Must be one of Gary Willingham's negotiations...
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If Noble was so "hot" about the Leviathon project why are they try to sell pieces of it to others.
The facts are the discovery by Italy's ENI off the coast of Egypt dwarfs Leviathon. It was a game changer. Noble and Delek thought they were going to have a monopoly on natural gas in that part of the world.And now? NOT! Do you think people in that part world are going to buy gas from Israel when they can buy it from Egypt? The market for Noble's gas just shrink by 80.0%. No wonder they are trying to parcel it out.
Stock price down but only a little after the POD approval
The news release disclaimer says it all:
This news release contains certain “forward-looking statements” within the meaning of 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 may include estimates of oil and natural gas reserves, 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 news release 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 annual report on 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, management’s estimates, or opinions change.
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 the Company’s probable and possible reserves in our filings with the SEC. We use certain terms in this news release, such as “recoverable natural gas resources,” which 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 annual report on Form 10-K and in other reports on file with the SEC, available from Noble Energy’s offices or website, http://www.nobleenergyinc.com.
What a truly great deal! The ministry of energy signed off on the development plan and in the process down graded the reserves by 20%. So, assuming there are no more delays from legal challenges to the "New" Stability Plan, which isn't, and assuming the current Israeli coalition government remains in power another 3 years, which is questionable given their one vote majority, Noble will have the distinct privilege of paying out several billion dollars more in negative cash flow in a depressed market. Sweet! Plus the 20% down grade is sure to have an impact on the assets value to any potential partner and/or the banks who will be needed to finance this deal. Doesn't that just make you want to rush out and spend your last nickel on Noble stock?