Noble Energy Announces Third Quarter 2007 Results



    HOUSTON, Oct. 31 /CNW/ -- Noble Energy, Inc. (NYSE:   NBL) today reported
third quarter 2007 net income of $222.7 million, or $1.30 per basic share
($1.28 per share diluted).  This compares to adjusted third quarter 2006 net
income (non-GAAP measure, see Note 1 below) of $230.0 million or $1.31 per
basic share ($1.27 per share diluted) after adjusting for the gain on our Gulf
of Mexico Shelf Asset Sale.  Reported third quarter 2006 net income was $318.1
million or $1.80 per basic share ($1.75 per share diluted). Discretionary cash
flow (non-GAAP measure, see Schedule 3 - Discretionary Cash Flow and
Reconciliation to Operating Cash Flow) for the third quarter 2007 was $556.1
million, as compared to $533.5 million for the third quarter 2006.  Net cash
provided by operating activities during the third quarter 2007 was $547.7
million.

    Key accomplishments for the third quarter include:

    
    -- Daily equivalent production volume increase of 14 percent versus third
       quarter 2006
    -- Successful appraisal well of the Belinda prospect in Block O, offshore
       Equatorial Guinea
    -- Oil discovery in the Benita appraisal well in Block I, offshore
       Equatorial Guinea
    -- Exploration success at the YoYo prospect in the PH-77 license, offshore
       Cameroon
    -- Net sales of 155 million cubic feet per day (MMcfpd) of natural gas to
       the liquefied natural gas (LNG) plant in Equatorial Guinea
    -- Continued ramp-up of the Dumbarton field in the North Sea with net
       production for the quarter averaging approximately 13,400 barrels of
       oil per day (Bopd)
    -- Record quarterly net natural gas production in Israel of 131 MMcfpd
    
    Third quarter 2007 results included deferred compensation expense of $8.4
million pretax ($5.3 million after tax).  Excluding the effects of deferred
compensation, third quarter adjusted net income (a non-GAAP measure, see Note
1 below) would have been $228.0 million, or $1.33 per basic share.
    Third quarter 2007 production was 214,486 barrels of oil equivalent per
day (Boepd) compared to 187,664 Boepd for the same period last year.  Sales
volumes during the third quarter 2007 were 213,309 Boepd.  Capital
expenditures for the quarter totaled $449.1 million.
    Charles D. Davidson, the company's Chairman, President and CEO, said,
"Noble Energy has continued to execute its development and exploration
programs resulting in another strong quarter both financially and
operationally.  Our exploration program experienced significant success during
the quarter with announcements on the positive appraisal at Belinda and the
exciting discovery of an oil column at Benita, both of which are in Equatorial
Guinea.  In addition, we announced a new gas condensate discovery in Cameroon.
We are continuing with our West Africa exploration program now knowing that
the three discoveries to-date provide a sound foundation for future growth in
the region.  In the U.S., we were pleased to be the apparent high bidder on
several deepwater blocks at the latest Gulf of Mexico lease sale.  Also in the
Gulf of Mexico, our deepwater development projects made good progress and
remain on schedule for delivering important new production in 2008."
    
    NORTH AMERICA
    
    North America operations reported pre-tax operating income for the third
quarter 2007 of $181.3 million compared to $435.4 million for the third
quarter 2006, which included a pretax gain on sale of the Gulf of Mexico Shelf
assets of approximately $203.5 million.
    North American production volumes were 107,365 Boepd in the third quarter
2007 compared to 119,872 Boepd for the same quarter last year.  Liquids and
natural gas production volumes were 39,992 Bopd and 404.2 MMcfpd,
respectively, for the current quarter compared to 48,193 Bopd and 430.1 MMcfpd
for the third quarter of 2006.  As compared to the third quarter 2006, a
decrease of approximately 4,000 Boepd was due to the sale of our Gulf of
Mexico Shelf properties in the third quarter 2006, and a decrease of
approximately 8,600 Boepd in the deepwater Gulf of Mexico resulted from a
combination of well performance, workovers, storm impacts, and third-party
facility restrictions.  Decreases of approximately 2,500 Boepd related to
natural decline in onshore Gulf Coast properties and 1,350 Boepd from our Main
Pass properties were fully offset by an increase of approximately 4,050 Boepd
in our remaining North America properties.  Third quarter 2007 production was
impacted 1,000 Boepd due to third-party processing downtime in the Rocky
Mountains.
    North America operations benefited from higher realized natural gas
prices during the quarter.  The average realized natural gas price was $6.77
per thousand cubic feet (Mcf) for the third quarter 2007 compared to $6.41 per
Mcf last year.  Realized liquids prices decreased slightly to $55.85 per
barrel (Bbl) compared to $56.84 per Bbl during the third quarter of 2006.  The
following table provides a detailed breakdown of the major components
impacting our realized natural gas and crude oil prices for the quarter.



    
                                $ Per Mcf                            $ Per Bbl
    Natural Gas Market Price       3.93    Crude Oil Market Price      71.49
    Cash Flow Hedges Settled       0.15    Cash Flow Hedges Settled   (15.64)
    Gulf of Mexico OCL Addback(*)    1.14                                  -
    NGL Processing Uplift          1.55                                  -
    

    Realized Natural Gas Price    $6.77    Realized Crude Oil Price   $55.85


    
    (*) Natural gas prices included a third quarter 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 (see Schedule 8 - Impact of Loss Associated with Gulf of Mexico
      Shelf Asset Sale).
    INTERNATIONAL OPERATIONS
    
    International operations reported operating income for the third quarter
2007 of $231.3 million compared to $158.9 million in the third quarter last
year.  Total third quarter 2007 production volumes were 107,121 Boepd compared
to 67,792 Boepd for the same quarter last year, an increase of 58 percent.
Liquids production volumes were 45,628 barrels per day (Bpd) compared to
36,776 Bpd for the third quarter of 2006.  Natural gas production was 369.0
MMcfpd compared to 186.1 MMcfpd in the same quarter last year.  Third quarter
2007 international sales were 105,944 Boepd, compared to 63,714 Boepd for the
third quarter of 2006.
    
    West Africa
    
    Operating income for the third quarter increased to $112.3 million this
year compared to $107.2 million last year.  Total sales volumes in Equatorial
Guinea (exclusive of methanol operations) were 55,813 Boepd, an increase of 90
percent compared to 29,331 Boepd during the third quarter of 2006.  Higher
sales volumes resulted primarily from increased natural gas sales to the LNG
plant of approximately 155 MMcfpd in the quarter.
    Alba field condensate and natural gas sales (exclusive of Alba Plant and
methanol operations) accounted for $66.9 million, or 60 percent, of the
operating income from West Africa.  Third quarter 2007 condensate and natural
gas sales volumes averaged 48,341 Boepd compared to 20,399 Boepd last year.
The average realized price for condensate during the third quarter was $73.25
per Bbl compared to $66.93 per Bbl for the same period last year.
    Alba Plant reported $30.7 million of income, net to Noble Energy's
interest, compared to $30.5 million during the third quarter 2006.  Net Alba
Plant LPG and condensate sales volumes totaled 7,472 Bpd compared to 8,932 Bpd
for the same period last year.  The average Alba Plant realized price during
the third quarter was $57.24 per Bbl compared to $48.88 per Bbl for the same
period last year.
    Income from methanol operations increased to $14.6 million, net to Noble
Energy's interest, compared to $3.3 million during the third quarter 2006. The
Company's share of methanol sales volumes was 43.5 million gallons (Gal)
compared to last year's 18.8 million Gal, which was impacted by compressor
repairs following a turnaround and expansion project.  Third quarter realized
methanol prices were 80 cents per Gal compared to 83 cents per Gal for the
third quarter 2006.
    
    North Sea
    
    In the North Sea, operating income for the third quarter 2007 was $77.5
million compared to $15.7 million for the same period last year.  The increase
was primarily due to increased crude sales from the Dumbarton field in the UK,
which commenced production in late January 2007.  In the third quarter 2007,
Dumbarton production averaged approximately 13,400 Bopd.
    
    Israel
    
    Third quarter 2007 operating income was $28.0 million compared to $24.8
million for the same period in 2006.  Natural gas production averaged a record
131.1 MMcfpd for the third quarter 2007 compared to 116.7 MMcfpd the previous
year.  Increased seasonal demand for natural gas contributed to the production
growth.  Sales prices averaged $2.95 per Mcf for the third quarter 2007 as
compared to $2.84 per Mcf for the prior year period.
    
    Other International
    
    Argentina, China, Ecuador and Suriname combined recorded third quarter
2007 operating income of $13.6 million compared to $11.2 million for third
quarter last year.  In China, third quarter operating income was $12.1
million.  Net oil production in China averaged 3,780 Bopd for the third
quarter.  In Argentina, operating income was $2.9 million, and net production
averaged 2,850 Bopd.  The Machala power plant reported operating income of
$2.9 million.  For the quarter, 223,663 megawatt-hours were sold at an average
price of 7.4 cents per kilowatt-hour.
    Note 1 - Adjusted net income should not be considered a substitute for
net income as reported in accordance with GAAP and is provided for comparison
purposes to prior periods and to earnings forecasts prepared by analysts and
other third parties.  Management believes and certain investors may find that
adjusted net income is beneficial in evaluating the Company's financial
performance.
    
    OUTLOOK
    
    Fourth quarter production is expected to range from 193,000 to 197,000
Boepd, which represents an increase of six to eight percent above fourth
quarter 2006.  The above guidance assumes net natural gas sales to the LNG
plant of 50 MMcfpd in the fourth quarter 2007 versus actual sales of 155
MMcfpd in the third quarter, with the decrease a result of fourth quarter
downtime for third-party plant repairs.  Compared to the third quarter 2007,
other international production is expected to be down 2,000 to 5,000 Boepd
mostly due to the seasonal decline in natural gas demand in Israel. Production
in North America is expected to increase 1,000 to 2,000 Boepd from the third
quarter.
    For the fourth quarter 2007, costs and expenses are expected to range as
follows:

    
    -- Exploration expense is expected to range from $45 million to
       $60 million,
    -- General and administrative expenses is expected to range from
       $52 million to $56 million,
    -- Oil and gas operations expense is expected to range from $78 million to
       $82 million,
    -- Depreciation, depletion and amortization is expected to range from
       $185 million to $190 million.
    
    For the year 2007, an effective tax rate is expected on the low end of
the original estimated range of 30 to 36 percent.  Of the total book taxes
planned for 2007, deferred taxes are expected to be between 60 and 65 percent
as compared to the previous estimate of 55 to 60 percent.
    Capital expenditures for the year are expected to total approximately
$1.7 billion.
    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, 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
Argentina, China, Ecuador, the Mediterranean Sea (Israel), the North Sea (UK,
the Netherlands, and Norway), West Africa (Equatorial Guinea and Cameroon) and
Suriname.  Noble Energy markets natural gas and crude oil through its
subsidiary, Noble Energy Marketing, Inc.  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     Nine Months Ended
                                       September 30,         September 30,
                                      2007      2006        2007        2006
    Revenues
      Oil and gas sales            $746,258  $683,544  $2,140,218  $2,044,656
      Income from equity method
       investees                     45,371    33,810     139,904     108,901
      Other revenues                 22,182    23,965      70,447      72,339
      Total Revenues                813,811   741,319   2,350,569   2,225,896
    

    
    Costs and Expenses
      Lease operating costs          81,767    76,928     243,205     238,307
      Production and ad valorem
       taxes                         26,752    30,697      80,667      83,663
      Transportation costs           13,260     4,531      40,346      18,463
      Exploration costs              45,794    30,904     144,796      92,327
      Depreciation, depletion and
       amortization                 195,266   165,765     540,453     458,878
      General and administrative     49,518    40,657     142,368     113,716
      Accretion of discount on asset
       retirement obligations         1,909     2,426       6,337       8,405
      Interest, net of amount
       capitalized                   29,247    28,556      87,105      95,642
      Loss (gain) on derivative
       instruments                    1,514    (6,315)       (557)    389,723
      Loss (gain) on sale of assets   1,684  (200,676)     (4,381)   (211,691)
      Loss on involuntary conversion      -         -      51,406           -
      Other expense, net             23,823    22,880      78,594      89,008
      Total Costs and Expenses      470,534   196,353   1,410,339   1,376,441
    

    
    Income Before Taxes             343,277   544,966     940,230     849,455
    Income Tax Provision            120,602   226,902     296,638     336,009
    Net Income                     $222,675  $318,064    $643,592    $513,446
    

    
    Earnings Per Share
        Basic                         $1.30     $1.80       $3.76       $2.91
        Diluted                       $1.28     $1.75       $3.72       $2.85
    

    
    Weighted average number of
     shares outstanding
        Basic                       171,123   176,218     170,953     176,505
        Diluted                     173,350   181,077     173,156     180,158
    



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

    
                                               (Unaudited)
                                               September 30,      December 31,
                                                   2007              2006
                                    ASSETS
    Current Assets
      Cash and cash equivalents                  $450,773          $153,408
      Accounts receivable - trade, net            555,850           586,882
      Deferred income taxes                        64,337            99,835
      Probable insurance claims                    12,193           101,233
      Other current assets                        114,857           127,188
          Total current assets                  1,198,010         1,068,546
    Property, plant and equipment
      Oil and gas properties (successful
       efforts method of accounting)            9,924,532         8,867,639
      Other property, plant and equipment          93,475            79,646
                                               10,018,007         8,947,285
      Accumulated depreciation, depletion
       and amortization                        (2,292,108)       (1,776,528)
      Total property, plant and equipment,
       net                                      7,725,899         7,170,757
    Other noncurrent assets                       561,270           568,032
    Goodwill                                      766,249           781,290
        Total Assets                          $10,251,428        $9,588,625
    

    
                     LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities
      Accounts payable - trade                   $588,453          $518,609
      Derivative instruments                      372,027           254,625
      Income taxes                                 54,055           107,136
      Short-term borrowings                        25,000                --
      Asset retirement obligations                 15,081            68,500
      Other current liabilities                   176,579           235,392
        Total current liabilities               1,231,195         1,184,262
      Deferred income taxes                     1,882,518         1,758,452
      Asset retirement obligations                108,589           127,689
      Derivative instruments                      127,944           328,875
      Other noncurrent liabilities                341,873           274,720
      Long-term debt                            1,941,018         1,800,810
        Total Liabilities                       5,633,137         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;
       190,462,250 and 188,808,087 shares
       issued, respectively                       634,860           629,360
      Capital in excess of par value            2,088,891         2,041,048
      Accumulated other comprehensive loss       (177,023)         (140,509)
      Treasury stock, at cost: 18,580,865
       and 16,574,384 shares, respectively       (612,976)         (511,443)
      Retained earnings                         2,684,539         2,095,361
        Total Shareholders' Equity              4,618,291         4,113,817
        Total Liabilities and Shareholders'
         Equity                               $10,251,428        $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    Nine Months Ended
                                       September 30,         September 30,
                                      2007      2006       2007        2006
    

    
    Net income                     $222,675  $318,064    $643,592    $513,446
    Adjustments to reconcile net
     income to discretionary cash
     flow:
    Depreciation, depletion and
     amortization - oil and gas
     production                     195,266   165,765     540,453     458,878
    Depreciation, depletion and
     amortization - electricity
     generation                       3,645     3,775      10,558      11,842
    Impairment of operating assets    3,661         -       3,661       6,359
    Exploration costs                45,794    30,904     144,796      92,327
    Interest capitalized             (3,918)   (1,174)    (10,219)     (3,430)
    Income from equity method
     investments                    (45,371)  (33,810)   (139,904)   (108,901)
    Distributions and dividends
     from equity method investees    58,487    39,001     155,431     134,521
    Deferred compensation
     adjustment                       8,423       933      23,089      15,673
    Deferred income taxes            88,621    99,650     192,137     146,709
    Accretion of discount on asset
     retirement obligations           1,909     2,426       6,337       8,405
    Allowance for doubtful
     accounts                         3,297     6,949      10,780      10,564
    Stock-based compensation
     expense                          7,962     2,997      20,040       9,320
    (Gain) loss on derivative
     instruments [1]                (40,890)  (17,461)   (133,580)    430,328
    Gain on sale of Gulf of Mexico
     shelf assets                         -   (88,148)          -     (88,148)
    Other, net                        6,546     3,600      10,465       5,079
    Discretionary Cash Flow [2]     556,107   533,471   1,477,636   1,642,972
    

    
    Reconciliation to Operating
     Cash Flows:
    Net changes in working capital   17,102    66,204     (65,661)     10,194
    Cash exploration costs          (28,888)  (16,665)    (97,027)    (52,983)
    Capitalized interest              3,918     1,174      10,219       3,430
    Distributions from equity
     method investees                (2,100)  (39,001)     (2,100)   (116,521)
    (Gain) Loss on disposal of
     assets                           1,684  (112,528)     (4,381)   (123,543)
    Other adjustments to reconcile
     discretionary cash flow
     to operating cash flows            (83)  (26,082)      1,925     (22,736)
    Net Cash Provided by Operating
     Activities                    $547,740  $406,573  $1,320,611  $1,340,813
    


    
    [1] Includes $42,404 and $133,022 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 nine months ended September 30, 2007.
        $10,129 is included in the three and nine months ended September 30,
        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 9/30/07
                               Consoli-     North         West         North
                                dated      America       Africa         Sea
    Revenues
      Oil sales                $449,898   $205,477      $92,704      $118,101
      Gas sales                 296,360    251,872        5,189 [3]     3,673
      Equity investee liquids
       sales                          -          -       39,349             -
      Equity investee methanol
       sales                          -          -       34,744             -
      Gathering, marketing and
       processing                 5,566          -            -             -
      Electricity sales          16,616          -            -             -
      Income from equity
       method investments        45,371          -            -             -
          Total Revenues        813,811    457,349      171,986       121,774
    

    
    Costs and expenses
      Oil and gas operating
       costs                     77,283     50,007        7,483        10,697
      Workover and repair
       expense                    4,484      4,460 [8]        -             -
      Production and ad
       valorem taxes             26,752     21,389            -             -
      Transportation             13,260     10,111            -         2,859
      Oil and gas exploration    45,794     21,274       17,903         2,087
      Gathering, marketing and
       processing                 4,100          -            -             -
      Equity investee liquids
       expense                        -          -        8,627             -
      Equity investee methanol
       expense                        -          -       20,095             -
      Electricity generation     13,679          -            -             -
      DD&A                      195,266    143,574        8,716        29,741
      Impairment of operating
       assets                     3,661      3,661            -             -
      General and
       administrative            49,518     17,138          906         1,125
      Accretion expense           1,909      1,373           25           336
      Interest expense, net      29,247          -            -             -
      Deferred compensation       8,423          -            -             -
      Loss on derivative
       instruments                1,514      1,514            -             -
      Loss on involuntary
       conversion                     -          -            -             -
      (Gain) loss on sale of
       assets                     1,684      1,945            -          (225)
      Other expense (income),
       net                       (6,040)      (388)      (4,042)       (2,382)
          Total Costs and
           Expenses             470,534    276,058       59,713        44,238
    

    Operating Income (Loss)    $343,277   $181,291     $112,273       $77,536

    
      Key Statistics
        Sales Volumes
           Liquids (Bopd)        76,971     39,992       13,757        16,644
           Natural Gas (Mcfpd)  773,194    404,238      207,501 [3][4]  5,496
           Equity Investee
            Liquids (Bpd)         7,472          -        7,472 [5]         -
           Equity Investee
            Methanol (Kgal)      43,541          -       43,541             -
    

    
        Production Volumes
           Liquids (Bopd)        77,671     39,992       15,327        15,722
           Natural Gas (Mcfpd)  773,194    404,238      207,501         5,496
           Equity Investee
            Liquids (Bpd)         7,949          -        7,949 [6]         -
           Total Production
            Boepd  [9]          214,486    107,365       57,860        16,638
    

    
        Average Realized Price
           Liquids               $63.53     $55.85       $73.25        $77.13
           Natural Gas             4.30       6.77         0.27          7.26
           Equity Investee
            Liquids               57.24          -        57.24             -
           Equity Investee
            Methanol               0.80          -         0.80             -
    


    
                                               Three Months Ended 9/30/07
                                                      Other       Corporate
                                            Israel   Int'l [1]   & Other  [2]
    Revenues
       Oil sales                               $ -    $33,616           $-
       Gas sales                            35,626          -            -
       Equity investee liquids sales             -          -      (39,349)
       Equity investee methanol sales            -          -      (34,744)
       Gathering, marketing and
        processing                               -          -        5,566
       Electricity sales                         -     16,616            -
       Income from equity method
        investments                              -          -       45,371
           Total Revenues                   35,626     50,232      (23,156)
    

    
    Costs and expenses
       Oil and gas operating costs           2,615      6,300          181
       Workover and repair expense               -         24            -
       Production and ad valorem taxes           -      5,240          123
       Transportation                            -        290            -
       Oil and gas exploration                 689      1,256        2,585
       Gathering, marketing and
        processing                               -          -        4,100
       Equity investee liquids expense           -          -      (8,627)
       Equity investee methanol expense          -          -      (20,095)
       Electricity generation                    -     13,679            -
       DD&A                                  5,178      5,845        2,212
       Impairment of operating assets            -          -            -
       General and administrative                6      2,481       27,862
       Accretion expense                       112         63            -
       Interest expense, net                     -          -       29,247
       Deferred compensation                     -          -        8,423
       Loss on derivative instruments            -          -            -
       Loss on involuntary conversion            -          -            -
       (Gain) loss on sale of assets           (39)         -            3
       Other expense (income), net            (892)     1,497          167
           Total Costs and Expenses          7,669     36,675       46,181
    

    Operating Income (Loss)                $27,957    $13,557     $(69,337)

    
      Key Statistics
        Sales Volumes
          Liquids (Bopd)                         -      6,578            -
          Natural Gas (Mcfpd)              131,115     24,844 [7]        -
          Equity Investee Liquids (Bpd)          -          -            -
          Equity Investee Methanol (Kgal)        -          -            -
    

    
        Production Volumes
          Liquids (Bopd)                         -      6,630            -
          Natural Gas (Mcfpd)              131,115     24,844            -
          Equity Investee Liquids (Bpd)          -          -            -
          Total Production Boepd [9]        21,853     10,771            -
    

    
        Average Realized Price
          Liquids                               $-     $55.55           $-
          Natural Gas                         2.95                       -
          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 154,637 Mcfpd sold to
         an LNG plant.
     [5] Equity Investee LPG volumes include condensate and natural gas
         liquids of 1,942 Bpd and 5,530 Bpd, respectively.  These volumes are
         included in West Africa production and LPG sales revenue.
     [6] Equity Investee LPG volumes include condensate and natural gas
         liquids of 1,815 Bpd and 6,134 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] There was no hurricane related repair expense recorded in the third
         quarter 2007.
     [9] 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 9/30/06
                               Consoli-     North         West         North
                                dated      America       Africa         Sea
    Revenues
      Oil sales                $392,699    $252,019      $84,048      $20,869
      Gas sales                 290,845     253,703        1,450 [3]    5,213
      Equity investee liquids
       sales                          -           -       40,164            -
      Equity investee methanol
       sales                          -           -       15,654            -
      Gathering, marketing and
       processing                 7,724           -            -            -
      Electricity sales          16,241           -            -            -
      Income from equity
       method investments        33,810           -            -            -
        Total Revenues          741,319     505,722      141,316       26,082
    

    
    Costs and expenses
      Oil and gas operating
       costs                     66,431      50,753        6,310        3,355
      Workover and repair
       expense                   10,497      10,453 [7]        -            -
      Production and ad
       valorem taxes             30,697      22,636            -            -
      Transportation              4,531       3,358            -          952
      Oil and gas exploration    30,904      23,366          706        1,395
      Gathering, marketing and
       processing                 4,204           -            -            -
      Equity investee liquids
       expense                        -           -        9,655            -
      Equity investee methanol
       expense                        -           -       12,352            -
      Electricity generation     17,876           -            -            -
      DD&A                      165,765     146,010        5,353        2,603
      Impairment of operating
       assets                         -           -            -            -
      General and
       administrative            40,657      16,013            -          774
      Accretion expense           2,426       1,937           26          290
      Interest expense, net      28,556           -            -            -
      Deferred compensation         933           -            -            -
      Gain on derivative
       instruments               (6,315)     (6,315)           -            -
      Loss on involuntary
       conversion                     -           -            -            -
      Gain on sale of assets   (200,676)   (200,599)           -          (74)
      Other expense (income),
       net                         (133)      2,678         (292)       1,081
        Total Costs and
         Expenses               196,353      70,290       34,110       10,376
    

    Operating Income (Loss)    $544,966    $435,432     $107,206      $15,706

    
      Key Statistics
        Sales Volumes
           Liquids (Bopd)        71,959      48,193       13,649        3,292
           Natural Gas (Mcfpd)  616,170     430,072       40,498[3]     8,553
           Equity Investee
            Liquids (Bpd)         8,932           -        8,932[4]         -
           Equity Investee
            Methanol (Kgal)      18,769           -       18,769            -
    

    
        Production Volumes
           Liquids (Bopd)        76,975      48,193       17,324        3,675
           Natural Gas (Mcfpd)  616,170     430,072       40,498        8,553
           Equity Investee
            Liquids (Bpd)         7,994           -        7,994[5]         -
           Total Production
            Boepd [8]           187,664     119,872       32,068        5,101
    

    
        Average Realized Price
           Liquids               $59.32      $56.84       $66.93       $68.90
           Natural Gas             5.30        6.41         0.39         6.62
           Equity Investee
            Liquids               48.88           -        48.88            -
           Equity Investee
            Methanol               0.83           -         0.83            -
    


    
                                               Three Months Ended 9/30/06
                                                      Other       Corporate
                                            Israel    Int'l [1]  & Other [2]
    


    
    Revenues
       Oil sales                                $-    $35,763           $-
       Gas sales                            30,451         28            -
       Equity investee liquids sales             -          -      (40,164)
       Equity investee methanol sales            -          -      (15,654)
       Gathering, marketing and
        processing                               -          -        7,724
       Electricity sales                         -     16,241            -
       Income from equity method
        investments                              -          -       33,810
         Total Revenues                     30,451     52,032      (14,284)
    

    
    Costs and expenses
       Oil and gas operating costs           2,134      3,817           62
       Workover and repair expense               -         44            -
       Production and ad valorem taxes           -      7,942          119
       Transportation                            -        221            -
       Oil and gas exploration                  82      2,900        2,455
       Gathering, marketing and
        processing                               -          -        4,204
       Equity investee liquids expense           -          -       (9,655)
       Equity investee methanol expense          -          -      (12,352)
       Electricity generation                    -     17,876            -
       DD&A                                  4,115      5,921        1,763
       Impairment of operating assets            -          -            -
       General and administrative               19      2,000       21,851
       Accretion expense                       119         54            -
       Interest expense, net                     -          -       28,556
       Deferred compensation                     -          -          933
       Gain on derivative instruments            -          -            -
       Loss on involuntary conversion            -          -            -
       Gain on sale of assets                    -          -           (3)
       Other expense (income), net            (803)        35       (2,832)
         Total Costs and Expenses            5,666     40,810       35,101
    

    Operating Income (Loss)                $24,785    $11,222     $(49,385)

    
       Key Statistics
         Sales Volumes
            Liquids (Bopd)                       -      6,825            -
            Natural Gas (Mcfpd)            116,718     20,329 [6]        -
            Equity Investee Liquids (Bpd)        -          -            -
            Equity Investee Methanol (Kgal)      -          -            -
    

    
         Production Volumes
            Liquids (Bopd)                       -      7,783            -
            Natural Gas (Mcfpd)            116,718     20,329            -
            Equity Investee Liquids (Bpd)        -          -            -
            Total Production Boepd      [8] 19,453     11,171            -
    

    
         Average Realized Price
            Liquids                             $-     $56.96           $-
            Natural Gas                       2.84       1.51            -
            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 LPG volumes include condensate and natural gas
          liquids of 1,975 Bpd and 6,957 Bpd, respectively.  These volumes are
          included in West Africa production and LPG sales revenue.
      [5] Equity Investee LPG volumes include condensate and natural gas
          liquids of 1,811 Bpd and 6,183 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 $4.2 million for third 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)
    

    
                                      Nine Months Ended 9/30/07
                                              North         West
                                Consolidated America       Africa
    Revenues
      Oil sales                  $1,204,854  $606,421     $273,082
      Gas sales                     935,364   830,480       10,086[3]
      Equity investee liquids
       sales                              -         -      109,329
      Equity investee methanol
       sales                              -         -      112,094
      Gathering, marketing and
       processing                    16,702         -            -
      Electricity sales              53,745         -            -
      Income from equity method
       investments                  139,904         -            -
        Total Revenues            2,350,569 1,436,901      504,591
    

    
    Costs and expenses
      Oil and gas operating costs   228,672   155,980       25,014
      Workover and repair expense    14,533    14,327       [8]  -
      Production and ad valorem
       taxes                         80,667    65,933            -
      Transportation                 40,346    31,887            -
      Oil and gas exploration       144,796    71,156       46,182
      Gathering, marketing and
       processing                    13,093         -            -
      Equity investee liquids
       expense                            -         -       19,829
      Equity investee methanol
       expense                            -         -       61,690
      Electricity generation         41,941         -            -
      DD&A                          540,453   427,861       18,731
      Impairment of operating
       assets                         3,661     3,661            -
      General and administrative    142,368    50,761        2,452
      Accretion expense               6,337     4,767           77
      Interest expense, net          87,105         -            -
      Deferred compensation          23,089         -            -
      Gain on derivative
       instruments                     (557)     (557)           -
      Loss on involuntary
       conversion                    51,406    51,406            -
      (Gain) loss on sale of assets  (4,381)   (4,196)           -
      Other expense (income), net    (3,190)    5,131       (7,466)
        Total Costs and Expenses  1,410,339   878,117      166,509
    

    Operating Income (Loss)        $940,230  $558,784     $338,082

    
      Key Statistics
        Sales Volumes
          Liquids (Bopd)             77,385    43,525       14,936
          Natural Gas (Mcfpd)       679,116   410,083      126,820[3][4]
          Equity Investee
           Liquids (Bpd)              7,862         -        7,862[5]
          Equity Investee
           Methanol (Kgal)          116,792         -      116,792
    

    
        Production Volumes
          Liquids (Bopd)             78,396    43,525       15,874
          Natural Gas (Mcfpd)       679,116   410,083      126,820
          Equity Investee
           Liquids (Bpd)              8,220         -        8,220[6]
          Total Production
           Boepd            [9]     199,802   111,872       45,231
    

    
        Average Realized Price
          Liquids                    $57.03    $51.04       $66.97
          Natural Gas                  5.24      7.42         0.29
          Equity Investee Liquids     50.93         -        50.93
          Equity Investee Methanol     0.96         -         0.96
    


    
                                            Nine Months Ended 9/30/07
                                    North                 Other    Corporate
                                     Sea       Israel     Int'l[1]  & Other[2]
    Revenues
      Oil sales                    $229,243        $-      $96,108        $-
      Gas sales                       9,861    84,937                      -
      Equity investee liquids
       sales                              -         -            -  (109,329)
      Equity investee methanol
       sales                              -         -            -  (112,094)
      Gathering, marketing and
       processing                         -         -            -    16,702
      Electricity sales                   -         -       53,745         -
      Income from equity method
       investments                        -         -            -   139,904
        Total Revenues              239,104    84,937      149,853   (64,817)
    

    
    Costs and expenses
      Oil and gas operating costs    23,954     6,896       16,312       516
      Workover and repair expense         -         -          206         -
      Production and ad valorem
       taxes                              -         -       14,326       408
      Transportation                  7,091         -        1,368         -
      Oil and gas exploration        12,881     1,077        4,571     8,929
      Gathering, marketing and
       processing                         -         -            -    13,093
      Equity investee liquids
       expense                            -         -            -   (19,829)
      Equity investee methanol
       expense                            -         -            -   (61,690)
      Electricity generation              -         -       41,941         -
      DD&A                           56,849    13,011       17,863     6,138
      Impairment of operating
       assets                             -         -            -         -
      General and administrative      2,835        55        3,123    83,142
      Accretion expense               1,009       337          147         -
      Interest expense, net               -         -            -    87,105
      Deferred compensation               -         -            -    23,089
      Gain on derivative
       instruments                        -         -            -         -
      Loss on involuntary
       conversion                         -         -            -         -
      (Gain) loss on sale of
       assets                          (225)       34           (4)       10
      Other expense (income), net    (2,347)   (1,605)       2,373       724
        Total Costs and Expenses    102,047    19,805      102,226   141,635
    

    Operating Income (Loss)        $137,057   $65,132      $47,627 $(206,452)

    
      Key Statistics
        Sales Volumes
          Liquids (Bopd)             11,926         -        6,998         -
          Natural Gas (Mcfpd)         5,967   110,675       25,571[7]      -
          Equity Investee
           Liquids (Bpd)                  -         -            -         -
          Equity Investee
           Methanol (Kgal)                -         -            -         -
    

    
        Production Volumes
          Liquids (Bopd)             11,954         -        7,043         -
          Natural Gas (Mcfpd)         5,967    110,675      25,571         -
          Equity Investee
           Liquids (Bpd)                  -          -           -         -
          Total Production
           Boepd        [9]          12,949     18,446      11,305         -
    

    
        Average Realized Price
          Liquids                    $70.41         $-      $50.30        $-
          Natural Gas                  6.05       2.81                     -
          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 72,010 Mcfpd sold to an
         LNG plant.
     [5] Equity Investee LPG volumes include condensate and natural gas
         liquids of 1,955 Bpd and 5,907 Bpd, respectively.  These volumes are
         included in West Africa production and LPG sales revenue.
     [6] Equity Investee LPG volumes include condensate and natural gas
         liquids of 1,896 Bpd and 6,324 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 $.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)
    

    
                                    Nine Months Ended 9/30/06
                                               North        West
                                Consolidated  America      Africa
    

    
    Revenues
      Oil sales                  $1,126,983   $644,103    $302,284
      Gas sales                     917,673    825,765       4,586[3]
      Equity investee liquids
       sales                              -          -     104,720
      Equity investee methanol
       sales                              -          -      70,967
      Gathering, marketing and
       processing                    22,667          -           -
      Electricity sales              49,672          -           -
      Income from equity
       method investments           108,901          -           -
        Total Revenues            2,225,896  1,469,868     482,557
    

    
    Costs and expenses
      Oil and gas operating
       costs                        195,550    147,357      21,760
      Workover and repair
       expense                       42,757     42,628[7]        -
      Production and ad
       valorem taxes                 83,663     66,373           -
      Transportation                 18,463     14,022           -
      Oil and gas exploration        92,327     62,481       5,339
      Gathering, marketing and
       processing                    15,674          -           -
      Equity investee liquids
       expense                            -          -      23,233
      Equity investee methanol
       expense                            -          -      43,552
      Electricity generation         43,099          -           -
      DD&A                          458,878    402,033      15,674
      Impairment of operating
       assets                         6,359      6,359           -
      General and
       administrative               113,716     44,089           1
      Accretion expense               8,405      6,960          78
      Interest expense, net          95,642          -           -
      Deferred compensation          15,673          -           -
      Loss on derivative
       instruments                  389,723    389,723           -
      Loss on involuntary
       conversion                         -          -           -
      (Gain) loss on sale of
       assets                      (211,691)  (209,725)          -
      Other expense (income),
       net                            8,203     12,912        (570)
        Total Costs and Expenses  1,376,441    985,212     109,067
    

    Operating Income (Loss)        $849,455   $484,656    $373,490

    
      Key Statistics
        Sales Volumes
          Liquids (Bopd)             74,290     45,834      17,374
          Natural Gas (Mcfpd)       629,279    461,843      44,232[3]
          Equity Investee
           Liquids (Bpd)              8,168          -       8,168[4]
          Equity Investee
           Methanol (Kgal)           85,233          -      85,233
    

    
        Production Volumes
          Liquids (Bopd)             74,829     45,834      17,790
          Natural Gas (Mcfpd)       629,279    461,843      44,232
          Equity Investee
           Liquids (Bpd)              7,503          -       7,503[5]
          Total Production [8]
           Boepd                    187,212    122,808      32,665
    

    
        Average Realized Price
          Liquids                    $55.57     $51.48      $63.73
          Natural Gas                  5.54       6.55        0.38
          Equity Investee Liquids     46.96          -       46.96
          Equity Investee Methanol     0.83          -        0.83
    


    
                                             Nine Months Ended 9/30/06
                                     North                Other    Corporate
                                      Sea       Israel    Int'l[1] & Other[2]
    Revenues
      Oil sales                     $69,948         $-    $110,648        $-
      Gas sales                      18,775     68,441         106         -
      Equity investee liquids
       sales                              -          -           -  (104,720)
      Equity investee methanol
       sales                              -          -           -   (70,967)
      Gathering, marketing and
       processing                         -          -           -    22,667
      Electricity sales                   -          -      49,672         -
      Income from equity method
       investments                        -          -           -   108,901
        Total Revenues               88,723     68,441     160,426   (44,119)
    

    
    Costs and expenses
      Oil and gas operating costs     7,998      6,389      11,623       423
      Workover and repair expense         -          -         129         -
      Production and ad valorem
       taxes                              -          -      16,910       380
      Transportation                  3,843          -         598         -
      Oil and gas exploration         9,279        143       7,684     7,401
      Gathering, marketing and
       processing                         -          -           -    15,674
      Equity investee liquids
       expense                            -          -           -   (23,233)
      Equity investee methanol
       expense                            -          -           -   (43,552)
      Electricity generation              -          -      43,099         -
      DD&A                            5,933     10,367      19,445     5,426
      Impairment of operating
       assets                             -          -           -         -
      General and administrative      2,080         58       2,982    64,506
      Accretion expense                 868        332         167         -
      Interest expense, net              -           -           -    95,642
      Deferred compensation              -           -           -    15,673
      Loss on derivative
       instruments                       -           -           -         -
      Loss on involuntary
       conversion                        -           -           -         -
      (Gain) loss on sale of
       assets                       (2,004)          -          15        23
      Other expense (income), net    1,476      (1,699)      1,162    (5,078)
        Total Costs and Expenses    29,473      15,590     103,814   133,285
    

    Operating Income (Loss)        $59,250     $52,851     $56,612 $(177,404)

    
      Key Statistics
        Sales Volumes
          Liquids (Bopd)             3,619           -       7,463         -
          Natural Gas (Mcfpd)        8,460      91,656      23,088[6]      -
          Equity Investee
           Liquids (Bpd)                 -           -           -         -
          Equity Investee
           Methanol (Kgal)               -           -           -         -
    

    
        Production Volumes
          Liquids (Bopd)             3,867           -       7,338         -
          Natural Gas
           (Mcfpd)                   8,460      91,656      23,088         -
          Equity Investee
           Liquids (Bpd)                 -           -           -         -
          Total Production
           Boepd        [8]          5,277      15,276      11,186         -
    

    
        Average Realized Price
          Liquids                   $70.79          $-      $54.31        $-
          Natural Gas                 8.13        2.74        1.20         -
          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 LPG volumes include condensate and natural gas
          liquids of 1,759 Bpd and 6,409 Bpd, respectively.  These volumes are
          included in West Africa production and LPG sales revenue.
      [5] Equity Investee LPG volumes include condensate and natural gas
          liquids of 1,726 Bpd and 5,777 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 $25.6 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   Nine Months Ended
                                       September 30,        September 30,
                                       2007      2006      2007       2006
    (Decrease) increase of oil and
     gas sales:
      Cash settlement crude oil
       contracts                    $(60,297) $(46,386) $(128,359) $(159,687)
      Cash settlement natural gas
       contracts                       5,569    (7,541)   (12,965)   (69,477)
        Total cash settlements       (54,728)  (53,927)  (141,324)  (229,164)
      Non-cash impact of loss
       associated with Gulf of
       Mexico shelf asset sale        42,404    10,129    133,022     10,129
        Net decrease of oil and gas
         sales                       (12,324)  (43,798)    (8,302)  (219,035)
    

    
    Gain (loss) on derivative
     instruments:
      Loss associated with Gulf of
       Mexico shelf asset sale             -         -          -   (398,517)
      (Loss) gain from
       ineffectiveness and other      (1,514)    6,315        557      8,794
         (Loss) gain on derivative
          instruments                 (1,514)    6,315        557   (389,723)
    

    Pretax earnings decrease        $(13,838) $(37,483)   $(7,745) $(608,758)



    
        Impact of Loss Associated with Gulf of Mexico Shelf Asset Sale
                            (Dollars in thousands)
                                 (Unaudited)
    

    
    Loss associated with Gulf of Mexico
     shelf asset sale ( 2Q 2006 )                                 $(398,517)
    Redesignated and mark to market
     contracts settled in 2006                                       30,651
    Redesignated contracts settled in
     1st, 2nd & 3rd Qtr 2007                                        133,022
      Unsettled loss associated with Gulf
       of Mexico shelf asset sale                                 $(234,844)
    

    
    Settlement schedule                    Crude Oil  Natural Gas    Total
     4Q 2007                                     -      49,402       49,402
     1Q 2008                                 5,979      54,529       60,508
     2Q 2008                                 5,835      32,191       38,026
     3Q 2008                                 5,763      34,055       39,818
     4Q 2008                                 5,633      41,457       47,090
       Remaining settlements               $23,210    $211,634     $234,844
    



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

    
                                        Three Months Ended  Nine Months Ended
                                            September 30,     September 30,
                                            2007     2006     2007     2006
    Revenues
        Power Sales                     $14,539   $14,231   $47,309   $43,447
        Capacity Charge                   2,077     2,010     6,436     6,225
          Total Revenues                 16,616    16,241    53,745    49,672
    

    
    Costs and expenses
      Field
        Lease Operating                     658       756     1,987     2,119
        DD&A                              2,582     2,593     7,812     8,337
        General and administrative          604       595     2,053     1,857
      Plant
        Fuel & Other Operating Costs[1]   7,536    10,733    23,251    21,661
        DD&A                              1,069     1,182     2,755     3,505
        General and administrative        1,230     2,017     4,083     5,620
          Total Costs and Expenses       13,679    17,876    41,941    43,099
    

    Operating Income                     $2,937   $(1,635)  $11,804    $6,573


    
      Natural Gas Production (Mcfpd)     24,844    20,131    25,571    22,764
      Average Natural Gas Price           $3.74     $3.76     $3.75     $3.76
    


    
      Power Production - Total MW       223,663   182,806   678,986   603,513
      Average Power Price ($/Kwh)        $0.074    $0.089    $0.079    $0.082
    

    
    [1] Includes increases in the allowance for doubtful accounts of
        $3 million and $3 million for third quarter 2007 and 2006,
        respectively, and $11 million and $4 million for the first nine months
        of 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 Ended  Nine Months Ended
                                           September 30,      September 30,
                                           2007     2006     2007     2006
    Revenues
        Methanol sales                   $34,744  $15,654  $112,094  $70,967
        Other                              2,083    2,682     4,874    7,959
          Total revenues                  36,827   18,336   116,968   78,926
    

    
    Costs and expenses
        Cost of goods sold                13,899   11,425    40,064   34,576
        DD&A                               2,739    2,348     8,260    7,075
        General and administrative           648      381     1,806    1,403
          Total costs and expenses        17,286   14,154    50,130   43,054
    

    Income Tax Provision                   4,892      880    16,434    8,457

    Income from Equity Method Investees  $14,649   $3,302   $50,404  $27,415

    
      Methanol Sales (KGal)               43,541   18,769   116,792   85,233
      Average Realized Price ($/Gal)       $0.80    $0.83     $0.96    $0.83
    



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

    
                                        Three Months Ended  Nine Months Ended
                                          September 30,       September 30,
                                           2007     2006     2007      2006
    Revenues
        LPG Plant Sales                  $39,349  $40,164  $109,329  $104,720
        Other                                189      310       497       957
          Total Revenues                  39,538   40,474  $109,826  $105,677
    

    
    Costs and expenses
        LPG Plant Expenses                 7,579    8,285    19,201    19,222
        DD&A                               1,767    1,645     5,249     4,933
        Other                                  -        -    (2,765)        -
          Total Costs and Expenses         9,346    9,930    21,685    24,155
    

    Income Tax Benefit                      (530)      35    (1,359)       35

    Income from Equity Method Investees  $30,722  $30,509   $89,500   $81,487

    
      LPG Plant Sales (Bpd)                7,472    8,932     7,862     8,168
      Average Realized Price ($/Bbl)      $57.24   $48.88    $50.93    $46.96
    




For further information:

For further information: Chris Tong of Noble Energy, Inc., 
+1-281-872-3122, Investor_Relations@nobleenergyinc.com Web Site:
http://www.nobleenergyinc.com

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