Investment Energy
Summit Greece,
Cyprus, Israel Athens, March 28th–29th 2012
Noble Energy and Levant Basin Gas
Dr, Jim Demarest Director, International Exploration
Noble Energy Inc,
Noble Energy Positioned for a decade of growth
Diversified and Focused Asset Portfolio
Offers stability and superior returns
Industry-leading Exploration Program
Yields significant discovered resources
Portfolio of High Return Reinvestment Opportunities
Provides sustainable and visible growth
Organizational Strength
Capability to deliver results
Disciplined Financial Strategy
Ensures ability to support business value creation
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International
United States
Reserves
Volumes
Liquids
International Natural Gas
U.S. Natural
Gas
Balanced and Diversified Portfolio Provides stability and strength
Leverage to U.S. and International
Exposure to Crude Oil and Natural Gas
Access to premium markets
Quality Asset Foundation
Low cost structure
Extensive low-risk drilling inventory
Major projects lineup
Five Core Operating Areas
All with significant, visible growth
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4 4
Major Development Project Line-up High value growth
Horizontal
Niobrara
Marcellus
Galapagos
Gunflint
Tamar
Leviathan
Aseng
Alen
DiegaWA Gas
2010 2011 2012 2013 2014 2015 2016 2017 2018
Re
so
urc
es
Bubble Size Represents Relative Full-cycle NPV
Gas
Oil
LNG
Predominant
Product …
Year of First Significant Production
Eastern US,
Western US, Israel,
Israel,
EG,
US GOM, EG,
EG,
US GOM,
Cyprus, Aphrodite
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Industry-leading Exploration Program Yielded significant discovered resources
Discovered 2.3 BBoe in Last 5 Years
Replaces 29 times annual production
Finding cost under $1.35/Boe
Inventory of 3 BBoe Net Risked Resource
Core area acreage positions
84% of risked inventory
E. Med, W. Africa, DW GoM, Niobrara, Marcellus
Maturing undeveloped acreage
16% of risked inventory
Nicaragua, Senegal, U.S. Onshore
Global new venture opportunities
W. Africa, Mediterranean, U.S. Onshore
0
300
600
900
1,200
2007 2008 2009 2010 2011
0
1
2
3
4
Resources Found Finding Costs
Resources
Found (MMBoe)
Finding
Costs ($/Boe)
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Noble Energy Exploration World-class exploration performance
Uncovering Opportunities Missed by Others
Thoughtful and Disciplined Approach
Incorporating exploration technology and processes in all aspects of our business
Full integration of data, technologies and interpretation
A learning process incorporating peer reviews and root cause analysis
Committed to Significant Investments in Seismic
A Culture Focused on Delivering Material New Resources with Strong Financial Returns
0
1
2
3
4
5
6
0% 20% 40% 60% 80% 100% 120%
5 YR Resources Discovered / 12-31-10 2P Resources
Exploration Peer Group Super Major NBL
Source: Wood Mackenzie
Finding Cost
($/Boe)
2006 - 2010
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Key Operating Areas Sustaining and transforming NBL
Onshore United States
Large inventory of low-risk projects
Substantial exposure to liquid-rich Niobrara and Marcellus shale gas
Gulf of Mexico – Deepwater
South Raton start-up expected 1Q 2012; Galapagos start-up expected 2Q 2012
Extensive exploration portfolio
West Africa – Offshore EG and Cameroon
Aseng online, Alen development underway
Additional liquid and gas projects on the horizon
Eastern Mediterranean – Offshore Israel and Cyprus
Tamar development in progress
Additional discoveries being appraised
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Cameroon
Equatorial
Guinea
Tilapia 50% WI
YoYo 50% WI
Block I 40% WI
Block O 45% WI
Trema
West Africa Exploration Multi-year inventory of prospects
7 Discoveries Out of 8 Prospects
1.1 BBoe gross resources, 350 MMBoe net
Recent Carla Discovery
35 – 100 MMBoe gross resources, 80% liquids
Inventory of 900 MMBoe Net Unrisked Resources
Multiple prospects and play types
Plan to Drill Trema in 2H 2012
Oil target
75 – 230 MMBoe gross unrisked resources
38% geologic chance of success
Aseng Field Breakthrough execution increases project value
Development Cycle Times
Discovery to production < 5 years
Sanction to production < 3 years
First Oil Seven Months Ahead of Schedule
AT NPV10 enhanced $80 MM, net
Capital 13% under Approved Levels
$70 MM net capital savings
Resources 30% above Initial Estimates
Brent Oil Price 43% Higher than Sanction Economics
Best-in-class Safety Performance
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Safety Record
Over 10.5 MM man hours with no major accidents
Total recordable incident rate (TRIR) of 0.21
Only 408 total man hours lost for all incidents
Aseng FPSO
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Levant Basin Recent Exploration Success
SC November Analyst Presentation (updated)
LEVANT BASIN
GAZA
KTIMA
DUMYAT
ASHDOD
HADERA
NICOSIA
KYRENIA
EL'ARISH
TEL-AVIV
ASHKELON
LIMASSOL
FAMAGUSTA
EL-HADDADI
ALEXANDRIA
Block 1
Block 2
Block 6 Block 8Block 7Block 5 Block 9
Block 12
Block 3
Block 4
Block 11
Block 10
Block 13
RIV
ER
NILE
JO
RD
AN
NA
HR
AL A
SI
DE
AD
SE
A
SU
EZ
CA
NA
L
NAHR A
L LI
TANI
RIV
ER
JO
RD
AN
RIV
ER
NIL
E
JO
RD
AN
RIV
ER
NIL
E
NA
HR
AL
AS
I
SU
EZ
CA
NA
L
NAHR AL LITANI
0 50 100 150 20025Kilometers
.CYPRUS
EGYPT
NILE DELTA
ERATOSTHENES
HIGH HERODOTUS
BASIN LEVANT BASIN
NILE CONE
Leviathan Tamar
Dalit Dolphin
Tanin
Mari-B
Noa
Discoveries
Dalit 0.5 TCF
Tamar 9 TCF
Leviathan 17 TCF
Dolphin 0.1 TCF
Cyprus 7 TCF
Tanin 1.2 TCF
35 TCF
Cyprus A
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Discovery Thinking The Tamar opportunity
Previous Operator Withdrew from Block
Saw high operational and technical risks
Did not recognize upside
Being the Partner of Choice
Importance of local partners and existing relationships
Reputation as reliable, effective operator
Keeping the Possibility Alive
Tenacity of individuals - partners and Noble Energy
Other Factors
Familiarity with Israel market
Regional and local geologic knowledge
Successful operations in the past
Levant Basin virtually undrilled
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Miocene Gas Plays Series of successes at Tamar, Dalit, Leviathan, Dolphin, Cyprus A, Tanin
3D Prospects
Discoveries
35°0'0"E34°0'0"E33°0'0"E
33°0
'0"N
32°0
'0"N
440000 510000 580000 650000 720000
350
000
03
60
000
03
70
000
0
Cyprus A
Tamar
Dalit
Cross
section (Displayed above)
Leviathan
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Eastern Mediterranean Exploration Unlocking the emerging Levant basin
35°0'0"E34°0'0"E33°0'0"E
33°0
'0"N
32°0
'0"N
440000 510000 580000 650000 720000
350
000
03
60
000
03
70
000
0
35°0'0"E34°0'0"E33°0'0"E
33°0
'0"N
32°0
'0"N
440000 510000 580000 650000 720000
350
000
0360
000
0370
000
0
Six Consecutive Discoveries
3 world-class in resource size
Over 35 Tcf gross resources,
12 Tcf net
Cyprus Gas to be appraised in
2012 and 2013
Pursuing LNG Export Options
Substantial Exploration Potential
Extensive inventory of natural gas
prospects
3.7 BBoe gross unrisked resources
in deep oil play
High-quality and Diversified Portfolio
Sustainable Industry-leading Exploration
Organizational Capability to Execute
Robust Financial Framework
Highly Transparent Path Toward Value Creation
Noble Energy Capitalizing on success – driving multi-year value creation
Noble Energy: Energizing the World, Bettering People’s Lives
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Forward-looking Statements and Non-GAAP Measures
This presentation contains certain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. 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 limitat ion, 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 the Appendix to this presentation and 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 “gross mean resources” and “unrisked resource potential.” 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:
Energizing the World, Bettering People’s
Lives