Attached files
| file | filename |
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| 8-K - NOBLE ENERGY INC | nbl20128-knorthseasale.htm |
Exhibit 99.1
Noble Energy, Inc.
Unaudited Pro Forma Consolidated Financial Statements
The unaudited pro forma consolidated financial statements of Noble Energy, Inc. have been derived from our historical consolidated financial statements and are being presented to give effect to the sale of our Dumbarton and Lochranza properties located in the UK sector of the North Sea. The unaudited pro forma consolidated balance sheet as of June 30, 2012 has been prepared as though the sale occurred on June 30, 2012. The unaudited pro forma consolidated statements of operations for the years ended December 31, 2011, 2010, and 2009 have been prepared as though the sale occurred on January 1, 2009. We have not provided an unaudited pro forma consolidated statement of operations for the six months ended June 30, 2012, because the results of the Dumbarton and Lochranza properties were included within discontinued operations in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.
The following unaudited pro forma consolidated financial statements should be read in conjunction with our historical financial statements and accompanying notes.
The unaudited pro forma consolidated financial statements are for illustrative purposes only, and do not reflect what our financial position and results of operations would have been had the sale occurred on the dates indicated and are not necessarily indicative of our future financial position and future results of operations.
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Noble Energy, Inc.
Unaudited Pro Forma Consolidated Balance Sheets
(millions)
June 30, 2012
As Reported | Pro Forma Adjustments | As Adjusted | |||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and Cash Equivalents | $ | 702 | $ | 117 | (a) | $ | 819 | ||||
Accounts Receivable, Net | 824 | — | 824 | ||||||||
Other Current Assets | 368 | — | 368 | ||||||||
Assets Held for Sale | 324 | (234 | ) | (b) | 90 | ||||||
Total Current Assets | 2,218 | (117 | ) | 2,101 | |||||||
Property, Plant and Equipment | |||||||||||
Oil and Gas Properties (Successful Efforts Method of Accounting) | 18,440 | — | 18,440 | ||||||||
Property, Plant and Equipment, Other | 322 | — | 322 | ||||||||
Total Property, Plant and Equipment, Gross | 18,762 | — | 18,762 | ||||||||
Accumulated Depreciation, Depletion and Amortization | (5,337 | ) | — | (5,337 | ) | ||||||
Total Property, Plant and Equipment, Net | 13,425 | — | 13,425 | ||||||||
Goodwill | 696 | — | 696 | ||||||||
Other Noncurrent Assets | 642 | — | 642 | ||||||||
Total Assets | $ | 16,981 | $ | (117 | ) | $ | 16,864 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts Payable - Trade | $ | 1,279 | $ | — | $ | 1,279 | |||||
Other Current Liabilities | 1,060 | $ | (157 | ) | (b) | 903 | |||||
Total Current Liabilities | 2,339 | (157 | ) | 2,182 | |||||||
Long-Term Debt | 4,074 | — | 4,074 | ||||||||
Deferred Income Taxes, Noncurrent | 2,080 | — | 2,080 | ||||||||
Other Noncurrent Liabilities | 683 | — | 683 | ||||||||
Total Liabilities | 9,176 | (157 | ) | 9,019 | |||||||
Commitments and Contingencies | |||||||||||
Shareholders’ Equity | |||||||||||
Preferred Stock - Par Value $1.00 per share; 4 Million Shares Authorized, None Issued | — | — | — | ||||||||
Common Stock - Par Value $0.01 per share; 500 Million Shares Authorized; 198 Million Shares Issued | 2 | — | 2 | ||||||||
Additional Paid in Capital | 3,224 | — | 3,224 | ||||||||
Accumulated Other Comprehensive Loss | (97 | ) | — | (97 | ) | ||||||
Treasury Stock, at Cost; 19 Million Shares | (651 | ) | — | (651 | ) | ||||||
Retained Earnings | 5,327 | 40 | (b) | 5,367 | |||||||
Total Shareholders’ Equity | 7,805 | 40 | 7,845 | ||||||||
Total Liabilities and Shareholders’ Equity | $ | 16,981 | $ | (117 | ) | $ | 16,864 | ||||
The accompanying notes are an integral part of these financial statements.
2
Noble Energy, Inc.
Unaudited Pro Forma Consolidated Statements of Operations
(millions, except per share amounts)
Year Ended December 31, 2011
As Reported | Pro Forma Adjustments (c) | As Adjusted | ||||||||||
Revenues | ||||||||||||
Oil, Gas and NGL Sales | $ | 3,536 | $ | (257 | ) | $ | 3,279 | |||||
Income from Equity Method Investees | 195 | — | 195 | |||||||||
Other Revenues | 32 | — | 32 | |||||||||
Total | 3,763 | (257 | ) | 3,506 | ||||||||
Costs and Expenses | ||||||||||||
Production Expense | 618 | (38 | ) | 580 | ||||||||
Exploration Expense | 279 | — | 279 | |||||||||
Depreciation, Depletion and Amortization | 965 | (74 | ) | 891 | ||||||||
General and Administrative | 341 | — | 341 | |||||||||
Gain on Divestitures | (25 | ) | — | (25 | ) | |||||||
Asset Impairments | 759 | — | 759 | |||||||||
Other Operating (Income) Expense, Net | 86 | — | 86 | |||||||||
Total | 3,023 | (112 | ) | 2,911 | ||||||||
Operating Income | 740 | (145 | ) | 595 | ||||||||
Other (Income) Expense | ||||||||||||
(Gain) Loss on Commodity Derivative Instruments | (42 | ) | — | (42 | ) | |||||||
Interest, Net of Amount Capitalized | 65 | — | 65 | |||||||||
Other Non-Operating (Income) Expense, Net | 2 | — | 2 | |||||||||
Total | 25 | — | 25 | |||||||||
Income from Continuing Operations Before Income Taxes | 715 | (145 | ) | 570 | ||||||||
Income Tax Provision | 262 | (124 | ) | 138 | ||||||||
Income from Continuing Operations | $ | 453 | $ | (21 | ) | $ | 432 | |||||
Earnings from Continuing Operations Per Share, Basic | $ | 2.57 | $ | 2.45 | ||||||||
Earnings from Continuing Operations Per Share, Diluted | 2.54 | 2.42 | ||||||||||
Weighted Average Number of Shares Outstanding | ||||||||||||
Basic | 176 | 176 | ||||||||||
Diluted | 179 | 179 | ||||||||||
The accompanying notes are an integral part of these financial statements.
3
Noble Energy, Inc.
Unaudited Pro Forma Consolidated Statements of Operations
(millions, except per share amounts)
Year Ended December 31, 2010
As Reported | Pro Forma Adjustments (c) | As Adjusted | ||||||||||
Revenues | ||||||||||||
Oil, Gas and NGL Sales | $ | 2,832 | $ | (203 | ) | $ | 2,629 | |||||
Income from Equity Method Investees | 118 | — | 118 | |||||||||
Other Revenues | 72 | — | 72 | |||||||||
Total | 3,022 | (203 | ) | 2,819 | ||||||||
Costs and Expenses | ||||||||||||
Production Expense | 570 | (34 | ) | 536 | ||||||||
Exploration Expense | 245 | (1 | ) | 244 | ||||||||
Depreciation, Depletion and Amortization | 883 | (55 | ) | 828 | ||||||||
General and Administrative | 277 | — | 277 | |||||||||
Gain on Divestitures | (113 | ) | — | (113 | ) | |||||||
Asset Impairments | 144 | — | 144 | |||||||||
Other Operating (Income) Expense, Net | 64 | — | 64 | |||||||||
Total | 2,070 | (90 | ) | 1,980 | ||||||||
Operating Income | 952 | (113 | ) | 839 | ||||||||
Other (Income) Expense | ||||||||||||
(Gain) Loss on Commodity Derivative Instruments | (157 | ) | — | (157 | ) | |||||||
Interest, Net of Amount Capitalized | 72 | — | 72 | |||||||||
Other Non-Operating (Income) Expense, Net | 6 | — | 6 | |||||||||
Total | (79 | ) | — | (79 | ) | |||||||
Income from Continuing Operations Before Income Taxes | 1,031 | (113 | ) | 918 | ||||||||
Income Tax Provision | 306 | (56 | ) | 250 | ||||||||
Income from Continuing Operations | $ | 725 | $ | (57 | ) | $ | 668 | |||||
Earnings from Continuing Operations Per Share, Basic | $ | 4.15 | $ | 3.82 | ||||||||
Earnings from Continuing Operations Per Share, Diluted | 4.10 | 3.77 | ||||||||||
Weighted Average Number of Shares Outstanding | ||||||||||||
Basic | 175 | 175 | ||||||||||
Diluted | 177 | 177 | ||||||||||
The accompanying notes are an integral part of these financial statements.
4
Noble Energy, Inc.
Unaudited Pro Forma Consolidated Statements of Operations
(millions, except per share amounts)
Year Ended December 31, 2009
As Reported | Pro Forma Adjustments (c) | As Adjusted | ||||||||||
Revenues | ||||||||||||
Oil, Gas and NGL Sales | $ | 2,060 | $ | (78 | ) | $ | 1,982 | |||||
Income from Equity Method Investees | 84 | — | 84 | |||||||||
Other Revenues | 169 | — | 169 | |||||||||
Total | 2,313 | (78 | ) | 2,235 | ||||||||
Costs and Expenses | ||||||||||||
Production Expense | 525 | (25 | ) | 500 | ||||||||
Exploration Expense | 144 | — | 144 | |||||||||
Depreciation, Depletion and Amortization | 816 | (17 | ) | 799 | ||||||||
General and Administrative | 237 | — | 237 | |||||||||
Gain on Divestitures | (22 | ) | — | (22 | ) | |||||||
Asset Impairments | 604 | — | 604 | |||||||||
Other Operating (Income) Expense, Net | 67 | — | 67 | |||||||||
Total | 2,371 | (42 | ) | 2,329 | ||||||||
Operating Loss | (58 | ) | (36 | ) | (94 | ) | ||||||
Other (Income) Expense | ||||||||||||
(Gain) Loss on Commodity Derivative Instruments | 110 | — | 110 | |||||||||
Interest, Net of Amount Capitalized | 84 | — | 84 | |||||||||
Other Non-Operating (Income) Expense, Net | 12 | — | 12 | |||||||||
Total | 206 | — | 206 | |||||||||
Loss from Continuing Operations Before Income Taxes | (264 | ) | (36 | ) | (300 | ) | ||||||
Income Tax Provision | (133 | ) | (18 | ) | (151 | ) | ||||||
Loss from Continuing Operations | $ | (131 | ) | $ | (18 | ) | $ | (149 | ) | |||
Loss from Continuing Operations Per Share, Basic | $ | (0.75 | ) | $ | (0.86 | ) | ||||||
Loss from Continuing Operations Per Share, Diluted | (0.75 | ) | (0.86 | ) | ||||||||
Weighted Average Number of Shares Outstanding | ||||||||||||
Basic | 173 | 173 | ||||||||||
Diluted | 173 | 173 | ||||||||||
The accompanying notes are an integral part of these financial statements.
5
Noble Energy, Inc.
Notes to Unaudited Pro Forma Consolidated Financial Statements
Note 1. Basis of Presentation
On August 13, 2012, Noble Energy, Inc. (Noble Energy, we or us) sold its 30% working interest in the Dumbarton and Lochranza properties located in the UK sector of the North Sea. The effective date of the sale is January 1, 2012. Therefore the proceeds from the sale were adjusted downward for the net cash flows of the properties between the effective date of January 1, 2012 and the closing date.
The accompanying unaudited pro forma consolidated balance sheet has been prepared to give effect to the divestiture as if it had occurred on June 30, 2012 while the unaudited pro forma consolidated statements of operations have been prepared to give effect to the divestiture as if it had occurred on January 1, 2009.
Note 2. Pro Forma Adjustments
The unaudited pro forma consolidated financial statements reflect the following adjustments:
(a) To adjust for the proceeds, estimated closing adjustments and transaction costs. Information regarding these adjustments is as follows:
(in millions) | |||
Gross Proceeds | $ | 129 | |
Less: | |||
Estimated Closing Adjustments and Transaction Costs | (12 | ) | |
Estimated Net Proceeds | $ | 117 | |
(b) To adjust for the assets sold and associated liabilities along with the estimated gain on divestiture. Information regarding these adjustments is as follows:
(in millions) | |||
Estimated Net Proceeds | $ | 117 | |
Less: | |||
Net Book Value of Assets Sold | (234 | ) | |
Asset Retirement Obligations Associated with Assets Sold | 55 | ||
Pre-tax Loss on Asset Sale | (62 | ) | |
Deferred Tax Liability Associated with Assets Sold | 102 | ||
Gain on Asset Sale, Net of Tax | $ | 40 | |
(c) To adjust all periods presented to reflect the operations of our Dumbarton and Lochranza properties as discontinued. Our long-term debt is recorded at the consolidated level; therefore, no interest expense has been allocated to our discontinued Dumbarton and Lochranza properties.
6