Dan Kelly

Dan Kelly
June 14, 2013
Forward-looking Statements and
Non-GAAP Measures
This presentation contains certain “forward-looking statements” within the meaning of the federal securities law. Words such as “anticipates,”
“believes,” “expects,” “intends,” “will,” “should,” “may,” and similar expressions may be used to identify forward-looking statements. Forward-looking
statements are not statements of historical fact and reflect Noble Energy’s current views about future events. They include estimates of oil and
natural gas reserves and resources, estimates of future production, assumptions regarding future oil and natural gas pricing, planned drilling
activity, future results of operations, projected cash flow and liquidity, business strategy and other plans and objectives for future operations. No
assurances can be given that the forward-looking statements contained in this presentation will occur as projected, and actual results may differ
materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number
of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, the
volatility in commodity prices for crude oil and natural 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 actions, the ability
of management to execute its plans to meet its goals and other risks inherent in Noble Energy’s business that are discussed in its most recent
Form 10-K and in other reports on file with the Securities and Exchange Commission. These reports are also available from Noble Energy’s offices
or website, http://www.nobleenergyinc.com. Forward-looking statements are based on the estimates and opinions of management at the time the
statements are made. Noble Energy does not assume any obligation to update forward-looking statements should circumstances or management's
estimates or opinions change.
This presentation also contains certain historical and forward-looking non-GAAP measures of financial performance that management believes are
good tools for internal use and the investment community in evaluating Noble Energy’s overall financial performance. These non-GAAP measures
are broadly used to value and compare companies in the crude oil and natural gas industry. Please also see Noble Energy’s website at
http://www.nobleenergyinc.com under “Investors” for reconciliations of the differences between any historical non-GAAP measures used in this
presentation and the most directly comparable GAAP financial measures. The GAAP measures most comparable to the forward-looking non-GAAP
financial measures are not accessible on a forward-looking basis and reconciling information is not available without unreasonable effort.
The Securities and Exchange Commission requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a
company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic
and operating conditions. The SEC permits the optional disclosure of probable and possible reserves, however, we have not disclosed our probable
and possible reserves in our filings with the SEC. We use certain terms in this presentation, such as “net risked resources” and “gross mean
resources.” These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are
subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with
the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent Form 10-K and in other reports on file with the
SEC, available from Noble Energy’s offices or website, http://www.nobleenergyinc.com.
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Noble Energy Global Portfolio
Diversified and technically focused

2013 Est. Prod. of ~275 MBoepd

Capital Spending of $3.9 Billion

Market Cap. of ~$20 Billion

Liquidity > $5 Billion
Core Areas
New Ventures
Onshore US
(DJ & Marcellus)
Nevada
Deepwater GOM
Sierra Leone
Nicaragua
Equatorial Guinea
Cameroon
Falkland Islnds.
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Israel
Cyprus
DJ Basin 2013 Operations
Focused on oil window with superior economics
 Accelerating Development


300 actual wells or 350
standardized on 4,500 ft. laterals
Added ninth rig in March;
plan to add tenth in June
Wyoming
Northern
Colorado
Nebraska
230,000 Net Acres
300 MMBoe NRR
1,750 Locations
 Expanding into Northern
Colorado

Best economics with 85% liquids
290,000 Net Acres
1,400 MMBoe NRR
6,400 locations
 Dramatic Growth in 2013

Production up 25%
to 96 MBoe/d
 Investing $1.7 Billion or
45% of Total Capital Program
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Greater
Wattenberg
NBL Acreage
120,000 Net Acres
400 MMBoe NRR
1,350 Locations
Gas Window
Oil Window
DJ Basin Development Program
A Premier Oil Play – Noble will double activity in two years
Horizontal Wells
Wells
Cum
Wells
600
 DJ Compares Favorably to Eagle Ford and
Bakken
3,000

74 million barrels of oil equivalent per
section - estimated original oil in place for
DJ
2,000

30-50 MMBoe for Eagle Ford

10-15 MMBoe for Bakken
450
300
1,000
150
0
0
2011 2012 2013 2014 2015 2016 2017
GWA
N. Colorado
2012 Cum
2011 Cum
 Increase of 1,100 Wells Over Next Five
Years vs. 2011 Plan

5
500 wells per year by 2016, more than
double 2012 level
 Noble’s Net Resources Now 2.1 BBoe

9,500 horizontal locations, 85% in oil
window

Average horizontal well now at 335,000
Boe total recovery

Oil production grows 3.5 times
 Technical and Operational Excellence
in All Phases

Exploration, drilling, completions and
infrastructure
Hydraulic Fracturing – A Game Changer
 Improved Drilling Technology, Combined with Hydraulic Fracture
Stimulation, Led to Discovery of Vast Quantities of Shale Gas and Tight Oil
 U.S. Oil and Natural Gas Production has Surged – Decreasing Prices for
Consumers and Reducing Dependence on Foreign Oil
 Hydraulic Fracturing is Used to Safely and Responsibly Produce Economic
Quantities of Oil and Natural Gas from 90% of U.S. Wells Today
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U.S. Oil Production Now Growing
First material increase since late 1970’s
U.S Oil Production
U.S. Oil Production
8,500
12,000
8,000
10,000
7,500
MBopd
8,000
MBopd
EIA 2014 Projection
6,000
4,000
7,000
6,500
6,000
5,500
2,000
Hur. Ike
5,000
Source: EIA
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1-14
1-13
1-12
1-11
1-10
1-09
1-08
1-07
08
00
92
84
4,500
1-06
Year
76
68
60
52
44
36
28
20
0
New Technology Unlocking Oil Resources
Unproved Technically Recoverable U.S. Tight Oil Resources
35
Billion Barrels
30
25
20
15
10
5
0
2006
Source: EIA 2012 Annual Energy Outlook
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2008
2010
2012
When Is Hydraulic Fracture Stimulation
Necessary?
Fractures
Limited
Pore
Space
Silt
Grains
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Reducing Our Footprint
 Single Well Vertical Pad

Access multiple pay zones
vertically at single point
 Multi-Well Directional Pad

Access multiple pay zones
vertically
 Cover broad aerial extent from
single surface location
 Horizontal Pad

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Equivalent to several vertical
wells in one zone only
Reducing Our Footprint
Multi-well pad drilling practices
New Technology
Multi-Well
Directional Pads
Vertical Single Well Pads
Multi-Well Horizontal Pad
1 Mile
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Evolution of Total System Resource
Three-fold increase in original oil in place (OOIP) – Wells Ranch Example
MMBoe/
Section
75 ft.
75 ft.
4 Wells
Niobrara A
Niobrara B
2009 – 2011
24
Niobrara C
Recovery Factor: ~5% of 24 MMBoe
Niobrara D
Ft Hayes
Codell
Coring Program
Spacing Tests
“In-Situ Underground
Laboratory”
2012+
24
Niobrara B
24
Niobrara C
20
Niobrara D
Fort Hayes
Codell
6
300 ft.
Niobrara A
16 Wells
Recovery Factor: ~7% of 74 MMBoe
30 Wells
74
Recovery Factor: ~14% of 74 MMBoe
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300 ft.
300 ft.
MMBoe/
Section
Optimizing DJ Basin Resource Recovery
Potential for over 30 wells per section
 Testing Three 40-Acre Development
Concepts/Patterns

North Pad – multiple target zones

Center Pad – spacing of B bench

Wells Ranch Section 24
Niobrara A, Niobrara B, Codell
North Pad
5 Wells
Center Pad
4 Wells
South Pad – spacing of B and C bench
 All 15 Wells Completed and in
Niobrara B
EcoNode
Facility
Various Production Stages

No interference detected
Niobrara B, Niobrara C
South Pad
6 Wells
One Section (One Square Mile)
Cross-section View of Pads
C
B
C
B
North Pad – 5 wells
Center Pad – 4 wells
South Pad – 6 wells
South
C
B
B
B
B
B
A
Cdll
B
A
Cdll
330ft. 330ft. 330ft. 330ft. 330ft. 330ft. 330ft. 360ft. 300ft. 330ft. 380ft. 300ft. 300ft.
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North
Protecting the Groundwater
DJ Basin Horizontal Well Example
* This graphic represents a
generic depiction of our onshore
well depth and casing.
At various stages of the drilling
and completion process,
mechanical integrity of the casing
and cement are tested to ensure
proper installation. We use best
management practices installing
and cementing the multiple strings
of casing necessary to prevent
gas migration or drinking water
contamination.
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Protecting the Groundwater (Close Up)
DJ Basin Wellbore Example
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Reducing our Footprint
State-of-the-art technology and development application
 EcoNodes and Centralized Facilities


EcoNode
Reduced capital, operating expenses,
surface disturbance reduced by 60-80%
Increased operating efficiency, liquids, and
flash gas recovery
 Infield Infrastructure


Efficient transport of produced fluids and frac
water
Major reduction in oil and water trucking
Central Processing Facility
 Life Cycle Water Management Program


Frac water self-sourced, strategically located, at
reduced prices
Water recycling and re-use
 State-of-the-Art Production Technology



Largest application of facility and well automation
Immediate response to interruptions
24/7 production optimization
Operations Control Center
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Niobrara Horizontal Play – We’re in this together.
Significant Job and Revenue Stream
 Industry Potential for 10,000+ New Jobs Created

Each New Drill Rig Creates 120 Direct and In-Direct Jobs (annual employee
wages = $7.0 – $8.5 million per rig)

Industry Currently Employs 240,000+ Direct and In-Direct Jobs
 Average DJ Basin horizontal well economic impacts
$2.7MM in royalties over the life of a well
• $1.1MM in taxes over the life of a well
• First year of ad valorem tax = 1 yr property tax of 50 one-million dollar homes
• 41% of ad valorem taxes directly funded K-12 education, according to 2011
Weld County Abstract of Assessment
•
 New Annual Severance and Ad Valorem Tax Revenues
$350+ Million
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
Noble is largest taxpayer in Weld County

Over $200MM in production taxes paid in Colorado last 3 years
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