Photo: Steve Gonzales, Houston Chronicle
Noble Energy plans to boost its oil production 40 percent this year, driven by a surge of drilling in the DJ Basin in Colorado and the Delaware Basin in West Texas.
The Houston oil producer said it would continue to monitor oil prices to determine its activity levels toward the end of the year, but its capital spending is set to accelerate on its Leviathan project off the coast of Israel and as it builds central gathering facilities for oil, gas and water in the Delaware Basin.
“The U.S. onshore business is now positioned to drive growth with higher margins,” Noble CEO David Stover told investors Thursday, adding its projected jump in oil production will come largely from its properties in Texas later this year.
Noble reported a net loss of $1.5 billion, or $3.20 a share, in the second quarter, largely because of costs associated with its exit from the natural gas-rich Marcellus Shale in the northeastern United States. That compares with a loss of $315 million, or 73 cents a share, in the same period last year.Revenue increased from $847 million to $1.6 billion.
Excluding the Marcellus costs, the company collected a profit of $24 million, or 5 cents a share. It said its capital expenditures would reach the upper end of its projected $2.3 billion to $2.6 billion range this year.
Noble lifted its oil production to 408,000 barrels of oil equivalent a day, up 7 percent from the first three months of the year.
Stover said the company has completed around 15 percent of the Leviathan project, and is on track to finish the natural gas facilities near Israel at the end of 2019. The company made record sales of natural gas in the region from its Tamar project in the region, and it continues to negotiate contracts with buyers in Israel, Jordan and Egypt.
“The Israel demand for gas continues to grow and Tamar reliably delivers,” he said.
Related: Noble, partners approve $3.75 billion Israeli project