Noble Energy Inc. (NBL) sees unrealized hedging write-downs of
$277 million in the second quarter, the second consecutive quarter
the hedging losses are expected to hurt the oil and gas producer's
results.
Oil companies have seen profits fall amid plunging crude prices
from their highs last summer. A recent rebound in pricing hasn't
been enough to help the industry regain its footing.
For the second quarter, the company sees unrealized
mark-to-market losses of $189 million for crude oil and $88 million
for natural gas. Including various gains, the hedging losses are
expected to narrow to $123 million and $16 million,
respectively.
In April, Noble Energy swung to a first-quarter loss on $291
million in unrealized hedging write-downs. Hedging gains helped
boost the company's results in the second half of 2008.
Shares were inactive in after-hours trading at $58.23. The stock
is up 18% this year.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com