Noble Energy Inc. (NYSE: NBL) yesterday presented its second quarter results - a $109 million loss compared with a $192 million net profit in the corresponding quarter of 2014.
In the conference call with analysts chairman president and CEO David Stover has nothing but praise for its Israel natural gas operations, He said, "It's also a time period where we reflect and remind ourselves how appreciative we are of having our Israel gas contribution, also that's kind of a natural hedge, additional hedge, if you will."
What Stover was in effect saying was that in Israel natural gas prices were high, are high today and will even be high in the future. That is to say that Noble Energy has not had to spend a single cent on hedging operations in Israel and its high price there hedges its risks in other locations worldwide that are exposed to global market fluctuations.
In the past quarter, Noble Energy's price of natural gas in the US market plunged about 55% to $1.90 per MMBTU. This is about a third of the price of natural gas in Israel in the past quarter - $5.34 per MMBTU.
Published by Globes [online], Israel business news - www.globes-online.com - on August 4, 2015
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