Energy Prospectus

Noble Energy is the newest member of the Sweet 16. It is a large-cap with over 400,000 boepd of production and several large international project.

First Quarter 2016 Significant Operating Highlights Included:
• maintained cost reduction efforts in capital, lease operating expense and general and administrative areas and continued to pursue further reductions to
align spending with operational cash flows in the current commodity price environment (see Cost Reduction Efforts, below);
• continued progression of the Natural Gas Framework (Framework) in Israel;
• set a first quarter record 266 million MMcf/d, net, of natural gas in Israel, reflecting enhanced dispatch of natural gas to fuel power generation;
• averaged 416 MBoe/d total sales volumes; < beat my forecast
• recorded first full quarter sales volumes for Big Bend and Dantzler combined of 19 MBoe/d, net, in deepwater Gulf of Mexico;
• improved and enhanced well completion designs in the DJ Basin leading to capital efficiencies;
• initiated production on our first two Briscoe Ranch wells in the Eagle Ford Shale and first two Delaware Basin wells in the Permian Basin;
• installed the Alba B3 compression platform and initiated hook-up and commissioning activities; and
• entered into a purchase and sale agreement on May 2, 2016, subsequent to quarter-end, for the divestiture of certain producing and undeveloped crude oil
and natural gas interests in approximately 33,500 net acres in Weld County, Colorado for $505 million .
Divestitures .

First Quarter 2016 Financial Results Included:
• net loss of $287 million , as compared with net loss of $22 million for first quarter 2015 ;
• net gain on commodity derivative instruments of $44 million as compared with net gain on commodity derivative instruments of $150 million for first
quarter 2015 ;< Q1 cash settlements on hedges were $178 million
• reduced unit costs by 23% in lease operating expense and 27% in general and administrative expense as compared to first quarter 2015;
• dry hole expense of $95 million related to the Silvergate exploration well in deepwater Gulf of Mexico;
• other expense of $42 million related to the termination of a rig contract offshore Falkland Islands as a result of a supplier's non-performance;
• diluted loss per share of $0.67 , as compared with diluted loss per share of $0.06 for first quarter 2015 ;
• cash flow provided by operating activities of $251 million , as compared with $541 million for first quarter 2015 ;
• cash proceeds from non-core divestitures and other of $238 million , as compared with $119 million for first quarter 2015;
• capital expenditures of $374 million , as compared with $919 million for first quarter 2015 ; and
• entered into the $1.4 billion Term Loan Facility and utilized borrowings under the Term Loan Facility to tender $1.38 billion of senior notes assumed in
the Rosetta Merger resulting in a gain of $80 million.

Quarter-End Key Financial Metrics Included:
• ending cash balance of $953 million , as compared with $1.0 billion at December 31, 2015 ;
• total liquidity of approximately $5.0 billion at March 31, 2016 , as compared with $5.0 billion at December 31, 2015 ; and
• ratio of debt-to-book capital of 44% at March 31, 2016 , as compared with 43% at December 31, 2015 .

I have updated my forecast model for NBL and it will be available for download from the EPG website late today.

Primarily a result of their production in Q1 exceeding guidance and my forecast, I have increased the valuation of the common stock by $1.00 to $44.50, compared to First Call's Price Target of $39.63. I am using the midpoint of their production guidance, but my guess is that actual production exceeds that amount. Noble's first two wells in the Delaware Basin are very good and set up a lot of running room for them.

I inadvertently purchased NE (Noble Corp) instead of NBL (Noble Energy). Do you have any input on NE? I can sell for a small loss and put the funds into NBL, but just wondering if NE is worth holding onto.

Thanks

David

Noble Corporation plc operates as an offshore drilling contractor for the oil and gas industry worldwide. It owns and operates a fleet of mobile offshore drilling units. As of February 25, 2016, the company operated a fleet of 30 drilling rigs consisted of 14 jackups, 8 drillships, and 8 semisubmersibles, which included 1 high-specification, harsh environment jackup under construction. Noble Corporation plc was founded in 1921 and is headquartered in London, the United Kingdom.

This is not a good business to be in. It is a totally different business than NBL.

Thank you for the information - it is appreciated.