Noble Energy, Inc. (NYSE:NBL) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 11:00 am ET

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Noble Energy, Inc. (NYSE:NBL) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning and welcome to Noble Energy's Third Quarter 2019 Earnings Results Webcast and Conference Call. [Operator Instructions].

I would now like to turn the conference over to Brad Whitmarsh. Please go ahead.

Executive
Brad Whitmarsh

Thanks, Andrea and thanks to all of you for joining our third quarter conference call this morning. I hope you've had a chance to review the news release and presentation deck that we published earlier today. These materials are available on the Investors page of our website and they highlight continued strong performance for the business.

Later today, we plan to file our Form 10-Q with the SEC. Want to remind everyone that today's discussion contains projections and forward-looking statements, as well as, certain non-GAAP financial measures. To read our full disclosures in our latest news releases and SEC filings for a discussion of those items.

Following our prepared remarks, we'll hold a question-and-answer session. And we will wrap up within an hour today. I would ask that analysts limit themselves to one primary and one follow-up.

Our planned comments this morning will come from Dave Stover, Chairman and CEO, as well as Brent Smolik, President and COO, who has lost his voice somewhat. Also joining us is Hodge Walker, SVP of Onshore and Hodge will talk us through the US portion of our comments. Both Ken Fisher, EVP and CFO and Keith Elliott, our SVP of Offshore are joining us remotely this morning.

With that, I want to turn the call over to Dave.

Executive
David L. Stover

Thanks, Brad and good morning, everyone and thanks for joining us today. Our teams have continued to execute very well through 2019. We went into the year, focused on creating more certainty throughout our business and positioning our company for long-term success.

This morning, I'll highlight, how we've already accomplished many of our key goals and targets for the year. In fact, we're on track to realize $300 million of capital and cost reductions, while generating more operating cash flow and volume than the original 2019 plan. Whether it is taking the Mustang project in the DJ Basin from 0 to 60,000 barrels of oil equivalent per day within 18 months or the Leviathan project execution in the Eastern Mediterranean. Noble Energy continues to deliver and lead across the board. The capital efficiency improvements onshore, progress on offshore projects and capturing new exploration opportunities are all substantial, visible contributors to a long-term sustainable future for our company.

Looking at third quarter results, we performed extremely well on all items within our control, including lower capital, lower cash costs and higher production. Capital expenditures for the quarter came in more than 12% below expectations, with reductions in our US onshore well costs, and facility capital and lower Leviathan costs.

For the full year, we're now estimating to be $200 million below our original 2019 company capital guide. We continue to maintain discipline and are prioritizing these savings to the balance sheet instead of allocating to additional growth.

On the expense side, we again came