Noble Energy, Inc. Announces Third Quarter 2005 Results

HOUSTON, Nov. 4 /PRNewswire-FirstCall/ -- Noble Energy, Inc. today reported third quarter net income of $177.0 million, or 99 cents per diluted share, compared to $83.7 million, or 70 cents per diluted share, for the same period last year. Third quarter 2005 net income was the highest in Noble Energy's history, increasing 111 percent compared to the same period last year.

Discretionary cash flow (see Determination of Discretionary Cash Flow and Reconciliation schedule) for the third quarter 2005 increased 131 percent to $436.6 million, compared to $189.1 million for the same period last year. Net cash provided by operating activities was $440.3 million for the third quarter of 2005.

The increase in net income and discretionary cash flow versus the third quarter last year primarily reflected higher daily production and realized prices. Daily production increased 61 percent. Realized natural gas prices for the third quarter 2005 were $5.65 per thousand cubic feet (Mcf), 25 percent above last year's $4.51 per Mcf. Realized crude oil prices were $47.58 per barrel (Bbl), an increase of 34 percent compared to $35.62 per Bbl for the third quarter 2004. Higher production volumes and commodity prices combined to increase oil and gas revenues by $312.8 million over the third quarter of 2004. Capital expenditures totaled $265.8 million during the third quarter of 2005.

Charles D. Davidson, the company's Chairman, President and CEO, said, "Noble Energy continued its trend of stable and consistent growth during the third quarter, despite the impact of two large hurricanes. This was our first full quarter with Patina Oil and Gas integrated into Noble Energy's operations, and our improved operating and financial performance reflects the potential of the combined businesses. Patina's long-lived assets not only added to Noble Energy's domestic production base, they also provided stability while our Gulf of Mexico and Gulf Coast production was impacted by hurricanes Katrina and Rita. Our international operations also continued to ramp up with new production in Equatorial Guinea and Israel. Organic growth will continue to drive our performance as our deepwater Swordfish development has begun producing and is expected to reach 10,000 barrels of oil equivalent per day, net to Noble Energy, during the fourth quarter. Two additional deepwater developments of similar size, Lorien and Ticonderoga, are scheduled to commence production during the second and third quarters of next year, respectively."

Third quarter 2005 production was 168,666 barrels of oil equivalent per day (Boepd). Domestic production was reduced by approximately 7,600 Boepd due to hurricanes Katrina and Rita. International production was 55 percent above the third quarter last year, primarily because of increases in condensate and natural gas volumes in Equatorial Guinea following the completion of two liquids expansion projects.

NORTH AMERICA

North America reported operating income for the third quarter of $150.9 million, an increase of 99 percent compared to operating income from continuing operations of $75.7 million for the same period last year.

Operations benefited from higher production and higher realized prices during the quarter. Third quarter 2005 production increased to 99,440 Boepd from 59,884 Boepd for the same quarter last year. The average realized crude oil price was $49.49 per Bbl compared to $31.61 per Bbl during the third quarter of 2004. The average realized natural gas price was $7.12 per Mcf compared to $5.89 per Mcf last year.

Higher production and commodity prices were offset by increased third quarter exploration expense, which was up $51.7 million compared to the same period last year. The increase resulted from higher dry hole expense in the Gulf Coast region and offshore Gulf of Mexico.

Noble Energy's North America operations are divided into three regions: the Rocky Mountain, Mid-continent and Southern regions. The Rocky Mountain region includes the DJ (Wattenberg), San Juan, Wind River, and Piceance basins, as well as the Niobrara, Bowdoin and Siberia Ridge fields. The Mid-continent region includes Illinois, Kansas, Oklahoma and the Texas Panhandle. The Southern region includes the Gulf Coast onshore, West and East Texas, North Louisiana and the Gulf of Mexico.

During the third quarter, the company had 24 drilling rigs running onshore (ten in the Rocky Mountains, ten in the Mid-continent and four in the Gulf Coast) and 47 workover rigs (26 in the Rocky Mountains and 21 in the Mid-continent). Noble Energy plans to drill nearly 643 onshore wells in 2005, of which 53 are to be drilled in the Gulf Coast, 415 are planned for the Rocky Mountains and 175 for the Mid-continent.

Noble Energy continues to experience strong growth in the deepwater Gulf of Mexico, where the company has three significant developments underway. The first of three wells at the company's Swordfish development began production in October. The remaining two wells are expected to begin production during the month of November as additional third party facilities come back on line. At Lorien, production is still expected to begin early in the second quarter of 2006. Ticonderoga is expected to commence production mid-year 2006.

INTERNATIONAL

International operations reported operating income for the third quarter of $161.8 million, an increase of 114 percent compared to operating income of $75.7 million in the third quarter last year. Third quarter 2005 international production volumes increased to 69,226 Boepd from 44,583 Boepd for the same quarter last year.

Equatorial Guinea

Total operating income in Equatorial Guinea, which includes results from field operations and methanol operations, for the third quarter of 2005 was up nearly threefold to $100.3 million compared to $37.6 million last year. Operating income from Equatorial Guinea was the company's highest ever. Equatorial Guinea has now reported eight consecutive quarters of increasing operating income.

Upstream operations, including liquid petroleum gas (LPG), natural gas and condensate sales, generated increased operating income for the fifth consecutive quarter. Upstream operations reported record operating income of $84.1 million, 84 percent of the total from Equatorial Guinea. Third quarter 2005 sales volumes averaged 36,415 Boepd, more than double last year's 16,134 Boepd. The average realized price for liquids during the third quarter was $43.57 per Bbl compared to $41.00 per Bbl for the same period last year.

Operating income from methanol operations was $16.2 million net to Noble Energy's interest compared to $13.6 million for the third quarter of 2004. Methanol operations' results are reported as income from unconsolidated subsidiaries. Third quarter realized methanol prices averaged 75 cents per gallon (Gal) compared to 74 cents per Gal last year.

In October, Noble Energy announced successful results from its offshore "Belinda" exploration well on Block "O." The well, located in 250 feet of water and approximately 20 miles east of Bioko Island, was drilled to a total depth of 10,360 feet. Test results were encouraging, with condensate-rich natural gas producing at rates up to 24 million cubic feet per day (MMcfpd) and over 1,225 barrels per day (Bpd) of condensate. Flow rates were limited by surface test equipment. With the installation of cooling and processing facilities, condensate yields can be increased. Additional appraisal work will be performed to determine the areal extent and commerciality of the Belinda discovery. The company is currently reviewing options for a multi-well exploration and appraisal program, which could begin in 2006. Noble Energy is the technical operator of Block "O" with a 45 percent participating interest.

North Sea

In the North Sea, third quarter 2005 operating income increased to $24.0 million compared to $15.0 million last year. The quarter-over-quarter improvement reflects lower costs and higher commodity prices. Overall expenses declined $3.5 million, driven by lower DD&A and exploration expense. Higher commodity prices offset lower production volumes resulting from natural field decline, generating a revenue increase of $5.5 million compared to the third quarter last year. The average realized price for liquids during the third quarter was $59.71 per Bbl compared to $43.46 per Bbl for the same period last year. The average realized price for natural gas was $5.14 per Mcf compared to $4.29 per Mcf last year.

Israel

Third quarter 2005 operating income was $14.4 million compared to $14.2 million for the same period last year. Natural gas sales in Israel commenced during February 2004 and ramped up through the second quarter of last year. Oil and gas operations expense and DD&A averaged 28 cents per Mcf and 42 cents per Mcf, respectively.

Natural gas production, net to Noble Energy, averaged 81.9 MMcfpd for the third quarter compared to 71.6 MMcfpd last year. The average realized natural gas price during the third quarter 2005 declined to $2.57 per Mcf compared to $2.78 per Mcf for the same period last year.

Argentina, China and Ecuador

Third quarter 2005 operating income from Argentina, China and Ecuador increased 160 percent to $23.1 million compared to $8.9 million for the second quarter last year.

Noble Energy's Machala power plant contributed $2.1 million of operating income during the third quarter 2005 compared to a loss of $1.1 million for the same period last year. The quarter-to-quarter improvement reflects increased power generation and higher electricity prices. For the quarter, 221,840 megawatt-hours were produced at an average sales price of 8.5 cents per kilowatt-hour. For the third quarter 2005, Noble Energy produced 24.5 MMcfpd of natural gas from the Amistad field.

In China, third quarter operating income was a record high $19.2 million, up 243 percent compared to $5.6 million for the third quarter of 2004. Net production in China increased 60 percent versus the third quarter last year, averaging 5,446 barrels of oil per day. Net production in Argentina averaged 2,770 Boepd for the third quarter.

2005 OUTLOOK

The following estimates for 2005 include the impact of Noble Energy's acquisition of Patina Oil & Gas Corporation, effective May 16, 2005, as well as the impacts of hurricanes Katrina and Rita. The company has budgeted capital expenditures of $987 million for 2005. Approximately 25 percent of the 2005 capital budget has been allocated for exploration opportunities and approximately 75 percent to production, development and other projects. Domestic spending is budgeted at approximately $764 million, international expenditures are budgeted at approximately $208 million and corporate spending is budgeted at approximately $15 million.

Average BOE production in 2005, including Patina, is expected to increase approximately 36 percent compared to the full year 2004, with average production ranging from 145,000 Boepd to 146,000 Boepd. Fourth quarter production is expected to range from 165,000 Boepd to 170,000 Boepd. Noble Energy's production may be impacted by several factors in the fourth quarter, including:

* Potential additional weather-related shut-ins in the U.S. Gulf of Mexico and Gulf Coast areas. * Timing of the ramp-up of the Swordfish deepwater development. * The rate at which third party processing facilities and pipelines return to operations.

Full year 2005 costs and expenses are expected to fall within the following ranges:

* Exploration expense is expected to range from $160 million to $180 million. * Selling, general and administrative (SG&A) expense is expected to range from $1.75 per BOE to $1.85 per BOE. * Oil and gas operations expense is expected to range from $4.00 per BOE to $4.20 per BOE. * DD&A expense is expected to range from $7.50 per BOE to $7.75 per BOE. * An effective tax rate of 35 percent to 40 percent is expected. Of the total book taxes planned for 2005, 45 percent to 55 percent are expected to be deferred. Estimated taxes for 2005 include the effects of repatriating cash from overseas operations in the third quarter.

The ranges for unit oil and gas operations, unit SG&A and exploration costs have been slightly adjusted from prior guidance to reflect increasing pressure on personnel, rig and service costs.

Noble Energy is one of the nation's leading independent energy companies and operates throughout major basins in the United States including the Gulf of Mexico, as well as the recently added Patina Oil & Gas properties located primarily in Colorado's Wattenberg Field, the Mid-continent region of western Oklahoma and the Texas Panhandle, and the San Juan Basin in New Mexico. In addition, Noble Energy operates internationally in Argentina, China, Ecuador, Equatorial Guinea, the Mediterranean Sea and the North Sea. Noble Energy markets natural gas and crude oil through its subsidiary, Noble Energy Marketing, Inc. Visit Noble Energy online at http://www.nobleenergyinc.com/ .

This news release may include projections and other "forward-looking statements" within the meaning of the federal securities laws. Any such projections or statements reflect Noble Energy's current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from those projected. Important factors that could cause the actual results to differ materially from those projected include, without limitation, the volatility in commodity prices for oil and gas, the presence or recoverability of estimated reserves, the ability to replace reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other action, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's business that are detailed in its Securities and Exchange Commission filings.

SCHEDULE 1 NOBLE ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF RESULTS (Unaudited) (In thousands, except per share) Three Months Ended Nine Months Ended 9/30/2005 9/30/2004 9/30/2005 9/30/2004 REVENUES Oil and Gas Sales and Royalties $601,269 $288,499 $1,371,930 $855,351 Gathering, Marketing and Processing 8,831 10,175 28,735 37,295 Electricity Sales 18,843 7,504 54,978 38,369 Income From Unconsol. Subs. 16,226 13,585 44,279 43,953 645,169 319,763 1,499,922 974,968 COST AND EXPENSES Oil and Gas Operations 64,775 36,449 151,183 112,575 Production and ad valorem taxes 24,304 7,193 51,125 20,458 Transportation 8,357 3,718 18,577 14,284 Oil and Gas Exploration 77,253 26,588 126,508 82,100 Gathering, Marketing and Processing 5,856 8,642 20,905 29,992 Electricity Generation 16,746 8,600 37,637 32,034 Depreciation, Depletion and Amortization 113,835 75,040 281,041 233,365 Impairment of Operating Assets 5,198 --- 5,198 --- Selling, General and Administrative 29,346 13,326 69,326 41,518 Accretion of Asset Retirement Obligation 2,928 2,067 8,137 7,080 Interest Expense 31,438 17,961 66,327 48,973 Interest Capitalized (2,393) (3,013) (11,340) (9,655) Deferred compensation adjustment 21,429 --- 31,307 --- Loss on Involuntary Conversion of Assets 1,000 1,000 1,000 1,000 Other income 890 (6,399) (1,046) (12,178) 400,962 191,172 855,885 601,546 INCOME BEFORE INCOME TAXES 244,207 128,591 644,037 373,422 INCOME TAX PROVISION (BENEFIT) Current 42,125 43,302 119,803 102,624 Deferred 25,126 4,318 100,433 43,887 67,251 47,620 220,236 146,511 INCOME FROM CONTINUING OPERATIONS 176,956 80,971 423,801 226,911 DISCONTINUED OPERATIONS, NET OF TAX --- 2,721 --- 14,354 NET INCOME $176,956 $83,692 $423,801 $241,265 INCOME FROM CONTINUING OPERATIONS $0.99 $0.68 $2.84 $1.92 DISCONTINUED OPERATIONS, NET OF TAX --- 0.02 --- 0.12 DILUTED NET INCOME PER SHARE $0.99 $0.70 $2.84 $2.04 AVERAGE SHARES OUTSTANDING - DILUTED 178,747 118,974 149,164 118,004 SCHEDULE 2 NOBLE ENERGY, INC. AND SUBSIDIARIES DETERMINATION OF DISCRETIONARY CASH FLOW AND RECONCILIATION (Unaudited) (In thousands) Three Months Ended Nine Months Ended 9/30/2005 9/30/2004 9/30/2005 9/30/2004 Net Income $176,956 $83,692 $423,801 $241,265 Depreciation, Depletion and Amortization (DD&A) 113,835 76,040 281,041 234,365 Power Project DD&A 4,486 3,824 12,395 15,361 Oil and Gas Exploration 77,253 26,588 126,508 82,100 Interest Capitalized (2,393) (3,013) (11,340) (9,655) Undistributed Earnings From Unconsol. Subs. (16,226) (13,585) (44,279) (43,953) Distribution/Dividends from Unconsol. Subs 16,575 14,138 46,556 49,969 Deferred Income Tax Provision (Benefit) 25,126 4,318 100,433 43,887 Deferred Compensation Adjustment 21,429 --- 31,307 --- Accretion of Asset Retirement Obligation 2,928 2,067 8,137 7,080 Impairment of Operating Assets 5,198 --- 5,198 --- Other 11,386 (4,942) 10,144 (4,478) DISCRETIONARY CASH FLOW * 436,553 189,127 989,901 615,941 Adjustments to Reconcile: Working Capital 29,587 (11,564) (21,826) (34,122) Israel - Take or Pay Payment (4,450) Cash Exploration Costs (14,865) (10,552) (36,248) (29,148) Capitalized Interest 2,393 3,013 11,340 9,655 Deferred Tax, Misc. Credits and Other (13,368) (12,990) (18,613) (38,312) Net Cash Provided by Operating Activities $440,300 $152,584 $924,554 $524,014 * The table above reconciles discretionary cash flow to net cash provided by operating activities. While discretionary cash flow is not a GAAP measure of financial performance, management believes it is a good tool for internal use and the investment community in evaluating the company's overall financial performance. Among management, professional research analysts, portfolio managers and investors following the oil and gas industry, discretionary cash flow is broadly used as an indicator of a company's ability to fund exploration and production activities and meet financial obligations. Discretionary cash flow is also commonly used as a basis to value and compare companies in the oil and gas industry. CONSOLIDATED CONDENSED BALANCE SHEET (Unaudited) (In thousands) 09/30/2005 12/31/2004 ASSETS Current Assets $1,188,010 $734,302 Property, Plant and Equipment 8,400,573 4,349,268 Less: Accumulated Depreciation (2,211,156) (2,016,318) 6,189,417 2,332,950 Investment In Unconsol. Subs. 229,991 231,795 Goodwill 898,241 --- Other 189,420 144,124 $8,695,079 $3,443,171 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities $1,443,707 $665,004 Long-term Debt 2,116,797 880,256 Deferred Income Taxes, 1,124,855 183,351 Other Deferred Credits and Noncurrent Liabilities 1,240,776 254,572 Shareholders' Equity 2,768,944 1,459,988 $8,695,079 $3,443,171 SCHEDULE 3 NOBLE ENERGY, INC. INCOME BEFORE INCOME TAXES (Unaudited) (Dollars in thousands) Three Months Ended 9/30/05 Consolidated North America North Sea REVENUES Oil Sales $305,213 $138,756 $28,550 Gas Sales [C] 296,056 271,008 4,712 Gathering, Marketing and Processing Revenue 8,831 Electricity Sales 18,843 Income from Unconsolidated Subsidiaries 16,226 Total Revenues 645,169 409,764 33,262 COSTS AND EXPENSES Oil and Gas Operations 64,775 45,822 2,873 Production & Ad Valorem Taxes 24,304 22,316 Transportation 8,357 6,473 1,630 Oil and Gas Exploration 77,253 73,129 1,440 Gathering, Marketing and Processing Expense 5,856 Electricity Generation 16,746 DD&A 113,835 89,623 2,548 Impairment of Operating Assets 5,198 5,198 SG&A 29,346 9,968 809 Accretion Expense 2,928 2,544 285 Interest Expense (net) 29,045 Deferred Compensation 21,429 Loss on Involuntary Conversion 1,000 1,000 Other Expense/(Income) net 890 2,817 (319) Total Costs and Expenses 400,962 258,890 9,266 OPERATING INCOME (LOSS) $244,207 $150,874 $23,996 Key Statistics Daily Production Liquids (Bbl) 69,729 30,475 5,198 Natural Gas (Mcf) 593,620 413,789 9,970 Average Realized Price Liquids $47.58 $49.49 $59.71 Natural Gas $5.65 $7.12 $5.14 SCHEDULE 3 NOBLE ENERGY, INC. INCOME BEFORE INCOME TAXES (Unaudited) (Dollars in thousands) Three Months Ended 9/30/05 (Continued) Equatorial Other Corporate Guinea Israel International [A] and Other [B] REVENUES Oil Sales $103,759 $--- $34,148 $--- Gas Sales [C] 933 19,377 26 Gathering, Marketing and Processing Revenue 8,831 Electricity Sales 18,843 Income from Unconsolidated Subsidiaries 16,226 Total Revenues $120,918 19,377 53,017 8,831 COSTS AND EXPENSES Oil and Gas Operations 10,100 2,124 3,671 185 Production & Ad Valorem Taxes 1,881 107 Transportation 254 Oil and Gas Exploration 427 13 124 2,120 Gathering, Marketing and Processing Expense 5,856 Electricity Generation 16,746 DD&A 10,309 3,201 6,409 1,745 Impairment of Operating Assets SG&A 104 12 1,890 16,563 Accretion Expense 10 55 34 Interest Expense (net) 29,045 Deferred Compensation 21,429 Loss on Involuntary Conversion Other Expense/(Income) net (313) (447) (1,075) 227 Total Costs and Expenses 20,637 4,958 29,934 77,277 OPERATING INCOME (LOSS) $100,281 $14,419 $23,083 $(68,446) Key Statistics Daily Production Liquids (Bbl) 25,883 8,173 Natural Gas (Mcf) 63,193 81,942 24,726 [C] Average Realized Price Liquids $43.57 $45.41 Natural Gas $0.16 $2.57 $1.10 SCHEDULE 3 NOBLE ENERGY, INC. INCOME BEFORE INCOME TAXES (Unaudited) (Dollars in thousands) Three Months Ended 9/30/04 Consolidated North America North Sea REVENUES Oil Sales $139,717 $61,711 $23,945 Gas Sales 148,782 $125,724 3,828 Gathering, Marketing and Processing Revenue 10,175 Electricity Sales 7,504 Income from Unconsolidated Subsidiaries 13,585 Total Revenues 319,763 187,435 27,773 COSTS AND EXPENSES Oil and Gas Operations 36,449 22,379 2,729 Production & Ad Valorem Taxes 7,193 5,548 Transportation 3,718 1,533 2,034 Oil and Gas Exploration 26,588 21,419 3,843 Gathering, Marketing and Processing Expense 8,642 Electricity Generation 8,600 DD&A 75,040 57,328 3,985 SG&A 13,326 3,609 Accretion Expense 2,067 1,754 264 Interest Expense (net) 14,948 Loss on Involuntary Conversion 1,000 1,000 Other Expense/(Income) net (6,399) (2,877) (90) Total Costs and Expenses 191,172 111,693 12,765 OPERATING INCOME (LOSS) 128,591 75,742 15,008 Discontinued Operations 4,186 4,186 OPERATING INCOME AFTER DISCONTINUED OPERATIONS $132,777 $79,928 $15,008 Key Statistics Daily Production Liquids (Bbl) 42,729 21,219 5,989 Natural Gas (Mcf) 370,429 231,990 9,694 Average Realized Price Liquids $35.62 $31.61 $43.46 Natural Gas $4.51 $5.89 $4.29 SCHEDULE 3 NOBLE ENERGY, INC. INCOME BEFORE INCOME TAXES (Unaudited) (Dollars in thousands) Three Months Ended 9/30/04 (Continued) Equatorial Other Corporate Guinea Israel International [A] and Other [B] REVENUES Oil Sales $32,336 $--- $21,725 $--- Gas Sales 902 18,318 10 Gathering, Marketing and Processing Revenue 10,175 Electricity Sales 7,504 Income from Unconsolidated Subsidiaries 13,585 Total Revenues 46,823 18,318 29,239 10,175 COSTS AND EXPENSES Oil and Gas Operations 5,422 2,126 3,956 (163) Production & Ad Valorem Taxes 1,645 Transportation 151 Oil and Gas Exploration 22 135 378 791 Gathering, Marketing and Processing Expense 8,642 Electricity Generation 8,600 DD&A 3,819 3,013 5,457 1,438 SG&A 80 47 9,590 Accretion Expense 49 Interest Expense (net) 14,948 Loss on Involuntary Conversion Other Expense/(Income) net (137) (1,161) 121 (2,255) Total Costs and Expenses 9,206 4,162 20,355 32,991 OPERATING INCOME (LOSS) 37,617 14,156 8,884 (22,816) Discontinued Operations OPERATING INCOME AFTER DISCONTINUED OPERATIONS $37,617 $14,156 $8,884 $(22,816) Key Statistics Daily Production Liquids (Bbl) 8,573 6,948 Natural Gas (Mcf) 45,364 71,619 11,762 [C] Average Realized Price Liquids $41.00 $33.99 Natural Gas $0.22 $2.78 $0.93 SCHEDULE 4 NOBLE ENERGY, INC. INCOME BEFORE INCOME TAXES (Unaudited) (Dollars in thousands) Nine Months Ended 9/30/05 Consolidated North America North Sea REVENUES Oil Sales $709,177 $297,090 $80,097 Gas Sales [C] 662,753 596,867 13,723 Gathering, Marketing and Processing Revenue 28,735 Electricity Sales 54,978 Income from Unconsolidated Subsidiaries 44,279 Total Revenues 1,499,922 893,957 93,820 COSTS AND EXPENSES Oil and Gas Operations 151,183 100,506 9,000 Production & Ad Valorem Taxes 51,125 41,346 Transportation 18,577 13,192 4,728 Oil and Gas Exploration 126,508 111,096 5,191 Gathering, Marketing and Processing Expense 20,905 Electricity Generation 37,637 DD&A 281,041 216,553 8,241 Impairment of Operating Assets 5,198 5,198 SG&A 69,326 21,248 1,737 Accretion Expense 8,137 6,994 849 Interest Expense (net) 54,987 Deferred Compensation 31,307 Loss on Involuntary Conversion 1,000 1,000 Other Expense/(Income) net (1,046) 3,515 (1,119) Total Costs and Expenses 855,885 520,648 28,627 OPERATING INCOME (LOSS) $644,037 $373,309 $65,193 Key Statistics Daily Production Liquids (Bbl) 58,621 24,617 5,630 Natural Gas (Mcf) 476,636 317,976 9,285 Average Realized Price Liquids $44.31 $44.21 $52.11 Natural Gas $5.34 $6.88 $5.41 SCHEDULE 4 NOBLE ENERGY, INC. INCOME BEFORE INCOME TAXES (Unaudited) (Dollars in thousands) Nine Months Ended 9/30/05 (Continued) Equatorial Other Corporate Guinea Israel International [A] and Other [B] REVENUES Oil Sales $238,778 $--- $93,212 $--- Gas Sales [C] 2,726 49,407 30 Gathering, Marketing and Processing Revenue 28,735 Electricity Sales 54,978 Income from Unconsolidated Subsidiaries 44,279 Total Revenues 285,783 49,407 148,220 28,735 COSTS AND EXPENSES Oil and Gas Operations 24,077 6,124 11,564 (88) Production & Ad Valorem Taxes 9,371 408 Transportation 657 Oil and Gas Exploration 2,312 105 2,116 5,688 Gathering, Marketing and Processing Expense 20,905 Electricity Generation 37,637 DD&A 23,889 8,400 19,022 4,936 Impairment of Operating Assets SG&A 435 39 4,483 41,384 Accretion Expense 28 165 101 Interest Expense (net) 54,987 Deferred Compensation 31,307 Loss on Involuntary Conversion Other Expense/(Income) net (360) (1,308) (950) (824) Total Costs and Expenses 50,381 13,525 84,001 158,703 OPERATING INCOME (LOSS) $235,402 $35,882 $64,219 $(129,968) Key Statistics Daily Production Liquids (Bbl) 20,057 8,317 Natural Gas (Mcf) 60,320 67,182 21,873 [C] Average Realized Price Liquids $43.61 $41.05 Natural Gas $0.17 $2.69 $1.10 SCHEDULE 4 NOBLE ENERGY, INC. INCOME BEFORE INCOME TAXES (Unaudited) (Dollars in thousands) Nine Months Ended 9/30/04 Consolidated North America North Sea REVENUES Oil Sales $412,229 $193,747 $71,187 Gas Sales 443,122 393,030 13,913 Gathering, Marketing and Processing Revenue 37,295 Electricity Sales 38,369 Income from Unconsolidated Subsidiaries 43,953 Total Revenues 974,968 586,777 85,100 COSTS AND EXPENSES Oil and Gas Operations 112,575 72,699 8,143 Production & Ad Valorem Taxes 20,458 16,793 Transportation 14,284 7,184 6,639 Oil and Gas Exploration 82,100 68,203 9,805 Gathering, Marketing and Processing Expense 29,992 Electricity Generation 32,034 DD&A 233,365 183,271 14,426 SG&A 41,518 10,464 1 Accretion Expense 7,080 6,066 886 Interest Expense (net) 39,318 Loss on Involuntary Conversion 1,000 1,000 Other Expense/(Income) net (12,178) (3,992) (1,723) Total Costs and Expenses 601,546 361,688 38,177 OPERATING INCOME (LOSS) 373,422 225,089 46,923 Discontinued Operations 22,083 22,083 OPERATING INCOME AFTER DISCONTINUED OPERATIONS $395,505 $247,172 $46,923 Key Statistics Daily Production Liquids (Bbl) 45,456 22,424 6,919 Natural Gas (Mcf) 367,565 246,334 11,471 Average Realized Price Liquids $33.10 $31.53 $37.55 Natural Gas $4.66 $5.82 $4.43 SCHEDULE 4 NOBLE ENERGY, INC. INCOME BEFORE INCOME TAXES (Unaudited) (Dollars in thousands) Nine Months Ended 9/30/04 (Continued) Equatorial Other Corporate Guinea Israel International [A] and Other [B] REVENUES Oil Sales $89,807 $--- $57,488 $--- Gas Sales 2,595 33,498 86 Gathering, Marketing and Processing Revenue 37,295 Electricity Sales 38,369 Income from Unconsolidated Subsidiaries 43,953 Total Revenues 136,355 33,498 95,943 37,295 COSTS AND EXPENSES Oil and Gas Operations 16,095 5,123 11,100 (585) Production & Ad Valorem Taxes 3,665 Transportation 461 Oil and Gas Exploration 158 803 1,212 1,919 Gathering, Marketing and Processing Expense 29,992 Electricity Generation 32,034 DD&A 9,575 6,464 15,952 3,677 SG&A 228 56 30,769 Accretion Expense 128 Interest Expense (net) 39,318 Loss on Involuntary Conversion Other Expense/(Income) net 317 (1,259) 476 (5,997) Total Costs and Expenses 26,373 11,259 64,956 99,093 OPERATING INCOME (LOSS) 109,982 22,239 30,987 (61,798) Discontinued Operations OPERATING INCOME AFTER DISCONTINUED OPERATIONS $109,982 $22,239 $30,987 $(61,798) Key Statistics Daily Production Liquids (Bbl) 9,223 6,890 Natural Gas (Mcf) 45,097 43,976 20,687 [C] Average Realized Price Liquids $35.54 $30.45 Natural Gas $0.21 $2.78 $0.72 SCHEDULE 5 METHANOL OPERATIONS (Unaudited) (Dollars in thousands) Three Months Ended Nine Months Ended 9/30/2005 9/30/2004 9/30/2005 9/30/2004 REVENUES Methanol Sales $34,745 $24,848 $94,949 $72,770 Sales of Purchased Methanol --- --- --- 708 Other 1,218 5,377 4,614 11,630 Total Revenues 35,963 30,225 99,563 85,108 COSTS AND EXPENSES Cost of Goods Manufactured 12,182 13,918 34,240 31,915 Cost of Purchased Methanol --- --- --- 811 DD&A 2,404 2,277 6,999 6,892 SG&A 529 445 1,639 1,537 Total Costs and Expenses 15,115 16,640 42,878 41,155 INCOME TAX PROVISION 4,622 12,406 INCOME FROM UNCONS. SUBS. $16,226 $13,585 $44,279 $43,953 Methanol Sales (MGal) 46,133 33,451 122,256 109,012 Average Realized Price ($/Gal) $0.75 $0.74 $0.78 $0.67 ECUADOR POWER OPERATIONS (Unaudited) (Dollars in thousands) Three Months Ended Nine Months Ended 9/30/2005 9/30/2004 9/30/2005 9/30/2005 REVENUES Power Sales $17,012 $6,026 $49,133 $32,608 Capacity Charge 1,831 1,478 5,845 5,761 Total Revenues 18,843 7,504 54,978 38,369 COSTS AND EXPENSES Field Oil and Gas Operations 616 390 2,215 1,387 DD&A 3,435 2,774 9,230 12,197 SG&A 469 627 1,539 1,777 Plant Fuel & Other Operating Costs 10,024 2,706 17,401 10,353 Depreciation 1,053 1,048 3,169 3,163 SG&A 1,149 1,055 4,083 3,157 Total Costs and Expenses 16,746 8,600 37,637 32,034 OPERATING INCOME $2,097 $(1,096) $17,341 $6,335 Natural Gas Production (Mcfpd) [C] 24,466 11,645 21,772 20,247 Average Natural Gas Price $3.93 $3.19 $3.86 $3.01 Power Production - Total MW 221,840 97,291 565,724 519,167 Average Power Price ($/Kwh) $0.085 $0.077 $0.097 $0.074 [A] Other international includes operations in Argentina, China and Ecuador. [B] Corporate and Other includes corporate overhead, intercompany eliminations and marketing. [C] Ecuador natural gas volumes are included in Other International and Consolidated production, but are not included in natural gas sales revenue for either. Because the gas-to-power project in Ecuador is 100 percent owned by Noble Energy, intercompany natural gas sales are eliminated for accounting purposes.