Noble divests from Marcellus, losses shrink

HOUSTON, May 2, 2017 – Noble Energy said on Tuesday it had agreed to sell its assets in the Marcellus shale field in the USA for USD 1.23 billion, a day after it reported smaller-than-expected first-quarter losses.

The firm did not name a buyer for the West Virginia and Pennsylvania acreage, but said total proved reserves there amounted to 42.5 bcm (1.5 tcf). Current daily output stands at 11.8 mcm (415 mcf) of natural gas equivalent.

“The Marcellus has been a strong performer for Noble Energy over the last few years, which is a direct result of the success of our employees’ efforts,” CEO David L. Stover said in a statement.

“During the same time period, we have also significantly expanded the inventory of investment opportunities in our liquids-rich, higher-margin onshore assets, which has led us to now divest our Marcellus position.”

The news came shortly after Noble Energy posted an adjusted loss of USD 23 million, or USD 0.05 per share, for Q1 2017. The result was considerably better than that predicted by analysts. Polled by Thomson Reuters, they had forecasted a loss of USD 0.14 per share.

Revenues rose 43% to USD 1.04 billion while expenses shrunk 13% to USD 1 billion year-on-year.

“Noble Energy is off to a great start in 2017, with strong operational and financial performance and importantly, numerous recent strategic accomplishments,” Stover said in a separate statement.

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