Noble Energy Announces Record Fourth Quarter and Full Year 2007 Results



    HOUSTON, Feb. 27 /CNW/ -- Noble Energy, Inc. (NYSE:   NBL) today reported
its fourth quarter and full year 2007 results.
    Fourth quarter 2007 net income was a record $300 million, or $1.73 per
share diluted, which compares to fourth quarter 2006 net income of $165
million, or 94 cents per share diluted.  Discretionary cash flow (non-GAAP
measure, see Schedule 3, Discretionary Cash Flow and Reconciliation to
Operating Cash Flow) for the fourth quarter 2007 was $625 million, compared to
$487 million for the same period in 2006.  Net cash provided by operating
activities was $696 million.
    Noble Energy reported record full year net income of $944 million, or
$5.45 per share diluted.  Discretionary cash flow for the year was $2.1
billion and net cash provided by operating activities for 2007 was $2 billion.
 Capital expenditures for the year totaled $1.74 billion.
    Key accomplishments for the fourth quarter 2007 include:

    
    -- Daily sales volume increase of eight percent versus fourth quarter
        2006
    -- Record volumes in the Rocky Mountains
    -- Swordfish sidetrack in the deepwater Gulf of Mexico came online
       resulting in an increase of the field's net sales of 27 million cubic
       feet equivalent per day (Mmcfepd)
    -- Exploration success at the Yolanda prospect on Block "I" offshore
       Equatorial Guinea (EG)
    -- Successful 'I-4' well on trend with the Belinda discovery on Block "O"
       offshore EG
    -- Reserve replacement of 166 percent
    -- Agreement reached to divest Argentina assets
    
    "Noble Energy's record fourth quarter 2007 closed out an outstanding year
for the company.  The momentum we have generated with our exploration programs
continued with two additional successful tests in Equatorial Guinea during the
quarter.  In total, we drilled six successful exploration and appraisal wells
in West Africa during the year with only one dry hole.  Our deepwater Gulf of
Mexico development projects are now adding incremental sales, which will help
maintain this important producing area in 2008, as we continue with our
exploration.  The 2007 investment program allowed us to substantially grow our
volumes, grow our reserves, carry out what was likely the company's best
exploration year in its history, and at the same time still generate
significant free cash flow," said Noble Energy's Chairman, President and CEO,
Charles D. Davidson.
    Total sales volumes for the fourth quarter 2007 averaged 200 thousand
barrels of oil equivalent per day (MBoepd) compared to 185 MBoepd for the same
period in 2006.  For the year, total sales volumes were approximately 199
MBoepd, 13 percent greater than the full year 2006 after adjusting for the
Gulf of Mexico shelf assets sold in 2006.
    
    UNITED STATES FOURTH QUARTER OPERATIONS
    
    United States operating income was $222 million, an increase of 42
percent from the fourth quarter 2006.  Total United States sales volumes were
109 MBoepd in the fourth quarter 2007, as compared to 116 MBoepd for the same
period in 2006.  In the deepwater Gulf of Mexico, well performance and
third-party facility restrictions lowered volumes by 9 MBoepd from the prior
year period.  An increase of 6 MBoepd in the Rocky Mountains, attributable to
ongoing drilling programs, more than offset a decrease of 4 MBoepd in our
remaining domestic properties.
    Higher commodity prices versus the prior year period, crude oil up 25
percent and natural gas up 15 percent, more than offset the decline in
volumes.  The following table provides a detailed breakdown of the major
components impacting the fourth quarter 2007 domestic natural gas and crude
oil prices.


    
                                $ Per Mcf                          $ Per Bbl
    Natural Gas Market Price       4.86    Crude Oil Market Price     84.51
    Cash Flow Hedges Settled      (0.01)   Cash Flow Hedges Settled  (24.01)
    Gulf of Mexico OCL Addback(*)    1.28                                 -
    NGL Processing Uplift          1.65                                 -
    Realized Natural Gas Price    $7.78    Realized Crude Oil Price  $60.50
    


    
    (*)Natural gas prices included a benefit that was attributable to previously
     recognized losses for hedge contracts that were re-designated concurrent
     with the 2006 Gulf of Mexico Shelf asset sale.
    
    United States costs for the quarter were down approximately $17 million
from the fourth quarter 2006.  Exploration expense was relatively flat despite
unsuccessful tests at Robusto and Lost Ark South in the deepwater Gulf of
Mexico.  Lease operating costs were reduced primarily due to lower processing
fees and insurance costs related to deepwater Gulf of Mexico operations, as
well as hurricane costs incurred in the fourth quarter 2006.
    
    INTERNATIONAL FOURTH QUARTER OPERATIONS
    
    International operating income increased 82 percent to a record $300
million for the fourth quarter 2007.  Higher commodity prices combined with
volume increases in the major international operations, led to the improvement
in operating income.  Total international sales volumes were 91 MBoepd, up 32
percent from the prior year period.  In West Africa, natural gas volumes
increased with the startup of sales to the liquefied natural gas (LNG) plant
in the second quarter 2007.  The LNG plant, which was down for approximately
one month in the fourth quarter 2007 for maintenance, is currently operating
at full capacity.  The volume increase in the North Sea was primarily
attributable to Dumbarton, which commenced sales in early 2007. In Israel,
continued strength of natural gas demand also contributed to the volume
growth.
    Equity method investments in unconsolidated subsidiaries generated strong
earnings in the quarter, up 133 percent from the fourth quarter 2006. Methanol
operations had record prices accompanied by an increase in volumes. Fourth
quarter 2006 methanol volumes were impacted by compressor maintenance and
repairs.  Strong natural gas liquid prices benefited the Alba LPG Plant.
    International costs were up $21 million from the fourth quarter 2006. 
The increase was largely a result of higher operating costs and DD&A related
to the start-up of Dumbarton.
    
    PROVED RESERVES
    
    Year-end 2007 estimated reserves were a record 880 million barrels of oil
equivalent (MMBoe), up over five percent from year-end 2006.  Total proved
developed reserves increased 11 percent to 655 MMBoe.  Reserve additions from
all sources before sales totaled 120 MMBoe, or 166 percent of 2007 volumes.
    Reserve additions in the United States totaled 96 MMBoe and were
primarily driven by the execution of low-risk development projects in the
Wattenberg and Piceance areas and deepwater Gulf of Mexico exploration and
development success.  International reserve additions totaled 24 MMBoe with
the majority contributed from the North Sea due to the sanctioning of phase
two of the Dumbarton development and from West Africa.
    United States reserves represented 58 percent of total proved reserves,
while International reserves comprised the other 42 percent.  Liquids,
including crude oil, condensate, and natural gas liquids, made up
approximately 37 percent of total proved reserves, with natural gas being the
remaining 63 percent.
    Total costs incurred in 2007 for oil and gas activities, including
acquisition, exploration and development costs were $1.77 billion.  The
average worldwide reserve replacement cost is estimated at $14.71 per barrel
of oil equivalent (Boe), or $2.45 per thousand cubic feet equivalent (Mcfe).
Included in costs incurred was approximately $180 million for West Africa
exploration that discovered substantial resources that have not yet been
booked as proven.
    Netherland, Sewell & Associates, Inc. performed an audit of over 81
percent of Noble Energy's year-end 2007 total proved reserves and concluded
the Company's estimates of proved reserves, in the aggregate, are reasonable
and have been prepared in accordance with generally accepted petroleum
engineering and evaluation principles.
    
    CONFERENCE CALL
    
    Noble Energy's fourth quarter and year-end 2007 conference call will be
available today via live audio webcast at 9 a.m. Central Time.  To listen, log
on to http://www.nobleenergyinc.com and click on the Investor Relations tab.
Dial in numbers are (877) 852-6579 or (719) 325-4802.  The pass code is Noble
Energy 2007 Fourth Quarter Results.  The conference call replay will be
available until May 31, 2008.  To access the replay, go to
http://www.nobleenergyinc.com and click on the Investor Relations tab. You can
also access the replay by dialing (888) 203-1112 or (719) 457-0820. The pin
code is 6119428.
    Noble Energy is one of the nation's leading independent energy companies
and operates throughout major basins in the United States including Colorado's
Wattenberg field and Piceance basin, the Mid-continent region of western
Oklahoma and the Texas Panhandle, the San Juan Basin in New Mexico, the Gulf
Coast and the deepwater Gulf of Mexico.  In addition, Noble Energy operates
internationally in China, Ecuador, the Mediterranean Sea, the North Sea, and
West Africa (Equatorial Guinea and Cameroon).  Visit Noble Energy online at
http://www.nobleenergyinc.com.
    This news release may include projections and other "forward-looking
statements" within the meaning of the federal securities laws.  Any such
projections or statements reflect Noble Energy's current views about future
events and financial performance. No assurances can be given that such events
or performance will occur as projected, and actual results may differ
materially from those projected.  Important factors that could cause the
actual results to differ materially from those projected include, without
limitation, the volatility in commodity prices for oil and gas, the presence
or recoverability of estimated reserves, the ability to replace reserves,
environmental risks, drilling and operating risks, exploration and development
risks, competition, government regulation or other action, the ability of
management to execute its plans to meet its goals and other risks inherent in
Noble Energy's business that are detailed in its Securities and Exchange
Commission filings.  The United States Securities and Exchange Commission
permits oil and gas companies, in their filings with the SEC, to disclose only
proved reserves.  We may use certain terms in this press release, such as
"resources," "estimated resource range," "resource potential" and "potential
resources," that the SEC's guidelines strictly prohibit us from including in
filings with the SEC.  Investors are urged to consider closely the disclosures
and risk factors in our Forms 10-K and 10-Q, File No. 1-07964, available from
Noble Energy's offices or website, http://www.nobleenergyinc.com.  These forms
can also be obtained from the SEC by calling 1-800-SEC-0330.



    
                                  Schedule 1
                     Noble Energy, Inc. and Subsidiaries
                    Consolidated Statements of Operations
                   (in thousands, except per share amounts)
                                 (Unaudited)
    

    
                                   Three Months Ended   Twelve Months Ended
                                       December 31,          December 31,
                                     2007      2006        2007       2006
    Revenues
      Oil and gas sales            $825,881  $656,585  $2,966,099 $2,701,241
      Income from equity method
       investees                     71,024    30,461     210,928    139,362
      Other revenues                 24,556    27,140      95,003     99,479
      Total Revenues                921,461   714,186   3,272,030  2,940,082
    

    
    Costs and Expenses
      Lease operating costs          79,247    78,780     322,452    317,087
      Production and ad valorem
       taxes                         32,880    25,316     113,547    108,979
      Transportation costs           11,353    10,079      51,699     28,542
      Exploration costs              74,286    75,597     219,082    167,924
      Depreciation, depletion and
       amortization                 187,528   163,730     727,981    622,608
      General and administrative     64,010    50,825     206,378    164,541
      Accretion of discount on asset
       retirement obligations         1,788     2,392       8,125     10,797
      Interest, net of amount
       capitalized                   25,852    21,403     112,957    117,045
      (Gain) loss on derivative
       instruments                   (1,963)    2,664      (2,520)   392,367
      (Gain) loss on sale of assets  (7,473)   (7,886)    (11,854)  (219,577)
      Loss on involuntary conversion    -         -        51,406        -
      Other expense, net             26,616    44,525     105,210    133,552
      Total Costs and Expenses      494,124   467,425   1,904,463  1,843,865
    

    
    Income Before Taxes             427,337   246,761   1,367,567  1,096,217
    Income Tax Provision            127,059    81,780     423,697    417,789
    Net Income                     $300,278  $164,981    $943,870   $678,428
    

    
    Earnings Per Share
      Basic                            1.75      0.95        5.52       3.86
      Diluted                          1.73      0.94        5.45       3.79
    

    
    Weighted average number of
     shares outstanding
      Basic                         171,446   173,339     171,078    175,707
      Diluted                       173,902   175,711     173,344    179,044
    



    
                                  Schedule 2
                     Noble Energy, Inc. and Subsidiaries
                         Consolidated Balance Sheets
                     (in thousands, except share amounts)
    

    
                                                December 31,     December 31,
                                                    2007              2006
                                     ASSETS
    Current Assets
      Cash and cash equivalents                    $659,863         $153,408
      Accounts receivable - trade, net              594,009          586,882
      Deferred income taxes                         130,571           99,835
      Assets held for sale                           82,122              164
      Probable insurance claims                       2,184          101,233
      Other current assets                          100,518          127,024
          Total current assets                    1,569,267        1,068,546
    Property, plant and equipment
      Oil and gas properties (successful
       efforts method of accounting)             10,216,484        8,867,639
      Other property, plant and equipment           112,339           79,646
                                                 10,328,823        8,947,285
      Accumulated depreciation, depletion
       and amortization                          (2,384,359)      (1,776,528)
      Total property, plant and equipment, net    7,944,464        7,170,757
    Other noncurrent assets                         556,669          568,032
    Goodwill                                        760,496          781,290
      Total Assets                              $10,830,896       $9,588,625
    

    
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities
      Accounts payable - trade                     $780,915         $518,609
      Derivative instruments                        540,217          254,625
      Income taxes                                   51,785          107,136
      Short-term borrowings                          25,000                -
      Asset retirement obligations                   13,332           68,500
      Other current liabilities                     224,494          235,392
          Total current liabilities               1,635,743        1,184,262
      Deferred income taxes                       1,983,833        1,758,452
      Asset retirement obligations                  130,956          127,689
      Derivative instruments                         82,803          328,875
      Other noncurrent liabilities                  337,667          274,720
      Long-term debt                              1,851,087        1,800,810
      Total Liabilities                           6,022,089        5,474,808
    

    Commitments and Contingencies

    
    Shareholders' Equity
      Preferred stock - par value $1.00;
       4,000,000 shares authorized, none
       issued                                             -                -
      Common stock - par value $3.33 1/3;
       250,000,000 shares authorized;
      190,814,309 and 188,808,087 shares
       issued, respectively                         636,046          629,360
      Capital in excess of par value              2,105,895        2,041,048
      Accumulated other comprehensive loss         (284,185)        (140,509)
      Treasury stock, at cost:18,580,865
       and 16,574,384 shares, respectively         (612,976)        (511,443)
      Retained earnings                           2,964,027        2,095,361
        Total Shareholders' Equity                4,808,807        4,113,817
        Total Liabilities and Shareholders'
         Equity                                 $10,830,896       $9,588,625
    



    
                                  Schedule 3
                     Noble Energy, Inc. and Subsidiaries
      Discretionary Cash Flow and Reconciliation to Operating Cash Flow
                                (In Thousands)
                                 (Unaudited)
    

    
                                   Three Months Ended    Twelve Months Ended
                                       December 31,          December 31,
                                     2007      2006        2007       2006
    

    
    Net income                     $300,278  $164,981    $943,870   $678,428
    Adjustments to reconcile net
     income to discretionary
     cash flow:
    Depreciation, depletion and
     amortization - oil and gas
     production                     187,528   163,730     727,981     622,608
    Depreciation, depletion and
     amortization - electricity
     generation                       3,719     4,479      14,277     16,319
    Impairment of operating assets        -     2,166       3,661      8,525
    Exploration costs                74,286    75,597     219,082    167,924
    Interest capitalized             (6,376)   (9,085)    (16,595)   (12,515)
    Income from equity method
     investments                    (71,024)  (30,461)   (210,928)  (139,362)
    Distributions and dividends
     from equity method investees    73,303    57,987     228,734     192,508
    Deferred compensation
     adjustment                      10,437     5,352      33,526      15,936
    Deferred income taxes            99,744    47,551     291,881     194,261
    Accretion of discount on asset
     retirement obligations           1,788     2,392       8,125      10,797
    Allowance for doubtful
     accounts                         4,492     6,232      15,272      16,797
    Stock-based compensation
     expense                          6,785     2,496      26,825      11,816
    Non-cash (gain) loss on
     derivative instruments [1]     (51,364)  (15,030)   (184,944)    415,298
    Gain on sale of Gulf of Mexico
     shelf assets                         -    (4,409)          -    (92,557)
    Other, net                       (8,837)   12,934       1,628      23,103
    Discretionary Cash Flow [2]     624,759   486,912   2,102,395   2,129,886
    

    
    Reconciliation to Operating
     Cash Flows:
    Net changes in working capital  100,588   (50,800)    (23,649)   (48,741)
    Cash exploration costs          (31,845)  (25,692)   (128,872)   (78,676)
    Capitalized interest              6,376     9,085      16,595     12,515
    Distributions from equity
     method investees                     -   (38,637)     (2,100)  (155,158)
    (Gain) Loss on disposal of
     assets                          (7,473)   (3,477)    (11,854)  (127,020)
    Other adjustments to reconcile
     discretionary cash flow
    to operating cash flows           3,557    12,102      64,058     (2,500)
    Net Cash Provided by Operating
     Activities                    $695,962  $389,493  $2,016,573 $1,730,306
    


    
    [1] Includes $49,402 and $182,423 related to hedge contracts that were
        re-designated at the time of the Gulf of Mexico Shelf Asset Sale and
        settled during the three and twelve months ended December 31, 2007.
        $17,236 and $27,365 is included in the three and twelve months ended
        December 31, 2006.  See Schedule 8 - PreTax Cash Flow Hedges Earnings
        Impact.
    


    
    [2] The table above reconciles discretionary cash flow to net cash
        provided by operating activities.  While discretionary cash flow is
        not a GAAP measure of financial performance, management believes it
        is a good tool for internal use and the investment community in
        evaluating the Company's overall financial performance. Among
        management, professional research analysts, portfolio managers and
        investors following the oil and gas industry, discretionary cash flow
        is broadly used as an indicator of a company's ability to fund
        exploration and production activities and meet financial obligations.
        Discretionary cash flow is also commonly used as a basis to value and
        compare companies in the oil and gas industry.
    



    
                                  Schedule 4
                              Noble Energy, Inc
                          Income Before Income Taxes
                (Dollars in thousands, except realized prices)
                                 (Unaudited)
    

    
                                          Three Months Ended 12/31/07
                                  Consoli-   United     West          North
                                   dated     States    Africa          Sea
    Revenues
      Oil sales                   $489,379  $215,954  $118,975       $119,769
      Gas sales                    336,502   299,580     3,845          5,013
      Equity investee liquids
       sales                           -         -      45,173  [5]       -
      Equity investee methanol
       sales                           -         -      62,779            -
      Gathering, marketing and
       processing                    7,385       -         -              -
      Electricity sales             17,171       -         -              -
      Income from equity method
       investments                  71,024       -         -              -
        Total Revenues             921,461   515,534   230,772        124,782
    

    
    Costs and expenses
      Oil and gas operating costs   70,950    34,743    14,208         14,033
      Workover and repair expense    8,297     8,189       -              -
      Production and ad valorem
       taxes                        32,880    25,292       -              -
      Transportation                11,353     7,655       -            3,432
      Oil and gas exploration       74,286    63,074    (2,638)         4,069
      Gathering, marketing and
       processing                    4,446       -         -              -
      Equity investee liquids
       expense                         -         -       6,623            -
      Equity investee methanol
       expense                         -         -      30,305            -
      Electricity generation        14,611       -         -              -
      DD&A                         187,528   146,140     6,584         22,601
      Impairment of operating
       assets                          -         -         -              -
      General and administrative    64,010     8,439       857            736
      Accretion expense              1,788     1,203        32            336
      Interest expense, net         25,852       -         -              -
      Deferred compensation         10,437       -         -              -
      Gain on derivative
       instruments                  (1,963)   (1,963)      -              -
      Loss on involuntary
       conversion                      -         -         -              -
      Gain on sale of assets        (7,473)   (4,532)      -              -
      Other (income) expense, net   (2,878)    5,551    (4,567)       (4,147)
        Total Costs and Expenses   494,124   293,791    51,404         41,060
    

    Operating Income (Loss)       $427,337  $221,743  $179,368        $83,722

    
      Key Statistics
          Sales Volumes
                Liquids (Bopd)      74,195    38,795    15,468         14,222
                Natural Gas
                 (Mcfpd)           712,157   418,531   149,212  [4]     7,029
                Equity Investee
                 Liquids (Bpd)       7,155       -       7,155  [5]       -
                Equity Investee
                 Methanol (Kgal)    43,747       -      43,747            -
    

    
          Production Volumes
                Liquids (Bopd)      74,424    38,795    14,484         15,040
                Natural Gas
                 (Mcfpd)           712,157   418,531   149,212          7,029
                Equity Investee
                 Liquids (Bpd)       7,403       -       7,403  [6]       -
                Total
                 Production
                 Boepd  [8]        200,521   108,550    46,756         16,212
    

    
          Average Realized Price
                Liquids             $71.69    $60.50    $83.60         $91.54
                Natural Gas           5.33      7.78      0.28  [3]      7.75
                Equity Investee
                 Liquids             68.63       -       68.63            -
                Equity Investee
                 Methanol             1.44       -        1.44            -
    



    
                                                Three Months Ended 12/31/07
                                                      Other        Corporate
                                            Israel   Int'l [1]    & Other [2]
    Revenues
       Oil sales                              $-     $34,681          $-
       Gas sales                            28,064       -             -
       Equity investee liquids sales           -         -         (45,173)
       Equity investee methanol sales          -         -         (62,779)
       Gathering, marketing and
        processing                             -         -           7,385
       Electricity sales                       -      17,171           -
       Income from equity method
        investments                            -         -          71,024
         Total Revenues                     28,064    51,852       (29,543)
    

    
    Costs and expenses
       Oil and gas operating costs             816     5,452         1,698
       Workover and repair expense             -          70            38
       Production and ad valorem taxes         -       7,865          (277)
       Transportation                          -         266           -
       Oil and gas exploration                 341     1,587         7,853
       Gathering, marketing and
        processing                             -         -           4,446
       Equity investee liquids expense         -         -          (6,623)
       Equity investee methanol expense        -         -         (30,305)
       Electricity generation                  -      14,611           -
       DD&A                                  4,831     2,848         4,524
       Impairment of operating assets          -         -             -
       General and administrative            1,632     1,764        50,582
       Accretion expense                       112       105           -
       Interest expense, net                   -         -          25,852
       Deferred compensation                   -         -          10,437
       Gain on derivative instruments          -         -             -
       Loss on involuntary conversion          -         -             -
       Gain on sale of assets                   (7)      (42)       (2,892)
       Other (income) expense, net            (551)      953          (117)
         Total Costs and Expenses            7,174    35,479        65,216
    

    Operating Income (Loss)                $20,890   $16,373      $(94,759)

    
       Key Statistics
           Sales Volumes
                 Liquids (Bopd)                -       5,710           -
                 Natural Gas (Mcfpd)       111,249    26,136 [7]       -
                 Equity Investee Liquids
                  (Bpd)                        -         -             -
                 Equity Investee Methanol
                  (Kgal)                       -         -             -
    

    
           Production Volumes
                 Liquids (Bopd)                -       6,105           -
                 Natural Gas (Mcfpd)       111,249    26,136           -
                 Equity Investee Liquids
                  (Bpd)                        -         -             -
                 Total Production
                  Boepd               [8]   18,542    10,461           -
    

    
           Average Realized Price
                 Liquids                      $-      $66.02          $-
                 Natural Gas                  2.74       -             -
                 Equity Investee Liquids       -         -             -
                 Equity Investee Methanol      -         -             -
    


    
     [1] Other international includes operations in Argentina, China, Ecuador
         and Suriname.
     [2] Corporate and Other includes corporate overhead, intercompany
         eliminations and marketing.
     [3] Natural gas in Equatorial Guinea is under contract for $0.25 per
         MMBtu through 2026 to a methanol plant, an LPG plant and an LNG
         plant. The price on an Mcf basis has been adjusted to reflect Btu
         content.  The methanol and LPG plants are owned by affiliated
         entities accounted for under the equity method of accounting.
     [4] Equatorial Guinea natural gas volumes include 96,130 Mcfpd sold to
         an LNG plant.
     [5] Equity investee liquids volumes include condensate and natural gas
         liquids of 1,483 Bpd and 5,672 Bpd, respectively.  These volumes are
         included in West Africa production and equity investee liquids sales
         revenue.
     [6] Equity investee liquids volumes include condensate and natural gas
         liquids of 1,753 Bpd and 5,650 Bpd, respectively.
     [7] Ecuador natural gas volumes are included in Other International and
         Consolidated production, but are not included in natural gas sales
         revenue for either.  Because the gas-to-power project in Ecuador is
         100 percent owned by Noble Energy, intercompany natural gas sales
         are eliminated for accounting purposes.
     [8] Barrels of oil equivalent for natural gas is calculated at a 6 to 1
         ratio.
    



    
                                  Schedule 5
                              Noble Energy, Inc
                          Income Before Income Taxes
                (Dollars in thousands, except realized prices)
                                 (Unaudited)
    

    
                                          Three Months Ended 12/31/06
                                   Consoli-  United        West        North
                                    dated    States       Africa        Sea
    


    
    Revenues
      Oil sales                   $362,477  $203,148     $105,186     $21,530
      Gas sales                    294,108   263,574        1,626       4,979
      Equity investee liquids
       sales                           -         -         29,626 [4]     -
      Equity investee methanol
       sales                           -         -         27,974         -
      Gathering, marketing and
       processing                    5,209       -            -           -
      Electricity sales             21,931       -            -           -
      Income from equity method
       investments                  30,461       -            -           -
        Total Revenues             714,186   466,722      164,412      26,509
    

    
    Costs and expenses
      Oil and gas operating costs   74,586    57,991        4,797       3,657
      Workover and repair expense    4,194     4,165 [7]      -           -
      Production and ad valorem
       taxes                        25,316    19,587          -           -
      Transportation                10,079     6,706          -         3,167
      Oil and gas exploration       75,597    65,605        1,990       1,243
      Gathering, marketing and
       processing                    2,990       -            -           -
      Equity investee liquids
       expense                         -         -          9,776         -
      Equity investee methanol
       expense                         -         -         17,364         -
      Electricity generation        16,395       -            -           -
      DD&A                         163,730   141,398        7,946       2,190
      Impairment of operating
       assets                        2,166     2,166          -           -
      General and administrative    50,825     7,056        4,655       1,266
      Accretion expense              2,392     1,901           26         291
      Interest expense, net         21,403       -            -           -
      Deferred compensation          5,352       -            -           -
      Loss on derivative
       instruments                   2,644     2,644          -           -
      Loss on involuntary
       conversion                      -         -            -           -
      (Gain) loss on sale of
       assets                       (7,886)   (7,591)         -         (393)
      Other expense (income), net   17,642     9,098       (2,429)      1,535
        Total Costs and Expenses   467,425   310,726       44,125      12,956
    

    Operating Income (Loss)       $246,761  $155,996     $120,287     $13,553

    
      Key Statistics
          Sales Volumes
                Liquids (Bopd)      76,766    45,692       19,301       4,005
                Natural Gas
                 (Mcfpd)           604,077   421,649       48,953       7,151
                Equity Investee
                 Liquids (Bpd)       7,625       -          7,625 [4]     -
                Equity Investee
                 Methanol (Kgal)    24,709       -         24,709         -
    

    
          Production Volumes
                Liquids (Bopd)      73,734    45,692       16,385       4,268
                Natural Gas
                 (Mcfpd)           604,077   421,649       48,953       7,151
                Equity Investee
                 Liquids (Bpd)       7,613       -          7,613 [5]     -
                Total
                 Production
                 Boepd  [8]        182,028   115,967       32,157       5,460
    

    
          Average Realized Price
                Liquids             $51.32    $48.33       $59.24      $58.43
                Natural Gas           5.56      6.79         0.36 [3]    7.57
                Equity Investee
                 Liquids             42.23       -          42.23         -
                Equity Investee
                 Methanol             1.13       -           1.13         -
    



    
                                             Three Months Ended 12/31/06
                                                      Other       Corporate
                                            Israel  Int'l [1]    & Other  [2]
    Revenues
       Oil sales                              $-     $32,613          $-
       Gas sales                            23,932        (3)          -
       Equity investee liquids sales           -         -         (29,626)
       Equity investee methanol sales          -         -         (27,974)
       Gathering, marketing and
        processing                             -         -           5,209
       Electricity sales                       -      21,931           -
       Income from equity method
        investments                            -         -          30,461
         Total Revenues                     23,932    54,541       (21,930)
    

    
    Costs and expenses
       Oil and gas operating costs           2,677     5,170           294
       Workover and repair expense             -          29           -
       Production and ad valorem taxes         -       5,703            26
       Transportation                          -         206           -
       Oil and gas exploration                 143     3,855         2,761
       Gathering, marketing and
        processing                             -         -           2,990
       Equity investee liquids expense         -         -          (9,776)
       Equity investee methanol expense        -         -         (17,364)
       Electricity generation                  -      16,395           -
       DD&A                                  3,580     6,455         2,161
       Impairment of operating assets          -         -             -
       General and administrative               53      (864)       38,659
       Accretion expense                       120        54           -
       Interest expense, net                   -         -          21,403
       Deferred compensation                   -         -           5,352
       Loss on derivative instruments          -         -             -
       Loss on involuntary conversion          -         -             -
       (Gain) loss on sale of assets            81        (7)           24
       Other expense (income), net          (1,189)    5,081         5,546
         Total Costs and Expenses            5,465    42,077        52,076
    

    Operating Income (Loss)                $18,467   $12,464      $(74,006)

    
       Key Statistics
           Sales Volumes
                 Liquids (Bopd)                -       7,768           -
                 Natural Gas (Mcfpd)        96,567    29,757 [6]       -
                 Equity Investee Liquids
                  (Bpd)                        -         -             -
                 Equity Investee Methanol
                  (Kgal)                       -         -             -
    

    
           Production Volumes
                 Liquids (Bopd)                -       7,389           -
                 Natural Gas (Mcfpd)        96,567    29,757           -
                 Equity Investee Liquids
                  (Bpd)                        -         -             -
                 Total Production
                  Boepd    [8]              16,095    12,349           -
    

    
           Average Realized Price
                 Liquids                      $-      $45.64          $-
                 Natural Gas                  2.69       -             -
                 Equity Investee Liquids       -         -             -
                 Equity Investee Methanol      -         -             -
    


    
      [1] Other international includes operations in Argentina, China,
          Ecuador and Suriname.
      [2] Corporate and Other includes corporate overhead, intercompany
          eliminations and marketing.
      [3] Natural gas in Equatorial Guinea is under contract for $0.25 per
          MMBTU through 2026 to a methanol plant and an LPG plant.  The price
          on an Mcf basis has been adjusted to reflect Btu content.  The
          methanol and LPG plants are owned by affiliated entities accounted
          for under the equity method of accounting.
      [4] Equity investee liquids volumes include condensate and natural gas
          liquids of 1,674 Bpd and 5,951 Bpd, respectively.  These volumes
          are included in West Africa production and equity investee liquids
          sales revenue.
      [5] Equity investee liquids volumes include condensate and natural gas
          liquids of 1,743 Bpd and 5,870 Bpd, respectively.
      [6] Ecuador natural gas volumes are included in Other International and
          Consolidated production, but are not included in natural gas sales
          revenue for either.  Because the gas-to-power project in Ecuador is
          100 percent owned by Noble Energy, intercompany natural gas sales
          are eliminated for accounting purposes.
      [7] Hurricane related repair expense was $4.1 million for fourth
          quarter 2006.
      [8] Barrels of oil equivalent for natural gas is calculated at a 6 to 1
          ratio.
    



    
                                  Schedule 6
                              Noble Energy, Inc
                          Income Before Income Taxes
                (Dollars in thousands, except realized prices)
                                 (Unaudited)
    

    
                                       Twelve Months Ended 12/31/07
                               Consoli-   United         West         North
                                dated     States        Africa         Sea
    Revenues
      Oil sales              $1,694,233   $822,375     $392,057      $349,012
      Gas sales               1,271,866  1,130,060       13,931        14,874
      Equity investee
       liquids sales                -          -        154,502 [5]       -
      Equity investee
       methanol sales               -          -        174,873           -
      Gathering, marketing
       and processing            24,087        -            -             -
      Electricity sales          70,916        -            -             -
      Income from equity
       method investments       210,928        -            -             -
        Total Revenues        3,272,030  1,952,435      735,363       363,886
    

    
    Costs and expenses
      Oil and gas operating
       costs                    299,622    190,723       39,222        37,987
      Workover and repair
       expense                   22,830     22,516 [8]      -             -
      Production and ad
       valorem taxes            113,547     91,225          -             -
      Transportation             51,699     39,542          -          10,523
      Oil and gas
       exploration              219,082    134,230       43,544        16,950
      Gathering, marketing
       and processing            17,539        -            -             -
      Equity investee
       liquids expense              -          -         26,452           -
      Equity investee
       methanol expense             -          -         91,995           -
      Electricity generation     56,552        -            -             -
      DD&A                      727,981    574,001       25,315        79,450
      Impairment of
       operating assets           3,661      3,661          -             -
      General and
       administrative           206,378     29,921        3,309         3,571
      Accretion expense           8,125      5,970          109         1,345
      Interest expense, net     112,957        -            -             -
      Deferred compensation      33,526        -            -             -
      Gain on derivative
       instruments               (2,520)    (2,520)         -             -
      Loss on involuntary
       conversion                51,406     51,406          -             -
      (Gain) loss on sale of
       assets                   (11,854)    (8,728)         -           (225)
      Other (income)
       expense, net              (6,068)    10,682      (12,033)      (6,494)
        Total Costs and
         Expenses             1,904,463  1,142,629      217,913       143,107
    

    Operating Income (Loss)  $1,367,567   $809,806     $517,450      $220,779

    
      Key Statistics
          Sales Volumes
                Liquids (Bopd)   76,581     42,332       15,070        12,505
                Natural Gas
                 (Mcfpd)        687,444    412,212      132,464 [4]     6,235
                Equity Investee
                 Liquids (Bpd)    7,684        -          7,684 [5]       -
                Equity Investee
                 Methanol
                 (Kgal)         160,540        -        160,540           -
    

    
          Production Volumes
                Liquids (Bopd)   77,474     42,332       15,523        12,813
                Natural Gas
                 (Mcfpd)        687,444    412,212      132,464         6,235
                Equity Investee
                 Liquids (Bpd)    8,014        -          8,014 [6]       -
                Total
                 Production
                 Boepd  [9]     200,062    111,034       45,614        13,852
    

    
          Average Realized Price
                Liquids          $60.61     $53.22       $71.27        $76.47
                Natural Gas        5.26       7.51         0.29 [3]      6.54
                Equity Investee
                 Liquids          55.09        -          55.09           -
                Equity Investee
                 Methanol          1.09        -           1.09           -
    



    
                                             Twelve Months Ended 12/31/07
                                                     Other       Corporate
                                           Israel   Int'l [1]   & Other  [2]
    Revenues
       Oil sales                              $-    $130,789          $-
       Gas sales                           113,001       -             -
       Equity investee liquids sales           -         -        (154,502)
       Equity investee methanol sales          -         -        (174,873)
       Gathering, marketing and processing     -         -          24,087
       Electricity sales                       -      70,916           -
       Income from equity method
        investments                            -         -         210,928
         Total Revenues                    113,001   201,705       (94,360)
    

    
    Costs and expenses
       Oil and gas operating costs           7,712    21,764         2,214
       Workover and repair expense             -         276            38
       Production and ad valorem taxes         -      22,191           131
       Transportation                          -       1,634           -
       Oil and gas exploration               1,418     6,158        16,782
       Gathering, marketing and processing     -         -          17,539
       Equity investee liquids expense         -         -         (26,452)
       Equity investee methanol expense        -         -         (91,995)
       Electricity generation                  -      56,552           -
       DD&A                                 17,842    20,711        10,662
       Impairment of operating assets          -         -             -
       General and administrative            1,687     4,887       163,003
       Accretion expense                       449       252           -
       Interest expense, net                   -         -         112,957
       Deferred compensation                   -         -          33,526
       Gain on derivative instruments          -         -             -
       Loss on involuntary conversion          -         -             -
       (Gain) loss on sale of assets            27       (46)       (2,882)
       Other (income) expense, net          (2,156)    3,326           607
         Total Costs and Expenses           26,979   137,705       236,130
    

    Operating Income (Loss)                $86,022   $64,000     $(330,490)

    
       Key Statistics
           Sales Volumes
                 Liquids (Bopd)                -       6,674           -
                 Natural Gas (Mcfpd)       110,820    25,713 [7]       -
                 Equity Investee Liquids
                  (Bpd)                        -         -             -
                 Equity Investee Methanol
                  (Kgal)                       -         -             -
    

    
           Production Volumes
                 Liquids (Bopd)                -       6,806           -
                 Natural Gas (Mcfpd)       110,820    25,713           -
                 Equity Investee Liquids
                  (Bpd)                        -         -             -
                 Total Production Boepd[9]  18,470    11,092           -
    

    
           Average Realized Price
                 Liquids                      $-      $53.69          $-
                 Natural Gas                  2.79       -             -
                 Equity Investee Liquids       -         -             -
                 Equity Investee Methanol      -         -             -
    


    
     [1] Other international includes operations in Argentina, China, Ecuador
         and Suriname.
     [2] Corporate and Other includes corporate overhead, intercompany
         eliminations and marketing.
     [3] Natural gas in Equatorial Guinea is under contract for $0.25 per
         MMBTU through 2026 to a methanol plant, an LPG plant and an LNG
         plant. The price on an Mcf basis has been adjusted to reflect Btu
         content.  The methanol and LPG plants are owned by affiliated
         entities accounted for under the equity method of accounting.
     [4] Equatorial Guinea natural gas volumes include 78,090 Mcfpd sold to
         an LNG plant.
     [5] Equity investee liquids volumes include condensate and natural gas
         liquids of 1,836 Bpd and 5,848 Bpd, respectively.  These volumes are
         included in West Africa production and equity investee liquids sales
         revenue.
     [6] Equity investee liquids volumes include condensate and natural gas
         liquids of 1,860 Bpd and 6,154 Bpd, respectively.
     [7] Ecuador natural gas volumes are included in Other International and
         Consolidated production, but are not included in natural gas sales
         revenue for either.  Because the gas-to-power project in Ecuador is
         100 percent owned by Noble Energy, intercompany natural gas sales
         are eliminated for accounting purposes.
     [8] Includes $0.6 million of hurricane related repair expense.
     [9] Barrels of oil equivalent for natural gas is calculated at a 6 to 1
         ratio.
    



    
                                   Schedule 7
                               Noble Energy, Inc
                           Income Before Income Taxes
                 (Dollars in thousands, except realized prices)
                                  (Unaudited)
    

    
                                         Twelve Months Ended 12/31/06
                                Consoli-     United        West        North
                                 dated       States       Africa        Sea
    Revenues
      Oil sales                $1,489,460   $847,251     $407,470     $91,478
      Gas sales                 1,211,781  1,089,339        6,212      23,754
      Equity investee liquids
       sales                          -          -        134,346 [4]     -
      Equity investee methanol
       sales                          -          -         98,941         -
      Gathering, marketing and
       processing                  27,876        -            -           -
      Electricity sales            71,603        -            -           -
      Income from equity
       method investments         139,362        -            -           -
        Total Revenues          2,940,082  1,936,590      646,969     115,232
    

    
    Costs and expenses
      Oil and gas operating
       costs                      270,136    205,348       26,557      11,655
      Workover and repair
       expense                     46,951     46,793 [7]      -           -
      Production and ad
       valorem taxes              108,979     85,960          -           -
      Transportation               28,542     20,728          -         7,010
      Oil and gas exploration     167,924    128,086        7,329      10,522
      Gathering, marketing and
       processing                  18,664        -            -           -
      Equity investee liquids
       expense                        -          -         33,009         -
      Equity investee methanol
       expense                        -          -         60,916         -
      Electricity generation       59,494        -            -           -
      DD&A                        622,608    543,431       23,620       8,123
      Impairment of operating
       assets                       8,525      8,525          -           -
      General and
       administrative             164,541     26,447        4,656       3,346
      Accretion expense            10,797      8,861          104       1,159
      Interest expense, net       117,045        -            -           -
      Deferred compensation        15,936        -            -           -
      Loss on derivative
       instruments                392,367    392,367          -           -
      Loss on involuntary
       conversion                     -          -            -           -
      (Gain) loss on sale of
       assets                    (219,577)  (217,317)         -       (2,397)
      Other expense (income),
       net                         30,933     22,011       (2,999)      3,011
        Total Costs and
         Expenses               1,843,865  1,271,240      153,192      42,429
    

    Operating Income (Loss)    $1,096,217   $665,350     $493,777     $72,803

    
      Key Statistics
          Sales Volumes
                Liquids (Bopd)     74,915     45,798       17,860       3,717
                Natural Gas
                 (Mcfpd)          622,927    451,712       45,422       8,130
                Equity Investee
                 Liquids (Bpd)      8,032        -          8,032 [4]     -
                Equity Investee
                 Methanol (Kgal)  109,942        -        109,942         -
    

    
          Production Volumes
                Liquids (Bopd)     74,603     45,798       17,326       3,988
                Natural Gas
                 (Mcfpd)          622,927    451,712       45,422       8,130
                Equity Investee
                 Liquids (Bpd)      7,531        -          7,531 [5]     -
                Total Production
                 Boepd  [8]       185,954    121,083       32,427       5,343
    

    
          Average Realized Price
                Liquids            $54.47     $50.68       $62.51      $67.43
                Natural Gas          5.55       6.61         0.37 [3]    8.00
                Equity Investee
                 Liquids            45.83        -          45.83         -
                Equity Investee
                 Methanol            0.90        -           0.90         -
    



    
                                             Twelve Months Ended 12/31/06
                                                     Other       Corporate
                                            Israel  Int'l [1]   & Other [2]
    Revenues
       Oil sales                              $-    $143,261          $-
       Gas sales                            92,373       103           -
       Equity investee liquids sales           -         -        (134,346)
       Equity investee methanol sales          -         -         (98,941)
       Gathering, marketing and processing     -         -          27,876
       Electricity sales                       -      71,603           -
       Income from equity method
        investments                            -         -         139,362
         Total Revenues                     92,373   214,967       (66,049)
    

    
    Costs and expenses
       Oil and gas operating costs           9,066    16,793           717
       Workover and repair expense             -         158           -
       Production and ad valorem taxes         -      22,613           406
       Transportation                          -         804           -
       Oil and gas exploration                 286    11,539        10,162
       Gathering, marketing and processing     -         -          18,664
       Equity investee liquids expense         -         -         (33,009)
       Equity investee methanol expense        -         -         (60,916)
       Electricity generation                  -      59,494           -
       DD&A                                 13,947    25,900         7,587
       Impairment of operating assets          -         -             -
       General and administrative              111     2,118       127,863
       Accretion expense                       452       221           -
       Interest expense, net                   -         -         117,045
       Deferred compensation                   -         -          15,936
       Loss on derivative instruments          -         -             -
       Loss on involuntary conversion          -         -             -
       (Gain) loss on sale of assets            81         9            47
       Other expense (income), net          (2,888)    6,242         5,556
         Total Costs and Expenses           21,055   145,891       210,058
    

    Operating Income (Loss)                $71,318   $69,076     $(276,107)

    
       Key Statistics
           Sales Volumes
                 Liquids (Bopd)                -       7,540           -
                 Natural Gas (Mcfpd)        92,894    24,769 [6]       -
                 Equity Investee Liquids
                  (Bpd)                        -         -             -
                 Equity Investee Methanol
                  (Kgal)                       -         -             -
    

    
           Production Volumes
                 Liquids (Bopd)                -       7,491           -
                 Natural Gas (Mcfpd)        92,894    24,769           -
                 Equity Investee Liquids
                  (Bpd)                        -         -             -
                 Total Production Boepd[8]  15,482    11,619           -
    

    
           Average Realized Price
                 Liquids                      $-      $52.05          $-
                 Natural Gas                  2.72      0.96           -
                 Equity Investee Liquids       -         -             -
                 Equity Investee Methanol      -         -             -
    


    
      [1] Other international includes operations in Argentina, China,
          Ecuador and Suriname.
      [2] Corporate and Other includes corporate overhead, intercompany
          eliminations and marketing.
      [3] Natural gas in Equatorial Guinea is under contract for $0.25 per
          MMBTU through 2026 to a methanol plant and an LPG plant.  The price
          on an Mcf basis has been adjusted to reflect Btu content.  The
          methanol and LPG plants are owned by affiliated entities accounted
          for under the equity method of accounting.
      [4] Equity investee liquids volumes include condensate and natural gas
          liquids of 1,738 Bpd and 6,294 Bpd, respectively.  These volumes
          are included in West Africa production and equity investee liquids
          sales revenue.
      [5] Equity investee liquids volumes include condensate and natural gas
          liquids of 1,730 Bpd and 5,801 Bpd, respectively.
      [6] Ecuador natural gas volumes are included in Other International and
          Consolidated production, but are not included in natural gas sales
          revenue for either.  Because the gas-to-power project in Ecuador is
          100 percent owned by Noble Energy, intercompany natural gas sales
          are eliminated for accounting purposes.
      [7] Includes approximately $29.7 million of hurricane related repair
          expense.
      [8] Barrels of oil equivalent for natural gas is calculated at a 6 to 1
          ratio.
    



    
                                  Schedule 8
                              Noble Energy, Inc.
                   Pretax Cash Flow Hedges Earnings Impact
                            (Dollars in thousands)
                                 (Unaudited)
    

    
                                     Three Months Ended  Twelve Months Ended
                                        December 31,         December 31,
                                       2007      2006      2007       2006
    (Decrease) increase of oil and
     gas sales:
       Cash settlement crude oil
        contracts                    $(94,998) $(31,042) $(223,347)$(190,730)
       Cash settlement natural gas
        contracts                        (216)      413    (13,181)  (69,063)
         Total cash settlements       (95,214)  (30,629)  (236,528) (259,793)
       Non-cash impact of loss on
        settled contracts
       associated with Gulf of
        Mexico shelf properties sale   49,402    17,236    182,423     27,365
           Net decrease of oil and
            gas sales                 (45,812)  (13,393)   (54,105) (232,428)
    

    
    Gain (loss) on derivative
     instruments:
       Loss associated with Gulf of
        Mexico shelf asset sale           -         -          -    (398,517)
       (Loss) gain from
        ineffectiveness and other       1,963    (2,644)     2,520      6,150
         (Loss) gain on derivative
          instruments                   1,963    (2,644)     2,520  (392,367)
    

    Pretax earnings decrease         $(43,849) $(16,037)  $(51,585)$(624,795)



    
                                  Schedule 9
                              Noble Energy, Inc.
                           Ecuador Power Operations
                (Dollars in thousands, except realized prices)
                                 (Unaudited)
    

    
                                             Three Months     Twelve Months
                                                Ended             Ended
                                             December 31,      December 31,
                                            2007     2006     2007     2006
    Revenues
           Power Sales                     $14,906  $20,263  $62,215  $63,710
           Capacity Charge                   2,265    1,668    8,701    7,893
             Total Revenues                 17,171   21,931   70,916   71,603
    

    
    Costs and expenses
        Field
           Lease Operating                   1,216      902    3,203    3,021
           DD&A                              2,651    3,280   10,463   11,617
           General and administrative        1,139    1,245    3,193    3,102
        Plant
           Fuel & Other Operating Costs[1]   7,534    8,728   30,785   30,389
           DD&A                              1,060    1,188    3,815    4,693
           General and administrative        1,010    1,052    5,093    6,672
             Total Costs and Expenses       14,610   16,395   56,552   59,494
    

    Operating Income                        $2,561   $5,536  $14,364  $12,109


    
        Natural Gas Production (Mcfpd)      26,136   29,550   25,714   24,474
        Average Natural Gas Price            $3.74    $3.76    $3.74    $3.76
    


    
        Power Production - Total MW        232,843  262,470  911,830  865,983
        Average Power Price ($/Kwh)         $0.074   $0.084   $0.078   $0.083
    

    
    [1] Includes increases in the allowance for doubtful accounts of
        $3.4 million and $1.8 million for fourth quarter 2007 and 2006,
        respectively, and $14.1 million and $14.9 million for the twelve
        months ended 2007 and 2006, respectively. We increased the allowance
        to cover potentially uncollectible balances related to our Ecuador
        power operations. Certain entities purchasing electricity in Ecuador
        have been slow to pay amounts due us. We are pursuing various
        strategies to protect our interests including international
        arbitration and litigation.
    



    
                                 Schedule 10
                     Income from Equity Method Investees
    

    
                             Methanol Operations
                (Dollars in thousands, except realized prices)
                                 (Unaudited)
    

    
                                           Three Months       Twelve Months
                                              Ended               Ended
                                           December 31,        December 31,
                                          2007     2006      2007      2006
    Revenues
        Methanol sales                   $62,779  $27,974  $174,873   $98,941
        Other                              2,352    1,865     7,226     9,823
          Total revenues                  65,131   29,839   182,099   108,764
    

    
    Costs and expenses
        Cost of goods sold                18,970   11,494    59,034    46,070
        DD&A                               2,847    3,364    11,107    10,439
        General and administrative           649      763     2,455     2,167
          Total costs and expenses        22,466   15,621    72,596    58,676
    

    Income Tax Provision                  10,192    3,607    26,626    12,064

    Income from Equity Method Investees  $32,473  $10,611   $82,877   $38,024

    
      Methanol Sales (KGal)               43,747   24,709   160,540   109,942
      Average Realized Price ($/Gal)       $1.44    $1.13     $1.09     $0.90
    


    
                                Alba LPG Plant
                (Dollars in thousands, except realized prices)
                                 (Unaudited)
    

    
                                           Three Months       Twelve Months
                                               Ended              Ended
                                            December 31,       December 31,
                                           2007     2006      2007      2006
    Revenues
        LPG Plant Sales                  $45,173  $29,626  $154,502  $134,346
        Other                                  6     (150)      503       807
          Total Revenues                  45,179   29,476  $155,005  $135,153
    

    
    Costs and expenses
        LPG Plant Expenses                 6,799    8,851    26,000    28,072
        DD&A                               1,539    1,746     6,788     6,679
        Other                                -        -         -         -
          Total Costs and Expenses         8,338   10,597    32,788    34,751
    

    Income Tax Benefit                    (1,709)    (971)   (5,834)    (936)

    Income from Equity Method Investees  $38,550  $19,850  $128,051  $101,338

    
      LPG Plant Sales (Bpd)                7,155    7,625     7,684     8,032
      Average Realized Price ($/Bbl)      $68.63   $42.23    $55.09    $45.83
    



    
                                   Schedule 11
                                Noble Energy, Inc.
                                Supplemental Data
                              (Dollars in thousands)
                                   (Unaudited)
    

    
    2007 Costs Incurred in Oil and Gas Activities
                                             United    International
                                             States         [1]        Total
    Property acquisition costs:
      Proved                                  $11,239       $-        $11,239
      Unproved                                144,422        900      145,322
        Total acquisition costs               155,661        900      156,561
    

    
    Exploration costs                         184,412    236,107      420,519
    Development costs                       1,056,893     94,706    1,151,599
    

    
    Equity method investee's costs                -          -            -
    Asset retirement obligation                24,328     14,923       39,251
      Total cost incurred                  $1,421,294   $346,636   $1,767,930
    


    Reconciliation to Capital Spending

    
    Total cost incurred                                            $1,767,930
      Exploration overhead                                           (44,998)
      Lease rentals                                                   (3,861)
      Asset retirement obligations                                   (39,251)
    Total oil and gas spending                                      1,679,820
      Other capital                                                    59,010
    Total capital spending                                         $1,738,830
    


    
    Proved Reserves
    Total Barrel Oil Equivalents (MBoe)       United  International
                                              States       [1]         Total
    Beginning reserves - December 31,
     2006                                     460,008    374,551      834,559
      Revisions of previous estimates          16,831     13,014       29,845
      Extensions, discoveries and other
       additions                               79,249     10,608       89,857
      Purchase in place                           493          -          493
      Sale in place                            (1,903)         -      (1,903)
      Production                              (40,527)   (32,049)    (72,576)
    Ending reserves - December 31, 2007       514,151    366,124      880,275
    

    
    Proved Developed Reserves (MBoe)
      December, 31 2006                       323,717    266,709      590,426
      December 31, 2007                       338,768    316,282      655,050
    


    
    [1] International includes West Africa, Israel, North Sea, Ecuador, China
        and Argentina. An agreement exists to sell the interest in Argentina
        effective July 1, 2007.
    




For further information:

For further information: David Larson, +1-281-872-3125, 
dlarson@nobleenergyinc.com, or Brad Whitmarsh, +1-281-872-3187, 
bwhitmarsh@nobleenergyinc.com, both of Noble Energy, Inc. Web Site:
http://www.nobleenergyinc.com

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