Business

For Houston-Based Noble Energy, Record Sales No Match For Low Oil Prices

Several Houston area oil and gas companies released their second quarter earnings Wednesday.

Houston-based Noble Energy reported a net loss of $315 million for the second quarter of 2016, despite record sales of 427,000 barrels of oil equivalent per day – 43 percent higher than in the second quarter of 2015.

In a conference call with investors, Noble CEO Dave Stover celebrated the results nonetheless.

“We’ve delivered another quarter where cash flow exceeded capital expenditures,” he said. “We raised our full-year 2016 volume expectation for the second time this year.”

Still, the company lost almost three times as much as in the second quarter of last year.

Andrew Lipow of Houston consulting firm Lipow Oil Associates is not surprised by those results.

“There’s no doubt that Noble has done a good job of getting the oil and natural gas out of the ground,” he said. “But unfortunately they’re selling into a market that is well supplied with oil worldwide and as a result we’re seeing prices being depressed.”

Lipow said the fact that Noble and other oil companies are reducing their capital spending means over time there will be no new investment for additional supplies.

Another Houston-based energy company, Marathon Oil, reported a net loss of $170 million for the second quarter, an improvement from the same period last year when it lost $386 million.

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Florian Martin

Florian Martin

Business Reporter

Florian Martin is currently the News 88.7 business reporter. Florian’s stories can frequently be heard on other public radio stations throughout Texas and on NPR nationwide. Some of them have earned him awards from Texas AP Broadcasters, the Houston Press Club, National Association of Real Estate Editors, and Public Radio...

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