Noble Energy, Inc. is a Delaware corporation, formed in 1969, that has been
publicly traded on the New York Stock Exchange (“NYSE”) since 1980.
We are an independent energy company that has been engaged in the exploration,
development, production and marketing of crude oil and natural gas since 1932.
In this report, unless otherwise indicated or where the context otherwise requires,
information includes that of Noble Energy and its subsidiaries. Exploration
activities include geophysical and geological evaluation and exploratory drilling
on properties for which we have exploration rights. We operate throughout major
basins in the U.S. including Colorado’s Wattenberg field, the Mid-continent
region of western Oklahoma and the Texas Panhandle, the San Juan Basin in New
Mexico, the Gulf Coast and the Gulf of Mexico. In addition, we conduct business
internationally in West Africa (Equatorial Guinea and Cameroon), the Mediterranean
Sea, Ecuador, the North Sea, China, Argentina, and Suriname.
We are a worldwide producer of crude oil and natural gas. Our strategy is to
achieve growth in earnings and cash flow through the development of a high quality
portfolio of producing assets that is balanced between domestic and international
projects. In 2005, we completed a merger (the “Patina Merger”) with
Patina Oil & Gas Corporation (“Patina”). In 2006, we acquired
U.S. Exploration Holdings, Inc. (“U.S. Exploration”) and sold substantially
all of our Gulf of Mexico shelf properties, except for the Main Pass area. These
transactions have allowed us to achieve a strategic objective of enhancing our
U.S. asset portfolio which has resulted in a company with assets and capabilities
that include growing U.S. basins coupled with a significant portfolio of international
properties.
We search for crude oil and natural gas properties, seek to acquire exploration
rights in areas of interest and conduct exploratory activities. These activities
include geophysical and geological evaluation and exploratory drilling, where
appropriate, on properties for which we have acquired exploration rights. Our
properties consist primarily of interests in developed and undeveloped crude
oil and natural gas leases. We also own NGL processing plants and pipeline systems.
Natural Gas Marketing
Natural gas produced in the U.S. is sold under short-term or long-term contracts
at market-based prices. In Equatorial Guinea and Israel, we sell natural gas
to end-users under long-term contracts at negotiated prices.
Crude Oil and Condensate Marketing
Crude oil and condensate produced in the U.S. and foreign locations is generally
sold under short-term contracts at market-based prices adjusted for location
and quality. In China, we sell crude oil into the local market under a long-term
contract. Crude oil and condensate are distributed through pipelines and by
trucks or tankers to gatherers, transportation companies and end-users.
Noble Energy Marketing, Inc.
We market portions of our domestic natural gas production through Noble Energy
Marketing, Inc. (“NEMI”), a wholly-owned subsidiary. NEMI seeks
opportunities to enhance the value of our domestic natural gas production by
marketing directly to end-users and aggregating natural gas to be sold to natural
gas marketers and pipelines. NEMI also engages in the purchase and sale of third-party
crude oil and natural gas production. Such third-party production may be purchased
from non-operators who own working interests in our wells or from other producers’
properties in which we own no interest.
Competition
The crude oil and natural gas industry is highly competitive. We encounter
competition from other crude oil and natural gas companies in all areas of operations,
including the acquisition of seismic and lease rights on crude oil and natural
gas properties and for the labor and equipment required for exploration and
development of those properties. Our competitors include major integrated crude
oil and natural gas companies and numerous independent crude oil and natural
gas companies, individuals and drilling and income programs. Many of our competitors
are large, well established companies. Such companies may be able to pay more
for seismic and lease rights on crude oil and natural gas properties and exploratory
prospects and to define, evaluate, bid for and purchase a greater number of
properties and prospects than our financial or human resources permit.
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