Intrinsic value of Noble Energy - NBL

Previous Close

$29.22

  Intrinsic Value

$4.43

stock screener

  Rating & Target

str. sell

-85%

Previous close

$29.22

 
Intrinsic value

$4.43

 
Up/down potential

-85%

 
Rating

str. sell

We calculate the intrinsic value of NBL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 14.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  16.10
  14.99
  13.99
  13.09
  12.28
  11.55
  10.90
  10.31
  9.78
  9.30
  8.87
  8.48
  8.13
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.21
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
Revenue, $m
  4,941
  5,682
  6,477
  7,325
  8,224
  9,175
  10,175
  11,224
  12,321
  13,467
  14,662
  15,905
  17,199
  18,545
  19,943
  21,396
  22,905
  24,475
  26,106
  27,803
  29,568
  31,406
  33,319
  35,313
  37,392
  39,559
  41,821
  44,182
  46,647
  49,224
Variable operating expenses, $m
  6,867
  7,877
  8,960
  10,116
  11,343
  12,638
  14,001
  15,431
  16,927
  18,490
  19,987
  21,683
  23,446
  25,280
  27,186
  29,167
  31,225
  33,364
  35,589
  37,902
  40,308
  42,813
  45,422
  48,140
  50,973
  53,928
  57,011
  60,229
  63,591
  67,103
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  6,867
  7,877
  8,960
  10,116
  11,343
  12,638
  14,001
  15,431
  16,927
  18,490
  19,987
  21,683
  23,446
  25,280
  27,186
  29,167
  31,225
  33,364
  35,589
  37,902
  40,308
  42,813
  45,422
  48,140
  50,973
  53,928
  57,011
  60,229
  63,591
  67,103
Operating income, $m
  -1,926
  -2,195
  -2,484
  -2,792
  -3,118
  -3,463
  -3,827
  -4,208
  -4,606
  -5,022
  -5,325
  -5,777
  -6,247
  -6,736
  -7,244
  -7,771
  -8,320
  -8,890
  -9,482
  -10,099
  -10,740
  -11,407
  -12,102
  -12,826
  -13,581
  -14,369
  -15,190
  -16,048
  -16,943
  -17,879
EBITDA, $m
  547
  629
  717
  810
  910
  1,015
  1,126
  1,242
  1,363
  1,490
  1,622
  1,760
  1,903
  2,052
  2,206
  2,367
  2,534
  2,708
  2,888
  3,076
  3,271
  3,474
  3,686
  3,907
  4,136
  4,376
  4,626
  4,888
  5,160
  5,445
Interest expense (income), $m
  327
  364
  465
  573
  690
  814
  946
  1,085
  1,231
  1,385
  1,546
  1,713
  1,888
  2,071
  2,260
  2,457
  2,662
  2,875
  3,096
  3,326
  3,564
  3,813
  4,072
  4,341
  4,621
  4,913
  5,217
  5,535
  5,866
  6,212
  6,573
Earnings before tax, $m
  -2,290
  -2,660
  -3,057
  -3,481
  -3,932
  -4,409
  -4,911
  -5,439
  -5,991
  -6,568
  -7,039
  -7,666
  -8,318
  -8,996
  -9,701
  -10,433
  -11,194
  -11,985
  -12,808
  -13,663
  -14,553
  -15,479
  -16,443
  -17,447
  -18,494
  -19,586
  -20,725
  -21,914
  -23,155
  -24,452
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -2,290
  -2,660
  -3,057
  -3,481
  -3,932
  -4,409
  -4,911
  -5,439
  -5,991
  -6,568
  -7,039
  -7,666
  -8,318
  -8,996
  -9,701
  -10,433
  -11,194
  -11,985
  -12,808
  -13,663
  -14,553
  -15,479
  -16,443
  -17,447
  -18,494
  -19,586
  -20,725
  -21,914
  -23,155
  -24,452

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  24,956
  28,696
  32,711
  36,994
  41,538
  46,337
  51,388
  56,685
  62,228
  68,015
  74,049
  80,330
  86,865
  93,659
  100,721
  108,058
  115,684
  123,610
  131,850
  140,419
  149,335
  158,616
  168,280
  178,350
  188,846
  199,793
  211,216
  223,140
  235,593
  248,605
Adjusted assets (=assets-cash), $m
  24,956
  28,696
  32,711
  36,994
  41,538
  46,337
  51,388
  56,685
  62,228
  68,015
  74,049
  80,330
  86,865
  93,659
  100,721
  108,058
  115,684
  123,610
  131,850
  140,419
  149,335
  158,616
  168,280
  178,350
  188,846
  199,793
  211,216
  223,140
  235,593
  248,605
Revenue / Adjusted assets
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
Average production assets, $m
  21,307
  24,500
  27,928
  31,585
  35,464
  39,562
  43,873
  48,396
  53,129
  58,070
  63,221
  68,584
  74,163
  79,964
  85,993
  92,258
  98,768
  105,535
  112,570
  119,886
  127,499
  135,422
  143,674
  152,271
  161,232
  170,579
  180,331
  190,512
  201,144
  212,253
Working capital, $m
  -247
  -284
  -324
  -366
  -411
  -459
  -509
  -561
  -616
  -673
  -733
  -795
  -860
  -927
  -997
  -1,070
  -1,145
  -1,224
  -1,305
  -1,390
  -1,478
  -1,570
  -1,666
  -1,766
  -1,870
  -1,978
  -2,091
  -2,209
  -2,332
  -2,461
Total debt, $m
  8,607
  10,616
  12,772
  15,072
  17,512
  20,089
  22,801
  25,646
  28,622
  31,730
  34,970
  38,343
  41,853
  45,501
  49,293
  53,233
  57,328
  61,584
  66,009
  70,611
  75,399
  80,383
  85,572
  90,980
  96,616
  102,495
  108,629
  115,032
  121,720
  128,707
Total liabilities, $m
  13,401
  15,410
  17,566
  19,866
  22,306
  24,883
  27,595
  30,440
  33,416
  36,524
  39,764
  43,137
  46,647
  50,295
  54,087
  58,027
  62,122
  66,378
  70,803
  75,405
  80,193
  85,177
  90,366
  95,774
  101,410
  107,289
  113,423
  119,826
  126,514
  133,501
Total equity, $m
  11,554
  13,286
  15,145
  17,128
  19,232
  21,454
  23,792
  26,245
  28,812
  31,491
  34,284
  37,193
  40,219
  43,364
  46,634
  50,031
  53,562
  57,231
  61,046
  65,014
  69,142
  73,439
  77,914
  82,576
  87,436
  92,504
  97,793
  103,314
  109,080
  115,104
Total liabilities and equity, $m
  24,955
  28,696
  32,711
  36,994
  41,538
  46,337
  51,387
  56,685
  62,228
  68,015
  74,048
  80,330
  86,866
  93,659
  100,721
  108,058
  115,684
  123,609
  131,849
  140,419
  149,335
  158,616
  168,280
  178,350
  188,846
  199,793
  211,216
  223,140
  235,594
  248,605
Debt-to-equity ratio
  0.740
  0.800
  0.840
  0.880
  0.910
  0.940
  0.960
  0.980
  0.990
  1.010
  1.020
  1.030
  1.040
  1.050
  1.060
  1.060
  1.070
  1.080
  1.080
  1.090
  1.090
  1.090
  1.100
  1.100
  1.100
  1.110
  1.110
  1.110
  1.120
  1.120
Adjusted equity ratio
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2,290
  -2,660
  -3,057
  -3,481
  -3,932
  -4,409
  -4,911
  -5,439
  -5,991
  -6,568
  -7,039
  -7,666
  -8,318
  -8,996
  -9,701
  -10,433
  -11,194
  -11,985
  -12,808
  -13,663
  -14,553
  -15,479
  -16,443
  -17,447
  -18,494
  -19,586
  -20,725
  -21,914
  -23,155
  -24,452
Depreciation, amort., depletion, $m
  2,472
  2,823
  3,200
  3,602
  4,028
  4,478
  4,952
  5,449
  5,969
  6,512
  6,947
  7,537
  8,150
  8,787
  9,450
  10,138
  10,854
  11,597
  12,370
  13,174
  14,011
  14,882
  15,788
  16,733
  17,718
  18,745
  19,817
  20,935
  22,104
  23,324
Funds from operations, $m
  182
  164
  143
  121
  96
  69
  41
  10
  -22
  -56
  -91
  -129
  -168
  -209
  -251
  -295
  -341
  -388
  -438
  -489
  -542
  -597
  -655
  -714
  -776
  -841
  -908
  -978
  -1,051
  -1,127
Change in working capital, $m
  -34
  -37
  -40
  -42
  -45
  -48
  -50
  -52
  -55
  -57
  -60
  -62
  -65
  -67
  -70
  -73
  -75
  -78
  -82
  -85
  -88
  -92
  -96
  -100
  -104
  -108
  -113
  -118
  -123
  -129
Cash from operations, $m
  217
  201
  183
  163
  141
  117
  91
  63
  33
  1
  -32
  -67
  -103
  -141
  -181
  -222
  -265
  -310
  -356
  -404
  -454
  -505
  -559
  -615
  -673
  -733
  -795
  -860
  -928
  -999
Maintenance CAPEX, $m
  -2,017
  -2,341
  -2,692
  -3,069
  -3,471
  -3,897
  -4,347
  -4,821
  -5,318
  -5,838
  -6,381
  -6,947
  -7,537
  -8,150
  -8,787
  -9,450
  -10,138
  -10,854
  -11,597
  -12,370
  -13,174
  -14,011
  -14,882
  -15,788
  -16,733
  -17,718
  -18,745
  -19,817
  -20,935
  -22,104
New CAPEX, $m
  -2,954
  -3,194
  -3,428
  -3,656
  -3,879
  -4,098
  -4,312
  -4,523
  -4,732
  -4,941
  -5,151
  -5,363
  -5,579
  -5,801
  -6,029
  -6,265
  -6,510
  -6,767
  -7,035
  -7,316
  -7,612
  -7,923
  -8,251
  -8,597
  -8,962
  -9,346
  -9,752
  -10,181
  -10,632
  -11,109
Cash from investing activities, $m
  -4,971
  -5,535
  -6,120
  -6,725
  -7,350
  -7,995
  -8,659
  -9,344
  -10,050
  -10,779
  -11,532
  -12,310
  -13,116
  -13,951
  -14,816
  -15,715
  -16,648
  -17,621
  -18,632
  -19,686
  -20,786
  -21,934
  -23,133
  -24,385
  -25,695
  -27,064
  -28,497
  -29,998
  -31,567
  -33,213
Free cash flow, $m
  -4,754
  -5,334
  -5,937
  -6,562
  -7,209
  -7,878
  -8,568
  -9,281
  -10,018
  -10,778
  -11,564
  -12,377
  -13,219
  -14,092
  -14,997
  -15,937
  -16,914
  -17,930
  -18,988
  -20,091
  -21,240
  -22,440
  -23,692
  -25,000
  -26,367
  -27,797
  -29,292
  -30,857
  -32,496
  -34,211
Issuance/(repayment) of debt, $m
  1,861
  2,009
  2,156
  2,300
  2,440
  2,577
  2,712
  2,845
  2,976
  3,108
  3,240
  3,373
  3,509
  3,648
  3,792
  3,940
  4,095
  4,256
  4,425
  4,602
  4,788
  4,984
  5,190
  5,407
  5,637
  5,879
  6,134
  6,403
  6,687
  6,987
Issuance/(repurchase) of shares, $m
  3,908
  4,392
  4,916
  5,464
  6,036
  6,631
  7,250
  7,892
  8,557
  9,248
  9,832
  10,574
  11,343
  12,141
  12,970
  13,831
  14,725
  15,655
  16,623
  17,631
  18,681
  19,776
  20,918
  22,110
  23,354
  24,654
  26,014
  27,435
  28,921
  30,476
Cash from financing (excl. dividends), $m  
  5,769
  6,401
  7,072
  7,764
  8,476
  9,208
  9,962
  10,737
  11,533
  12,356
  13,072
  13,947
  14,852
  15,789
  16,762
  17,771
  18,820
  19,911
  21,048
  22,233
  23,469
  24,760
  26,108
  27,517
  28,991
  30,533
  32,148
  33,838
  35,608
  37,463
Total cash flow (excl. dividends), $m
  1,015
  1,066
  1,135
  1,201
  1,267
  1,331
  1,393
  1,455
  1,516
  1,578
  1,508
  1,570
  1,633
  1,698
  1,765
  1,834
  1,906
  1,981
  2,060
  2,142
  2,228
  2,320
  2,416
  2,517
  2,624
  2,736
  2,855
  2,980
  3,113
  3,252
Retained Cash Flow (-), $m
  -3,908
  -4,392
  -4,916
  -5,464
  -6,036
  -6,631
  -7,250
  -7,892
  -8,557
  -9,248
  -9,832
  -10,574
  -11,343
  -12,141
  -12,970
  -13,831
  -14,725
  -15,655
  -16,623
  -17,631
  -18,681
  -19,776
  -20,918
  -22,110
  -23,354
  -24,654
  -26,014
  -27,435
  -28,921
  -30,476
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -2,893
  -3,326
  -3,781
  -4,263
  -4,769
  -5,301
  -5,856
  -6,437
  -7,041
  -7,670
  -8,324
  -9,004
  -9,710
  -10,443
  -11,205
  -11,996
  -12,819
  -13,674
  -14,563
  -15,489
  -16,452
  -17,456
  -18,502
  -19,593
  -20,731
  -21,918
  -23,158
  -24,454
  -25,808
  -27,224
Discount rate, %
  5.80
  6.09
  6.39
  6.71
  7.05
  7.40
  7.77
  8.16
  8.57
  9.00
  9.45
  9.92
  10.42
  10.94
  11.48
  12.06
  12.66
  13.29
  13.96
  14.66
  15.39
  16.16
  16.97
  17.81
  18.71
  19.64
  20.62
  21.65
  22.74
  23.87
PV of cash for distribution, $m
  -2,734
  -2,955
  -3,140
  -3,287
  -3,392
  -3,453
  -3,468
  -3,436
  -3,360
  -3,241
  -3,084
  -2,894
  -2,678
  -2,442
  -2,194
  -1,941
  -1,689
  -1,446
  -1,216
  -1,005
  -814
  -647
  -503
  -383
  -285
  -207
  -147
  -101
  -68
  -44
Current shareholders' claim on cash, %
  78.5
  62.0
  49.3
  39.4
  31.6
  25.5
  20.6
  16.7
  13.6
  11.1
  9.1
  7.5
  6.2
  5.1
  4.2
  3.5
  2.9
  2.4
  2.0
  1.7
  1.4
  1.2
  1.0
  0.8
  0.7
  0.6
  0.5
  0.4
  0.3
  0.3

Noble Energy, Inc. is an independent energy company. The Company is engaged in crude oil, natural gas and natural gas and natural gas liquids (NGLs) exploration, development, production and acquisition. The Company's segments include: United States, including the onshore DJ Basin, Permian Basin, Eagle Ford Shale, Marcellus Shale and offshore deepwater Gulf of Mexico, as well as the consolidated accounts of Noble Midstream Partners LP (Noble Midstream Partners); Eastern Mediterranean, including offshore Israel and Cyprus; West Africa, including offshore Equatorial Guinea, Cameroon and Gabon, and Other International and Corporate, including new ventures, such as offshore the Falkland Islands, Suriname and Newfoundland. The Company's portfolio of assets is diversified through the United States and international projects and production mix among crude oil, natural gas and NGLs. Its business focuses on both the United States unconventional basins and certain global conventional basins.

FINANCIAL RATIOS  of  Noble Energy (NBL)

Valuation Ratios
P/E Ratio -12.6
Price to Sales 3.6
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 9.3
Price to Free Cash Flow -66.2
Growth Rates
Sales Growth Rate 9.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -48.3%
Cap. Spend. - 3 Yr. Gr. Rate -17.1%
Financial Strength
Quick Ratio 19
Current Ratio 0
LT Debt to Equity 75.5%
Total Debt to Equity 76.2%
Interest Coverage -4
Management Effectiveness
Return On Assets -3.6%
Ret/ On Assets - 3 Yr. Avg. -2.1%
Return On Total Capital -5.7%
Ret/ On T. Cap. - 3 Yr. Avg. -3.9%
Return On Equity -10.2%
Return On Equity - 3 Yr. Avg. -7.1%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 86.7%
Gross Margin - 3 Yr. Avg. 91.5%
EBITDA Margin 28.9%
EBITDA Margin - 3 Yr. Avg. 35.3%
Operating Margin -37.1%
Oper. Margin - 3 Yr. Avg. -32.3%
Pre-Tax Margin -50.8%
Pre-Tax Margin - 3 Yr. Avg. -29%
Net Profit Margin -28.6%
Net Profit Margin - 3 Yr. Avg. -27.2%
Effective Tax Rate 44.4%
Eff/ Tax Rate - 3 Yr. Avg. 21.1%
Payout Ratio -17.2%

NBL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NBL stock intrinsic value calculation we used $4256 million for the last fiscal year's total revenue generated by Noble Energy. The default revenue input number comes from 0001 income statement of Noble Energy. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NBL stock valuation model: a) initial revenue growth rate of 16.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.8%, whose default value for NBL is calculated based on our internal credit rating of Noble Energy, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Noble Energy.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NBL stock the variable cost ratio is equal to 139.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NBL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Noble Energy.

Corporate tax rate of 27% is the nominal tax rate for Noble Energy. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NBL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NBL are equal to 431.2%.

Life of production assets of 9.1 years is the average useful life of capital assets used in Noble Energy operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NBL is equal to -5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $9936 million for Noble Energy - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 487 million for Noble Energy is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Noble Energy at the current share price and the inputted number of shares is $14.2 billion.

RELATED COMPANIES Price Int.Val. Rating
CNX CNX Resources 14.54 4.42  str.sell
PDCE PDC Energy 46.39 9.55  str.sell
SN Sanchez Energy 2.23 63.89  str.buy
MRO Marathon Oil 20.67 3.39  str.sell
SLB Schlumberger 58.47 40.68  sell
COG Cabot Oil&Gas 23.97 1.43  str.sell

COMPANY NEWS

▶ Behind the deal: Houston midstream cos. partner on Permian pipeline project   [Oct-15-18 08:56AM  American City Business Journals]
▶ EPIC Pipeline To Switch To Carrying Crude Oil   [Oct-05-18 10:16AM  Investor's Business Daily]
▶ Noble Midstream MLP partners with new Houston JV on Permian oil pipeline system   [Oct-03-18 03:07PM  American City Business Journals]
▶ Permian Producers Have A Power Problem   [10:00AM  Oilprice.com]
▶ 6 Companies That Invest in Themselves   [Sep-10-18 11:56AM  Kiplinger]
▶ Here's The Latest Sign That Permian Shale Oil Is Slowing Down   [Sep-05-18 04:11PM  Investor's Business Daily]
▶ Why ProPetro Holding Corp's Stock Is Plunging Today   [Aug-30-18 03:32PM  Motley Fool]
▶ The 3 Worst-Performing Stocks in August   [Aug-29-18 11:18AM  Motley Fool]
▶ Why This Energy Stock Is a Dividend Investor's Dream   [Aug-28-18 04:40PM  Motley Fool]
▶ West Texas oil is gushing and pipelines can't handle it   [Aug-27-18 10:17AM  Yahoo Finance Video]
▶ Noble Energy to Present at Upcoming Energy Conference   [Aug-20-18 04:15PM  GlobeNewswire]
▶ Noble Energy shifts drilling focus to Colorado over the Permian Basin   [Aug-16-18 04:55PM  American City Business Journals]
▶ Shale Profits Remain Elusive   [Aug-14-18 06:00PM  Oilprice.com]
▶ Colorado oil and gas stocks hit hard by anti-fracking ballot initiative news   [Aug-10-18 04:48PM  American City Business Journals]
▶ As Iran Sanctions Kick In, Look to US Oil Export Markets   [Aug-08-18 12:38PM  TheStreet.com]
▶ Take-Two and Kraft Heinz jump while Symantec slips   [Aug-03-18 04:54PM  Associated Press]
▶ Noble: 2Q Earnings Snapshot   [06:51AM  Associated Press]
▶ Earnings Preview: Noble Energy   [03:07PM  Benzinga]
▶ SA company adds partner on Permian-to-Corpus pipeline   [Jul-27-18 03:25PM  American City Business Journals]
▶ 7 Oil Stocks That Can Gush Big Returns   [12:35PM  Investopedia]
▶ Noble Energy Declares Quarterly Dividend   [Jul-24-18 10:57AM  GlobeNewswire]
▶ Drilling Permit Roundup: Live Oak County emerging as new hot spot   [08:15AM  American City Business Journals]
▶ Energy Earnings: 8 Stocks to Buy Now   [Jul-18-18 02:36PM  Barrons.com]
▶ Bank of America and Arconic climb while Noble Energy skids   [Jul-16-18 04:52PM  Associated Press]
▶ 1 Elite Oil Stock You're Probably Overlooking   [Jul-14-18 11:18AM  Motley Fool]
▶ Noble Energy Is Ready for a Rally Above Its 2016 Zenith   [Jun-28-18 01:20PM  TheStreet.com]
▶ How Important Are Egypts Gas Discoveries?   [01:00PM  Oilprice.com]
▶ Why Oil Stocks Could Have Much Further to Run   [Jun-17-18 06:34AM  Motley Fool]
▶ Noble Energy hires general counsel from BHP   [May-24-18 12:57PM  American City Business Journals]
▶ Anadarko reaches settlement with families of men killed in Firestone home explosion   [May-23-18 05:02PM  American City Business Journals]
▶ 3 Energy Stocks Poised for Big Breakouts   [06:00AM  Investopedia]
▶ MARKETS: $80 Brent crude oil isn't phasing S&P 500 bullsyet   [May-17-18 10:15AM  Yahoo Finance Video]
▶ U.S. Shale Oil Production Rises At Record-Breaking Rate   [May-15-18 12:00PM  Oilprice.com]
▶ [$$] EPIC Secures Partnerships for Crude-Oil Pipeline   [May-11-18 12:21PM  The Wall Street Journal]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.