Noble Energy cuts capital budget in half for 2016

HOUSTON -- Noble Energy has set this year’s capital budget at $1.5 billion, which is about 50% lower than last year.

According to Noble, two thirds of the budget will be used for the development of unconventional resources in the U.S. While the remainder has been allocated for offshore development and exploration, with $250 million set aside for the Gulf of Mexico. 

Onshore, the DJ basin has been slated to receive the most at $600 million, while the Eagle Ford and Marcellus have each been assigned $150 million. The Delaware basin was allocated $100 million.

According to Noble, the company’s activity will be primarily focused on drilling, completion and associated midstream investments in the Wells Ranch and East Pony IDPs in the DJ basin, while also furthering development of the Eagle Ford and delineation of the Delaware basin assets.

Capital expenditures in the Marcellus shale will be limited to the completion of certain previously drilled wells, primarily located in non-operated dry gas areas, the company said.

The company reported a net loss for the fourth quarter of $2.03 billion, or $4.73 per share. However, excluding certain costs, the Houston-based company reported net income of $191 million, or $0.44 per share.