Noble Energy Inc. has further lowered its planned full year capital expenditures by $50 million to $750-850 million—a 53% reduction from the midpoint of its original guidance (OGJ Online, Apr. 15, 2020). Close to 50% of the updated capital expenditure amount was spent in the first quarter.
US onshore capital expenditures are now estimated to be $575 million for full-year 2020. The company is currently operating one drilling rig (in the DJ basin) and has temporarily halted all completion activity. Remaining capital is expected to be allocated towards major project developments and necessary pipeline infrastructure in Equatorial Guinea and Israel. Exploration activity offshore Colombia has been deferred beyond 2020.
The company reported first quarter net loss attributable to Noble Energy of $4.0 billion. Excluding items impacting comparability, the company generated adjusted net income for the quarter of $85 million. Adjusted EBITDAX was $715 million, and cash provided by operating activities was $482 million. Prior to working capital changes, operating cash flow was $636 million for the quarter.
First quarter capital expenditures funded by Noble Energy were $399 million, more than $75 million below the low end of guidance due to lower US onshore well costs and the deferral of offshore spend. Organic capital expenditures attributable to Noble Energy included $332 million related to US onshore activities, $34 million of which was line-fill for the EPIC Crude Oil Pipeline which recently commenced full service. Noble Energy also invested $31 million in the Eastern Mediterranean, primarily for Leviathan infrastructure, and $19 million in West Africa for the Alen Gas Monetization project.
Noble Midstream Partners LP’s capital expenditures totaled $196 million for the quarter, including $43 million for build out of gathering systems in the DJ and Delaware basins, $66 million related to EPIC and Delaware Crossing pipeline investments, and $87 million related to the acquisition of interest in the Saddlehorn pipeline.
Oil, gas and natural gas liquid (NGL) revenues for the quarter benefited from strong production performance. Sales volumes for the quarter averaged 390 thousand barrels of oil equivalent per day (MBoe/d), with the U.S. onshore assets averaging 269 MBoe/d, West Africa sales of 55 MBoe/d and Israel averaging 393 million cubic feet equivalent per day (MMcfe/d). Oil sales volumes were at the high end of guidance, totaling 139 thousand barrels of oil per day (MBbl/d), with U.S. onshore oil volumes of 117 MBbl/d.
Included in the Company’s results for the quarter were $4.2 billion of impairments associated with the company’s Texas proved and unproved properties, resulting from a decline in commodity prices. The company's consolidated financials also included a $110 million goodwill impairment ($38 million to Noble Energy's interest) related to Noble Midstream Partners Saddle Butte Pipeline system in the DJ basin.