Noble Energy: $109 Million Loss in Q2

Noble Energy Q2 Report
Noble Energy Q2 Report

Noble Energy announces plans to increase Eagle Ford activity through 2018 in addition to reporting a second quarter net loss of $109 million.

Related: Noble Energy Plans Expansion into Eagle Ford

Despite the huge quarterly loss, Noble reported a total sales volume that averaged 299 thousand barrels of oil MBoe/d, an increase of three percent compared to the second quarter of 2014. Liquids comprised 43 percent of second quarter 2015 sales volumes, with natural gas the remaining 57 percent.

CEO David L. Stover acknowledged the 'challenging times in the industry' but was certain that the recent move into the Eagle Ford after acquiring Rosetta Resources, would aid in the positive momentum for the company.

In a conference call last week, Noble executives revealed plans to accelerate well activity in the Eagle Ford through at least 2018 by pumping $825 million into the region.

Our plan is to focus on the lower Eagle Ford for the next few years, increasing well lateral length to an average of around 7,000 feet. We are currently drilling our first Eagle Ford well and have already implemented improvements that have materially increased footage drilled per day.
— Gary W. Willingham, EVP-Global Production & Supply Chain Activities

When the Rosetta deal finalized on July 20, 2015, Noble acquired approximately 50,000 net acres in the Eagle Ford Shale along with more than 1,800 gross horizontal drilling locations identified for development.