Noble Energy Inc.'s (NYSE: NBL) first-quarter profit topped analysts' estimates, but the oil and gas producer's weak current-quarter sales volume forecast sent its shares down 2.5%.
Noble, which drills oil wells in the Denver-Julesburg Basin as well as the Permian and Eagle Ford shale plays, said it expects second-quarter sales volume at between 340,000 barrels of oil equivalents per day (boe/d) and 350,000 boe/d—lower than the previous quarter and a year ago.
"The market consensus was towards the higher end of guidance for the second quarter," KLR Group analyst Gail Nicholson said.
Shares of Noble were down at $32.97 in afternoon trade.
"Slightly lower first-quarter volumes in conjunction with the midpoint of second-quarter guide below consensus is probably putting incremental weightage on the stock," Nicholson said.
However, Noble raised its forecast for full-year sales volumes to between 350,000 boe/d and 360,000 boe/d, from a previous range of 343,000 boe/d to 353,000 boe/d to reflect accounting changes.
In the latest first quarter, total sales volume fell 5.5% to 361,000 boe/d. Reflecting the company's new accounting method, ASC 606, total sales volumes came in at 370,000 boe/d.
Net income attributable to Noble soared to $554 million, or $1.14 per share, in the quarter ended March 31 from $36 million, or 8 cents per share, a year earlier, helped by a gain of about $795 million from asset sales.
Excluding items, it earned 35 cents per share, beating the average analyst estimate of 25 cents, according to Thomson Reuters I/B/E/S. The earnings beat was driven by a 30 percent jump in U.S. onshore shale production and higher crude oil prices.
Houston-based Noble's total revenue rose 24% to $1.29 billion.
West Texas Intermediate ight crude futures averaged at $62.89 per barrel in the quarter, up 21.5% from a year earlier.
Shale producers, which have benefited from a surge in production over the past few years, are facing increasing calls from investors to use a windfall of cash to boost dividends and share buybacks.
Last week, Noble announced a 10% rise in its quarterly dividend rate.
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