Replies to post #30 on Noble Energy Inc. (NBL)

[Timothy Smith]

NBL continues to focus on increasing recoveries in the Niobrara, while showing some excitement towards its Nicaragua prospect and providing us with comfort about management’s commitment to having its growth supplemented by a growing dividend.

Expect Niobrara to see similar headwinds in 3Q13, as in 2Q13; however, in the medium-to-longer term NBL remains our top pick with the best combination of value and growth (16% 4-year CAGR); 4 of 5
key regions are FCF positive in 2014 with exploration upside, at
only a modest premium valuation to peer average (and steep
discount to resource peers (RRC, COG, PXD).

[Timothy Smith]

$NBL (+5%) and APC (-1%) execute on mutually beneficial
acreage swap in the Wattenberg. NBL and APC reported
and closed an acreage exchange where each gave the other
50,000 net acres, providing significant acreage consolidation.

I believe the transaction will ultimately allow for more and
longer laterals, with heightened drilling optionality. Other
synergies could lead to reduced costs during broad-scale
development.

In closing, NBL received $105MM net cash from
APC and APC retained its benefit from Land Grant mineral
ownership on ~21k net acres that it conveyed; APC’s
production increases 8 MBoe/d (NBL down 8 MBoe/d). NBL
and APC are two of our top picks and we like them following a
potentially weaker 3Q, into YE13 and 2014.