Noble Energy Announces Second Quarter 2007 Results



    HOUSTON, Aug. 1 /CNW/ -- Noble Energy, Inc. (NYSE:   NBL) today reported
second quarter 2007 net income of $209.1 million, or $1.22 per basic share
($1.21 per share diluted).  Discretionary cash flow (non-GAAP measure, see
Schedule 3 - Discretionary Cash Flow and Reconciliation to Operating Cash
Flow) for the second quarter was $473.2 million.  Net cash provided by
operating activities was $350.6 million.  Capital expenditures for the quarter
totaled $481.1 million.
    
    Key accomplishments for the second quarter include:
     (*)  Daily equivalent production volume increase of 12 percent versus
        second quarter 2006, adjusted to exclude Gulf of Mexico Shelf
        production sold in July 2006
     (*)  Successful exploration well (Benita) in Block I, offshore Equatorial
        Guinea
     (*)  Deepwater Gulf of Mexico exploration success at Isabela
     (*)  Acquisition of approximately 280,000 net acres onshore North America
        in the Piceance, Niobrara, and New Albany Shale areas
     (*)  Sales of natural gas to a liquefied natural gas (LNG) plant in
        Equatorial Guinea, representing approximately 9,700 barrels of oil
        equivalent per day (Boepd)
    
    Second quarter 2007 results included deferred compensation expense of
$3.0 million pretax ($1.9 million after tax).  Also included in the second
quarter 2007 results was a pretax charge (Loss on Involuntary Conversion) due
to a revision in Hurricane Ivan and Katrina estimates for salvage and clean up
of $38.3 million ($23.9 million after tax).  The salvage and cleanup operation
is now complete and all equipment has been released.
    Charles D. Davidson, the company's Chairman, President and CEO, said,
"Noble Energy's strong second quarter financial and operating results reflect
continued momentum from our diversified portfolio of assets.  Despite selling
our Gulf of Mexico Shelf assets in the third quarter of 2006, we have
increased production for the second quarter 2007 as compared to the same
period 2006.  In North America, we have steadily increased activity levels in
the Rocky Mountains and we have acquired several new acreage positions that
look promising for the future.  Our international portfolio of assets
performed extremely well in the second quarter with production growing in
Israel, the North Sea and Equatorial Guinea over the same period last year. We
are excited about our recent exploration successes in the Deepwater Gulf of
Mexico and Equatorial Guinea and look forward to our remaining 2007
exploration program, including prospects in the Deepwater Gulf of Mexico,
Equatorial Guinea, and Cameroon.  Our balanced and diversified portfolio
continues to allow us to show organic growth while providing future growth
opportunities through a high impact exploration program."
    Second quarter 2007 production was 197,217 Boepd compared to 194,747
Boepd for the same period last year and 187,588 Boepd for the first quarter
2007. Second quarter 2006 production included 18,928 Boepd from the Gulf of
Mexico Shelf assets, which were sold in July 2006.  Sales volumes during the
second quarter 2007 were 199,516 Boepd, exceeding production by approximately
2,300 Boepd, primarily due to the timing of condensate liftings in Equatorial
Guinea.
    
    NORTH AMERICA
    
    North America reported pre-tax operating income for the second quarter
2007 of $160.0 million compared to a pre-tax operating loss of $152.1 million
for the second quarter 2006.  The pre-tax operating loss in 2006 included a
charge of approximately $400 million related to certain cash flow hedges that
were associated with Gulf of Mexico Shelf assets sold in the third quarter
2006.
    North American production volumes were 114,698 Boepd in the second
quarter 2007 compared to 134,194 Boepd for the same quarter last year and
113,622 Boepd for the first quarter 2007.  Liquids and natural gas production
volumes were 45,068 barrels of oil per day (Bopd) and 417.8 million cubic feet
per day (MMcfpd), respectively, for the current quarter compared to 51,983
Bopd and 493.3 MMcfpd for the second quarter of 2006 and 45,576 Bopd and 408.3
MMcfpd for the first quarter 2007.  The decline in production volumes in the
second quarter 2007 as compared to second quarter 2006 is attributable
primarily to the disposition of the Gulf of Mexico Shelf assets.  Compared to
last quarter, second quarter 2007 production was impacted by 1,550 Boepd
primarily due to third party processing downtime in the Rocky Mountains and
Midcontinent, 750 Boepd due to natural declines in the Gulf Coast and
Midcontinent, and 2,400 Boepd related to Deepwater facility downtime and
performance.  These impacts were more than offset by a 5,800 Boepd increase in
the Rocky Mountains during the quarter primarily due to the recovery of the
production impact from the severe winter storms experienced in the first
quarter.
    Domestic operations benefited from strong realized natural gas prices
during the quarter.  The average realized natural gas price was $7.25 per
thousand cubic feet (Mcf) for the second quarter 2007 compared to $6.29 per
Mcf last year.  Gas revenues for the current quarter were positively impacted
by $39.6 million attributable to previously recognized losses for hedge
contracts that were re-designated concurrent with the Gulf of Mexico Shelf
asset sale (see Schedule 8 - Impact of Loss Associated with Gulf of Mexico
Shelf Asset Sale).  The average liquids price was $51.34 per barrel (Bbl)
compared to $53.01 per Bbl during the second quarter of 2006.
    During 2007, Noble Energy plans to drill 1,033 gross domestic wells, of
which 232 were drilled in the second quarter.  The company also plans to
complete 454 refrac, trifrac, deepening and recompletion projects in 2007,
with 158 completed in the second quarter.
    
    INTERNATIONAL OPERATIONS
    
    International operations reported operating income for the second quarter
2007 of $202.4 million, an increase of 18 percent compared to $172.0 million
in the second quarter last year.  Total second quarter 2007 production volumes
were 82,519 Boepd compared to 60,553 Boepd for the same quarter last year and
73,966 Boepd for the first quarter 2007.  Liquids production volumes were
42,459 Bpd compared to 36,609 Bpd for the second quarter of 2006 and 41,318
Bpd for the first quarter 2007.  Natural gas production was 240.4 MMcfpd
compared to 143.7 MMcfpd in the same quarter last year and 195.9 MMcfpd for
the first quarter 2007.  Second quarter 2007 international sales were 84,819
Boepd, compared to 57,815 Boepd for the second quarter of 2006 and 68,513
Boepd for the first quarter 2007.
    
    West Africa
    
    Operating income for the second quarter increased 20 percent to $142.4
million this year compared to $118.4 million last year.  Total sales volumes
in Equatorial Guinea (exclusive of methanol operations) were 47,215 Boepd, an
increase of 62 percent compared to 29,061 Boepd during the second quarter of
2006.  Higher sales volumes resulted from increased natural gas volumes of
approximately 78.2 MMcfpd, primarily representing natural gas sales to the LNG
plant, as well as increased liftings of condensate and liquefied petroleum gas
(LPG).
    Alba field condensate and natural gas sales (exclusive of Alba Plant, LLC
and methanol operations) accounted for $93.4 million, or 66 percent, of the
operating income from West Africa.  Second quarter 2007 condensate and natural
gas sales volumes averaged 38,119 Boepd compared to 21,622 Boepd last year.
The average realized price for condensate during the second quarter was $69.23
per Bbl compared to $68.76 per Bbl for the same period last year.
    Alba Plant, LLC reported $38.0 million of income from liquefied petroleum
gas and condensate sales, net to Noble Energy's interest, compared to $23.9
million during the second quarter 2006.  Net Alba Plant, LLC LPG and
condensate sales volumes totaled 9,096 Bpd compared to 7,439 Bpd for the same
period last year.  The increase in sales volumes is attributed to increased
liftings of LPG's and condensate.  The average Alba Plant, LLC realized price
during the second quarter was $50.60 per Bbl compared to $46.68 per Bbl for
the same period last year.
    Income from methanol operations decreased slightly to $11.0 million, net
to Noble Energy's interest, compared to $11.6 million during the second
quarter 2006.  The company's share of methanol sales volumes was 33.6 million
gallons (Gal) compared to last year's 32.4 million Gal.  Second quarter
realized methanol prices were 87 cents per Gal compared to 84 cents per Gal
for the second quarter 2006.
    
    North Sea
    
    In the North Sea, operating income for the second quarter 2007 was $27.4
million compared to $17.9 million the previous year, resulting primarily from
crude sales from the Dumbarton field in the UK, which commenced production in
late January 2007.  In the second quarter 2007, Dumbarton production averaged
7,200 Bopd.
    
    Israel
    
    Second quarter 2007 operating income was $17.5 million compared to $13.3
million for the same period in 2006.  Natural gas production, net to Noble
Energy, averaged 97.5 MMcfpd for the second quarter 2007, a 29 percent
increase compared to 75.3 MMcfpd the previous year.  The increased natural gas
volumes reflect increased natural gas demand and a full quarter of sales to
Israeli Electric Corporation's Reading power plant in Tel Aviv, which came
online late in the second quarter 2006.  Sales prices averaged $2.70 per Mcf
for the second quarter 2007 as compared to $2.66 per Mcf for the prior year
period.
    
    Other International
    
    Argentina, China, Ecuador and Suriname combined recorded second quarter
2007 operating income of $15.2 million compared to $22.4 million for second
quarter last year.  In China, second quarter operating income was $13.2
million.  Net oil production in China averaged 4,154 Bopd for the second
quarter.  In Argentina, second quarter operating income was $3.5 million, and
net production averaged 3,014 Boepd.  The Machala power plant reported
operating income of $1.7 million for the second quarter.  For the quarter,
188,675 megawatt-hours were sold at an average price of 7.4 cents per
kilowatt-hour.
    
    Capital Expenditure Update
    
    Noble Energy expects 2007 capital expenditures to be approximately $1.6
billion, compared to the $1.42 billion announced in February of this year. The
increases are primarily related to the acquisition and development of property
acquired in the Piceance Basin, acquisition of additional acreage in the
Niobrara and New Albany Shale, and increases in our Deepwater Gulf of Mexico
and West Africa programs.  The increase in deepwater is primarily associated
with the recent Isabela discovery.  Capital additions in West Africa are due
to the addition of a drilling rig which is now operating in Cameroon.
    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
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, 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     Six Months Ended
                                        June 30,              June 30,
                                     2007      2006       2007        2006
    Revenues
    Oil and gas sales              $726,918  $714,860  $1,393,960  $1,361,112
    Income from equity method
     investments                     48,970    35,441      94,533      75,091
    Other revenues                   18,325    22,279      48,265      48,374
    Total Revenues                  794,213   772,580   1,536,758   1,484,577
    

    
    Costs and Expenses
    Lease operating costs            82,563    79,186     161,438     161,379
    Production and ad valorem
     taxes                           28,748    27,513      53,915      52,966
    Transportation costs             16,052     8,871      27,086      13,932
    Exploration costs                53,761    29,400      99,002      61,423
    Depreciation, depletion and
     amortization                   181,227   168,648     345,187     293,113
    General and administrative       47,761    37,661      92,850      73,059
    Accretion of discount on asset
     retirement obligations           2,041     2,662       4,428       5,979
    Interest, net of amount
     capitalized                     30,986    33,918      57,858      67,086
    Loss (gain) on derivative
     instruments                     (1,066)  401,197      (2,071)    396,039
    Loss on involuntary conversion   38,291        --      51,406          --
    Other expense, net               20,748    28,389      48,706      55,112
    Total Costs and Expenses        501,112   817,445     939,805   1,180,088
    

    
    Income (Loss) Before Taxes      293,101   (44,865)    596,953     304,489
    Income Tax Provision (Benefit)   83,996   (14,160)    176,036     109,107
    Net Income (Loss)              $209,105  $(30,705)   $420,917    $195,382
    

    
    Earnings (Loss) Per Share
       Basic                          $1.22    $(0.17)      $2.46       $1.11
       Diluted                        $1.21    $(0.17)      $2.43       $1.08
    

    
    Weighted average number of
     shares outstanding
       Basic                        170,900   177,160     170,873     176,651
       Diluted                      173,083   177,160     173,064     180,460
    


    
                                   Schedule 2
                       Noble Energy, Inc. and Subsidiaries
                           Consolidated Balance Sheets
                      (In thousands, Except Share Amounts)
    

    
                                                (Unaudited)
                                                  June 30,        December 31,
                                                    2007              2006
                                     ASSETS
    Current Assets
    Cash and cash equivalents                     $301,750          $153,408
    Accounts receivable - trade, net               603,094           586,882
    Deferred income taxes                           50,912           101,233
    Probable insurance claims                       30,620            99,835
    Other current assets                           141,431           127,188
        Total current assets                     1,127,807         1,068,546
    Property, plant and equipment
    Oil and gas properties (successful
     efforts method of accounting)               9,539,419         8,867,639
    Other property, plant and equipment             90,534            79,646
                                                 9,629,953         8,947,285
    Accumulated depreciation, depletion
     and amortization                           (2,110,142)       (1,776,528)
    Total property, plant and equipment,
     net                                         7,519,811         7,170,757
    Other noncurrent assets                        574,321           568,032
    Goodwill                                       767,121           781,290
    Total Assets                                $9,989,060        $9,588,625
    

    
                     LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities
    Accounts payable - trade                      $548,147          $518,609
    Derivative instruments                         328,418           254,625
    Income taxes                                    36,616           107,136
    Short-term borrowings                           40,000                --
    Asset retirement obligations                    44,189            68,500
    Other current liabilities                      166,581           235,392
        Total current liabilities                1,163,951         1,184,262
    Deferred income taxes                        1,771,059         1,758,452
    Asset retirement obligations                   111,471           127,689
    Derivative instruments                         223,854           328,875
    Other noncurrent liabilities                   342,048           274,720
    Long-term debt                               1,990,949         1,800,810
    Total Liabilities                            5,603,332         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;
     190,244,402 and 188,808,087 shares
     issued, respectively                          634,151           629,360
    Capital in excess of par value               2,074,136         2,041,048
    Accumulated other comprehensive loss          (192,196)         (140,509)
    Treasury stock, at cost: 18,580,865
     and 16,574,384 shares, respectively          (612,976)         (511,443)
    Retained earnings                            2,482,613         2,095,361
    Total Shareholders' Equity                   4,385,728         4,113,817
    Total Liabilities and Shareholders'
     Equity                                     $9,989,060        $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   Six Months Ended
                                           June 30,            June 30,
                                        2007      2006      2007      2006
    

    
    Net income                        $209,105  $(30,705) $420,917   $195,382
    Adjustments to reconcile net
     income to discretionary cash
     flow:
    Depreciation, depletion and
     amortization - oil and gas
     production                        181,227   168,648   345,187    293,113
    Depreciation, depletion and
     amortization - electricity
     generation                          3,441     3,916     6,913      8,067
    Exploration costs                   53,761    29,400    99,002     61,423
    Interest capitalized                (2,652)     (802)   (6,301)    (2,256)
    Income from equity method
     investees                         (48,970)  (35,441)  (94,533)   (75,091)
    Distributions and dividends from
     equity method investees            44,251    39,497    96,944     95,520
    Deferred compensation expense        3,017     5,563    14,666     14,740
    Deferred income taxes               55,796    (8,402)  103,516     47,059
    Accretion of discount on asset
     retirement obligations              2,041     2,662     4,428      5,979
    Allowance for doubtful accounts      2,801     3,908     7,483      3,615
    Stock-based compensation expense     6,631     3,169    12,078      6,323
    (Gain) loss on derivative
     instruments [1]                   (40,655)  417,103   (92,690)   447,789
    Other, net                           3,425     6,964     3,919      7,838
    Discretionary Cash Flow [2]        473,219   605,480   921,529  1,109,501
    

    
    Reconciliation to Operating Cash
     Flows:
    Net changes in working capital     (78,673) (139,688)  (82,763)   (56,010)
    Cash exploration costs             (43,133)  (21,764)  (68,139)   (36,318)
    Capitalized interest                 2,652       802     6,301      2,256
    Distributions from equity method
     investees                              --   (30,497)       --    (77,520)
    Gain on disposal of assets            (913)  (11,015)   (6,065)   (11,015)
    Other adjustments to reconcile
     discretionary cash flow to
     operating cash flows               (2,601)    3,413     2,008      3,346
    Net Cash Provided by Operating
     Activities                       $350,551  $406,731  $772,871   $934,240
    


    
    [1]  Includes $39,589 and $90,618 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 six months ended June 30, 2007.  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 6/30/07

    
                                                       North         West
                                        Consolidated  America       Africa
    Revenues
       Oil sales                           $421,811  $210,544     $118,437
       Gas sales                            305,107   275,772        3,094 [3]
       Equity investee liquids sales             --        --       41,884
       Equity investee methanol sales            --        --       29,059
       Gathering, marketing and processing    4,420        --           --
       Electricity sales                     13,905        --           --
       Income from equity method investees   48,970        --           --
       Total Revenues                       794,213   486,316      192,474
    

    
    Costs and expenses
       Oil and gas operating costs           76,469    50,808       10,840
       Workover and repair expense            6,094     6,038 [7]       --
       Production and ad valorem taxes       28,748    24,077           --
       Transportation                        16,052    13,978           --
       Oil and gas exploration               53,761    26,717       11,511
       Gathering, marketing and processing    3,977        --           --
       Equity investee liquids expense           --        --        3,916
       Equity investee methanol expense          --        --       18,057
       Electricity generation                12,169        --           --
       DD&A                                 181,227   146,466        6,773
       Impairment of operating assets            --        --           --
       General and administrative            47,761    16,931          985
       Accretion expense                      2,041     1,523           26
       Interest expense, net                 30,986        --           --
       Deferred compensation                  3,017        --           --
       (Gain) loss on derivative
        instruments                          (1,066)   (1,066)          --
       Loss on involuntary conversion        38,291    38,291           --
       (Gain) loss on sale of assets           (913)     (914)          --
       Other expense (income), net            2,498     3,483       (1,990)
       Total Costs and Expenses             501,112   326,332       50,118
    

    Operating Income (Loss)                $293,101  $159,984     $142,356

    
       Key Statistics
           Sales Volumes
                 Liquids (Bopd)              80,731    45,068       18,799
                 Natural Gas (Mcfpd)        658,136   417,779      115,922 [3]
                 Equity Investee Liquids
                  (Bpd)                       9,096        --        9,096 [4]
                 Equity Investee Methanol
                  (Kgal)                     33,559        --       33,559
    

    
           Production Volumes
                 Liquids (Bopd)              79,027    45,068       16,054
                 Natural Gas (Mcfpd)        658,136   417,779      115,922
                 Equity Investee Liquids
                  (Bpd)                       8,500        --        8,500 [5]
                 Total Production Boepd[8]  197,217   114,698       43,874
    

    
           Average Realized Price
                 Liquids                     $57.42    $51.34       $69.23
                 Natural Gas                   5.27      7.25         0.29
                 Equity Investee Liquids      50.60        --        50.60
                 Equity Investee Methanol      0.87        --         0.87
    


    
                                     North             Other      Corporate
                                      Sea    Israel    Int'l [1]  & Other [2]
    


    
    Revenues
      Oil sales                     $59,868      $--  $32,962          $--
      Gas sales                       2,301   23,936        4           --
      Equity investee liquids sales      --       --       --      (41,884)
      Equity investee methanol
       sales                             --       --       --      (29,059)
      Gathering, marketing and
       processing                        --       --       --        4,420
      Electricity sales                  --       --   13,905           --
      Income from equity method
       investees                         --       --       --       48,970
      Total Revenues                 62,169   23,936   46,871      (17,553)
    

    
    Costs and expenses
      Oil and gas operating costs     7,197    2,145    5,292          187
      Workover and repair expense        --       --       56           --
      Production and ad valorem
       taxes                             --       --    4,548          123
      Transportation                  1,758       --      316           --
      Oil and gas exploration         9,239      210    2,473        3,611
      Gathering, marketing and
       processing                        --       --       --        3,977
      Equity investee liquids
       expense                           --       --       --       (3,916)
      Equity investee methanol
       expense                           --       --       --      (18,057)
      Electricity generation             --       --   12,169           --
      DD&A                           15,453    4,122    6,156        2,257
      Impairment of operating
       assets                            --       --       --           --
      General and administrative        520       35      109       29,181
      Accretion expense                 337      113       42           --
      Interest expense, net              --       --       --       30,986
      Deferred compensation              --       --       --        3,017
      (Gain) loss on derivative
       instruments                       --       --       --           --
      Loss on involuntary
       conversion                        --       --       --           --
      (Gain) loss on sale of assets      --       (1)      (4)           6
      Other expense (income), net       305     (181)     563          318
      Total Costs and Expenses       34,809    6,443   31,720       51,690
    

    Operating Income (Loss)         $27,360  $17,493  $15,151     $(69,243)

    
      Key Statistics
          Sales Volumes
                Liquids (Bopd)        9,692       --    7,172           --
                Natural Gas (Mcfpd)   5,254   97,487   21,694 [6]       --
                Equity Investee
                 Liquids (Bpd)           --       --       --           --
                Equity Investee
                 Methanol (Kgal)         --       --       --           --
    

    
          Production Volumes
                Liquids (Bopd)       10,744       --    7,161           --
                Natural Gas (Mcfpd)   5,254   97,487   21,694           --
                Equity Investee
                 Liquids (Bpd)           --       --       --           --
                Total Production
                 Boepd          [8]  11,620   16,248   10,777           --
    

    
          Average Realized Price
                Liquids              $67.88      $--   $50.51          $--
                Natural Gas            4.81     2.70     1.00           --
                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 from the Alba field in Equatorial Guinea is under
           contract for $0.25 per MMBtu 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]  Equity Investee LPG volumes include condensate and natural gas
           liquids of 2,087 Bpd and 7,009 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 1,956 Bpd and 6,544 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.  Since 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 de minimus for second quarter
           2007.
      [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 6/30/06

    
                                                      North         West
                                       Consolidated  America       Africa
    


    
    Revenues
       Oil sales                          $407,209   $250,764      $95,930
       Gas sales                           307,651    282,526        1,403 [3]
       Equity investee liquids sales            --         --       31,600
       Equity investee methanol sales           --         --       27,328
       Gathering, marketing and
        processing                           6,760         --           --
       Electricity sales                    15,519         --           --
       Income from equity method
        investments                         35,441         --           --
       Total Revenues                      772,580    533,290      156,261
    

    
    Costs and expenses
       Oil and gas operating costs          66,517     50,406        7,903
       Workover and repair expense          12,669     12,653 [7]       --
       Production and ad valorem taxes      27,513     21,660           --
       Transportation                        8,871      7,289           --
       Oil and gas exploration              29,400     18,774        2,313
       Gathering, marketing and
        processing                           5,968         --           --
       Equity investee liquids expense          --         --        7,725
       Equity investee methanol expense         --         --       15,762
       Electricity generation               14,598         --           --
       DD&A                                168,648    151,331        4,206
       Impairment of operating assets        6,359      6,359           --
       General and administrative           37,661     14,755           --
       Accretion expense                     2,662      2,188           26
       Interest expense, net                33,918         --           --
       Deferred compensation                 5,563         --           --
       Loss (gain) on derivative
        instruments                        401,197    401,197           --
       Loss on involuntary conversion           --         --           --
       (Gain) loss on sale of assets       (10,917)    (9,052)          --
       Other expense (income), net           6,818      7,866          (65)
       Total Costs and Expenses            817,445    685,426       37,870
    

    Operating Income (Loss)               $(44,865) $(152,136)    $118,391

    
       Key Statistics
           Sales Volumes
                 Liquids (Bopd)             78,414     51,983       15,332
                 Natural Gas (Mcfpd)       636,936    493,268       37,741 [3]
                 Equity Investee Liquids
                  (Bpd)                      7,439         --        7,439 [4]
                 Equity Investee Methanol
                  (Kgal)                    32,355         --       32,355
    

    
           Production Volumes
                 Liquids (Bopd)             81,040     51,983       18,046
                 Natural Gas (Mcfpd)       636,936    493,268       37,741
                 Equity Investee Liquids
                  (Bpd)                      7,552         --        7,552 [5]
                 Total Production
                  Boepd               [8]  194,747    134,194       31,888
    

    
           Average Realized Price
                 Liquids                    $57.07     $53.01       $68.76
                 Natural Gas                  5.50       6.29         0.41
                 Equity Investee Liquids     46.68         --        46.68
                 Equity Investee Methanol     0.84         --         0.84
    

    
                                     North             Other        Corporate
                                      Sea    Israel    Int'l [1]   & Other [2]
    

    
    Revenues
      Oil sales                     $20,900      $--  $39,615          $--
      Gas sales                       5,454   18,231       37           --
      Equity investee liquids sales      --       --       --      (31,600)
      Equity investee methanol
       sales                             --       --       --      (27,328)
      Gathering, marketing and
       processing                        --       --       --       6,760
      Electricity sales                  --       --   15,519          --
      Income from equity method
       investments                       --       --       --       35,441
      Total Revenues                 26,354   18,231   55,171      (16,727)
    

    
    Costs and expenses
      Oil and gas operating costs     2,310    2,132    3,648          118
      Workover and repair expense        --       --       16           --
      Production and ad valorem
       taxes                             --       --    5,735          118
      Transportation                  1,398       --      184           --
      Oil and gas exploration         3,412       29    2,422        2,450
      Gathering, marketing and
       processing                        --       --       --        5,968
      Equity investee liquids
       expense                           --       --       --       (7,725)
      Equity investee methanol
       expense                           --       --       --      (15,762)
      Electricity generation             --       --   14,598           --
      DD&A                            1,456    3,053    6,926        1,676
      Impairment of operating
       assets                            --       --       --           --
      General and administrative        679       28     (768)      22,967
      Accretion expense                 287      107       54           --
      Interest expense, net              --       --       --       33,918
      Deferred compensation              --       --       --        5,563
      Loss (gain) on derivative
       instruments                       --       --       --           --
      Loss on involuntary
       conversion                        --       --       --           --
      (Gain) loss on sale of assets  (1,930)      --      (15)          80
      Other expense (income), net       861     (456)     (23)      (1,365)
      Total Costs and Expenses        8,473    4,893   32,777       48,006
    

    Operating Income (Loss)         $17,881  $13,338  $22,394     $(64,733)

    
      Key Statistics
          Sales Volumes
                Liquids (Bopd)        3,322       --    7,777           --
                Natural Gas (Mcfpd)   8,342   75,317   22,268 [6]       --
                Equity Investee
                 Liquids (Bpd)           --       --       --           --
                Equity Investee
                 Methanol (Kgal)         --       --       --           --
    

    
          Production Volumes
                Liquids (Bopd)        3,811       --    7,200           --
                Natural Gas (Mcfpd)   8,342   75,317   22,268           --
                Equity Investee
                 Liquids (Bpd)           --       --       --           --
                Total Production
                 Boepd          [8]   5,201   12,553   10,911           --
    

    
          Average Realized Price
                Liquids              $69.14      $--   $55.98          $--
                Natural Gas            7.19     2.66     1.15           --
                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 from the Alba field in Equatorial Guinea is under
           contract for $0.25 per MMBtu 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]  Equity Investee LPG volumes include condensate and natural gas
           liquids of 2,221 Bpd and 5,218 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 1,792 Bpd and 5,760 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.  Since 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 $6.6 million for second
           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)
    

    Six Months Ended 6/30/07

    
                                                       North         West
                                       Consolidated   America       Africa
    


    
    Revenues
       Oil sales                           $754,957  $400,945     $180,378
       Gas sales                            639,003   578,607        4,890 [3]
       Equity investee liquids sales             --        --       69,980
       Equity investee methanol sales            --        --       77,350
       Gathering, marketing and processing   11,136        --           --
       Electricity sales                     37,129        --           --
       Income from equity method
        investments                          94,533        --           --
       Total Revenues                     1,536,758   979,552      332,598
    

    
    Costs and expenses
       Oil and gas operating costs          151,389   105,973       17,531
       Workover and repair expense           10,049     9,867 [7]       --
       Production and ad valorem taxes       53,915    44,544           --
       Transportation                        27,086    21,776           --
       Oil and gas exploration               99,002    49,882       28,279
       Gathering, marketing and
        processing                            8,993        --           --
       Equity investee liquids expense           --        --       11,202
       Equity investee methanol expense          --        --       41,595
       Electricity generation                28,262        --           --
       DD&A                                 345,187   284,287       10,015
       Impairment of operating assets            --        --           --
       General and administrative            92,850    33,623        1,546
       Accretion expense                      4,428     3,394           52
       Interest expense, net                 57,858        --           --
       Deferred compensation                 14,666        --           --
       (Gain) loss on derivative
        instruments                          (2,071)   (2,071)          --
       Loss on involuntary conversion        51,406    51,406           --
       (Gain) loss on sale of assets         (6,066)   (6,141)          --
       Other expense (income), net            2,851     5,520       (3,424)
       Total Costs and Expenses             939,805   602,060      106,796
    

    Operating Income (Loss)                $596,953  $377,492     $225,802

    
       Key Statistics
           Sales Volumes
                 Liquids (Bopd)              77,597    45,321       15,536
                 Natural Gas (Mcfpd)        631,297   413,053       85,773 [3]
                 Equity Investee Liquids
                  (Bpd)                       8,061        --        8,061 [4]
                 Equity Investee Methanol
                  (Kgal)                     73,251        --       73,251
    

    
           Production Volumes
                 Liquids (Bopd)              78,764    45,321       16,152
                 Natural Gas (Mcfpd)        631,297   413,053       85,773
                 Equity Investee Liquids
                  (Bpd)                       8,357        --        8,357 [5]
                 Total Production
                  Boepd               [8]   192,338   114,163       38,805
    

    
           Average Realized Price
                 Liquids                     $53.75    $48.88       $64.15
                 Natural Gas                   5.83      7.74         0.31
                 Equity Investee Liquids      47.96        --        47.96
                 Equity Investee Methanol      1.06        --         1.06
    

    
                                   North              Other       Corporate
                                    Sea     Israel    Int'l [1]   & Other [2]
    

    
    Revenues
      Oil sales                   $111,142      $--  $62,492           $--
      Gas sales                      6,188   49,311        7            --
      Equity investee liquids
       sales                            --       --       --       (69,980)
      Equity investee methanol
       sales                            --       --       --       (77,350)
      Gathering, marketing and
       processing                       --       --       --        11,136
      Electricity sales                 --       --   37,129            --
      Income from equity method
       investments                      --       --       --        94,533
      Total Revenues               117,330   49,311   99,628       (41,661)
    

    
    Costs and expenses
      Oil and gas operating costs   13,257    4,281   10,012           335
      Workover and repair expense       --       --      182            --
      Production and ad valorem
       taxes                            --       --    9,086           285
      Transportation                 4,232       --    1,078            --
      Oil and gas exploration       10,794      388    3,315         6,344
      Gathering, marketing and
       processing                       --       --       --         8,993
      Equity investee liquids
       expense                          --       --       --       (11,202)
      Equity investee methanol
       expense                          --       --       --       (41,595)
      Electricity generation            --       --   28,262            --
      DD&A                          27,108    7,833   12,018         3,926
      Impairment of operating
       assets                           --       --       --            --
      General and administrative     1,710       49      642        55,280
      Accretion expense                673      225       84            --
      Interest expense, net             --       --       --        57,858
      Deferred compensation             --       --       --        14,666
      (Gain) loss on derivative
       instruments                      --       --       --            --
      Loss on involuntary
       conversion                       --       --       --            --
      (Gain) loss on sale of
       assets                           --       73       (4)            6
      Other expense (income), net       35     (713)     876           557
      Total Costs and Expenses      57,809   12,136   65,551        95,453
    

    Operating Income (Loss)        $59,521  $37,175  $34,077     $(137,114)

    
      Key Statistics
          Sales Volumes
                Liquids (Bopd)       9,528       --    7,212            --
                Natural Gas
                 (Mcfpd)             6,207  100,285   25,979 [6]        --
                Equity Investee
                 Liquids (Bpd)          --       --       --            --
                Equity Investee
                 Methanol (Kgal)        --       --       --            --
    

    
          Production Volumes
                Liquids (Bopd)      10,038       --    7,253            --
                Natural Gas
                 (Mcfpd)             6,207  100,285   25,979            --
                Equity Investee
                 Liquids (Bpd)          --       --       --            --
                Total
                 Production
                 Boepd        [8]   11,073   16,714   11,583            --
    

    
          Average Realized Price
                Liquids             $64.45      $--   $47.87           $--
                Natural Gas           5.51     2.72     1.00            --
                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 from the Alba field in Equatorial Guinea is under
           contract for $0.25 per MMBtu 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]  Equity Investee LPG volumes include condensate and natural gas
           liquids of 1,962 Bpd and 6,099 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 1,937 Bpd and 6,420 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.  Since 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 $0.6 million of Hurricane related repair expense.
      [8]  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)
    

    Six Months Ended 6/30/06

    
                                                       North         West
                                        Consolidated  America       Africa
    


    
    Revenues
       Oil sales                           $734,284  $392,084     $218,236
       Gas sales                            626,828   572,062        3,136 [3]
       Equity investee liquids sales             --        --       64,556
       Equity investee methanol sales            --        --       55,313
       Gathering, marketing and
        processing                           14,943        --           --
       Electricity sales                     33,431        --           --
       Income from equity method
        investments                          75,091        --           --
       Total Revenues                     1,484,577   964,146      341,241
    

    
    Costs and expenses
       Oil and gas operating costs          129,119    96,604       15,450
       Workover and repair expense           32,260    32,175 [7]       --
       Production and ad valorem taxes       52,966    43,737           --
       Transportation                        13,932    10,664           --
       Oil and gas exploration               61,423    39,115        4,634
       Gathering, marketing and
        processing                           11,470        --           --
       Equity investee liquids expense           --        --       13,578
       Equity investee methanol expense          --        --       31,200
       Electricity generation                25,224        --           --
       DD&A                                 293,113   256,023       10,321
       Impairment of operating assets         6,359     6,359           --
       General and administrative            73,059    28,076            1
       Accretion expense                      5,979     5,023           52
       Interest expense, net                 67,086        --           --
       Deferred compensation                 14,739        --           --
       (Gain) loss on derivative
        instruments                         396,039   396,039           --
       Loss on involuntary conversion            --        --           --
       (Gain) loss on sale of assets        (11,015)   (9,126)          --
       Other expense (income), net            8,335    10,234         (278)
       Total Costs and Expenses           1,180,088   914,923       74,958
    

    Operating Income (Loss)                $304,489   $49,223     $266,283

    
       Key Statistics
           Sales Volumes
                 Liquids (Bopd)              75,475    44,634       19,267
                 Natural Gas (Mcfpd)        635,942   477,993       46,130 [3]
                 Equity Investee Liquids
                  (Bpd)                       7,780        --        7,780 [4]
                 Equity Investee Methanol
                  (Kgal)                     66,464        --       66,464
    

    
           Production Volumes
                 Liquids (Bopd)              73,949    44,634       18,027
                 Natural Gas (Mcfpd)        635,942   477,993       46,130
                 Equity Investee Liquids
                  (Bpd)                       7,253        --        7,253 [5]
                 Total Production
                  Boepd               [8]   187,193   124,300       32,968
    

    
           Average Realized Price
                 Liquids                     $53.75    $48.53       $62.58
                 Natural Gas                   5.66      6.61         0.38
                 Equity Investee Liquids      45.85        --        45.85
                 Equity Investee Methanol      0.83        --         0.83
    

    
                                    North             Other       Corporate
                                     Sea    Israel    Int'l [1]   & Other [2]
    

    
    Revenues
      Oil sales                    $49,079      $--  $74,885           $--
      Gas sales                     13,562   37,990       78            --
      Equity investee liquids
       sales                            --       --       --       (64,556)
      Equity investee methanol
       sales                            --       --       --       (55,313)
      Gathering, marketing and
       processing                       --       --       --        14,943
      Electricity sales                 --       --   33,431            --
      Income from equity method
       investments                      --       --       --        75,091
      Total Revenues                62,641   37,990  108,394       (29,835)
    

    
    Costs and expenses
      Oil and gas operating costs    4,643    4,255    7,806           361
      Workover and repair expense       --       --       85            --
      Production and ad valorem
       taxes                            --       --    8,968           261
      Transportation                 2,891       --      377            --
      Oil and gas exploration        7,884       61    4,783         4,946
      Gathering, marketing and
       processing                       --       --       --        11,470
      Equity investee liquids
       expense                          --       --       --       (13,578)
      Equity investee methanol
       expense                          --       --       --       (31,200)
      Electricity generation            --       --   25,224            --
      DD&A                           3,330    6,252   13,524         3,663
      Impairment of operating
       assets                           --       --       --            --
      General and administrative     1,306       39      982        42,655
      Accretion expense                578      213      113            --
      Interest expense, net             --       --       --        67,086
      Deferred compensation             --       --       --        14,739
      (Gain) loss on derivative
       instruments                      --       --       --            --
      Loss on involuntary
       conversion                       --       --       --            --
      (Gain) loss on sale of
       assets                       (1,930)      --       15            26
      Other expense (income), net      395     (896)   1,127        (2,247)
      Total Costs and Expenses      19,097    9,924   63,004        98,182
    

    Operating Income (Loss)        $43,544  $28,066  $45,390     $(128,017)

    
      Key Statistics
          Sales Volumes
                Liquids (Bopd)       3,786       --    7,788            --
                Natural Gas
                 (Mcfpd)             8,413   78,916   24,490 [6]        --
                Equity Investee
                 Liquids (Bpd)          --       --       --            --
                Equity Investee
                 Methanol (Kgal)        --       --       --            --
    

    
          Production Volumes
                Liquids (Bopd)       3,993       --    7,295            --
                Natural Gas
                 (Mcfpd)             8,413   78,916   24,490            --
                Equity Investee
                 Liquids (Bpd)          --       --       --            --
                Total
                 Production
                 Boepd         [8]   5,395   13,153   11,377            --
    

    
          Average Realized Price
                Liquids             $71.62      $--   $53.12           $--
                Natural Gas           8.91     2.66     1.12            --
                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 from the Alba field in Equatorial Guinea is under
           contract for $0.25 per MMBtu 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]  Equity Investee LPG volumes include condensate and natural gas
           liquids of 1,649 Bpd and 6,131 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 1,682 Bpd and 5,571 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.  Since 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 $21.4 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    Six Months Ended
                                          June 30,             June 30,
                                       2007      2006       2007      2006
    (Decrease) increase of oil and
     gas sales:
       Cash settlement crude oil
        contracts                 $(39,959)   $(57,186)  $(68,062)  $(113,301)
       Cash settlement natural gas
        contracts                  (10,344)    (10,734)   (18,534)    (61,936)
       Total cash settlements      (50,303)    (67,920)   (86,596)   (175,237)
       Non-cash impact of loss
        associated with Gulf of
        Mexico shelf asset sale     39,589          --     90,618          --
       Net increase (decrease) of
        oil and gas sales          (10,714)    (67,920)     4,022    (175,237)
    

    
    Gain (loss) on derivative
     instruments:
       Gain (loss) associated with
        Gulf of Mexico shelf asset
        sale                            --    (398,517)        --    (398,517)
       Gain (loss) from
        ineffectiveness and other    1,066      (2,680)     2,071       2,478
       Gain (loss) on derivative
        instruments                  1,066    (401,197)     2,071    (396,039)
    

    
    Pretax earnings increase
     (decrease)                    $(9,648)  $(469,117)    $6,093   $(571,276)
    


    
         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 Qtr 2007                                              90,618
     Unsettled loss associated with Gulf
      of Mexico shelf asset sale                                  $(277,248)
    


    
    Settlement schedule                  Crude Oil   Natural Gas     Total
     3Q 2007                                    --      42,404       42,404
     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    $254,038     $277,248
    


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

    
                                          Three Months Ended  Six Months Ended
                                               June 30,          June 30,
                                            2007     2006     2007     2006
    Revenues
         Power Sales                       $11,751  $13,467  $32,770  $29,216
         Capacity Charge                     2,154    2,052    4,359    4,215
           Total Revenues                   13,905   15,519   37,129   33,431
    

    
    Costs and expenses
      Field
         Lease Operating                       608      725    1,329    1,363
         DD&A                                2,372    2,733    5,230    5,744
         General and administrative            569      551    1,449    1,262
      Plant
         Fuel & Other Operating Costs        6,415    7,334   15,715   10,929
         DD&A                                1,069    1,182    1,683    2,323
         General and administrative          1,136    2,073    2,856    3,603
           Total Costs and Expenses         12,169   14,598   28,262   25,224
    

    Operating Income                        $1,736     $921   $8,867   $8,207


    
      Natural Gas Production (Mcfpd)        21,655   21,908   25,940   24,102
      Average Natural Gas Price              $3.73    $3.76    $3.75    $3.76
    


    
      Power Production - Total MW          188,675  191,005  455,323  420,707
      Average Power Price ($/Kwh)           $0.074   $0.081   $0.082   $0.079
    


    
                                   Schedule 10
                       Income from Equity Method Investees
    

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

    
                                          Three Months Ended  Six Months Ended
                                               June 30,          June 30,
                                            2007     2006     2007     2006
    Revenues
         Methanol sales                    $29,059  $27,328  $77,350  $55,313
         Other                               1,503    3,502    2,791    5,277
           Total revenues                   30,562   30,830   80,141   60,590
    

    
    Costs and expenses
         Cost of goods sold                 11,315   12,696   26,165   23,151
         DD&A                                2,758    2,340    5,521    4,727
         General and administrative            594      501    1,158    1,022
           Total costs and expenses         14,667   15,537   32,844   28,900
    

    Income Tax Provision                     4,893    3,727   11,542    7,577

    Income from Equity Method Investees    $11,002  $11,566  $35,755  $24,113

    
      Methanol Sales (KGal)                 33,559   32,355   73,251   66,464
      Average Realized Price ($/Gal)         $0.87    $0.84    $1.06    $0.83
    


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

    
                                          Three Months Ended  Six Months Ended
                                               June 30,          June 30,
                                            2007     2006     2007     2006
    Revenues
         LPG Plant Sales                   $41,884  $31,600  $69,980  $64,556
         Other                                 210      (65)     308      647
           Total Revenues                   42,094   31,535  $70,288  $65,203
    

    
    Costs and expenses
         LPG Plant Expenses                  5,665    6,022   11,622   10,937
         DD&A                                1,784    1,638    3,482    3,288
         Other                              (2,765)           (2,765)
           Total Costs and Expenses          4,684    7,660   12,339   14,225
    

    Income Tax Benefit                        (558)      --     (829)      --

    Income from Equity Method Investees    $37,968  $23,875  $58,778  $50,978

    
      LPG Plant Sales (Bpd)                  9,096    7,439    8,061    7,780
      Average Realized Price ($/Bbl)        $50.60   $46.68   $47.96   $45.85
    




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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NOBLE ENERGY, INC.

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