Noble Energy, Inc. (NYSE: NBL) is at an
inflection point, with goals of lowering spending and increasing production in 2019, according to Imperial Capital.
The Analyst
Imperial Capital’s Irene Haas maintains an Outperform rating on Noble
Energy with a $39 price target.
The Thesis
Noble Energy recorded revenue, adjusted EBITDA and cash flow per share of $5 billion, $3 billion and $4.93,
respectively, for the 12 months ended Dec. 31, 2018.
On that day, the company had cash of around $716 million, $6.7 billion in long-term debt and total liquidity of $4.7 billion,
Haas said in a Wednesday note.
For 2019, Noble Energy has guided to consolidated capex of around $2.7 billion. This is lower than the $3.5 billion recorded in
2018 and is below Imperial Capital’s estimate of $3.8 billion.
The company expects 5-percent production growth, with growth in onshore U.S. offsetting a decline in production from West Africa
and flat production from Israel, the analyst said.
Noble Energy expects to grow production by 15-20 percent in 2020, alongside a 15-20-percent decline in spending and free
cash flow generation of $500 million.
Imperial Capital raised its 2019 EBITDA and CFPS estimates for Noble Energy from $2.802 billion to $2.831.9 billion
and from $4.99 to $5.22, respectively.
Price Action
Shares of Noble Energy rose slightly to close trading at $23.70 on Tuesday.
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Latest Ratings for NBL
| Date |
Firm |
Action |
From |
To |
| Jan 2019 |
Morgan Stanley |
Upgrades |
Equal-Weight |
Overweight |
| Dec 2018 |
Capital One Financial |
Upgrades |
Underweight |
Equal-Weight |
| Dec 2018 |
Evercore ISI Group |
Downgrades |
Outperform |
In-Line |
View More Analyst Ratings for
NBL
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Ratings
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