false--12-31Q120182018-03-310000072207484440673Large Accelerated FilerNOBLE ENERGY INCP2YP8Y0.10.10.010.01100000000010000000005290000005280000000.00250.01500.00100.0090216921982169219811400000040000000074P9MP2YP3Y390000003900000000000722072018-01-012018-03-3100000722072018-03-3100000722072017-01-012017-03-3100000722072017-12-3100000722072017-03-3100000722072016-12-310000072207us-gaap:AdditionalPaidInCapitalMember2018-01-012018-03-310000072207us-gaap:AdditionalPaidInCapitalMember2017-03-310000072207us-gaap:AccumulatedOtherComprehensiveIncomeMember2016-12-310000072207us-gaap:TreasuryStockMember2018-03-310000072207us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310000072207us-gaap:RetainedEarningsMember2017-01-012017-03-310000072207us-gaap:RetainedEarningsMember2016-12-310000072207us-gaap:NoncontrollingInterestMember2016-12-310000072207us-gaap:TreasuryStockMember2018-01-012018-03-310000072207us-gaap:NoncontrollingInterestMember2018-01-012018-03-310000072207us-gaap:NoncontrollingInterestMember2017-03-310000072207us-gaap:RetainedEarningsMember2017-03-310000072207us-gaap:AdditionalPaidInCapitalMember2018-03-310000072207us-gaap:TreasuryStockMember2017-12-310000072207us-gaap:TreasuryStockMember2017-01-012017-03-310000072207us-gaap:RetainedEarningsMember2017-12-310000072207us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-03-310000072207us-gaap:AdditionalPaidInCapitalMember2017-01-012017-03-310000072207us-gaap:CommonStockMember2017-12-310000072207us-gaap:CommonStockMember2017-03-310000072207us-gaap:NoncontrollingInterestMember2017-01-012017-03-310000072207us-gaap:NoncontrollingInterestMember2018-03-310000072207us-gaap:TreasuryStockMember2017-03-310000072207us-gaap:AdditionalPaidInCapitalMember2016-12-310000072207us-gaap:RetainedEarningsMember2018-01-012018-03-310000072207us-gaap:CommonStockMember2016-12-310000072207us-gaap:TreasuryStockMember2016-12-310000072207us-gaap:NoncontrollingInterestMember2017-12-310000072207us-gaap:RetainedEarningsMember2018-03-310000072207us-gaap:CommonStockMember2018-03-310000072207us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-03-310000072207us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-03-310000072207us-gaap:AdditionalPaidInCapitalMember2017-12-3100000722072020-12-312018-03-3100000722072019-12-312018-03-3100000722072018-12-312018-03-3100000722072018-03-3100000722072017-01-012017-09-300000072207us-gaap:OtherCurrentLiabilitiesMember2018-01-012018-03-310000072207nbl:WestAfricaMember2018-01-012018-03-310000072207us-gaap:MinimumMember2018-01-012018-03-310000072207us-gaap:MaximumMember2018-01-012018-03-310000072207nbl:TamarandDalitFieldsMember2017-12-3100000722072018-02-150000072207nbl:SaddleButteMember2018-01-012018-03-310000072207us-gaap:AccountingStandardsUpdate201409Memberus-gaap:RetainedEarningsMember2017-12-310000072207nbl:CNXMidstreamPartnersMember2018-03-310000072207nbl:TamarandDalitFieldsMember2018-03-310000072207us-gaap:OtherCurrentLiabilitiesMember2017-01-012017-03-3100000722072018-12-312018-01-012018-03-3100000722072019-12-312018-01-012018-03-3100000722072020-12-312018-01-012018-03-3100000722072017-04-2400000722072017-04-242017-04-240000072207nbl:ClaytonWilliamsEnergyMember2017-01-012017-03-310000072207nbl:ClaytonWilliamsEnergyMember2018-01-012018-03-310000072207us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembernbl:GulfOfMexicoAssetsMemberus-gaap:SubsequentEventMember2018-04-110000072207nbl:SaddleButteMembernbl:GreendfieldMidstreamMember2018-01-312018-01-310000072207us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembernbl:TamarandDalitFieldsMember2018-03-140000072207nbl:TamarandDalitFieldsMember2018-01-290000072207us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembernbl:GulfOfMexicoAssetsMember2018-03-310000072207us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembernbl:GulfOfMexicoAssetsMemberus-gaap:SubsequentEventMember2018-04-112018-04-110000072207us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembernbl:TamarandDalitFieldsMember2018-03-142018-03-140000072207us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2017-01-012017-03-310000072207nbl:SaddleButteMember2018-03-310000072207nbl:ClaytonWilliamsEnergyMember2017-04-242017-04-240000072207nbl:ClaytonWilliamsEnergyMember2017-06-300000072207nbl:CNXMidstreamPartnersMember2017-12-310000072207nbl:ConeGatheringLlcMember2018-01-012018-01-310000072207nbl:ConeGatheringLlcMember2018-01-310000072207nbl:SaddleButteMember2018-01-310000072207us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembernbl:SouthwestRoyaltiesMember2018-01-012018-01-310000072207nbl:ClaytonWilliamsEnergyMember2017-04-240000072207nbl:SaddleButteMember2018-01-312018-01-310000072207us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembernbl:GulfOfMexicoAssetsMember2018-01-012018-03-310000072207us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2017-03-310000072207nbl:CNXMidstreamPartnersMember2017-01-012017-12-310000072207nbl:TamarandDalitFieldsMember2018-01-280000072207us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembernbl:OtherDivestituresMember2018-01-012018-03-310000072207us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembernbl:TamarandDalitFieldsMember2017-12-310000072207us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembernbl:OtherDivestituresMember2018-03-310000072207nbl:ThreeWayCollarsNYMEXHH2018Memberus-gaap:NaturalGasReservesMember2018-03-310000072207nbl:CurrentAssetsMember2017-12-310000072207nbl:CurrentLiabilitiesMember2018-03-310000072207nbl:CurrentAssetsMember2018-03-310000072207nbl:CurrentLiabilitiesMember2017-12-310000072207nbl:NoncurrentAssetsMember2018-03-310000072207nbl:NoncurrentLiabilitiesMember2018-03-310000072207nbl:NoncurrentAssetsMember2017-12-310000072207nbl:NoncurrentLiabilitiesMember2017-12-310000072207nbl:DerivativeContractFourMemberus-gaap:CrudeOilMemberus-gaap:PutOptionMember2018-03-310000072207nbl:DerivativeContractElevenMemberus-gaap:CrudeOilMemberus-gaap:PutOptionMember2018-03-310000072207nbl:DerivativeContractSevenMemberus-gaap:CrudeOilMemberus-gaap:PutOptionMember2018-03-310000072207nbl:DerivativeContractFiveMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractThreeMemberus-gaap:CrudeOilMemberus-gaap:PutOptionMember2018-03-310000072207nbl:DerivativeContractElevenMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractOneMemberus-gaap:CrudeOilMemberus-gaap:PutOptionMember2018-03-310000072207nbl:DerivativeContractEightMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractThirteenMemberus-gaap:CrudeOilMemberus-gaap:SwapMember2018-03-310000072207nbl:DerivativeContractFourMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractTwoMemberus-gaap:CrudeOilMemberus-gaap:SwapMember2018-03-310000072207nbl:DerivativeContractNineMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractSixMemberus-gaap:CrudeOilMemberus-gaap:PutOptionMember2018-03-310000072207nbl:DerivativeContractOneMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractTenMemberus-gaap:CrudeOilMemberus-gaap:SwapMember2018-03-310000072207nbl:DerivativeContractThreeMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractNineMemberus-gaap:CrudeOilMemberus-gaap:SwapMember2018-03-310000072207nbl:DerivativeContractTwoMemberus-gaap:CrudeOilMember2018-03-310000072207us-gaap:SwapMember2018-03-310000072207nbl:DerivativeContractTenMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractFiveMemberus-gaap:CrudeOilMemberus-gaap:SwapMember2018-03-310000072207nbl:DerivativeContractSevenMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractSixMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractTwelveMemberus-gaap:CrudeOilMember2018-03-310000072207nbl:DerivativeContractThirteenMemberus-gaap:CrudeOilMember2018-03-310000072207us-gaap:CrudeOilMember2018-01-012018-03-310000072207us-gaap:NaturalGasReservesMember2017-01-012017-03-310000072207us-gaap:CrudeOilMember2017-01-012017-03-310000072207us-gaap:NaturalGasReservesMember2018-01-012018-03-310000072207us-gaap:LineOfCreditMembernbl:LeviathanTermLoanMember2017-02-240000072207nbl:NobleMidstreamMemberus-gaap:LineOfCreditMember2017-12-310000072207us-gaap:LineOfCreditMember2018-03-310000072207us-gaap:RevolvingCreditFacilityMember2018-03-310000072207nbl:SeniorDebenturesdueAugust12097Member2018-03-310000072207nbl:SeniorNotesdueMay12021Memberus-gaap:ScenarioForecastMember2018-04-012018-04-300000072207nbl:NobleMidstreamMemberus-gaap:LineOfCreditMemberus-gaap:FederalFundsEffectiveSwapRateMember2018-01-012018-03-310000072207us-gaap:LineOfCreditMembernbl:LeviathanTermLoanMembernbl:LIBORPriortoProductionStartupMember2018-01-012018-03-310000072207nbl:NobleMidstreamMemberus-gaap:LineOfCreditMember2018-03-310000072207us-gaap:LineOfCreditMembernbl:LeviathanTermLoanMembernbl:LIBORLastTwoyearsUntilMaturityMember2018-01-012018-03-310000072207us-gaap:LineOfCreditMembernbl:LeviathanTermLoanMember2018-01-012018-03-310000072207nbl:OtherSeniorNotesandDebenturesMember2018-03-310000072207nbl:NobleMidstreamMemberus-gaap:RevolvingCreditFacilityMember2018-03-310000072207us-gaap:LineOfCreditMembernbl:LeviathanTermLoanMembernbl:LIBORAfterStartupPriortoTwoYearsBeforeMaturityMember2018-01-012018-03-310000072207nbl:RevolvingCreditFacilitydueAugust272020Member2018-03-310000072207nbl:NobleMidstreamMemberus-gaap:LineOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMember2018-01-012018-03-310000072207nbl:SeniorNotesdueJune12024Member2018-03-310000072207nbl:SeniorNotesDueApril12027Member2017-12-310000072207nbl:SeniorNotesDueMarch12041Member2018-03-310000072207nbl:SeniorNotesDueMarch12041Member2017-12-310000072207nbl:SeniorNotesdueOctober152023Member2017-12-310000072207nbl:RevolvingCreditFacilitydueAugust272020Member2017-12-310000072207nbl:SeniorNotesdueMay12021Member2018-03-310000072207us-gaap:RevolvingCreditFacilityMember2017-12-310000072207nbl:SeniorNotesDueApril12027Member2018-03-310000072207nbl:SeniorNotesDueNovember152043Member2018-03-310000072207nbl:SeniorNotesDueNovember152024Member2017-12-310000072207nbl:SeniorNotesdueOctober152023Member2018-03-310000072207us-gaap:CapitalLeaseObligationsMember2017-12-310000072207us-gaap:CapitalLeaseObligationsMember2018-03-310000072207nbl:SeniorNotesdueJanuary152028Member2018-03-310000072207nbl:OtherSeniorNotesandDebenturesMember2017-12-310000072207nbl:SeniorNotesdueNovember152044Member2018-03-310000072207nbl:SeniorNotesdueNovember152044Member2017-12-310000072207nbl:SeniorNotesdueJanuary152028Member2017-12-310000072207nbl:SeniorNotesDueNovember152043Member2017-12-310000072207nbl:LeviathanTermLoanMember2018-03-310000072207nbl:SeniorNotesdueAugust152047Member2018-03-310000072207nbl:LeviathanTermLoanMember2017-12-310000072207nbl:SeniorNotesDueNovember152024Member2018-03-310000072207nbl:SeniorNotesdueMay12021Member2017-12-310000072207nbl:SeniorNotesDueDecember152021Member2017-12-310000072207nbl:SeniorNotesdueAugust152047Member2017-12-310000072207nbl:SeniorNotesDueDecember152021Member2018-03-310000072207nbl:RevolvingCreditFacilitydueAugust272020Memberus-gaap:MaximumMemberus-gaap:EurodollarMember2018-01-012018-03-310000072207nbl:RevolvingCreditFacilitydueAugust272020Memberus-gaap:MinimumMember2018-01-012018-03-310000072207nbl:RevolvingCreditFacilitydueAugust272020Memberus-gaap:MinimumMemberus-gaap:EurodollarMember2018-01-012018-03-310000072207nbl:RevolvingCreditFacilitydueAugust272020Memberus-gaap:MaximumMember2018-01-012018-03-310000072207us-gaap:CarryingReportedAmountFairValueDisclosureMember2018-03-310000072207us-gaap:EstimateOfFairValueFairValueDisclosureMember2018-03-310000072207us-gaap:EstimateOfFairValueFairValueDisclosureMember2017-12-310000072207us-gaap:CarryingReportedAmountFairValueDisclosureMember2017-12-310000072207us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ScenarioAdjustmentMember2018-03-310000072207us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ScenarioAdjustmentMember2017-12-310000072207us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2017-12-310000072207us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2017-12-310000072207us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ScenarioAdjustmentMember2018-03-310000072207us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2017-12-310000072207us-gaap:FairValueMeasurementsRecurringMember2017-12-310000072207us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:MutualFundMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ScenarioAdjustmentMember2018-03-310000072207us-gaap:MutualFundMemberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-03-310000072207us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMembernbl:GulfofMexicoMember2018-01-012018-03-310000072207nbl:OnshoreUSMember2018-01-012018-03-310000072207nbl:EagleFordMember2018-01-012018-03-310000072207nbl:InternationalMember2018-01-012018-03-310000072207nbl:ClaytonWilliamsEnergyMember2018-01-012018-03-310000072207us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMembernbl:EagleFordShaleMember2018-01-012018-03-310000072207us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMembernbl:DelawareBasinMember2018-01-012018-03-310000072207nbl:OnetimeDeemedRepatriationMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:EasternMediterraneanMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:OtherInternationalMember2018-01-012018-03-310000072207us-gaap:ReportableLegalEntitiesMembernbl:CrudeOilSalesMembernbl:UnitedStatesMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:WestAfricaMember2018-03-310000072207us-gaap:CorporateNonSegmentMembernbl:NGLSalesMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:WestAfricaMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:OtherInternationalMember2017-01-012017-03-310000072207us-gaap:ReportableLegalEntitiesMembernbl:UnitedStatesMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:CrudeOilSalesMembernbl:OtherInternationalMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:WestAfricaMember2018-01-012018-03-310000072207us-gaap:IntersegmentEliminationMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:UnitedStatesMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:CrudeOilSalesMembernbl:EasternMediterraneanMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:CrudeOilSalesMembernbl:EasternMediterraneanMember2017-01-012017-03-310000072207us-gaap:CorporateNonSegmentMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:NaturalGasSalesMembernbl:UnitedStatesMember2017-01-012017-03-310000072207us-gaap:CorporateNonSegmentMembernbl:NaturalGasSalesMember2018-01-012018-03-310000072207us-gaap:CorporateNonSegmentMembernbl:CrudeOilSalesMember2017-01-012017-03-310000072207us-gaap:ReportableLegalEntitiesMembernbl:UnitedStatesMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:OtherInternationalMember2018-03-310000072207us-gaap:IntersegmentEliminationMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:CrudeOilSalesMembernbl:WestAfricaMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:NGLSalesMembernbl:WestAfricaMember2018-01-012018-03-310000072207us-gaap:ReportableLegalEntitiesMembernbl:NGLSalesMembernbl:UnitedStatesMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:CrudeOilSalesMembernbl:UnitedStatesMember2018-01-012018-03-310000072207nbl:NGLSalesMember2017-01-012017-03-310000072207us-gaap:CorporateNonSegmentMember2017-01-012017-03-310000072207us-gaap:ReportableLegalEntitiesMembernbl:UnitedStatesMember2018-03-310000072207us-gaap:OperatingSegmentsMembernbl:UnitedStatesMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:NGLSalesMembernbl:EasternMediterraneanMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:WestAfricaMember2017-12-310000072207us-gaap:IntersegmentEliminationMember2018-03-310000072207us-gaap:ReportableLegalEntitiesMembernbl:UnitedStatesMember2017-12-310000072207us-gaap:OperatingSegmentsMembernbl:EasternMediterraneanMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:EasternMediterraneanMember2017-12-310000072207us-gaap:ReportableLegalEntitiesMembernbl:CrudeOilSalesMembernbl:UnitedStatesMember2018-01-012018-03-310000072207us-gaap:IntersegmentEliminationMembernbl:CrudeOilSalesMember2018-01-012018-03-310000072207nbl:NaturalGasSalesMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:UnitedStatesMember2018-03-310000072207us-gaap:OperatingSegmentsMembernbl:NaturalGasSalesMembernbl:EasternMediterraneanMember2018-01-012018-03-310000072207us-gaap:IntersegmentEliminationMember2017-12-310000072207us-gaap:OperatingSegmentsMembernbl:NGLSalesMembernbl:UnitedStatesMember2017-01-012017-03-310000072207us-gaap:CorporateNonSegmentMember2018-03-310000072207us-gaap:OperatingSegmentsMembernbl:UnitedStatesMember2017-12-310000072207us-gaap:OperatingSegmentsMembernbl:OtherInternationalMember2017-12-310000072207us-gaap:ReportableLegalEntitiesMembernbl:NGLSalesMembernbl:UnitedStatesMember2018-01-012018-03-310000072207us-gaap:ReportableLegalEntitiesMembernbl:NaturalGasSalesMembernbl:UnitedStatesMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:EasternMediterraneanMember2018-03-310000072207nbl:NGLSalesMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:NGLSalesMembernbl:OtherInternationalMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:CrudeOilSalesMembernbl:UnitedStatesMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:NaturalGasSalesMembernbl:OtherInternationalMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:CrudeOilSalesMembernbl:OtherInternationalMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:NGLSalesMembernbl:UnitedStatesMember2018-01-012018-03-310000072207us-gaap:IntersegmentEliminationMembernbl:NGLSalesMember2017-01-012017-03-310000072207us-gaap:CorporateNonSegmentMember2017-12-310000072207us-gaap:CorporateNonSegmentMembernbl:NaturalGasSalesMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:NaturalGasSalesMembernbl:WestAfricaMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:NaturalGasSalesMembernbl:WestAfricaMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:NGLSalesMembernbl:OtherInternationalMember2018-01-012018-03-310000072207us-gaap:IntersegmentEliminationMembernbl:NGLSalesMember2018-01-012018-03-310000072207us-gaap:IntersegmentEliminationMembernbl:CrudeOilSalesMember2017-01-012017-03-310000072207us-gaap:IntersegmentEliminationMembernbl:NaturalGasSalesMember2018-01-012018-03-310000072207nbl:CrudeOilSalesMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:NaturalGasSalesMembernbl:UnitedStatesMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:CrudeOilSalesMembernbl:WestAfricaMember2018-01-012018-03-310000072207us-gaap:CorporateNonSegmentMembernbl:CrudeOilSalesMember2018-01-012018-03-310000072207us-gaap:IntersegmentEliminationMembernbl:NaturalGasSalesMember2017-01-012017-03-310000072207us-gaap:ReportableLegalEntitiesMembernbl:NaturalGasSalesMembernbl:UnitedStatesMember2018-01-012018-03-310000072207nbl:NaturalGasSalesMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:NaturalGasSalesMembernbl:EasternMediterraneanMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:NGLSalesMembernbl:EasternMediterraneanMember2018-01-012018-03-310000072207us-gaap:OperatingSegmentsMembernbl:NaturalGasSalesMembernbl:OtherInternationalMember2017-01-012017-03-310000072207us-gaap:OperatingSegmentsMembernbl:NGLSalesMembernbl:WestAfricaMember2017-01-012017-03-310000072207nbl:CrudeOilSalesMember2017-01-012017-03-310000072207us-gaap:CorporateNonSegmentMembernbl:NGLSalesMember2017-01-012017-03-310000072207nbl:MarcellusShaleFirmTransportationAgreementMemberus-gaap:MaximumMember2018-01-012018-03-310000072207nbl:MarcellusShaleFirmTransportationAgreementMember2018-01-012018-03-310000072207nbl:ConsentDecreeMember2018-01-012018-03-310000072207nbl:ConsentDecreeMember2016-01-012016-12-310000072207nbl:ConsentDecreeMember2015-01-012016-12-310000072207nbl:MarcellusShaleFirmTransportationAgreementMemberus-gaap:MinimumMember2018-01-012018-03-31iso4217:USDutreg:MMBTUnbl:welliso4217:USDutreg:bbliso4217:USDutreg:MMBTUutreg:bblutreg:MMBoeiso4217:USDxbrli:sharesxbrli:purexbrli:shares

















10-Q



























































Delaware73-0785597(State or other jurisdiction of incorporation or organization)(I.R.S. employer identification number)1001 Noble Energy WayHouston, Texas77070(Address of principal executive offices)(Zip Code)(281) 872-3100(Registrant’s telephone number, including area code)























Large accelerated filerxAccelerated fileroNon-accelerated fileroSmaller reporting companyoEmerging growth companyo(Do not check if a smaller reporting company)


























---













Part I.Financial Information3Item 1.Financial Statements3Consolidated Statements of Operations and Comprehensive Income3Consolidated Balance Sheets4Consolidated Statements of Cash Flows5Consolidated Statements of Equity6Notes to Consolidated Financial Statements7Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations26Item 3.Quantitative and Qualitative Disclosures About Market Risk40Item 4.Controls and Procedures42Part II.Other Information43Item 1.Legal Proceedings43Item 1A.Risk Factors43Item 2.Unregistered Sales of Equity Securities and Use of Proceeds43Item 3.Defaults Upon Senior Securities44Item 4.Mine Safety Disclosures44Item 5.Other Information44Item 6.Exhibits45Signatures47











---




Table of Contents





























Three Months Ended March 31,20182017RevenuesOil, NGL and Gas Sales$1,173$994Income from Equity Method Investees and Other11342Total1,2861,036Costs and ExpensesProduction Expense321303Exploration Expense3542Depreciation, Depletion and Amortization468528Asset Impairments168—Gain on Divestitures(588)—General and Administrative10499Other Operating Expense, Net7029Total5781,001Operating Income70835Other (Income) ExpenseLoss (Gain) on Commodity Derivative Instruments79(110)Interest, Net of Amount Capitalized7387Other Non-Operating Expense (Income), Net13(1)Total165(24)Income Before Income Taxes54359Income Tax (Benefit) Expense(31)12Net Income and Comprehensive Income Including Noncontrolling Interests57447Less: Net Income and Comprehensive Income Attributable to Noncontrolling Interests2011Net Income and Comprehensive Income Attributable to Noble Energy$554$36Net Income Attributable to Noble Energy per Common ShareBasic$1.14$0.08Diluted$1.14$0.08Weighted Average Number of Common Shares OutstandingBasic487431Diluted488434














---




Table of Contents




















March 31, 2018December 31, 2017ASSETSCurrent AssetsCash and Cash Equivalents$992$675Accounts Receivable, Net707748Other Current Assets895780Total Current Assets2,5942,203Property, Plant and EquipmentOil and Gas Properties (Successful Efforts Method of Accounting)27,42629,678Property, Plant and Equipment, Other887879Total Property, Plant and Equipment, Gross28,31330,557Accumulated Depreciation, Depletion and Amortization(10,882)(13,055)Total Property, Plant and Equipment, Net17,43117,502Other Noncurrent Assets1,021461Goodwill1,4021,310Total Assets$22,448$21,476LIABILITIES AND EQUITYCurrent LiabilitiesAccounts Payable – Trade$1,423$1,161Other Current Liabilities791578Total Current Liabilities2,2141,739Long-Term Debt6,8586,746Deferred Income Taxes9761,127Other Noncurrent Liabilities1,0131,245Total Liabilities11,06110,857Commitments and ContingenciesShareholders’ EquityPreferred Stock - Par Value $1.00 per share; 4 Million Shares Authorized; None Issued——Common Stock - Par Value $0.01 per share; 1 Billion Shares Authorized; 528 Million and 529 Million Shares Issued, respectively55Additional Paid in Capital8,3638,438Accumulated Other Comprehensive Loss(29)(30)Treasury Stock, at Cost; 39 Million Shares(731)(725)Retained Earnings2,7542,248Noble Energy Share of Equity10,3629,936Noncontrolling Interests1,025683Total Equity11,38710,619Total Liabilities and Equity$22,448$21,476

















---




Table of Contents

















Three Months Ended March 31,20182017Cash Flows From Operating ActivitiesNet Income Including Noncontrolling Interests$574$47Adjustments to Reconcile Net Income to Net Cash Provided by Operating ActivitiesDepreciation, Depletion and Amortization468528Asset Impairments168—Deferred Income Tax Benefit(157)—Loss (Gain) on Commodity Derivative Instruments79(110)Net Cash (Paid) Received in Settlement of Commodity Derivative Instruments(28)3Gain on Divestitures(588)—Other Adjustments for Noncash Items Included in Income(2)20Changes in Operating Assets and LiabilitiesDecrease in Accounts Receivable8959(Decrease) Increase in Accounts Payable(33)45Increase (Decrease) in Current Income Taxes Payable14(23)Other Current Assets and Liabilities, Net(18)(35)Other Operating Assets and Liabilities, Net172Net Cash Provided by Operating Activities583536Cash Flows From Investing ActivitiesAdditions to Property, Plant and Equipment(787)(587)Acquisitions, Net of Cash Acquired(650)(346)Proceeds from Sale of 7.5% Interest in Tamar Field487—Proceeds from Sale of CONE Gathering LLC308—Proceeds from Divestitures7040Net Cash Used in Investing Activities(572)(893)Cash Flows From Financing ActivitiesDividends Paid, Common Stock(48)(44)Purchase and Retirement of Common Stock(67)—Proceeds from Noble Midstream Services Revolving Credit Facility405—Repayment of Noble Midstream Services Revolving Credit Facility(55)—Contributions from Noncontrolling Interest and Other333—Proceeds from Revolving Credit Facility245—Repayment of Revolving Credit Facility(475)—Other(40)(22)Net Cash Provided by (Used in) by Financing Activities298(66)Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash309(423)Cash, Cash Equivalents, and Restricted Cash at Beginning of Period7131,210Cash, Cash Equivalents, and Restricted Cash at End of Period$1,022$787











---




Table of Contents























Attributable to Noble EnergyCommonStockAdditionalPaid inCapitalAccumulated OtherComprehensiveLossTreasuryStock atCostRetainedEarningsNon-controlling InterestsTotal EquityDecember 31, 2017$5$8,438$(30)$(725)$2,248$683$10,619Net Income————55420574Stock-based Compensation—17————17Dividends (10 cents per share)————(48)—(48)Purchase and Retirement of Common Stock—(67)————(67)Clayton Williams Energy Acquisition—(25)————(25)Distributions to Noncontrolling Interest Owners—————(11)(11)Contributions from Noncontrolling Interest Owners—————331331Other——1(6)—2(3)March 31, 2018$5$8,363$(29)$(731)$2,754$1,025$11,387December 31, 2016$5$6,450$(31)$(692)$3,556$312$9,600Net Income————361147Stock-based Compensation—13————13Dividends (10 cents per share)————(44)—(44)Distributions to Noncontrolling Interest Owners—————(6)(6)Other—9—(11)1—(1)March 31, 2017$5$6,472$(31)$(703)$3,549$317$9,609














---




Table of Contents











Note
 1. Organization and Nature of Operations


Noble Energy, Inc. (Noble Energy, we or us) is a leading independent energy company engaged in worldwide crude oil and natural gas exploration and production. Our historical operating areas include: US onshore, primarily the DJ Basin, Delaware Basin, Eagle Ford Shale and Marcellus Shale (until June 2017); US offshore Gulf of Mexico (until April 2018); Eastern Mediterranean; and West Africa. Our Midstream segment owns, operates, develops and acquires domestic midstream infrastructure assets with current focus areas being the DJ and Delaware Basins.








Note
 2. Basis of Presentation


Presentation
 The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the US (US GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. The accompanying consolidated financial statements atMarch 31, 2018andDecember 31, 2017and for thethreemonths endedMarch 31, 2018and2017contain all normally recurring adjustments considered necessary for a fair presentation of our financial position, results of operations, cash flows and equity for such periods. For the periods presented, activity within other comprehensive income or loss was de minimis; therefore, net income is materially consistent with comprehensive income.


Note





These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year endedDecember 31, 2017 .


Consolidation
 Our consolidated financial statements include our accounts, the accounts of subsidiaries which Noble Energy wholly owns, and the accounts of Noble Midstream Partners, which is considered a variable interest entity (VIE) for which Noble Energy is the primary beneficiary. In addition, we use the equity method of accounting for investments in entities that we do not control, but over which we exert significant influence. All significant intercompany balances and transactions have been eliminated upon consolidation.


Investment in Shares of Tamar Petroleum
 We account for our investment in shares of Tamar Petroleum Ltd. at fair value and record changes in fair value in other non-operating expense (income), net in our consolidated statements of operations.


Intangible Assets
 Intangible assets consist of customer contracts and relationships acquired by Noble Midstream Partners in its acquisition of Saddle Butte Rockies Midstream, LLC and affiliates (collectively, Saddle Butte). We recorded the intangible assets at their estimated fair values at the date of acquisition. Amortization is calculated using the straight-line method, which reflects the pattern in which the estimated economic benefit is expected to be received over the estimated useful life of the intangible asset, which is currently over periods of7to13years. Amortization expense of$5 millionis included in depreciation, depletion and amortization expense in our consolidated statements of operations. Intangible assets with finite useful lives are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. SeeNote3. Acquisitions and Divestitures.


Stock Repurchase Program
 OnFebruary 15, 2018, we announced that the Company's Board of Directors had authorized a $750million share repurchase program which expiresDecember 31, 2020 . All purchases will be made from time to time in open market or private transactions, depending on market conditions, and may be discontinued at any time.
   2.2
  30.21


Estimates
  The preparation of consolidated financial statements in conformity with US GAAP requires us to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment.








---

Table of Contents




















5


























---

Table of Contents


























0.25





The following table includes estimated revenues based upon those certain agreements with fixed minimum take-or-pay sales volumes. Our








---

Table of Contents





(millions)April - Dec 201820192020TotalNatural Gas Revenues(1)$215$137$169$521


(1) The remaining performance obligations are estimated utilizing the contractual base or floor price provision in effect. Our future revenues from the sale of natural gas under these associated contracts will vary from the amounts presented above due to components of variable consideration above the contractual base or floor provision, such as index-based escalations and market price changes.











Recently Issued Accounting Standards








7














---

Table of Contents





with early adoption permitted. We are currently evaluating the effect, if any, that the standard will have on our consolidated financial statements and related disclosures.


Other statements of operations information is as follows:
 Three Months Ended March 31,(millions)20182017Income From Equity Method Investees and OtherIncome from Equity Method Investees$47$42Sales of Purchased Oil and Gas(1)53—Midstream Services Revenues – Third Party13—Total$113$42Production ExpenseLease Operating Expense$155$139Production and Ad Valorem Taxes5441Gathering, Transportation and Processing Expense95119Other Royalty Expense174Total$321$303Exploration ExpenseLeasehold Impairment and Amortization$—$18Seismic, Geological and Geophysical115Staff Expense1413Other106Total$35$42Other Operating Expense, NetMarketing Expense(2)$5$19Purchased Oil and Gas(1)57—Other, Net810Total$70$29Other Non-Operating Expense (Income), NetLoss on Investment in Tamar Petroleum Ltd., Net(3)$15$—Other(2)(1)Total$13$(1)


|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As part of the Midstream Saddle Butte acquisition in first quarter 2018, we acquired certain contracts which include the purchase and sale of crude oil with third parties. In addition, in first quarter 2018, as part of our Marcellus Shale upstream firm transportation mitigation efforts, we entered into certain transactions for the purchase of third party natural gas and the subsequent sale of natural gas to other third parties. The cost to purchase natural gas includes transportation expense incurred of$5 million. SeeNote11. Segment Information.

|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(2) | Expense relates to unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments.

|    |                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Amount includes a$29 millionloss related to the change in fair value, net of$14 millionof dividend income related to our investment in Tamar Petroleum Ltd. shares.







---

Table of Contents





Other balance sheet information is as follows:


(millions)March 31, 2018December 31, 2017Accounts Receivable, NetCommodity Sales$413$455Joint Interest Billings234207Other77103Allowance for Doubtful Accounts(17)(17)Total$707$748Other Current AssetsInventories, Materials and Supplies$43$66Inventories, Crude Oil1716Assets Held for Sale(1)751629Restricted Cash(2)3038Prepaid Expenses and Other Current Assets(3)5431Total$895$780Other Noncurrent AssetsEquity Method Investments(4)$378$305Customer-Related Intangible Assets(5)334—Investment in Tamar Petroleum Ltd.(6)162—Mutual Fund Investments5657Net Deferred Income Tax Asset2525Other Assets, Noncurrent6674Total$1,021$461Other Current LiabilitiesProduction and Ad Valorem Taxes$93$84Commodity Derivative Liabilities11258Income Taxes Payable3218Asset Retirement Obligations5151Interest Payable9467Current Portion of Capital Lease Obligations5461Liabilities Associated with Assets Held for Sale(1)23155Other Liabilities, Current124184Total$791$578Other Noncurrent LiabilitiesDeferred Compensation Liabilities$180$197Asset Retirement Obligations577824Marcellus Shale Firm Transportation Commitment(7)7376Production and Ad Valorem Taxes8669Other Liabilities, Noncurrent9779Total$1,013$1,245


|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Assets held for sale atMarch 31, 2018include our Gulf of Mexico assets and assets in the Greeley Crescent area of the DJ Basin. Assets held for sale atDecember 31, 2017include assets in the Greeley Crescent area of the DJ Basin, a7.5%interest in the Tamar field, offshore Israel, our interest in Southwest Royalties, Inc. acquired in the Clayton Williams Energy Acquisition, and the CONE investments. Liabilities associated with assets held for sale primarily represent asset retirement obligations and other liabilities to be assumed by the purchaser. SeeNote3. Acquisitions and Divestitures.

|    |                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Balance atMarch 31, 2018represents amount held in escrow pending closing of the Gulf of Mexico asset sale. Balance atDecember 31, 2017represents amount held in escrow pending closing of the Saddle Butte acquisition. SeeNote3. Acquisitions and Divestitures.







---

Table of Contents





|    |                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------
|(3) | Balance atMarch 31, 2018includes$14 millionof accrued dividends receivable on shares of Tamar Petroleum Ltd.

|    |                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Includes$72 millionfor our investment in shares of CNX Midstream Partners LP. AtDecember 31, 2017, this investment was included in assets held for sale. SeeNote 3. Acquisitions and DivestituresandNote 6. Fair Value Measurements and Disclosures.

|    |                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------
|(5) | Amount relates to intangible assets acquired in the Saddle Butte acquisition. SeeNote3. Acquisitions and Divestitures.

|    |                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
|(6) | Amount relates to our investment in shares of Tamar Petroleum Ltd.SeeNote3. Acquisitions and DivestituresandNote 6. Fair Value Measurements and Disclosures.

|    |                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(7) | Amounts relate to the long-term portion of retained firm transportation agreements. AtMarch 31, 2018andDecember 31, 2017, we recorded$11 millionand$14 million, respectively, associated with the current portion of the Marcellus Shale firm transportation commitment. SeeNote12. Commitments and Contingencies.




Reconciliation of Total CashWe define total cash as cash, cash equivalents and restricted cash. The following table provides a reconciliation of total cash:Three Months Ended March 31,(millions)20182017Cash and Cash Equivalents at Beginning of Period$675$1,180Restricted Cash at Beginning of Period3830Cash, Cash Equivalents, and Restricted Cash at Beginning of Period$713$1,210Cash and Cash Equivalents at End of Period$992$787Restricted Cash at End of Period30—Cash, Cash Equivalents, and Restricted Cash at End of Period$1,022$787








Note
 3. Acquisitions and Divestitures





7.5
   7.5
  38.5
  224
  487
  190
  15
  Note 6. Fair Value Measurements and Disclosures  90
  386


32.5
  25
  7.5
  84


60


50
  308
  196
  21.7
  33.5


681
  663
  18
  343








---

Table of Contents








206
  340
  111


10
  6


480
  23


404





100
  2
  63


480
  92
    168





301
  246


56
  1.9
  637
  2.5


e following table represents the final allocation of the total purchase price of Clayton Williams Energy to the assets acquired and liabilities assumed, based on the fair value at the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net








---

Table of Contents





(millions)Fair Value of Common Stock Issued$1,851Plus: Cash Consideration Paid to Clayton Williams Energy Stockholders637Total Purchase Price$2,488Plus Liabilities Assumed by Noble Energy:Accounts Payable99Other Current Liabilities38Long-Term Deferred Tax Liability515Long-Term Debt595Asset Retirement Obligations63Total Purchase Price Plus Liabilities Assumed$3,798


The fair value of Clayton Williams Energy's identifiable assets was as follows:(millions)Cash and Cash Equivalents$21Other Current Assets70Oil and Gas Properties:Proved Reserves722Undeveloped Leasehold Costs1,571Gathering and Processing Assets48Asset Retirement Costs63Other Noncurrent Assets12Implied Goodwill1,291Total Asset Value$3,798


595





1.3





e pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Clayton Williams Energy Acquisition








---

Table of Contents





Three Months Ended March 31,(millions, except per share amounts)2018(1)2017Revenues$1,286$933Net Income and Comprehensive Income Attributable to Noble Energy55451Net Income Attributable to Noble Energy per Common ShareBasic$1.14$0.10Diluted$1.14$0.10


|    |                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------
|(1) | No pro forma adjustments were made for the period as Clayton Williams Energy operations are included in our historical results.




Note
 4. Derivative Instruments and Hedging Activities





Note


As of
 March 31, 2018, the following crude oil derivative contracts were outstanding:SwapsCollarsSettlementPeriodType of ContractIndexBbls PerDayWeighted Average DifferentialWeightedAverageFixedPriceWeightedAverageShort PutPriceWeightedAverageFloorPriceWeightedAverageCeilingPrice2018Three-Way CollarsNYMEX WTI10,000$—$—$45.50$52.50$69.092018SwapsNYMEX WTI58,000—59.74———2018Two-Way CollarsNYMEX WTI18,000———50.4258.822018Three-Way CollarsDated Brent3,000——40.0050.0070.412018SwapsICE Brent2,000—59.00———2018Two-Way CollarsICE Brent2,000———50.0055.252018Three-Way CollarsICE Brent5,000——43.0050.0059.502018Basis Swaps(1)12,000(0.60)————2019SwapsNYMEX WTI31,000—57.77———2019SwapsICE Brent5,000—57.00———2019Three-Way CollarsICE Brent3,000——43.0050.0064.072019Basis Swaps(1)12,000(1.01)————2020Swaption(2)NYMEX WTI5,000—61.79———


(1)


(2)

















---

Table of Contents





SwapsCollarsSettlementPeriodType of ContractIndexMMBtuPer DayWeightedAverageFixedPriceWeightedAverageShort PutPriceWeightedAverageFloorPriceWeightedAverageCeilingPrice2018Three-Way CollarsNYMEX HH120,000$—$2.50$2.88$3.65


The fair values of commodity derivative instruments in our consolidated balance sheets were as follows:Fair Value of Derivative InstrumentsAsset Derivative InstrumentsLiability Derivative InstrumentsMarch 31, 2018December 31, 2017March 31, 2018December 31, 2017(millions)Balance Sheet LocationFairValueBalance Sheet LocationFairValueBalance Sheet LocationFairValueBalance Sheet LocationFairValueCommodity DerivativeInstrumentsCurrent Assets$8Current Assets$2Current Liabilities$112Current Liabilities$58Noncurrent Assets2Noncurrent Assets—Noncurrent Liabilities20Noncurrent Liabilities15Total$10$2$132$73





The effect of commodity derivative instruments on our consolidated statements of operations was as follows:Three Months Ended March 31,(millions)20182017Cash Paid (Received) in Settlement of Commodity Derivative InstrumentsCrude Oil$30$(5)Natural Gas(2)2Total Cash Paid (Received) in Settlement of Commodity Derivative Instruments28(3)Non-cash Portion of Loss (Gain) on Commodity Derivative InstrumentsCrude Oil50(63)Natural Gas1(44)Total Non-cash Portion of Loss (Gain) on Commodity Derivative Instruments51(107)Loss (Gain) on Commodity Derivative InstrumentsCrude Oil80(68)Natural Gas(1)(42)Total Loss (Gain) on Commodity Derivative Instruments$79$(110)








---




Table of Contents





Note
 5. Debt


Debt consists of the following:
 March 31, 2018December 31, 2017(millions, except percentages)DebtInterest RateDebtInterest RateRevolving Credit Facility, due March 9, 2023$——%$2302.27%Noble Midstream Services Revolving Credit Facility, due March 9, 20234352.78%852.49%Leviathan Term Loan Facility, due February 23, 2025——%——%Senior Notes, due May 1, 2021(1)3795.63%3795.63%Senior Notes, due December 15, 20211,0004.15%1,0004.15%Senior Notes, due October 15, 20231007.25%1007.25%Senior Notes, due November 15, 20246503.90%6503.90%Senior Notes, due April 1, 20272508.00%2508.00%Senior Notes, due January 15, 20286003.85%6003.85%Senior Notes, due March 1, 20418506.00%8506.00%Senior Notes, due November 15, 20431,0005.25%1,0005.25%Senior Notes, due November 15, 20448505.05%8505.05%Senior Notes, due August 15, 20475004.95%5004.95%Other Senior Notes and Debentures(2)927.13%927.13%Capital Lease Obligations257—%273—%Total6,9636,859Unamortized Discount(24)(24)Unamortized Premium1112Unamortized Debt Issuance Costs(38)(40)Total Debt, Net of Unamortized Discount, Premium and Debt Issuance Costs6,9126,807Less Amounts Due Within One YearCapital Lease Obligations(54)(61)Long-Term Debt Due After One Year$6,858$6,746


(1)
  379


(2)
  8
  84
  7.13


4
          500








350
  800


0.5








---

Table of Contents





1.00


435


1.0
  625


35


3.50
  3.25
  3.75
  1.00





Note


Annual Debt MaturitiesOur nearest annual maturity of outstanding debt, excluding capital lease payments and outstanding balances under the revolving credit facilities, is$1.4 billionof senior notes,$1.0 billionof which mature in 2021 and$0.4 billion of which is scheduled to be redeemed in May 2018. The Revolving Credit Facility and Noble Midstream Services Revolving Credit Facility both mature in March 2023. No other balances are due within the next five years.








Note
 6. Fair Value Measurements and Disclosures























---

Table of Contents





Note


15
  Note 2. Basis of Presentation  Note








Measurement information for assets and liabilities that are measured at fair value on a recurring basis was as follows:


Fair Value Measurements Using(millions)Quoted Prices inActive Markets(Level 1)(1)Significant OtherObservable Inputs(Level 2)(2)SignificantUnobservableInputs   (Level 3)(3)Adjustment(4)Fair Value MeasurementMarch 31, 2018Financial AssetsMutual Fund Investments$56$—$—$—$56Commodity Derivative Instruments—29—(19)10Investment in Tamar Petroleum Ltd.—162——162Financial LiabilitiesCommodity Derivative Instruments—(151)—19(132)Portion of Deferred Compensation Liability Measured at Fair Value(70)———(70)December 31, 2017Financial AssetsMutual Fund Investments$57$—$—$—$57Commodity Derivative Instruments—7—(5)2Financial LiabilitiesCommodity Derivative Instruments—(78)—5(73)Portion of Deferred Compensation Liability Measured at Fair Value(71)———(71)Stock Based Compensation Liability Measured at Fair Value(10)———(10)


|    |                                                                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value.

|    |                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Level 2 measurements are fair value measurements which use inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly.

|    |                                                                                
|--- | -------------------------------------------------------------------------------
|(3) | Level 3 measurements are fair value measurements which use unobservable inputs.

|    |                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Amount represents the impact of netting provisions within our master agreements that allow us to net cash settle asset and liability positions with the same counterparty.







---

Table of Contents











168
  Note 3. Acquisitions and Divestitures





The fair value of the investment is based on the published market price of the units for the date indicated below.
 March 31, 2018December 31, 2017(millions)Carrying AmountFair ValueCarrying AmountFair ValueInvestment in CNX Midstream Partners (21,692,198 Units)$72$399$70$364





Note


Fair value information regarding our debt is as follows:
 March 31, 2018December 31, 2017(millions)Carrying AmountFair ValueCarrying AmountFair ValueLong-Term Debt(1)$6,706$7,096$6,586$7,142


|    |                                                                                           
|--- | ------------------------------------------------------------------------------------------
|(1) | Excludes unamortized discount, premium, debt issuance costs and capital lease obligations.







Note
 7. Capitalized Exploratory Well Costs and Undeveloped Leasehold Costs





Changes in capitalized exploratory well costs are as follows and exclude amounts that were capitalized and subsequently expensed in the same period:
 (millions)Three Months Ended March 31, 2018Capitalized Exploratory Well Costs, Beginning of Period$520Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves3Reclassified to Assets Held for Sale(1)(159)Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves(1)Capitalized Exploratory Well Costs, End of Period$363








---

Table of Contents





(1) Represents costs related to Gulf of Mexico assets.





The following table provides an aging of capitalized exploratory well costs based on the date that drilling commenced:


(millions)March 31, 2018December 31, 2017Exploratory Well Costs Capitalized for a Period of One Year or Less$3$10Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling360510Balance at End of Period$363$520








2.7
  1.6
  1.0
  129


53


In first quarter 2018, we transferred$135 millionand$20 millionof undeveloped leasehold costs to proved properties associated with Delaware Basin and Eagle Ford Shale assets, respectively, acquired in the Rosetta Resources Inc. acquisition. This transfer resulted from additions of proved reserves through development activities. In addition, capitalized costs of$43 millionassociated with Gulf of Mexico leases and licenses were transferred to assets held for sale during the quarter.  SeeNote3. Acquisitions and Divestitures .





Note
 8. Asset Retirement Obligations


Changes in ARO are as follows:
 Three Months Ended March 31,(millions)20182017Asset Retirement Obligations, Beginning Balance$875$935Liabilities Incurred21Liabilities Settled(20)(9)Revisions of Estimates(11)(7)Reclassification to Liabilities Associated with Assets Held for Sale(227)—Accretion Expense(1)912Asset Retirement Obligations, Ending Balance$628$932


|    |                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------
|(1) | Accretion expense is included in depreciation, depletion and amortization (DD&A)expense in the consolidated statements ofoperations.

227
  20
  11


For theThree Months Ended March 31, 2017 Liabilities incurred were due to new wells and facilities placed into service for US onshore. Liabilities settled primarily related to US onshore property abandonments. Revisions of estimates related to changes in Gulf of Mexico cost estimates.








---




Table of Contents





Note
 9. Income Taxes


The income tax (benefit) expense consists of the following:
 Three Months Ended March 31,(millions, except percentages)20182017Current$126$12Deferred(157)—Total Income Tax (Benefit) Expense$(31)$12Effective Tax Rate(5.7)%20.3%





268
  252
  16
  107
  145





145
      7.5


In our major tax jurisdictions, the earliest years remaining open to examination are as follows: US –2014, Israel –2015andEquatorial Guinea –2012 .





Note
 10. Income Per Share Attributable to Noble Energy


Noble Energy's basic income per share of common stock is computed by dividing net income attributable to Noble Energy by the weighted average number of shares of Noble Energy common stock outstanding during each period. The following table summarizes the calculation of basic and diluted income per share:Three Months EndedMarch 31,(millions, except per share amounts)20182017Net Income and Comprehensive Income Attributable to Noble Energy$554$36Weighted Average Number of Shares Outstanding, Basic487431Incremental Shares from Assumed Conversion of Dilutive Stock Options, Restricted Stock, and Shares of Common Stock in Rabbi Trust13Weighted Average Number of Shares Outstanding, Diluted488434Income Per Share, Basic$1.14$0.08Income Per Share, Diluted1.140.08Number of Antidilutive Stock Options, Shares of Restricted Stock, and Shares of Common Stock in Rabbi Trust Excluded from Calculation Above1614








---




Table of Contents





Note
 11. Segment Information





Oil and Gas Exploration and ProductionMidstream(millions)ConsolidatedUnitedStatesEasternMediter-   raneanWestAfricaOther Int'lUnited StatesIntersegment Eliminations and Other(1)CorporateThree Months Ended March 31, 2018Crude Oil Sales$773$682$2$89$—$—$—$—NGL Sales146146——————Natural Gas Sales2541201295————Total Crude Oil, NGL and Natural Gas Sales1,17394813194————Income from Equity Method Investees and Other60——35—25——Intersegment Revenues—————81(81)—Sales of Purchased Oil and Gas5331———22——Total Revenues1,286979131129—128(81)—Lease Operating Expense155126722————Production and Ad Valorem Taxes5453———1——Gathering, Transportation and Processing Expense95128———20(53)—Other Royalty Expense1717——————Total Production Expense321324722—21(53)—DD&A4684041326—17(3)11Asset Impairments168168——————Gain on Divestitures(588)(6)(386)——(196)———Purchased Oil and Gas5736———21——Loss on Commodity Derivative Instruments7964—15————Income (Loss) Before Income Taxes543(43)47364(9)247(15)(174)Three Months Ended March 31, 2017Crude Oil Sales$527$439$1$87$—$—$—$—NGL Sales105105——————Natural Gas Sales3622261306————Total Crude Oil, NGL and Natural Gas Sales99477013193————Income from Equity Method Investees and Other42——28—14——Intersegment Revenues—————58(58)—Total Revenues1,036770131121—72(58)—








---

Table of Contents





Lease Operating Expense139108823————Production and Ad Valorem Taxes4140———1——Gathering, Transportation and Processing Expense119142———15(38)—Other Royalty Expense44——————Total Production Expense303294823—16(38)—DD&A528459193415—10Gain on Commodity Derivative Instruments(110)(102)—(8)————Income (Loss) Before Income Taxes596210166(21)49(22)(176)March 31, 2018Goodwill(2)$1,402$1,291$—$—$—$111$—$—Total Assets22,44815,6223,2631,306852,141(217)248December 31, 2017Goodwill(2)1,3101,310——————Total Assets21,47615,7672,8461,3081141,357(163)247


(1)


(2) Goodwill in the United States reportable segment is associated with our Texas reporting unit. Goodwill in the Midstream segment is associated with the Saddle Butte acquisition.








Note
 12. Commitments and Contingencies





16
  1.4


450,000


84
  2





5.0
  4.5
  4
  82











Colorado Oil and Gas Conservation Commission Administrative Order on Consent In November 2017, we received a proposed Administrative Order on Consent (AOC) from the Colorado Oil and Gas conservation Commission (COGCC) to resolve allegations of noncompliance associated with site preparation and stabilization at an oil and gas location in Weld County, Colorado. The AOC, which provides for an opportunity to further discuss the offer of settlement, has not yet been executed. Given the uncertainty associated with administrative actions of this nature, we are unable to predict the ultimate outcome of this action at this time, but believe that the resolution of this action will not have a material adverse effect on our financial position, results of operations or cash flows.














---




Table of Contents














|  |                    
|- | -------------------
|• | Executive Overview;

|  |                   
|- | ------------------
|• | Operating Outlook;

|  |                             
|- | ----------------------------
|• | Results of Operations – E&P;

|  |                                   
|- | ----------------------------------
|• | Results of Operations – Midstream;

|  |                                       
|- | --------------------------------------
|• | Results of Operations - Corporate; and

|  |                                 
|- | --------------------------------
|• | Liquidity and Capital Resources.































Item 1. Financial Statements – Note 3. Acquisitions and Divestitures


Item 1. Financial Statements – Note 3. Acquisitions and Divestitures











---

Table of Contents








Item 1. Financial Statements – Note 3. Acquisitions and Divestitures


Item 1. Financial Statements – Note 3. Acquisitions and Divestitures


Exploration and Production (E&P) – Results of Operations


Operating Outlook – 2018 Capital Investment Program








Item 1. Financial Statements – Note 9. Income Taxes





Exploration and Production (E&P) – Results of Operations





Item 1. Financial Statements – Note











|  |                                                                                                                              
|- | -----------------------------------------------------------------------------------------------------------------------------
|• | commodity prices which, if subject to a significant decline, could result in certain existing production becoming uneconomic;

|  |                                                                                                                                                              
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | overall level and timing of capital expenditures which, as discussed below and dependent upon our drilling success, will impact near-term production volumes;

|  |                                                                                                                                                                                                   
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | increased drilling activity in the basins in which we operate, which may cause US onshore cost inflation pressure and result in certain current production becoming less profitable or uneconomic;

|  |                                                                                                                                                                                         
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | Israeli industrial and residential demand for electricity, which is largely impacted by weather conditions and conversion of the Israeli electricity portfolio from coal to natural gas;

|  |                                                                                    
|- | -----------------------------------------------------------------------------------
|• | timing of crude oil and condensate liftings impacting sales volumes in West Africa;







---

Table of Contents





|  |                                                                        
|- | -----------------------------------------------------------------------
|• | natural field decline in the US onshore and offshore Equatorial Guinea;

|  |                                                                                 
|- | --------------------------------------------------------------------------------
|• | additional purchases of producing properties or divestments of operating assets;

|  |                                                                                                                 
|- | ----------------------------------------------------------------------------------------------------------------
|• | potential weather-related volume curtailments due to winter storms and flooding impacting US onshore operations;

|  |                                                                                                                                                                                                                                                                                                        
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | availability or reliability of supplier services, including access to support equipment and facilities, potential processing facility capacity constraints, and/or occurrence of pipeline disruptions, which may cause delays, restrictions or interruptions in production and/or midstream processing;

|  |                                                                                                                                                                                                                  
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | access to transportation and takeaway pipelines for increasing US onshore production volumes, such as in the Delaware Basin, which may cause infield bottlenecks and/or widening of location-basis differentials;

|  |                                                                                          
|- | -----------------------------------------------------------------------------------------
|• | malfunctions and/or mechanical failures at terminals or other US onshore delivery points;

|  |                                                             
|- | ------------------------------------------------------------
|• | impact of enhanced completion efforts for US onshore assets;

|  |                                                                                             
|- | --------------------------------------------------------------------------------------------
|• | potential growth from participation in future, or decline from existing, non-operated wells;

|  |                                            
|- | -------------------------------------------
|• | abandonment of low-margin US onshore wells;

|  |                                                                                
|- | -------------------------------------------------------------------------------
|• | shut-in of US producing properties if storage capacity becomes unavailable; and

|  |                                                                                     
|- | ------------------------------------------------------------------------------------
|• | potential drilling and/or completion permit delays due to future regulatory changes.










|  |                                                                                                      
|- | -----------------------------------------------------------------------------------------------------
|• | commodity prices, including price realizations on specific crude oil, natural gas and NGL production;

|  |                                 
|- | --------------------------------
|• | operating and development costs;

|  |                                                                                 
|- | --------------------------------------------------------------------------------
|• | production, drilling and delivery commitments, or other contractual obligations;

|  |                  
|- | -----------------
|• | drilling results;

|  |                                        
|- | ---------------------------------------
|• | property acquisitions and divestitures;

|  |                      
|- | ---------------------
|• | exploration activity;

|  |                                                                                                  
|- | -------------------------------------------------------------------------------------------------
|• | cash flows from operations, including cash flows from potential midstream drop-down transactions;

|  |                     
|- | --------------------
|• | indebtedness levels;

|  |                                                       
|- | ------------------------------------------------------
|• | availability of financing or other sources of funding;

|  |                                                                                                                                                                   
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | impact of new laws and regulations on our business practices, including potential legislative or regulatory changes regarding the use of hydraulic fracturing; and

|  |                                                                                           
|- | ------------------------------------------------------------------------------------------
|• | potential changes in the fiscal regimes of the US and other countries in which we operate.

Liquidity and Capital Resources – Financing Activities


Item 1. Financial Statements – Note 9. Income Taxes


























---

Table of Contents














Item 1. Financial Statements – Note   Note




















Item 1. Financial Statements – Note











|  |                                               
|- | ----------------------------------------------
|• | total average daily sales volumes of370MBoe/d;

|  |                                                                      
|- | ---------------------------------------------------------------------
|• | average daily sales volumes for US onshore crude oil of103MBbl/d; and

|  |                                                                                                                                                                           
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | average daily sales volumes of263MMcfe/d, net, in Israel, and a first quarter record for average daily gross sales volumes of 959 MMcfe/d, primarily from the Tamar field.







---

Table of Contents








|  |                                                                        
|- | -----------------------------------------------------------------------
|• | $386 millionpre-tax gain on sale of a 7.5% interest in the Tamar field;

|  |                                                                                
|- | -------------------------------------------------------------------------------
|• | $168 million impairment expense related to Gulf of Mexico assets held for sale;

|  |                                                                                                        
|- | -------------------------------------------------------------------------------------------------------
|• | pre-tax income of$485 million, as compared with pre-tax income of$208 millionforfirst quarter 2017; and

|  |                                                                                                                 
|- | ----------------------------------------------------------------------------------------------------------------
|• | capital expenditures of$667 million, excluding acquisitions, as compared with $598 millionforfirst quarter 2017.







Three Months Ended March 31,(millions)20182017Oil, NGL and Gas Sales to Third Parties(1)$1,173$994Sales of Purchased Gas(2)31—Income from Equity Method Investees3528Total Revenues1,2391,022Production Expense(1)353325Exploration Expense3542Depreciation, Depletion and Amortization443513Purchases of Gas(2)36—Gain on Divestitures(3)(392)—Asset Impairments(3)168—Loss (Gain) on Commodity Derivative Instruments79(110)Income Before Income Taxes485208


|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On January 1, 2018, we adopted ASC 606. As a result of adoption, we changed the presentation of certain US midstream processing arrangements as related to net and gross presentation of revenues and expenses. This presentation change resulted in an increase of $5 million to our NGL revenues with a corresponding increase of $5 million to production expense. SeeItem 1. Financial Statements – Note 2. Basis of Presentation.

|    |                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | In first quarter 2018, as part of our Marcellus Shale firm transportation mitigation efforts, we entered into certain transactions for the purchase of third party natural gas and the subsequent sale of natural gas to other third parties.

|    |                                                                        
|--- | -----------------------------------------------------------------------
|(3) | SeeItem 1. Financial Statements - Note3. Acquisitions and Divestitures.










---

Table of Contents











Sales Volumes(1)Average Realized Sales Prices(1)Crude Oil & Condensate(MBbl/d)NGLs(MBbl/d)NaturalGas(MMcf/d)Total(MBoe/d)(2)Crude Oil & Condensate(Per Bbl)NGLs(Per Bbl)NaturalGas(Per Mcf)Three Months Ended March 31, 2018United States(3)12264504270$61.95$25.53$2.63Eastern Mediterranean——26144——5.48West Africa(4)15—2064968.14—0.27Total Consolidated Operations1376497136362.6025.532.90Equity Investees(5)25—766.0839.90—Total13969971370$62.64$26.62$2.90Three Months Ended March 31, 2017United States9949730270$49.03$23.97$3.44Eastern Mediterranean——27146——5.32West Africa(4)18—2445853.42—0.27Total Consolidated Operations117491,24537449.7023.973.23Equity Investees(5)26—852.5936.04—Total119551,245382$49.73$25.34$3.23


|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On January 1, 2018, we adopted ASC 606. As a result of adoption, we changed the presentation of certain US midstream processing arrangements as related to net and gross presentation of revenues and expenses. This presentation change resulted in an increase of $5 million to our NGL revenues with a corresponding increase of $5 million to production expense. Furthermore, we recorded additional NGL and natural gas sales volumes of 4 MBbl/d and 31 MMcf/d, respectively, due to ASC 606 adoption. The resulting impact reduced  our average realized NGL and natural gas sales prices by $0.87/Bbl and $0.10/Mcf, respectively. SeeItem 1. Financial Statements – Note 2. Basis of Presentation.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Natural gas is converted on the basis of six Mcf of gas per one barrel of crude oil equivalent. This ratio reflects an energy content equivalency and not a price or revenue equivalency. Given commodity price disparities, the prices for a barrel of crude oil equivalent for US natural gas and NGLs are significantly less than the price for a barrel of crude oil. In Israel, we sell natural gas under contracts, where the majority of the price is fixed, resulting in less commodity price disparity between reporting periods.

|    |                                                                                        
|--- | ---------------------------------------------------------------------------------------
|(3) | Includes 24 MBoe/d related to the Gulf of Mexico assets, which were sold in April 2018.

|    |                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Natural gas from the Alba field in Equatorial Guinea is under contract for $0.25 per MMBtu to a methanol plant, an LPG plant, an LNG plant and a power generation plant. The methanol and LPG plants are owned in part by affiliated entities accounted for under the equity method of accounting.

|    |                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------
|(5) | Volumes represent sales of condensate and LPG from the LPG plant in Equatorial Guinea. SeeIncome from Equity Method Investees,below.

Sales Revenues(millions)Crude Oil & CondensateNGLsNaturalGasTotalThree Months Ended March 31, 2017$527$105$362$994Changes due toIncrease (Decrease) in Sales Volumes9415(84)25Increase (Decrease) in Sales Prices15221(24)149Impact of ASC 606 Adoption—5—5Three Months Ended March 31, 2018$773$146$254$1,173








---

Table of Contents








|  |                                                                                                               
|- | --------------------------------------------------------------------------------------------------------------
|• | 26%increase in average realized prices due to the partial rebalancing of global supply and demand factors; and

|  |                                                                                                                                                                                                                                                                                                                                                           
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | higher US onshore sales volumes of 28 MBbl/d, primarily driven by an increase in development activity in the DJ Basin and Delaware Basin. Delaware Basin sales volumes more than doubled compared to first quarter 2017 due to increased development activities and sales volumes from the acquired Clayton Williams Energy assets in second quarter 2017;




|  |                                                                                        
|- | ---------------------------------------------------------------------------------------
|• | lower sales volumes of 5 MBbl/d in the Gulf of Mexico due to natural field decline; and

|  |                                                                                
|- | -------------------------------------------------------------------------------
|• | lower sales volumes of 4 MBbl/d offshore West Africa due to timing of liftings.




|  |                                                                                                                                                                                                             
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | higher US onshore sales volumes of 11 MBbl/d (exclusive of 4 MBbl/d from adoption of ASC 606), primarily attributable to development activities in the southern area of Gates Ranch in the Eagle Ford Shale;

|  |                                                                                                                  
|- | -----------------------------------------------------------------------------------------------------------------
|• | 10% increase in average realized prices due to the partial rebalancing of domestic supply and demand factors; and

|  |                                                            
|- | -----------------------------------------------------------
|• | $5 millionincrease associated with the adoption of ASC 606;




|  |                                                                                                                       
|- | ----------------------------------------------------------------------------------------------------------------------
|• | lower sales volumes of 10 MBbl/d due to the divestiture of the Marcellus Shale upstream assets in second quarter 2017.




|  |                                                                                                                            
|- | ---------------------------------------------------------------------------------------------------------------------------
|• | lower sales volumes of 370 MMcf/d due to the divestiture of the Marcellus Shale upstream assets in second quarter 2017; and

|  |                                                                                                                
|- | ---------------------------------------------------------------------------------------------------------------
|• | lower sales volumes of 38 MMcf/d from the Alba field, offshore Equatorial Guinea, due to natural field decline;

|  |                                                                                                        
|- | -------------------------------------------------------------------------------------------------------
|• | 7% decrease in average realized prices due to the impact of differentials for US onshore sales volumes;




|  |                                                                                                                                                                                                               
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | higher US onshore sales volumes of 124 MMcf/d (exclusive of 31 MMcf/d from adoption of ASC 606), primarily attributable to development activities in the southern area of Gates Ranch in the Eagle Ford Shale.
















---

Table of Contents





(millions, except unit rate)Total per BOE(1)  (2)TotalUnitedStates(2)EasternMediter-   raneanWest AfricaThree Months Ended March 31, 2018Lease Operating Expense(3)$4.75$155$126$7$22Production and Ad Valorem Taxes1.625353——Gathering, Transportation and Processing(4)3.92128128——Other Royalty ExpenseN/M1717——Total Production Expense$10.29$353$324$7$22Total Production Expense per BOE$10.29$13.31$1.79$5.01Three Months Ended March 31, 2017Lease Operating Expense(3)$4.13$139$108$8$23Production and Ad Valorem Taxes1.194040——Gathering, Transportation and Processing(4)4.22142142——Other Royalty ExpenseN/M44——Total Production Expense$9.54$325$294$8$23Total Production Expense per BOE$9.54$12.11$1.95$4.36


|    |                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------
|(1) | Consolidated unit rates exclude sales volumes and expenses attributable to equity method investees.

|    |                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | United States E&P production expense includes charges from our midstream operations that are eliminated on a consolidated basis. SeeItem 1. Financial Statements – Note11. Segment Information.

|    |                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Lease operating expense includes oil and gas operating costs (labor, fuel, repairs, replacements, saltwater disposal and other related lifting costs) and workover expense.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Upon adoption of ASC 606 on January 1, 2018, we changed the presentation for certain of our gathering, transportation and processing expenses in accordance with the control model under the new standard. As such, we reflected an increase of $5 million to gathering, transportation and processing expense related to US operations for first quarter 2018. On a per BOE basis, the presentation change resulted in a decrease of$0.25/Boe for US production expense and$0.12/Boe for total production expense. No other geographical locations were affected by the presentation change. Comparative information for the prior period has not been recast and continues to be reported under ASC 605,Revenue Recognition, the accounting standard in effect for the prior period.




|  |                                                                                                                   
|- | ------------------------------------------------------------------------------------------------------------------
|• | an increase in US lease operating expense primarily due to increased development activities in the Delaware Basin;

|  |                                                                                  
|- | ---------------------------------------------------------------------------------
|• | an increase in US production and ad valorem taxes due to higher commodity prices;

|  |                                                                                                                                                                                                                          
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | an increase in US gathering, transportation and processing expense primarily attributable to development activities in the southern area of Gates Ranch in the Eagle Ford Shale which led to increased sales volumes; and

|  |                                                                                  
|- | ---------------------------------------------------------------------------------
|• | an increase in US other royalty expense due to increased commodity market prices;




|  |                                                                                                                            
|- | ---------------------------------------------------------------------------------------------------------------------------
|• | a decrease in US lease operating expense in the Gulf of Mexico due to lower production caused by natural field decline; and

|  |                                                                                                                                                                            
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | decreases in US lease operating and gathering, transportation and processing expenses due to the divestiture of the Marcellus Shale upstream assets in second quarter 2017.
















---

Table of Contents











(millions, except unit rate)TotalUnitedStatesEasternMediter-   raneanWestAfricaOther Int'lThree Months Ended March 31, 2018DD&A Expense$443$404$13$26$—Unit Rate per BOE(1)$13.57$16.60$3.32$5.92N/MThree Months Ended March 31, 2017DD&A Expense$513$459$19$34$1Unit Rate per BOE(1)$15.24$18.90$4.63$6.44N/M








|    |                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------
|(1) | Consolidated unit rates exclude sales volumes and expenses attributable to equity method investees.







|  |                                                                                                                                                                                           
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | year-end reserve additions, primarily in US onshore due to enhanced well design and completion techniques in our horizontal drilling program and globally due to positive price revisions;

|  |                                                                                                        
|- | -------------------------------------------------------------------------------------------------------
|• | Marcellus Shale upstream divestiture in second quarter 2017, which reduced DD&A expense by $73 million;

|  |                                                                                                                                                                                           
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | lower sales volumes in Gulf of Mexico due to natural field decline and classification of the assets as held for sale in first quarter 2018, which reduced DD&A expense by $47 million; and

|  |                                                                                                                                                                                              
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | reclassification of a7.5%working interest in the Tamar field, offshore Israel, as asset held for sale, resulting in the cessation of DD&A expense and a decrease of approximately $5 million;




|  |                                                                                                                                                                                           
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | higher sales volumes in the Delaware Basin, which more than doubled, due to increased development activities subsequent to the Clayton Williams Energy Acquisition in second quarter 2017;

|  |                                                                                                  
|- | -------------------------------------------------------------------------------------------------
|• | increased development activities in the southern area of Gates Ranch in the Eagle Ford Shale; and

|  |                                                                                           
|- | ------------------------------------------------------------------------------------------
|• | higher sales volumes from the Tamar field, offshore Israel, due to higher domestic demand.




Item 1. Financial Statements – Note   Item 1. Financial Statements – Note








|  |                                                
|- | -----------------------------------------------
|• | net cash settlement payments of$28 million; and

|  |                                                                                                                                                                                      
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | non-cash increases in the liability fair value of our derivative instruments of$51 milliondriven by changes in the forward commodity price curves for both crude oil and natural gas.




|  |                                               
|- | ----------------------------------------------
|• | net cash settlement receipts of$3 million; and

|  |                                                                                                                                                                                        
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | non-cash decreases in the liability fair value of our derivative instruments of $107million driven by changes in the forward commodity price curves for both crude oil and natural gas.

Item 1. Financial Statements – Note    Note








---




Table of Contents




















|  |                                            
|- | -------------------------------------------
|• | completion of the Saddle Butte acquisition;

|  |                                                                                                                                                  
|- | -------------------------------------------------------------------------------------------------------------------------------------------------
|• | completion of the Coronado central gathering facility (CGF) construction and continued construction on two additional CGFs in the Delaware Basin;

|  |                                                                                                                                                  
|- | -------------------------------------------------------------------------------------------------------------------------------------------------
|• | commencement of compression services in the Delaware Basin and purchase of additional mainline pumps for expansion of the Advantage pipeline; and

|  |                                                                                                                                                                                                                                                  
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | continued construction of freshwater delivery infrastructure in the Mustang IDP area, which is expected to become operational mid-year 2018, and initiation of procurement and construction on the oil, gas and produced water gathering systems.




|  |                                                   
|- | --------------------------------------------------
|• | gain of $196million on the sale of CONE Gathering;

|  |                                                                                                  
|- | -------------------------------------------------------------------------------------------------
|• | pre-tax income of $247 millioncompared with pre-tax income of $49 millionforfirstquarter2017; and

|  |                                                              
|- | -------------------------------------------------------------
|• | capital expenditures, excluding acquisitions, of$253 million.

Three Months Ended March 31,(millions)20182017Midstream Services Revenues – Third Party$13$—Sales of Purchased Oil22—Income from Equity Method Investees1214Intersegment Revenues8158Total Revenues12872Operating Costs and Expenses3918Depreciation and Amortization175Gain on Divestiture(196)—Purchased Oil21—Total (Income) Expense(119)23Income Before Income Taxes$247$49

















---

Table of Contents











Item 1. Financial Statements – Note 3. Acquisitions and Divestitures








Three Months Ended March 31,(millions, except unit rate)20182017G&A Expense$104$99Unit Rate per BOE(1)$3.18$2.94


|    |                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------
|(1) | Consolidated unit rates exclude sales volumes and expenses attributable to equity method investees.




Item 1. Financial Statements – Note   Item 1. Financial Statements – Note


Three Months Ended March 31,(millions, except unit rate)20182017Interest Expense, Gross$90$99Capitalized Interest(17)(12)Interest Expense, Net$73$87Unit Rate per BOE(1)$2.24$2.58


|    |                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------
|(1) | Consolidated unit rates exclude sales volumes and expenses attributable to equity method investees.

Item 1. Financial Statements - Note


Item 1. Financial Statements - Note























---

Table of Contents





Operating Outlook – Impact of Recent Changes in US Tax Law























March 31,December 31,(millions, except percentages)20182017Total Cash(1)$1,022$713Amount Available to be Borrowed Under Revolving Credit Facility(2)4,0003,770Total Liquidity$5,022$4,483Total Debt(3)$6,963$6,859Noble Energy Share of Equity10,3629,936Ratio of Debt-to-Book Capital(4)40%41%


|    |                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As ofMarch 31, 2018, total cash included cash and cash equivalents of $25 million related to Noble Midstream Partners and $30 million restricted cash related to the Gulf of Mexico asset sale, which closed in April 2018. As ofDecember 31, 2017, total cash included $18 million cash of Noble Midstream Partners and $37.5 million restricted cash related to the Saddle Butte acquisition that closed in first quarter of 2018.

|    |                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Excludes amounts available to be borrowed under the Noble Midstream Services Revolving Credit Facility and Leviathan Term Loan Facility, respectively, which are not available to Noble Energy for general corporate purposes. See discussion below.

|    |                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Total debt includes capital lease obligations and excludes unamortized debt discount/premium. SeeItem 1. Financial Statements – Note5. Debt.

|    |                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | We define our ratio of debt-to-book capital as total debt (which includes long-term debt excluding unamortized discount, the current portion of long-term debt, and short-term borrowings) divided by the sum of total debt plus Noble Energy's share of equity.










---

Table of Contents





Item 1. Financial Statements – Note 6. Debt





Item 1. Financial Statements – Note    Item 3. Quantitative and Qualitative Disclosures About Market Risk.

















Item 1. Financial Statements – Note 12. Commitments and Contingencies











---

Table of Contents








Three Months Ended March 31,(millions)20182017Total Cash Provided By (Used in)Operating Activities$583$536Investing Activities(572)(893)Financing Activities298(66)Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash$309$(423)


























Item 1. Financial Statements – Consolidated Statements of Cash Flows











---

Table of Contents





Three Months Ended March 31,(millions)20182017Acquisition, Capital and Exploration ExpendituresUnproved Property Acquisition(1)$—$246Proved Property Acquisition(1)—58Exploration1510Development641587Midstream(2)45993Corporate and Other115Total$1,126$999


(1)


(2)














Results of Operations - E&P





Item 1. Financial Statements – Note























---

Table of Contents


























|  |                       
|- | ----------------------
|• | our growth strategies;

|  |                                  
|- | ---------------------------------
|• | our future results of operations;

|  |                                                                                               
|- | ----------------------------------------------------------------------------------------------
|• | our liquidity and ability to finance our exploration, development and acquisitions activities;

|  |                                                                                                                                                      
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------
|• | our ability to satisfy contractual commitments, including utilization or commercialization of firm transportation commitments in the Marcellus Shale;

|  |                                                
|- | -----------------------------------------------
|• | our ability to make and integrate acquisitions;

|  |                                                                                                               
|- | --------------------------------------------------------------------------------------------------------------
|• | our ability to successfully and economically explore for and develop crude oil, natural gas and NGL resources;

|  |                                    
|- | -----------------------------------
|• | anticipated trends in our business;

|  |                                               
|- | ----------------------------------------------
|• | market conditions in the oil and gas industry;

|  |                                                                                                                                                                                                                                                   
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | the impact of governmental fiscal regulation, including federal, state, local, and foreign host regulations, and/or terms, such as those involving the protection of the environment or marketing of production, as well as other regulations; and

|  |                     
|- | --------------------
|• | access to resources.













---




Table of Contents

















---



















Part I. Financial Information, Item 1. Financial Statements - Note

















PeriodTotal Number ofSharesPurchased(1)AveragePrice PaidPer ShareTotal Number ofShares Purchasedas Part of PubliclyAnnounced Plans orPrograms(2)Approximate DollarValue of Shares thatMay Yet BePurchased Under thePlans or Programs(millions)1/1/2018 - 1/31/201887$30.19—2/1/2018 - 2/28/2018544,00530.84334,7003/1/2018 - 3/31/20181,907,47930.151,897,700Total2,451,571$30.302,232,400$683


|    |                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes stock repurchases of219,171during the period relating to common stock received by us from employees for the payment of withholding taxes due on shares of common stock issued under stock-based compensation plans. In addition, 745,202 of common shares were retired in the period relating to the Clayton Williams Energy Acquisition.

|    |                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | OnFebruary 15, 2018, we announced that the Company's Board of Directors had authorized a $750million share repurchase program, which expiresDecember 31, 2020. Duringfirst quarter 2018, we repurchased and retired2.2million shares of common stock at an average purchase price of $30.21per share.







---




Table of Contents



































---




Table of Contents





Exhibit NumberExhibit**2.1Agreement and Plan of Merger, dated as of January 13, 2017, by and among Noble Energy, Inc., Wild West Merger Sub Inc., NBL Permian LLC, and Clayton Williams Energy, Inc. (filed as Exhibit 2.1 to the Registrant’s Current Report on Form 8-K (Date of Report: January 13, 2017) filed on January 17, 2017 and incorporated herein by reference).2.2Agreement and Plan of Merger, dated as of May 10, 2015, by and among Noble Energy, Inc., Bluebonnet Merger Sub Inc. and Rosetta Resources Inc. (filed as Exhibit 2.1 of the Registrant’s Current Report on Form 8-K (Date of Report: May 10, 2015) filed on May 11, 2015 and incorporated herein by reference).2.3Exchange Agreement, executed October 29, 2016, by and between CNX Gas Company LLC and Noble Energy, Inc. (filed as Exhibit 2.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 and incorporated herein by reference).3.1Restated Certificate of Incorporation of Noble Energy Inc., (filed as Exhibit 3.3 to the Registrant’s Current Report on Form 8-K (Date of Report: July 26, 2016) filed on July 28, 2016 and incorporated herein by reference).3.2By-Laws of Noble Energy, Inc. (as amended through January 30, 2018) (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (Date of Report: January 30, 2018) filed on February 1, 2018 and incorporated herein by reference).3.3Certificate of Elimination of the Series A Junior Participating Preferred Stock of Noble Energy, Inc. (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (Date of Report: July 26, 2016) filed on July 28, 2016 and incorporated herein by reference).3.4Certificate of Elimination of the Series B Mandatorily Convertible Preferred Stock of Noble Energy, Inc. (filed as Exhibit 3.2 to the Registrant’s Current Report on Form 8-K (Date of Report: July 26, 2016) filed on July 28, 2016 and incorporated herein by reference).10.1*Form of Restricted Stock Award (3-year time-vested officers) under the Noble Energy, Inc. 2017 Long-Term Incentive Plan (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (Date of Report: January 29, 2018) filed February 1, 2018 and incorporated herein by reference).10.2*Form of Restricted Stock Award (3-year cliff vested) under the Noble Energy, Inc. 2017 Long-Term Incentive Plan (filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (Date of Report: January 29, 2018) filed February 1, 2018 and incorporated herein by reference).10.3*Noble Energy, Inc. Change of Control Severance Plan for Executives, as amended and restated, effective January 30, 2018 (filed as Exhibit 10.39 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2017 and incorporated herein by reference).10.4Third Amendment, dated March  9, 2018, by and among Noble Energy, Inc., NBL International Finance B.V., JPMorgan Chase Bank, N.A., as administrative agent, Citibank N.A., as syndication agent, and Bank of America, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd. and DNB Bank ASA, New York Branch as documentation agents, and the other commercial lending institutions party thereto (filed as Exhibit 10.1 of the Registrant’s Current Report on Form 8-K (Date of Report: March 9, 2018) filed on March 12, 2018 and incorporated herein by reference).12.1Calculation of ratio of earnings to fixed charges, filed herewith.31.1Certification of the Company’s Chief Executive Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 7241), filed herewith.31.2Certification of the Company’s Chief Financial Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 7241), filed herewith.32.1Certification of the Company’s Chief Executive Officer Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), furnished herewith.








---

Table of Contents





32.2Certification of the Company’s Chief Financial Officer Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), furnished herewith.101.INSInstance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.101.SCHXBRL Schema Document101.CALXBRL Calculation Linkbase Document101.LABXBRL Label Linkbase Document101.PREXBRL Presentation Linkbase Document101.DEFXBRL Definition Linkbase Document


*Management contract or compensatory plan or arrangement required to be filed as an exhibit hereto.**Copies of exhibits will be furnished upon prepayment of 25 cents per page. Requests should be addressed to the Executive Vice President and Chief Financial Officer, Noble Energy, Inc., 1001 Noble Energy Way, Houston, Texas 77070.

















---




Table of Contents

















NOBLE ENERGY, INC.(Registrant)DateMay 1, 2018/s/ Kenneth M. FisherKenneth M. FisherExecutive Vice President, Chief Financial Officer