5 0 C u re n tp la n J a n u a ry 2 0 1 7 P la n ~ 2 5 % R e d u c tio n ~ 3 0 % In c re a s e T o ta l C o m p a n y C a s h M a rg in (1 ) U S O L iq u id s + E M e d V o lu m e (% o ft o ta l) ~ 2 0 % In c re a s e U n ito p e ra tin g C o s ts (2 ) 7 P o rtfo lio O p tim iz a tio n a n d E x e c u tio n D riv in g M a rg in E x p a n s io n S u b s ta n tia l e n h a n c e m e n tfro m J a n u a ry 2 0 1 7 p la n C a p ita l D e p lo y e d to H ig h -m a rg in,h ig h -re tu rn U S O a n d E M e d. D iv e s tm e n to fl o w e r-m a rg in M a rc e lu s A s s e ts Wh ic h C o m p ris e d 1 2 % o f2 0 2 0 V o lu m e s in P rio rp la n. L e a s e O p e ra tin g E x p e n s e T re n d s S ig n ific a n tly B e lo w $ 4 p e r B O E fro m U S O E fic ie n c ie s a n d E M e d M ix (1 )T e rm d e fin e d in a p p e n d ix. (2 )In c lu d e s le a s e o p e ra tin g e x p e n s e s,g a th e rin g a n d tra n s p o rta tio n,p ro d u c tio n ta x e s a n d m a rk e tin g e x p e n s e s. 6.0 6.5 7.0 0 1 5 0 3 0 0 4 5 0 P ro d u c tiv ity In c re a s e s D riv in g S a m e U S O V o lu m e o n $ 5 0 0 M M L e s s C a p ita l (E x c lu d e s M a rc e lu s fro m a l p e rio d s )M B o e /d $ B 2 0 1 8 E 2 0 1 9 E 2 0 2 0 E 2 0 1 8 E 2 0 1 9 E 2 0 2 0 E J a n u a ry 2 0 1 7 P la n C u re n tp la n T o ta l U S O V o lu m e s 2 0 1 8-2 0 2 0 C u m u la tiv e U p s tre a m C a p ita l
w w w.n b le n e rg y.c o m N Y S E :N B L 8 T o ta l C o m p a n y O u tlo o k to 2 0 2 0 C a s h flo w a c c e le ra te s fa s te rth a n v o lu m e s P ric e d e c k d e fin e d in a p p e n d ix. (1 )S e e p ro fo rm a d iv e s tm e n ta b le in a p p e n d ix. (2 )F o rp u rp o s e s o fc A G R c a lc u la tio n,d iv e s tm e n t-a d ju s te d 2 0 1 7 re p re s e n ts b a s e fo rth re e -y e a rp la n o u tc o m e. 0 1,5 0 0 3,0 0 0 4,5 0 0 O p e ra tin g C a s h F lo w $ M M 2 0 1 7 P ro fo rm a (1 ) 2 0 1 8 E 2 0 1 9 E 2 0 2 0 E A t$ 5 0 A ts trip P ric in g 0 1 5 0 3 0 0 4 5 0 6 0 0 T o ta l C o m p a n y V o lu m e s M B o e /d 2 0 1 7 P ro fo rm a (1 ) 2 0 1 8 E G u id a n c e M id p o in t 2 0 1 9 E 2 0 2 0 E 3 5 % a t$ 5 0 4 0 %O p e ra tin g C a s h F lo w C A G R (2 )a ts trip 2 0 % 2 6 % O ils a le s V o lu m e C A G R (2 ) T o ta l ~ 4 0 0 ~ 5 2 5 3 4 8 3 0 3
w w w.n b le n e rg y.c o m N Y S E :N B L 9 F o c u s e d a n d D is c ip lin e d C a p ita l D e p lo y m e n t U S O a n d L e v ia th a n d riv in g g ro w th to 2 0 2 0 O v e r9 5 % o ft o ta l C a p ita l F o c u s e d o n H ig h -m a rg in,h ig h -re tu rn U S O a n d E M e d A s s e ts. P la n n e d C a p ita l S p e n d A s s u m e s S a m e A c tiv ity a t$ 5 0 a n d a ts trip P ric in g S c e n a rio s. U S O V o lu m e s E x p e c te d to G ro w a ta 2 5 % C A G R (1 )to ~ 4 0 0 M B o e /d in 2 0 2 0,L e d b y D e la w a re a n d D J B a s in s M B o e /d (1 )F o rp u rp o s e s o fc A G R c a lc u la tio n,d iv e s tm e n t-a d ju s te d 2 0 1 7 re p re s e n ts b a s e fo rth re e -y e a rp la n o u tc o m e. (2 )E x c lu d e s N B L X -fu n d e d c a p ita l. (3 )S e e p ro fo rm a d iv e s tm e n ta b le in a p p e n d ix. 0 1 2 5 2 5 0 3 7 5 5 0 0 2 0 1 7 P ro fo rm a 2 0 1 8 E 2 0 1 9 E 2 0 2 0 E U S O a n d E M e d V o lu m e s 2 5 % C A G R (1 ) U S O U p s tre a m E M e d O th e ru S O E M e d 0 1,0 0 0 2,0 0 0 3,0 0 0 2 0 1 7 2 0 1 8 E 2 0 1 9 E 2 0 2 0 E N B L C a p ita l(2 )$ M M (3 )
w w w.n b le n e rg y.c o m N Y S E :N B L 1 0 2 0 1 8-2 0 2 0 C a s h F lo w S o u rc e s a n d U s e s O u tlo o k R e tu rn in g s u b s ta n tia l c a s h to s h a re h o ld e rs P ric e d e c k d e fin e d in a p p e n d ix. (1 )T e rm d e fin e d in a p p e n d ix. E x c e s s C a s h F lo w C re a te d S o u rc e s a t$ 5 0 ~ $ 1 1.5 B U s e s E x c e s s C a s h F lo w (1 ) $ 1.5 B a t$ 5 0 ~ $ 1 0 B In c lu d e d in C o n s o lid a te d S o u rc e s a n d U s e s S o u rc e s C a s h F lo w F ro m O p e ra tio n s (in c lu d in g e x is tin g h e d g e s ), P la n n e d A s s e tp ro c e e d s a n d M id s tre a m M o n e tiz a tio n s U s e s N B L C a p ita l,n B L X C a p ita l,d iv id e n d s /D is trib u tio n s $ 3 B a ts trip U s e s In c lu d e C u re n td iv id e n d,~ $ 6 0 0 M M C u m u la tiv e A n tic ip a te d iv id e n d g ro w th w ith c a s h flo w g ro w th. $ 1.5 B E x c e s s C a s h F lo w (1 )a t$ 5 0 WT I R e tu rn in g 5 0 % to s h a re h o ld e rs th ro u g h B o a rd a p p ro v e d $ 7 5 0 M M s h a re re p u rc h a s e p la n $ 6 0 0 M M N B L d e b tre d u c tio n p la n n e d. A c tiv e ly H e d g in g C ru d e fo r2 0 1 8 a n d 2 0 1 9. With A d d itio n a l C a s h F lo w,wil P rio ritiz e O p p o rtu n itie s to M a x im iz e S h a re h o ld e rv a lu e : A d d itio n a l s h a re re p u rc h a s e s a n d d iv id e n d in c re a s e s In c re m e n ta l a c tiv ity th a tin c re a s e s c a s h flo w p e rd e b t- a d ju s te d s h a re g ro w th a n d N A V E x c e s s C a s h F lo w C re a te d
w w w.n b le n e rg y.c o m N Y S E :N B L S a le s V o lu m e s C a s h C o s ts D is c re tio n a ry C a s h F lo w C u re n t F re e C a s h F lo w 2 0 % P re -d o w n tu rn R e la tiv e T S R O n s h o re R a te o fr e tu rn 1 0 % 0 % 1 5 % 1 5 % 0 % 1 5 % 1 5 % 1 5 % 0 % 0 % 1 5 % 1 1 E v o lu tio n o fe x e c u tiv e In c e n tiv e P la n C o m p e n s a tio n a lig n e d w ith s h a re h o ld e rin te re s ts to d riv e s u p e rio re tu rn s Q u a n tita tiv e M e tric s (6 0 %) Q u a lita tiv e M e tric s (4 0 %)In c lu d e : S a fe ty /E n v iro n m e n ta l P e rfo rm a n c e T o ta l /R e la tiv e S h a re h o ld e rr e tu rn R O A C E /C R O C I C a s h F lo w p e rd e b t-a d ju s te d S h a re S tra te g ic In itia tiv e s R e s e rv e s /E x p lo ra tio n L o n g -te rm In c e n tiv e P la n B a s e d o n R e la tiv e T o ta l S h a re h o ld e rr e tu rn P a y o u tlim ite d ifn o p o s itiv e a b s o lu te T S R g e n e ra te d In c re a s e d p e rfo rm a n c e u n itw e ig h tin g to 5 0 % S h o rt-te rm In c e n tiv e P la n S e e p ro x y fo rfu rth e rd e ta ils.
w w w.n b le n e rg y.c o m N Y S E :N B L 1 2 S u s ta in a b le P o te n tia l B e y o n d 2 0 2 0 D e liv e rin g lo n g -te rm v a lu e fo rs h a re h o ld e rs N B L in 2 0 2 0 ~ $ 7 5 0 M M ~ 1 0 % R O A C E (1 ) D o u b le -d ig itc o rp o ra te R e tu rn s F o c u s e d O u tc o m e s a t$ 5 0 ~ 5 2 5 M B o e /d O rg a n ic F re e C a s h F lo w s (1 ) E s tim a te d S a le s V o lu m e s N B L 2 0 2 1-2 0 2 3 (2 ) ~ $ 1.7 B a n n u a l a v e ra g e 1 1-1 5 % R O A C E (1 )a n n u a ly B a la n c e S h e e ts tre n g th < 1.5 x n e td e b to E B IT D A (1 ) < 1.5 x n e td e b to E B IT D A (1 ) P ric e d e c k d e fin e d in a p p e n d ix. (1 )T e rm d e fin e d in a p p e n d ix. (2 )D o e s n o tc u re n tly in c lu d e p o te n tia l im p a c tfro m a d d itio n a l o fs h o re m a jo rp ro je c tin v e s tm e n ts. ~ 6 2 5 M B o e /d in 2 0 2 3
w w w.n b le n e rg y.c o m N Y S E :N B L 1 3 O p e ra tio n s O u tlo o k
w w w.n b le n e rg y.c o m N Y S E :N B L U.S.O n s h o re P re m ie ra s s e ts a n d p ro v e n o p e ra tio n a l e x e c u tio n M u ltip le D e c a d e s o fh ig h -re tu rn In v e n to ry in L iq u id s -ric h,l o w C o s tb a s in s. In d u s try -le a d in g We l P e rfo rm a n c e :2,0 0 0 + H o riz o n ta l We ls a n d C o n tin u o u s Im p ro v e m e n tc u ltu re. In te g ra te d U p s tre a m a n d M id s tre a m D e v e lo p m e n t. S a fe ty a n d E n v iro n m e n ta l S te w a rd s h ip 4 + B B o e n e tu n ris k e d re s o u rc e s ~ 6,5 0 0 fu tu re d rilin g lo c a tio n s ~ 4 5-8 5 % B T A X R O R a t$ 5 0 a c ro s s n e a r-te rm d e v e lo p m e n ta re a s 3 1 % o il C A G R (1 )to 2 0 2 0 3 3,0 0 0 n e ta c re s ;1 0 0 % a v g.wi 3 2 0 g ro s s lo c a tio n s 6,4 0 0 a v e ra g e la te ra le n g th 4 0 0 M M B o e n e tu n ris k e d re s o u rc e s E a g le F o rd 1 1 7,0 0 0 n e ta c re s ;7 3 % a v g.wi 3,8 0 0 g ro s s lo c a tio n s 7,8 0 0 a v e ra g e la te ra le n g th 2 B B o e n e tu n ris k e d re s o u rc e s D e la w a re,p e rm ia n B a s in 3 3 5,0 0 0 n e ta c re s ;7 9 % a v g.wi 2,3 5 0 g ro s s lo c a tio n s 9,8 0 0 a v e ra g e la te ra le n g th 1.7 B B o e n e tu n ris k e d re s o u rc e s D J B a s in 1 4 P ric e d e c k d e fin e d in a p p e n d ix. (1 )F o rp u rp o s e s o fc A G R c a lc u la tio n,d iv e s tm e n t-a d ju s te d 2 0 1 7 re p re s e n ts b a s e fo rth re e -y e a rp la n o u tc o m e.
w w w.n b le n e rg y.c o m N Y S E :N B L 1 5 R o b u s tu S O P o rtfo lio O u tlo o k 2 0 1 8-2 0 2 0 ~ $ 9 0 0 M M c u m u la tiv e fre e c a s h flo w (2 )a t$ 5 0 ;in c re m e n ta l > $ 1 B a ts trip A s s e t-le v e l F re e C a s h F lo w (2 ) C u m.2 0 1 8-2 0 2 0 V o lu m e C A G R (1 ) to 2 0 2 0 D e la w a re : G ro w th E n g in e > 7 5 % N e u tra l D J B a s in : G ro w th Wh ile G e n e ra tin g C a s h > 1 5 % ~ $ 5 0 0 M M E a g le F o rd : C a s h E n g in e F la t~ $ 3 7 0 M M D e la w a re D J B a s in E a g le F o rd U p s tre a m C a p ita l A lo c a tio n ~ $ 6.5 B C u m u la tiv e 2 0 1 8-2 0 2 0 T o ta l U S O C A G R (1 )to 2 0 2 0 2 5 % U S O O il C A G R (1 )to 2 0 2 0 3 1 % U S O A s s e tp o rtfo lio P ric e d e c k d e fin e d in a p p e n d ix. (1 )F o rp u rp o s e s o fc A G R c a lc u la tio n,d iv e s tm e n t-a d ju s te d 2 0 1 7 re p re s e n ts b a s e fo rth re e -y e a rp la n o u tc o m e. (2 )T e rm d e fin e d in a p p e n d ix.
w w w.n b le n e rg y.c o m N Y S E :N B L 1 6 F o c u s e d U S O P o rtfo lio D riv in g C a p ita l E fic ie n c y S ig n ific a n te n h a n c e m e n tin T e x a s a n d C o lo ra d o 6.0 6.5 7.0 0 1 5 0 3 0 0 4 5 0 M B o e /d $ B 2 0 1 8 E 2 0 1 9 E 2 0 2 0 E 2 0 1 8 E 2 0 1 9 E 2 0 2 0 E J a n u a ry 2 0 1 7 P la n C u re n tp la n T o ta l U S O V o lu m e s 2 0 1 8-2 0 2 0 C u m u la tiv e U p s tre a m C a p ita l In c re a s e d P ro d u c tiv ity in D J B a s in T y p e c u rv e s u p b y 2 5 % o n a v e ra g e in n e a r-te rm fo c u s a re a s O p tim iz in g c o m p le tio n d e s ig n,c lu s te ra n d s ta g e s p a c in g A c h ie v in g s a m e a n n u a l v o lu m e ta rg e ts fro m s ig n ific a n tly fe w e rw e ls o n lin e. E n h a n c e d D e la w a re B a s in C a p ita l E fic ie n c y 2 0-2 5 % in c re a s e in 3 rd B o n e S p rin g a n d Wo lfc a m p A U p p e rty p e c u rv e s M a in ta in e d Wo lfc a m p A w e l c o s ts,o fs e tin g in fla tio n a n d h ig h e rc o n c e n tra tio n w ith e fic ie n c ie s a n d u s e o flo c a l s a n d A c h ie v e d o p e ra tio n a l e fic ie n c ie s th ro u g h d e v e lo p m e n tm o d e P ro d u c tiv ity In c re a s e s D riv in g S a m e U S O V o lu m e o n $ 5 0 0 M M L e s s C a p ita l (E x c lu d e s M a rc e lu s fro m a l p e rio d s )
w w w.n b le n e rg y.c o m N Y S E :N B L 1 7 D e la w a re B a s in S ta c k e d p a y d e v e lo p m e n tin p e e r-le a d in g o il p o s itio n C o n tig u o u s A c re a g e P o s itio n in C o re o fth e S o u th e rn D e la w a re. N e a r-te rm F o c u s o n Wo lfc a m p A & 3 rd B o n e S p rin g C o -d e v e lo p m e n t S tro n g re s u lts fro m in itia l m u lti-z o n e te s ts c o n firm la te ra l a n d v e rtic a l s p a c in g C o n tin u e to te s two lfc a m p B & C,e n c o u ra g in g in itia l re s u lts 9,0 0 0 fta v e ra g e la te ra le n g th o v e rp la n p e rio d In te g ra te d m id s tre a m s u p p o rts u p s tre a m g ro w th p la n s w h ile in c re a s in g re ta in e d v a lu e B o e /d p e r 1,0 0 0 ft B a s in L e a d in g O il P ro d u c tiv ity R e e v e s C o u n ty Wo lfc a m p A 3 -M o n th P ro d u c tio n (1 ) T o ta l E q u iv a le n tp ro d u c tio n (2 0 :1 )O il P ro d u c tio n (1 )S o u rc e :R S E n e rg y G ro u p,in c.a n a ly s is o fp u b lic o p e ra to rs 2 0 1 7 w e ls w ith 3 m o n th s p ro d u c tio n in c u re n tly a v a ila b le s ta te d a ta.r e fle c ts g ro s s 2 -s tre a m p ro d u c tio n d a ta. D e la w a re P e e rs :B H P,C D E V,C X O,E O G,O X Y,P D C E,P E,a n d R E N 0 5 0 1 0 0 1 5 0 2 0 0 N B L N B L 5 8 % A b o v e P e e ro il A v e ra g e 1 1 7,0 0 0 n e ta c re s ;7 3 % a v g.wi 3,8 0 0 g ro s s lo c a tio n s 7,8 0 0 a v e ra g e la te ra le n g th 2 B B o e n e tu n ris k e d re s o u rc e s D e la w a re,p e rm ia n B a s in Wa rd P e c o s R e e v e s N B L A c re a g e 7 0 % N B L O il A v g.
w w w.n b le n e rg y.c o m N Y S E :N B L 0 5 0 1 0 0 1 5 0 2 0 0 0 2 0 4 0 6 0 8 0 1 0 0 D a y s o n P ro d u c tio n 2 0 1 7 A v e ra g e N e w T y p e C u rv e 1,4 0 0 M B o e P rio rb le n d e d T y p e C u rv e 1,1 0 0 M B o e 0 5 0 1 0 0 1 5 0 2 0 0 0 2 0 4 0 6 0 8 0 1 0 0 D a y s o n P ro d u c tio n 2 0 1 7 A v e ra g e N e w T y p e C u rv e 1,1 0 0 M B o e P rio rb le n d e d T y p e C u rv e 1,1 0 0 M B o e 0 5 0 1 0 0 1 5 0 2 0 0 0 2 0 4 0 6 0 8 0 1 0 0 D a y s o n P ro d u c tio n 2 0 1 7 A v e ra g e N e w T y p e C u rv e 1,1 0 0 M B o e P rio rt y p e C u rv e 9 2 0 M B o e 1 8 E x c e p tio n a l D e la w a re B a s in E c o n o m ic s E n h a n c e d c o m p le tio n s d riv in g ty p e c u rv e in c re a s e We l e c o n o m ic s b a s e d o n 1 0 0 % WI,7 5 % N R I.We l c o s ts a n d e c o n o m ic s fu ly b u rd e n e d w ith a lo c a te d fa c ilitie s. Wo lfc a m p A a s s u m e s 3,0 0 0 lb s /ftp ro p p a n ta n d s lic k w a te rc o m p le tio n.3 rd B o n e S p rin g a s s u m e s 8 0 0 lb s /ftp ro p p a n ta n d h y b rid g e l c o m p le tio n. (1 )D rilin g a n d c o m p le tio n c a p ita l.(2 )B le n d e d Wo lfc a m p A ty p e c u rv e fro m C WE Ia n d le g a c y N B L a c re a g e. 3 rd B o n e S p rin g 1.1 M M B o e T y p e C u rv e U p 2 0 % Wo lfc a m p A U p p e r 1.4 M M B o e T y p e C u rv e U p 2 5 % Wo lfc a m p A L o w e r 1.1 M M B o e T y p e C u rv e C u m.m B o e ~ 8 0 % B T A X R O R a t$ 5 0 7,5 0 0 ftla te ra l;7 0 % O il $ 6.5 M M D & C (1 ) C u m.m B o e C u m.m B o e (2 )(2 ) ~ 5 0 % B T A X R O R a t$ 5 0 7,5 0 0 ftla te ra l;7 0 % O il $ 8.2 M M D & C (1 ) ~ 8 5 % B T A X R O R a t$ 5 0 7,5 0 0 ftla te ra l;7 0 % O il $ 8.2 M M D & C (1 )
w w w.n b le n e rg y.c o m N Y S E :N B L 1 9 M e s s a g e # 1 N B L E x e c u tio n D riv in g M o re V a lu e p e rwe l E n h a n c e d c o m p le tio n s d e liv e rin g in c re a s e d re c o v e ry a n d lo w e r d e v e lo p m e n tc o s tp e rb O E In c re a s e d B T A X N P V 1 0 > 2 0 % s in c e C WE Ia c q u is itio n (a t$ 5 0 ). A c h ie v in g S ig n ific a n to p e ra tin g E fic ie n c ie s in D e v e lo p m e n t M o d e R e d u c e d c o m p le tio n c o s tp e rfo o tb y 1 0 % w h ile in c re a s in g p ro p p a n tc o n c e n tra tio n (1 ) R e d u c e d d rilin g c o s tp e rla te ra l fo o t(1 )b y 1 7 % w h ile in c re a s in g a v e ra g e la te ra le n g th (1 )b y ~ 6 0 %. In fra s tru c tu re B u ild -o u ts u p p o rts C a p ita l-e fic ie n tg ro w th 3 n e w C G F s o n lin e in 2 0 1 8 (2 lo c a te d in le g a c y C WE Ia c re a g e ) in c lu d in g in te g ra te d w a te re c y c lin g a n d d is p o s a l L o c k e d in c o m p e titiv e ra te s fo rlo n g -h a u l c ru d e tra n s fe rto p re m iu m -p ric e d m a rk e ts,w ith o u tv o lu m e c o m m itm e n ts D riv in g V a lu e fro m D e la w a re E x p a n s io n D e liv e rin g a b o v e a c q u is itio n c a s e (1 )C o m p a re s N B L 2 0 1 7 d rilin g d a ta o n C WE Ia c re a g e v s.p re -a c q u is itio n C WE Iw e ls. (2 )N o rm a liz e d to 7,5 0 0 ftla te ra l. 8 2 5 1,0 0 0 1,1 0 0 1,4 0 0 C WE I A c q u is itio n T y p e C u rv e s In c re a s e d Wo lfc a m p A L o w e rt y p e C u rv e In c re a s e d Wo lfc a m p A U p p e rt y p e C u rv e R O S E A c q u is itio n T y p e C u rv e s (2 ) In c re a s e d Wo lfc a m p A R e c o v e ry (M B o e ) Wh ile M a in ta in in g We l C o s ts D rilin g A d v a n c e m e n ts s in c e C WE IA c q u is itio n 0 1 2 3 4 5 C WE I(1 )N B L D rilin g d a y s p e r 1,0 0 0 ftla te ra l 5 0 % R e d u c tio n
w w w.n b le n e rg y.c o m N Y S E :N B L We ld We ls R a n c h E a s t P o n y M u s ta n g 0 2 5 5 0 7 5 1 0 0 2 0 D J B a s in C o n tig u o u s,liq u id s -ric h p o s itio n S tra te g ic a ly F o c u s e d in L iq u id s -ric h A re a,id e a l fo rid P D e v e lo p m e n t A c re a g e tra d e s s in c e 2 0 1 3 b lo c k e d u p c o re p o s itio n in ru ra l a re a s > $ 1 B d iv e s tm e n tp ro c e e d s s in c e 2 0 1 6,a c c e le ra te d v a lu e fro m ta il-in v e n to ry. E n h a n c e d C o m p le tio n s In c re a s in g R e c o v e ry a n d D riv in g O il O u tp e rfo rm a n c e M a x im iz in g o il p ro d u c tio n in We ls R a n c h a n d E a s tp o n y fe d e ra l d e v e lo p m e n t F irs tm u s ta n g w e ls o n lin e m id -y e a r2 0 1 8,fo c u s e d o n lo w G O R a re a s B o e /d p e r 1,0 0 0 ft T o ta l E q u iv a le n tp ro d u c tio n (2 0 :1 )O il P ro d u c tio n N B L > 1 5 0 % A b o v e P e e ro il A v e ra g e N B L B a s in L e a d in g O il P ro d u c tiv ity We ld C o u n ty 3 -M o n th P ro d u c tio n (1 )N B L A c re a g e M u n ic ip a litie s L o w G O R :M id H ig h (1 )S o u rc e :R S E n e rg y G ro u p,in c.a n a ly s is o fp u b lic o p e ra to rs 2 0 1 7 w e ls w ith 3 m o n th s p ro d u c tio n in c u re n tly a v a ila b le s ta te d a ta.r e fle c ts g ro s s 2 -s tre a m p ro d u c tio n d a ta. D J B a s in P e e rs :A P C,B B G,P D C E,S R C I,WL L,a n d X O G 3 3 5,0 0 0 n e ta c re s ;7 9 % a v g.wi 2,3 5 0 g ro s s lo c a tio n s 9,8 0 0 a v e ra g e la te ra le n g th 1.7 B B o e n e tu n ris k e d re s o u rc e s D J B a s in
w w w.n b le n e rg y.c o m N Y S E :N B L 0 5 0 1 0 0 1 5 0 2 0 0 2 5 0 0 5 0 1 0 0 1 5 0 2 0 0 D a y s o n P ro d u c tio n N e w T y p e C u rv e 1,3 0 0 M B o e P rio rt y p e C u rv e 9 7 5 M B o e 2 0 1 6 A v e ra g e -M o s e rp a d 0 5 0 1 0 0 1 5 0 2 0 0 0 5 0 1 0 0 1 5 0 2 0 0 D a y s o n P ro d u c tio n N e w T y p e C u rv e 1,2 0 0 M B o e P rio rt y p e C u rv e 1,0 0 0 M B o e 2 0 1 6 A v e ra g e 2 0 1 7 A v e ra g e 2 1 In c re a s e d D J B a s in P ro d u c tiv ity E n h a n c e d c o m p le tio n s d riv in g ty p e c u rv e in c re a s e T y p e C u rv e s In c re a s e d A c ro s s A l D e v e lo p m e n tf o c u s A re a s We ls R a n c h ty p e c u rv e in -lin e w ith 2 0 1 7 e n h a n c e d c o m p le tio n re s u lts In c re a s e d M u s ta n g ty p e c u rv e fro m M o s e re s u lts (p rio rd e s ig n ) a n d le a rn in g s fro m s im ila re s e rv o irc h a ra c te ris tic s in We ls R a n c h. 2 0 1 8-2 0 2 0 A c tiv ity F o c u s e d in We ls R a n c h a n d M u s ta n g C o n c e n tra te d in lo w G O R a re a s,m a in ta in 5 0 + % D J o il m ix O il re c o v e ry p e rfo o ts im ila rto o rb e te rth a n E a s tp o n y E x p e c ts ig n ific a n tv o lu m e ra m p la te 2 0 1 8 a n d th ro u g h 2 0 1 9. M u s ta n g ID P Wil B e C u lm in a tio n o fu S O L e a rn in g s to D a te U tiliz in g ro w d e v e lo p m e n tc o n c e p te x e c u te d in E a g le F o rd B e s tin c la s s,ta n k le s s fa c ility d e s ig n G a s s y s te m p ro te c te d th ro u g h c o m p re s s io n,a p p ly in g We ls R a n c h le a rn in g s M u s ta n g :1.3 M M B o e T y p e C u rv e U p 3 0 % C u m.m B o e We ls R a n c h :1.2 M M B o e T y p e C u rv e U p 2 0 %C u m.m B o e ~ 5 0 % B T A X R O R a t$ 5 0 9,5 0 0 ftla te ra l;4 5 % O il $ 6.7 M M D & C (1 ) ~ 4 5 % B T A X R O R a t$ 5 0 9,5 0 0 ftla te ra l;4 5 % O il $ 6.9 M M D & C (1 ) We l e c o n o m ic s b a s e d o n 1 0 0 % WI,8 0 % N R I.We l c o s ts a n d e c o n o m ic s fu ly b u rd e n e d w ith a lo c a te d fa c ilitie s. T y p e c u rv e s a s s u m e 1,8 0 0 lb s /ftp ro p p a n ta n d s lic k w a te rc o m p le tio n. (1 )D rilin g a n d c o m p le tio n c a p ita l.
w w w.n b le n e rg y.c o m N Y S E :N B L 2 2 E a g le F o rd M u lti-z o n e d e v e lo p m e n td riv in g fre e c a s h flo w (1 ) (1 )T e rm d e fin e d in a p p e n d ix. M a x im iz in g C a s h F lo w s fo ru S O C a p ita l D e p lo y m e n t $ 3 7 0 M M c u m u la tiv e a s s e t-le v e l fre e c a s h flo w (1 )th ro u g h 2 0 2 0. P ro d u c tio n F la ty e a ro v e ry e a rt h ro u g h 2 0 2 0 C a s h flo w s b e n e fite d b y s ig n ific a n tv o lu m e g ro w th d e liv e re d in 2 0 1 7 V o lu m e s e x p e c te d to d e c lin e th ro u g h o u t2 0 1 8,a n d in c re a s e th ro u g h 2 0 1 9. U n lo c k in g U p p e re a g le F o rd 2 0 1 7 te s ts p e rfo rm in g in -lin e w ith e x p e c ta tio n s. N e a r-te rm A c tiv ity F o c u s e d in N o rth G a te s R a n c h C o -d e v e lo p m e n to fl o w e ra n d U p p e re a g le F o rd 3 3,0 0 0 n e ta c re s ;1 0 0 % a v g.wi 3 2 0 g ro s s lo c a tio n s 6,4 0 0 a v e ra g e la te ra le n g th 4 0 0 M M B o e n e tu n ris k e d re s o u rc e s E a g le F o rd D im m it G a te s R a n c h N B L A c re a g e We b b
w w w.n b le n e rg y.c o m N Y S E :N B L 2 3 In te g ra te d B u s in e s s A p p ro a c h D riv e s L o w -ris k,h ig h -v a lu e G ro w th M id s tre a m s y n e rg ie s + s ig n ific a n te m b e d d e d m id s tre a m v a lu e p o te n tia l in N B L L o w -c o s t,re lia b le w a te rin fra s tru c tu re s u p p o rts e fic ie n td e v e lo p m e n t N B L s o w n e rs h ip p ro v id e s a tra c tiv e d ro p d o w n o p tio n a lity D e la w a re :6 0 % N B L o w n e rs h ip p ro d u c e d w a te rg a th e rin g N B L im p le m e n tin g fre s h w a te rd e liv e ry,w a te rd is p o s a l a n d re c y c lin g D J :7 5 % N B L o w n e rs h ip o fw a te rin fra s tru c tu re in M u s ta n g ;7 5 % N B L o w n e rs h ip in E a s tp o n y D iv e rs ifie d m a rk e tin g a p p ro a c h p ro v id e s a c c e s s to p re m iu m p ric e d m a rk e ts D J B a s in : N B L X c o n n e c ts to k e y ta k e a w a y o u tle ts D e la w a re : N B L X s A d v a n ta g e c ru d e p ip e lin e p ro v id e s a c c e s s to C ra n e,t X a n d m u ltip le d o w n s tre a m o u tle ts A c re a g e d e d ic a tio n to E P IC c ru d e p ip e lin e w ith a c c e s s to C o rp u s C h ris ti N B L re ta in s 3 0 %/1 5 % o p tio n fo ro w n e rs h ip s ta k e s in c ru d e p ip e lin e a n d N G L p ip e lin e E n a b le s s c a la b le g ro w th a ts tra te g ic a g g re g a tio n p o in ts P la n n e d in -s y n c w ith u p s tre a m d e v e lo p m e n t,e n s u rin g d e liv e ra b ility N B L s o w n e rs h ip p ro v id e s a tra c tiv e d ro p d o w n o p tio n a lity D e la w a re :6 0 % N B L o w n e rs h ip D J :7 5 % N B L o w n e rs h ip in M u s ta n g ;1 0 0 % E a s tp o n y g a s p ro c e s s in g Wa te r S e rv ic e s B u s in e s s C e n tra liz e d G a th e rin g & P ro c e s s in g B a s in T a k e a w a y C a p a c ity
w w w.n b le n e rg y.c o m N Y S E :N B L 2 4 E M e d O u tlo o k th ro u g h 2 0 2 0 E x c e p tio n a l a s s e ts,m a rg in s a n d g ro w th L o n g -life A s s e ts w ith M in im a l D e c lin e in H ig h -d e m a n d R e g io n. T a m a rr e lia b ly F u e lin g ~ 6 0 % o fis ra e l P o w e r,w ith L e v ia th a n P ro v id in g A d d itio n a l G a s S o u rc e b y E n d o f2 0 1 9. In c re a s e d L e v ia th a n G ro s s V o lu m e E x p e c ta tio n to 8 0 0 M M c f/d in 2 0 2 0 T a m a r 3 2.5 % WI(1 ) T a m a rs W 3 2.5 % WI(1 )T e l A v iv A s h d o d Is ra e l E g y p t A p h ro d ite 3 5 % WI L e v ia th a n 3 9.7 % WID o r D is c o v e ry E x is tin g P ip e lin e P la n n e d P ip e lin e F ie ld D e v e lo p m e n t N B L In te re s ts P ro d u c in g 0 2 0 0 4 0 0 6 0 0 2 0 1 7 2 0 1 8 E 2 0 1 9 E 2 0 2 0 E Is ra e l N e tp ro d u c tio n O u tlo o k T h ro u g h 2 0 2 0 M M c fe /d N e tp ro d u c tio n D iv e s titu re A d ju s tm e n t (1 )Wo rk in g in te re s ta s o ff e b ru a ry 2 0,2 0 1 8.Wo rk in g in te re s tw il b e 2 5 % u p o n c lo s in g o fth e 7.5 % s a le b y th e e n d o fth e firs tq u a rte r2 0 1 8. (2 )Wo rk in g in te re s to f3 9.6 6 % in L e v ia th a n a n d 2 5 % in T a m a r. (3 )T e rm d e fin e d in a p p e n d ix. (1,0 0 0 ) (5 0 0 ) - 5 0 0 1,0 0 0 1,5 0 0 2 0 1 8 E 2 0 1 9 E 2 0 2 0 E 2 0 2 1 E 2 0 2 2 E 2 0 2 3 E 2 0 2 4 E 2 0 2 5 E L o n g -te rm N e tc a s h F lo w P ro file fro m T a m a ra n d L e v ia th a n (2 ) C a p e x C o rp o ra te T a x P ro fitt a x B T A X O p e ra tin g C a s h F lo w $ M M (3 ) 7.5 % T a m a r S a le A T A X
w w w.n b le n e rg y.c o m N Y S E :N B L 2 5 E M e d R e g io n a l D e m a n d O u tp a c e s S u p p ly Wo rld -c la s s re s o u rc e s in a h ig h -d e m a n d re g io n N o te :D a ta re p re s e n ts N B L e s tim a te s.e g y p tfo re c a s ta c c o u n ts fo ra n n o u n c e d d e v e lo p m e n ts a n d d is c o v e rie s. Is ra e l C u re n tly U tiliz in g A lte rn a tiv e F u e ls (C o a l,l N G, D ie s e l,h F O )fo rp o w e r,t ra n s p o rta tio n a n d In d u s tria l; P o te n tia l fo rs ig n ific a n tin c re a s e d G a s D e m a n d C o n v e rs io n o fe x is tin g fu e ls to n a tu ra l g a s c o u ld a d d u p to ~ 3 5 0-5 0 0 M M c f/d A d d itio n a l ~ 1 0 0-2 0 0 M M c f/d a n tic ip a te d in in d u s tria l a n d p o w e rd e m a n d m a rk e tg ro w th w ith in th e n e x t3-5 y e a rs 3 0 % 4 0 % 5 0 % 6 0 % 0 2 0 0 4 0 0 6 0 0 8 0 0 1,0 0 0 1,2 0 0 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 H is to ric Is ra e l U s e G a s P ro d u c tio n D is p la c in g R e lia n c e o n C o a l-fire d P o w e rd is p a tc h M M c fe /d % o fp o w e r F ro m C o a l E x is tin g R e g io n a l D is c o v e rie s D o N o tm e e tp ro je c te d D e m a n d G ro w th > 2 B c f/d d e fic itin E g y p tin 2 0 2 0 g ro w in g to > 6 B c f/d b y 2 0 2 5,d e s p ite re c e n td e v e lo p m e n ts L a te n te g y p td o m e s tic d e m a n d e m e rg in g ~ 0.5 B c f/d d e fic itin J o rd a n th ro u g h 2 0 2 5 B c fe /d 0 1 2 3 4 5 6 7 2 0 1 9 E 2 0 2 0 E 2 0 2 1 E 2 0 2 2 E 2 0 2 3 E 2 0 2 4 E 2 0 2 5 E U n fu lfile d R e g io n a l D e m a n d S ig n ific a n tr e g io n a l D e fic itb e y o n d A n n o u n c e d D e v e lo p m e n ts L e v ia th a n C o n tra c ts Is ra e l D e fic ite g y p td e fic itc y p ru s D e fic itj o rd a n D e fic it L e v ia th a n C o n tra c ts A d d itio n a l R e g io n a l D e m a n d G ro s s P ro d u c tio n % P o w e rs u p p lie d b y C o a l
w w w.n b le n e rg y.c o m N Y S E :N B L E M e d R e g io n a l M a rk e tin g P ro g re s s E x e c u te d T a m a ra n d L e v ia th a n e x p o rtc o n tra c ts to E g y p t [9 0 ]% C o n tra c te d 1,0 0 0 8 7 5 T a rg e t C o n tra c te d T a rg e tin g 1 B c f/d a tl e v ia th a n S ta rt-u p 2 6 S e c u re d N e w V o lu m e C o m m itm e n ts to E g y p tw ith D o lp h in u s C o m b in e d u p to 7 0 0 M M c f/d fo r1 0 y e a rs a n d w il s u p p ly in d u s tria l a n d p e tro c h e m ic a l c u s to m e rs,a n d p o w e rg e n e ra tio n. L e v ia th a n C o n tra c tfo rf irm 3 5 0 M M c f/d a ts ta rt-u p ; T o ta l L e v ia th a n V o lu m e s U n d e rc o n tra c tn o w 8 7 5 M M c f/d F irs ts a le s a g re e m e n tw ith E g y p tia n c u s to m e r T o ta l o fa l L e v ia th a n c o n tra c ts n o w e s tim a te d to b e > $ 2 0 B in g ro s s re v e n u e s o r> 5 x e x p e c te d c a p ita l in v e s te d. T a m a ra g re e m e n tin te ru p tib le U p to 3 5 0 M M c f/d S e le r s o p tio n to c o n v e rto firm c o n tra c t,s ig n ific a n ta k e o rp a y D e p e n d e n tu p o n g a s a v a ila b ility b e y o n d e x is tin g c u s to m e r o b lig a tio n s in Is ra e l a n d J o rd a n P ro v id e s a b ility to fu ly u tiliz e c u re n tin s ta le d T a m a rc a p a c ity w ith p ip e lin e c o n n e c tio n Is ra e l J o rd a n E g y p t P la tfo rm s E x is tin g IN G L U n d e rc o n s tru c tio n IN G L E x is tin g T a m a rp ip e lin e E x is tin g A ra b G a s P ip e lin e U n d e rc o n s tru c tio n A ra b G a s P ip e lin e E x is tin g E G A S P ip e lin e E x is tin g E M G P ip e lin e
w w w.n b le n e rg y.c o m N Y S E :N B L We s ta fric a O u tlo o k th ro u g h 2 0 2 0 M a x im iz in g v a lu e w ith n e w p ro je c tu p s id e 0 1 5 3 0 4 5 6 0 7 5 2 0 1 7 2 0 1 8 E 2 0 1 9 E 2 0 2 0 E N e tv o lu m e O u tlo o k T h ro u g h 2 0 2 0 M B o e /d L iq u id s N a tu ra l G a s S ig n ific a n tc u m u la tiv e A s s e t-le v e l F re e C a s h F lo w (1 )o f ~ $ 6 0 0 M M th ro u g h 2 0 2 0 a t$ 5 0 In c re m e n ta l > $ 2 0 0 M M a ts trip p ric in g S tro n g g lo b a l m a rk e ts fo rm e th a n o l a n d liq u e fie d p ro d u c ts. 2 0 1 8 M a in te n a n c e a ta lb a Im p a c tin g 1 Q 1 8 V o lu m e s G a s d e c lin e in E G fo lo w in g p e a k p ro d u c tio n fro m th e A lb a c o m p re s s io n p ro je c tin 2 0 1 6. P ro g re s s in g N e g o tia tio n s w ith a l S ta k e h o ld e rs to M o n e tiz e S ig n ific a n td is c o v e re d G a s in E G a n d C a m e ro o n P o te n tia l m o n e tiz a tio n th ro u g h e x is tin g o rn e w re g io n a l L N G in fra s tru c tu re (1 )T e rm d e fin e d in a p p e n d ix.2 7 E q u a to ria l G u in e a C a m e ro o n A s e n g 4 0 % WI M e th a n o l P la n t4 5 % WI L P G P la n t2 8 % WI B io k o Is la n d A le n 4 5 % WI A lb a F ie ld 3 3 % WI P ro d u c in g N B L In te re s ts Y o y o Y o la n d a D is c o v e rie s
w w w.n b le n e rg y.c o m N Y S E :N B L 2 0 1 8 C a p ita l a n d V o lu m e O u tlo o k H ig h -m a rg in,h ig h -re tu rn in v e s tm e n tfo c u s 2 0 1 8 C a p ita l P ro g ra m In -lin e w ith 2 0 1 7,E x c lu d in g L e v ia th a n ~ $ 7 5 0 M M E M e d p ro g ra m m o re th a n c o v e re d b y T a m a r c a s h flo w s a n d d iv e s titu re p ro c e e d s M id s tre a m c a p ita l m o re th a n c o v e re d b y d ro p d o w n p la n. U S O V o lu m e s (2 )U p > 2 0 % o n F la tc a p ita l a n d U S O O il(2 )U p ~ 3 0 % G ro w th d riv e n p rim a rily b y D e la w a re B a s in. 2 0 1 8 P ro fo rm a V o lu m e s In -lin e With P rio re x p e c ta tio n s A n n o u n c e d d iv e s titu re s a c c o u n tfo r7 8 M B o e /d im p a c to 2 0 1 7 re p o rte d v o lu m e s We s ta fric a lo w e rb y ~ 2 0 % Is ra e l s a le s v o lu m e s u p s lig h tly,a fte ra d ju s tin g fo r d iv e s titu re 0 1 0 0 2 0 0 3 0 0 4 0 0 2 0 1 7 A c tu a ls D iv e s tm e n t Im p a c ts 2 0 1 7 P ro fo rm a 2 0 1 8 P ro fo rm a D iv e s tm e n t Im p a c ts 2 0 1 8 G u id a n c e 2 0 1 8 V o lu m e s u p 1 2 % P ro fo rm a M B o e /d (7 8 ) 3 8 1 3 0 3 3 4 3-3 5 3 $ 2.7 -$ 2.9 B 2 0 1 8 C a p ita l(1 )P ro g ra m (1 )E x c lu d e s N B L X fu n d e d c a p ita l e x p e n d itu re s. (2 )S e e p ro fo rm a d iv e s tm e n ta b le in a p p e n d ix. (3 )R e fle c ts fu l y e a rim p a c to fv o lu m e s th ro u g h a n tic ip a te d tra n s a c tio n s c lo s in g s. M a rc e lu s 3 4 G O M 2 6 O th e ru S O 6 T a m a r7.5 % 1 0 E G U n itiz a tio n 2 U S O E M e d O th e r U S O E M e d O th e r M id s tre a m 2 8 3 3 3-3 4 3 T a m a r7.5 % 2 G O M 8 1 0 (3 )
w w w.n b le n e rg y.c o m N Y S E :N B L 2 9 E n h a n c in g V a lu e D e liv e rin g le a d in g p e rfo rm a n c e C o m m ite d to R e tu rn V a lu e to S h a re h o ld e rs O v e r$ 1.3 B to s h a re h o ld e rs th ro u g h d iv id e n d a n d s h a re re p u rc h a s e s a d d itio n a l d iv id e n d p o te n tia l A d d itio n a l s h a re h o ld e re tu rn p o te n tia l a tp ric e s a b o v e $ 5 0 3 5 % c a s h flo w fro m o p e ra tio n s C A G R (1 )to 2 0 2 0 a t$ 5 0. S u p e rio ro p e ra tio n a l E x e c u tio n Im p ro v in g R O A C E (2 )to ~ 1 0 % in 2 0 2 0 a n d g ro w in g 2 5 % U S O v o lu m e C A G R (1 )to 2 0 2 0,s u p p o rte d b y p e e r-le a d in g w e l p e rfo rm a n c e L e v ia th a n tra c k in g o n tim e a n d o n b u d g e tfo rs ta rt-u p la te n e x ty e a r. H ig h -q u a lity P o rtfo lio w ith E x te n s iv e In v e n to ry B e y o n d 2 0 2 0 ~ 6,5 0 0 h ig h -re tu rn,h ig h -m a rg in lo c a tio n s in o n s h o re s h a le Wo rld -c la s s E M e d a s s e ts w ith e x p a n s io n o p p o rtu n itie s S e e p ric e d e c k in a p p e n d ix. (1 )F o rp u rp o s e s o fc A G R c a lc u la tio n,d iv e s tm e n t-a d ju s te d 2 0 1 7 re p re s e n ts b a s e fo rth re e -y e a rp la n o u tc o m e. (2 )T e rm d e fin e d in a p p e n d ix.
w w w.n b le n e rg y.c o m N Y S E :N B L 3 0 A p p e n d ix
w w w.n b le n e rg y.c o m N Y S E :N B L T h is p re s e n ta tio n c o n ta in s c e rta in "fo rw a rd -lo o k in g s ta te m e n ts "w ith in th e m e a n in g o fe d e ra l s e c u ritie s la w s.wo rd s s u c h a s "a n tic ip a te s ","b e lie v e s,"e x p e c ts ","in te n d s ","w il","s h o u ld ", "m a y ",a n d s im ila re x p re s s io n s m a y b e u s e d to id e n tify fo rw a rd -lo o k in g s ta te m e n ts.f o rw a rd -lo o k in g s ta te m e n ts a re n o ts ta te m e n ts o fh is to ric a l fa c ta n d re fle c tn o b le E n e rg y 's c u re n tv ie w s a b o u tfu tu re e v e n ts.s u c h fo rw a rd -lo o k in g s ta te m e n ts m a y in c lu d e,b u ta re n o tlim ite d to,fu tu re fin a n c ia l a n d o p e ra tin g re s u lts,a n d o th e rs ta te m e n ts th a ta re n o th is to ric a l fa c ts,in c lu d in g e s tim a te s o fo il a n d n a tu ra l g a s re s e rv e s a n d re s o u rc e s,e s tim a te s o fu tu re p ro d u c tio n,a s s u m p tio n s re g a rd in g fu tu re o il a n d n a tu ra l g a s p ric in g,p la n n e d d rilin g a c tiv ity,fu tu re re s u lts o f o p e ra tio n s,p ro je c te d c a s h flo w a n d liq u id ity,b u s in e s s s tra te g y a n d o th e rp la n s a n d o b je c tiv e s fo rfu tu re o p e ra tio n s.n o a s s u ra n c e s c a n b e g iv e n th a th e fo rw a rd -lo o k in g s ta te m e n ts c o n ta in e d in th is p re s e n ta tio n w il o c c u ra s p ro je c te d a n d a c tu a l re s u lts m a y d ife rm a te ria ly fro m th o s e p ro je c te d.f o rw a rd -lo o k in g s ta te m e n ts a re b a s e d o n c u re n te x p e c ta tio n s,e s tim a te s a n d a s s u m p tio n s th a tin v o lv e a n u m b e ro fris k s a n d u n c e rta in tie s th a tc o u ld c a u s e a c tu a l re s u lts to d ife rm a te ria ly fro m th o s e p ro je c te d.t h e s e ris k s a n d u n c e rta in tie s in c lu d e,w ith o u t lim ita tio n,th e v o la tility in c o m m o d ity p ric e s fo rc ru d e o il a n d n a tu ra l g a s,th e p re s e n c e o re c o v e ra b ility o fe s tim a te d re s e rv e s,th e a b ility to re p la c e re s e rv e s, e n v iro n m e n ta l ris k s,d rilin g a n d o p e ra tin g ris k s,e x p lo ra tio n a n d d e v e lo p m e n tris k s,c o m p e titio n,g o v e rn m e n tre g u la tio n o ro th e ra c tio n s,th e a b ility o fm a n a g e m e n to e x e c u te its p la n s to m e e tits g o a ls a n d o th e ris k s in h e re n tin N o b le E n e rg y 's b u s in e s s e s th a ta re d is c u s s e d in N o b le E n e rg y 's m o s tre c e n ta n n u a l re p o rts o n F o rm 1 0 -K,re s p e c tiv e ly,a n d in o th e rn o b le E n e rg y re p o rts o n file w ith th e S e c u ritie s a n d E x c h a n g e C o m m is s io n (th e "S E C ").T h e s e re p o rts a re a ls o a v a ila b le fro m th e s o u rc e s d e s c rib e d a b o v e.f o rw a rd -lo o k in g s ta te m e n ts a re b a s e d o n th e e s tim a te s a n d o p in io n s o f m a n a g e m e n ta th e tim e th e s ta te m e n ts a re m a d e.n o b le E n e rg y d o e s n o ta s s u m e a n y o b lig a tio n to u p d a te a n y fo rw a rd -lo o k in g s ta te m e n ts s h o u ld c irc u m s ta n c e s o rm a n a g e m e n t s e s tim a te s o ro p in io n s c h a n g e. T h e S E C re q u ire s o il a n d g a s c o m p a n ie s,in th e irfilin g s w ith th e S E C,to d is c lo s e p ro v e d re s e rv e s th a ta c o m p a n y h a s d e m o n s tra te d b y a c tu a l p ro d u c tio n o rc o n c lu s iv e fo rm a tio n te s ts to b e e c o n o m ic a ly a n d le g a ly p ro d u c ib le u n d e re x is tin g e c o n o m ic a n d o p e ra tin g c o n d itio n s.t h e S E C p e rm its th e o p tio n a l d is c lo s u re o fp ro b a b le a n d p o s s ib le re s e rv e s,h o w e v e r,w e h a v e n o t d is c lo s e d o u rp ro b a b le a n d p o s s ib le re s e rv e s in o u rfilin g s w ith th e S E C.We u s e c e rta in te rm s in th is p re s e n ta tio n,s u c h a s n e tu n ris k e d re s o u rc e s a n d ty p e c u rv e w h ic h a re b y th e ir n a tu re m o re s p e c u la tiv e th a n e s tim a te s o fp ro v e d,p ro b a b le a n d p o s s ib le re s e rv e s a n d a c c o rd in g ly a re s u b je c to s u b s ta n tia ly g re a te ris k o fb e in g a c tu a ly re a liz e d.t h e S E C g u id e lin e s s tric tly p ro h ib itu s fro m in c lu d in g th e s e e s tim a te s in filin g s w ith th e S E C.In v e s to rs a re u rg e d to c o n s id e rc lo s e ly th e d is c lo s u re s a n d ris k fa c to rs in o u ra n d C la y to n Wilia m s m o s tre c e n tf o rm 1 0 -K a n d in o th e re p o rts o n file w ith th e S E C,a v a ila b le fro m N o b le E n e rg y s o fic e s o rw e b s ite,h tp :/w w w.n b le n e rg y.c o m. T h is p re s e n ta tio n a ls o c o n ta in s c e rta in n o n -G A A P m e a s u re s o fin a n c ia l p e rfo rm a n c e th a tm a n a g e m e n tb e lie v e s a re g o o d to o ls fo rin te rn a l u s e a n d th e in v e s tm e n tc o m m u n ity in e v a lu a tin g N o b le E n e rg y s o v e ra l fin a n c ia l p e rfo rm a n c e.t h e s e n o n -G A A P m e a s u re s a re b ro a d ly u s e d to v a lu e a n d c o m p a re c o m p a n ie s in th e c ru d e o il a n d n a tu ra l g a s in d u s try.p le a s e s e e th e a ta c h e d s c h e d u le s fo re c o n c ilia tio n s o fth e d ife re n c e s b e tw e e n a n y h is to ric a l n o n -G A A P m e a s u re s u s e d in th is p re s e n ta tio n a n d th e m o s td ire c tly c o m p a ra b le G A A P fin a n c ia l m e a s u re s. T h is p re s e n ta tio n a ls o c o n ta in s a fo rw a rd -lo o k in g n o n -G A A P fin a n c ia l m e a s u re,e B IT D A (e a rn in g s b e fo re in te re s t,ta x e s,d e p re c ia tio n a n d a m o rtiz a tio n ).D u e to th e fo rw a rd -lo o k in g n a tu re o f th e a fo re m e n tio n e d n o n -G A A P fin a n c ia l m e a s u re,m a n a g e m e n tc a n n o tre lia b ly o re a s o n a b ly p re d ic tc e rta in o fth e n e c e s s a ry c o m p o n e n ts o fth e m o s td ire c tly c o m p a ra b le fo rw a rd -lo o k in g G A A P m e a s u re a th is a s s e tle v e l.a c c o rd in g ly,w e a re u n a b le to p re s e n ta q u a n tita tiv e re c o n c ilia tio n o fs u c h fo rw a rd -lo o k in g n o n -G A A P fin a n c ia l m e a s u re to its m o s td ire c tly c o m p a ra b le fo rw a rd -lo o k in g G A A P fin a n c ia l m e a s u re.a m o u n ts e x c lu d e d fro m th is n o n -G A A P m e a s u re in fu tu re p e rio d s c o u ld b e s ig n ific a n t.m a n a g e m e n tb e lie v e s th e a fo re m e n tio n e d n o n -G A A P fin a n c ia l m e a s u re is a g o o d to o l fo rin te rn a l u s e a n d th e in v e s tm e n tc o m m u n ity in e v a lu a tin g N o b le E n e rg y s o v e ra l fin a n c ia l p e rfo rm a n c e.t h is n o n -G A A P m e a s u re is b ro a d ly u s e d to v a lu e a n d c o m p a re c o m p a n ie s in th e c ru d e o il a n d n a tu ra l g a s in d u s try. F o rw a rd -L o o k in g S ta te m e n ts a n d O th e rm a te rs 3 1
w w w.n b le n e rg y.c o m N Y S E :N B L 3 2 P e rio d B a s e P la n S trip P la n a s o fe n d J a n u a ry,2 0 1 8 WT I,B re n t($ /B b l)h e n ry H u b ($ /M c f)wt I,B re n t($ /B b l)h e n ry H u b ($ /M c f) 2 0 1 8 $ 5 0,$ 5 3 $ 3 $ 6 3,$ 6 8 $ 2.9 0 2 0 1 9 $ 5 0,$ 5 3 $ 3 $ 5 8,$ 6 4 $ 2.8 0 2 0 2 0 $ 5 0,$ 5 4 $ 3 $ 5 5,$ 6 1 $ 2.8 0 2 0 2 1-2 0 2 3 A v g.$ 5 2,$ 5 6 $ 3.1 0 $ 5 3,$ 5 8 $ 2.9 0 P ric e D e c k A s s u m p tio n s A n d D e fin e d T e rm s T e rm D e fin itio n E x c e s s C a s h F lo w G A A P c a s h flo w fro m o p e ra tio n s p lu s p la n n e d p o rtfo lio p ro c e e d s le s s o rg a n ic c a p ita l in v e s tm e n ts le s s d iv id e n d s /d is trib u tio n s le s s c a p ita le a s e p a y m e n ts F re e C a s h F lo w G A A P c a s h flo w fro m o p e ra tio n s le s s c a p ita l in v e s tm e n ts le s s d iv id e n d s /d is trib u tio n s A s s e t-le v e l F re e C a s h F lo w B e fo re ta x o p e ra tin g c a s h flo w (n o tin c lu d in g c o rp o ra te b u rd e n )le s s c a p ita l in v e s tm e n ts E B IT D A G A A P e a rn in g s b e fo re in te re s t,ta x e s,d e p re c ia tio n,d e p le tio n,a n d a m o rtiz a tio n R O A C E R e tu rn o n a v e ra g e c a p ita l e m p lo y e d.g A A P e a rn in g s b e fo re in te re s ta n d ta x e s d iv id e d b y (s h a re h o ld e rs e q u ity p lu s lo n g -te rm d e b tp lu s lo n g -te rm c a p ita le a s e s ). C o m p a n y C a s h M a rg in (R e v e n u e s le s s le a s e o p e ra tin g e x p e n s e s,p ro d u c tio n ta x e s,tra n s p o rta n d g a th e rin g c o s ts,m a rk e tin g e x p e n s e s, g e n e ra l a n d a d m in is tra tiv e,a n d in te re s t)d iv id e d b y to ta l v o lu m e s.
w w w.n b le n e rg y.c o m N Y S E :N B L 3 3 In v e s to rr e la tio n s C o n ta c ts D iv e s tm e n t A d ju s te d V o lu m e s (2 0 1 7 a n d 2 0 1 8 ) B ra d Wh itm a rs h M e g a n D o le z a l L a u re n B ro w n 2 8 1.9 4 3.1 6 7 0 2 8 1.9 4 3.1 8 6 1 2 8 1.8 7 2.3 2 0 8 b ra d.w h itm a rs h @n b le n e rg y.c o m m e g a n.d o le z a l@n b le n e rg y.c o m la u re n.b ro w n @n b le n e rg y.c o m V is itu s o n th e In v e s to rr e la tio n s H o m e p a g e a tw w w.n b le n e rg y.c o m V o lu m e s (M B o e /d ) 2 0 1 8 M id p o in t G u id a n c e R e p o rte d V o lu m e s Im p a c to f D iv e s tm e n ts F Y A v g. P ro -F o rm a 2 0 1 8 2 0 1 7 A c tu a ls R e p o rte d V o lu m e s Im p a c to f D iv e s tm e n ts F Y A v g. P ro -F o rm a 2 0 1 7 U S O n s h o re 2 4 8 2 4 8 2 4 4 (4 0 )2 0 4 M a rc e lu s c lo s e d m id 2 0 1 7 (3 4 ) M in e ra ls c lo s e d e n d 2 0 1 7 (4 ) O th e r(1 )(2 ) G u lfo fm e x ic o 8 (8 )0 2 6 (2 6 )0 C lo s e m id -2 0 1 8 (8 )(2 6 ) Is ra e l 3 8 (2 )3 6 4 6 (1 0 )3 6 C lo s e 1 Q 2 0 1 8 (2 )(1 0 ) E G In c lu d in g E q u ity M e th o d 5 4 5 4 6 5 (2 )6 3 U n itiz a tio n c lo s e d m id 2 0 1 7 (2 ) T o ta l C o m p a n y 3 4 8 (1 0 )3 3 8 3 8 1 (7 8 )3 0 3 (1 )O th e rin c lu d e s (3 )M B o e /d fo rd J B a s in d iv e s tm e n t,(2 )M B o e /d fo rp e rm ia n n o n -c o re a s s e ts a le in J a n u a ry 2 0 1 8 a n d + 3 M B o e /d p ro fo rm a fo rfu l-y e a rc la y to n Wilia m s a c q u is itio n.
w w w.n b le n e rg y.c o m N Y S E :N B L 3 4 2 0 1 8 F u l-y e a rg u id a n c e C a p ita l & C o s tm e tric s C a p ita l E x p e n d itu re s (2 )($ M M ) T o ta l C o m p a n y O rg a n ic C a p ita l $ 2,7 0 0 -$ 2,9 0 0 C o s tm e tric s L O W H IG H L e a s e O p e ra tin g E x p e n s e ($ /B O E )3.9 0 4.3 0 G a th e rin g,t ra n s p o rta tio n & P ro c e s s in g ($ /B O E )3.2 5 3.6 0 P ro d u c tio n T a x e s (% O il,g a s,n G L R e v e n u e s )4.7 5.1 M a rk e tin g ($ M M )3 5 5 0 D D & A ($ /B O E )1 4.5 0 1 5.2 5 E x p lo ra tio n ($ M M )1 2 5 1 5 0 G & A ($ M M )4 0 0 4 3 0 In te re s t,n e t($ M M )2 6 0 3 0 0 O th e rg u id a n c e Ite m s ($ M M ) E q u ity In v e s tm e n tin c o m e 1 6 0 2 0 0 M id s tre a m S e rv ic e s R e v e n u e T h ird P a rty 6 0 8 0 N o n -C o n tro lin g In te re s t N B L X P u b lic U n ith o ld e rs 1 0 0 1 2 5 F u l Y e a r2 0 1 8 S a le s V o lu m e C ru d e O il a n d C o n d e n s a te (M B b l/d ) N a tu ra l G a s L iq u id s (M B b l/d ) N a tu ra l G a s (M M c f/d ) T o ta l E q u iv a le n t (M B o e /d ) L o w H ig h L o w H ig h L o w H ig h L o w H ig h U n ite d S ta te s O n s h o re 1 1 1 1 1 7 5 7 6 2 4 3 0 4 6 0 2 4 3 2 5 3 U n ite d S ta te s G u lfo fm e x ic o (1 )5 7 1 1 5 1 0 7 9 Is ra e l(1 )-2 1 5 2 4 0 3 6 4 0 E q u a to ria l G u in e a 1 3 1 7-1 8 5 2 1 0 4 5 5 0 E q u a to ria l G u in e a -E q u ity m e th o d in v e s tm e n t1 2 5 5-6 7 T o ta l C o m p a n y 1 3 3 1 3 9 6 4 6 8 8 6 5 8 9 0 3 4 3 3 5 3 (1 )U.S.G u lfo fm e x ic o a n d T a m a r7.5 in te re s t(is ra e l)v o lu m e s d iv e s te d a re in c lu d e d in s a le s g u id a n c e th ro u g h a n tic ip a te d c lo s in g :G O M m id 2 Q,T a m a r la te 1 Q (2 )C a p ita l e x p e n d itu re s g u id a n c e e x c lu d e s N B L X -fu n d e d e x p e n d itu re s a lth o u g h c o n s o lid a te d in to N B L fin a n c ia ls.
w w w.n b le n e rg y.c o m N Y S E :N B L 3 5 2 0 1 8 F irs tq u a rte rg u id a n c e F irs tq u a rte r2 0 1 8 S a le s V o lu m e C ru d e O il a n d C o n d e n s a te (M B b l/d ) N a tu ra l G a s L iq u id s (M B b l/d ) N a tu ra l G a s (M M c f/d ) T o ta l E q u iv a le n t (M B o e /d ) L o w H ig h L o w H ig h L o w H ig h L o w H ig h U n ite d S ta te s O n s h o re 1 0 3 1 0 9 5 8 6 2 4 5 5 4 7 5 2 3 8 2 4 8 U n ite d S ta te s G u lfo fm e x ic o (1 )1 7 2 1 1 2 1 8 2 3 2 2 2 6 Is ra e l(1 )-2 4 5 2 7 0 4 1 4 5 E q u a to ria l G u in e a 1 3 1 7-1 8 0 2 0 0 4 4 4 8 E q u a to ria l G u in e a -E q u ity m e th o d in v e s tm e n t1 2 5 5-6 7 T o ta l C o m p a n y 1 3 7 1 4 4 6 4 6 8 9 2 5 9 5 0 3 5 8 3 6 8 (1 )U.S.G u lfo fm e x ic o a n d T a m a r7.5 in te re s t(is ra e l)v o lu m e s d iv e s te d a re in c lu d e d in s a le s g u id a n c e th ro u g h a n tic ip a te d c lo s in g :G O M m id 2 Q,T a m a r la te 1 Q. (2 )C a p ita l e x p e n d itu re s g u id a n c e e x c lu d e s N B L X -fu n d e d e x p e n d itu re s a lth o u g h c o n s o lid a te d in to N B L fin a n c ia ls. C a p ita l & C o s tm e tric s C a p ita l E x p e n d itu re s (2 )($ M M ) T o ta l C o m p a n y O rg a n ic C a p ita l $ 7 5 0 -$ 8 5 0 C o s tm e tric s L O W H IG H L e a s e O p e ra tin g E x p e n s e ($ /B O E )4.4 0 4.7 0 G a th e rin g,t ra n s p o rta tio n & P ro c e s s in g ($ /B O E )3.2 0 3.5 0 P ro d u c tio n T a x e s (% O il,g a s,n G L R e v e n u e s )4.4 4.8 M a rk e tin g ($ M M )8 1 2 D D & A ($ /B O E )1 4.0 0 1 4.7 5 E x p lo ra tio n ($ M M )4 0 6 0 G & A ($ M M )1 0 0 1 1 0 In te re s t,n e t($ M M )7 0 8 5 O th e rg u id a n c e Ite m s ($ M M ) E q u ity In v e s tm e n tin c o m e 3 5 5 0 M id s tre a m S e rv ic e s R e v e n u e T h ird P a rty 1 0 2 0 N o n -C o n tro lin g In te re s t N B L X P u b lic U n ith o ld e rs 2 5 3 5