Noble Energy Beats on Profit as Production Increases

Gas and oil producer Noble Energy Inc reported a profit for the quarter that was better than had been expected as higher production was able to offset the huge impact of a drop in the price of crude.

Noble announced on Monday that total sales volumes were up 3% for the quarter to just over 299,000 barrels per day of oil equivalent.

The company raised its forecast for sales volume for the rest of 2015 to between 305,000 and 320,000 from its prior forecast of between 300,000 and 315,000.

Noble and other companies that produce gas and oil have used the more than 50% drop in prices of crude over the past year to acquire more assets.

In May, the company announced that it was acquiring Rosetta Resources for $2 billion to enter into the Permaian Basis and Eagle Ford Shale in Texas.

Noble said as well that in April it would cut 220 jobs in the U.S. to lower costs.

The company posted a $109 million net loss equal to 28 cents a share for quarter that ended on June 30 compared to a $192 million profit equal to 52 cents a share from the same period one year ago, as it had recorded a loss in derivatives of $274 million.

Excluding certain items, Noble was able to earn 26 cents a share during the quarter with total revenue dropping by over 47% to end the quarter at $730 million.

Analysts were expecting Noble to record a profit of 6 cents a share with its revenue reaching $887.6 million. The company, based in Houston, Texas, had its shares close last Friday at $35.23. Up to the close on Friday, the stock was close to halved in overall value during the past 12 months.

The huge drop in prices of crude has hurt many of the oil and energy producers and made them cut back on costs, eliminating jobs for many.

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