For 2017, the company expects net EBITDA to be $155 million–$175 million, with DPU growth of 20 percent and coverage of 1.7–1.9x.
The company raised its full-year sales volumes estimate to 415–425 MBoe/d, up nearly 5 percent from last year. U.S. onshore oil is anticipated to be up nearly 30 percent year-on-year.
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Meanwhile, the company sees organic capital expenditures for 2017 to be between $2.3 billion and $2.6 billion. Approximately 75 percent of the total capital program is allocated to U.S. onshore development, primarily focused on liquids-rich opportunities in the DJ Basin, Delaware Basin and Eagle Ford.
Over the long term, Noble projects 2017-2020 CAGRs of +20 percent for net EBITDA, DCF, and the DPU were provided, alongside >1.3x coverage and <2.5x leverage.
Analyst Commentary
“This is all organic (pre-drop), showing a decent step-up from our previous est of organic growth driving a mid-to-high teens DCF CAGR. The drop backlog was guided “above CY17 EBITDA,” analyst Kristina Kazarian wrote in a note.
Kazarian reiterated her Hold rating on the stock, saying the stock has run up YTD (+29 percent vs. AMZ +6 percent) and we could see a pause as investors look for results to catch up with expectations.”
Shares of Noble closed Monday’s trading at $46.57. Kazarian has a price target of $39.
Image Credit: By Nicholas from Pennsylvania, USA - Double Bows, CC BY 2.0, via Wikimedia Commons© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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