A month has gone by since the last earnings report for Noble Energy (NBL). Shares have added about 3.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Noble due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Noble Energy Beats Q4 Earnings & Revenue Estimates
Noble Energy, Inc. delivered adjusted earnings of 12 cents per share in fourth-quarter 2018, surpassing the Zacks Consensus Estimate of 11 cents by 9%. However, the bottom line plunged 62.5% year over year.
On a GAAP basis, the company incurred a loss of $1.72 per share, against the earnings of $1.01 in the year-ago quarter.
In 2018, Noble Energy delivered adjusted earnings of 90 cents, up from 31 cents in 2017.
Total Revenues
Noble Energy's total revenues declined 0.3% year over year to $1,197 million in the fourth quarter. Nevertheless, the top line beat the Zacks Consensus Estimate of $1,170 million by 2.3%.
In 2018, Noble Energy delivered revenues worth $4,986 million, up from $ 4,256 million in 2017.
Operational Results
In the quarter under review, sales volume averaged 350 thousand barrels of oil equivalent per day (MBoe/d), which surpassed the upper end of the guidance. U.S. onshore assets contributed 72% to total sales volume in the fourth quarter.
The company incurred operating loss of $1,198 million, against operating income of $461 million in the year-ago quarter.
In 2018, the company returned more than $500 million to shareholders, of which $295 million were through the share repurchase program and $208 million through quarterly dividend.
Realized Prices
U.S. onshore realized crude oil and condensate prices in the reported quarter dropped 1.6% to $52.98 per barrel from the year-ago quarter’s level of $53.83.
U.S. onshore natural gas prices were $2.87 per thousand cubic feet, flat year over year.
U.S. onshore realized prices for natural gas liquids were down 10.5% to $24.84 per barrel.
Financial Highlights
Noble Energy's cash and cash equivalents as of Dec 31, 2018 were $716 million, up from $675 million on Dec 31, 2017.
Long-term debt was $6,574 million as of Dec 31, 2018 compared with $6,746 million on Dec 31, 2017.
Cash flow from operating activities in the quarter was $560 million, up from $533 million in the prior-year quarter.
Guidance
For 2019, the company expects average U.S. onshore sales volumes in the range of 262-278 thousand barrels of oil equivalent per day (MBoe/d).
For the first quarter of 2019, U.S. onshore sales volumes are expected to be slightly lower than the fourth-quarter tally. During the first quarter, the company’s intends to make organic capital expenditures worth $725-$800 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -212.5% due to these changes.
VGM Scores
Currently, Noble has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Noble has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Noble Energy Inc. (NYSE:NBL
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