2 0 1 8 A N N U A L R E P O R T NEXT STEPS DEAR FELLOW SHAREHOLDERS Throughout 2018, we implemented our significant value to debt and equity investors, blueprint for delivering long-term shareholder including almost $300 million in share repur- value, and I am excited about 2019 and the chases, approximately $200 million in dividends years ahead. I will highlight some of our and repaid $609 million of outstanding debt. most impactful 2018 accomplishments and then set out our strategy moving forward. We ended the year and enter 2019 focused on aligning costs with current commodity prices Early in the year, we outlined guiding principles while delivering operational excellence and including a focus on capital efficiency, cash flow continued strong performance in the areas of and balance sheet management to be compet- health, safety and the environment. Long term, itive across all investment sectors. While we we plan to sustain moderate growth while saw commodity price volatility and felt the consistently generating free cash flow to deliver impact of uncertainty around global factors shareholder returns. The startup of Leviathan such as trade relationships, sanctions, OPEC later this year is a milestone for the company compliance and geopolitics, we also returned and an important step for our future success. MAK I N G Active Portfolio Management and Operational Excellence diverse asset base to excel for many years to come. In addition to returning value to shareholders through dividends, share buybacks and debt reduction, we successfully completed several strategic portfolio transactions. We exited the Gulf of Mexico and CONE Midstream Partners and completed our required 11 percent sell down of our Tamar interests. With these efforts and the hard work of Noble Energy’s talented employees around the world, we have positioned our unique and We also achieved significant operational milestones. • Across our asset portfolio, we delivered 11 percent production growth, adjusted for divestments. • In the Colorado DJ Basin, we delivered volumes and cash flows above plan as we progressed our Mustang development. We received approval for the unique 100-square-mile Mustang Comprehensive Drilling Plan, the first development plan Delivering a new level of safe and responsible development though the Colorado Mustang Comprehensive Drilling Plan. 2 Debt & Equity in 2018 of its size approved by the State, and we have already secured more than 400 associated well permits. We are grateful that Colorado voters appreciate the importance of oil and gas and its positive impact on the state’s residents, schools and economy and rejected a ballot initiative that would have significantly restricted energy development. • In the Permian Basin, after a tough first half of the year, we shifted to row development and recognized MAK I N G STRIDES improved well performance expectations, and we Leviathan project, we in the second half of the progressed the development competed the Leviathan year. After expanded of gas monetization. Our drilling and completion phase appraisal drilling in the Alen platform in EG will be and are on schedule to come first half, we ramped a hub for developing the on line by the end of 2019. production and doubled 3 TCF gross gas reserves Well testing confirmed the volumes year-over-year. that we have already capability to deliver 1.2 BCFD We also added critical discovered in the region. combined from four wells. operational infrastructure, • In Israel, we outperformed Further, the initial execution and, by securing rights on expectations. Tamar of agreements to deliver our the new EPIC long-haul continued to produce reliably gas into Egypt provides a pipeline to Corpus Christi, with almost a 100 percent material step in accessing we enhanced transpor- run time. In our world-class that growing regional market. tation reliability and positioned the company to access export pricing. • In the Eagle Ford Basin, we strategically reduced activity in response to prices and focused near-term capital on completing wells already drilled. • In Equatorial Guinea (EG), production outperformed l s e m u o V s e l a S l a t o T 2018 2017 2016 Onshore/US* Offshore/International* * As a percentage of total sales volumes 3 Proved Reserves (MMBoe) Committee to oversee and of them and acknowledge guide the company’s Safety, their contributions to our Sustainability and Corporate success throughout their Responsibility (SSCR) strategy tenure. In 2018, we welcomed 128 1,837 1,929 and management, including Barbara Duganier to our initiatives in methane emission Board of Directors, Rachel 389 1,048 reduction, water management Clingman as General Counsel and climate assessment. We and Brent Smolik as President also developed an execu- and Chief Operating Officer. tive-level Sustainability and I am excited about the Corporate Responsibility refreshment of our leadership 2016 2017 2018 (SCR) Committee that works and the broad and diverse Total Proved Reserves Divestiture Impact • Company-wide, we materially increased our exploration inventory, adding more than 100,000 acres in the onshore U.S. and entering a new country offshore with a position of over 2 gross million acres. Operating Effectively Means Operating Safely and Responsibly with a cross-functional group perspectives and experiences of experts to think deeply each of these individuals about climate, health, safety, brings to Noble Energy. social and public policy issues and other corporate In September of 2018, we responsibility matters held our second Global relevant to our business. Day of Caring, a day that our executive team, Board We continue to have an members and nearly 1,000 engaged Board of Directors. employees in seven regions Each of our directors is around the world took a actively focused on respon- workday to volunteer in the sibly growing shareholder communities where we live and value. As Edward Cox leaves operate. Our work, more than our board and Lee Robison 4,000 hours globally, ranged retires from our executive team from housing repair to food Demonstrating our in 2019, I’d like to thank both collection to care kit assembly commitment to energizing the world and bettering people’s lives, we again delivered excellent safety performance and continued our focus on environmental, social and governance (ESG) matters. In 2018, we expanded the purview of the former Environmental, Health and Safety Board 4 Total Cash Provided By Operating Activities (In Millions) 2018 2017 2016 0 $2,336 $1,951 $1,351 BUILDING O U R F U T U R E Our Board of Directors joined executives to tour the Leviathan construction site. for troops serving abroad. returned to the shareholders, Earlier in this letter I high- These efforts benefitted 19 while continuing to build lighted significant milestones non-profit organizations the company. Our inventory in our journey together, and and were amplified by of high-return U.S. onshore I appreciate your continued our global matching gifts drilling locations combined trust and confidence as we program to further deliver with our unique, world-class begin an exciting new chapter critical services and support offshore assets provide a for Noble Energy. in our communities. competitive advantage. The organization will continuously Looking Forward This year is a transformational improve and drive returns through relentless capital year for Noble Energy. The efficiency. To underscore this start-up of Leviathan by year commitment, we have modi- end positions us to generate fied our 2019 compensation long-term, sustainable program to include an annual free cash flow that can be capital efficiency metric. Sincerely, David L. Stover Chairman and CEO 5 FINANCIAL RESULTS OPERATING DATA Year-end Proved Reserves Liquids (MMBbls) Natural Gas (Bcf) Total (MMBoe) Sales Volumes from Continuing Operations Liquids (MBbl/d) 1 Natural Gas (MMcf/d) Total (MBoe/d) Average Sales Price 2018 2017 2016 2015 723 7,231 1,929 199 922 353 686 7,680 1,965 195 1,118 381 552 5,308 1,437 186 1,397 420 496 5,549 1,421 158 1,187 355 Crude Oil and Condensate (per Bbl) 2 Natural Gas (per Mcf) $ $ 62.01 2.76 $ $ 49.73 3.01 $ $ 40.39 2.42 $ $ 45.00 2.44 FINANCIAL DATA (In millions, except per share amounts and ratios) Revenues 3 Net (Loss) Income Attributable to Noble Energy Net (Loss) Income per Share Diluted 4 Weighted Average Shares Diluted 4 Cash Dividends per Share2 Net Cash Provided by Operating Activities Capital Expenditures 5 Total Assets Total Debt Shareholders’ Equity 2018 2017 2016 2015 $ $ $ $ $ $ $ 4,986 (66) (0.14) 483 0.43 2,336 3,305 $ $ $ $ $ $ 4,256 (1,118) (2.38) 469 0.40 1,951 3,249 $ $ $ $ $ $ 3,491 (998) (2.32) 430 0.40 1,351 1,339 $ 3,183 $ (2,441) $ (6.07) 402 0.72 2,062 2,852 $ $ $ 21,010 $ 21,476 $ 21,011 $ 24,196 $ 6,675 $ 6,859 $ 7,114 $ 7,976 $ 10,484 $ 10,619 $ 9,600 $ 10,370 Total Debt-to-Book-Capital Ratio 39% 39% 43% 43% 1 Includes sales from equity method investees 2 Excludes equity method investees 3 Certain of our revenue received from purchasers was historically presented with deductions for transportation, gathering, fractionation or processing costs. Beginning in 2016, we have changed our presentation to no longer include these expenses as deductions from revenue. These costs are now included within transportation and gathering expense and prior year amounts have been reclassified to conform to the current presentation 4 Amounts adjusted for the 2-for-1 stock split which occurred in 2013 6 5 Excludes capital lease accruals and corporate acquisitions 10K 7 END 10K 8 DIRECTORS David L. Stover • Chairman and Chief Executive Officer, Noble Energy, Inc. Jeffrey L. Berenson •• Chairman and Chief Executive Officer, Berenson Holdings LLC Michael A. Cawley •• President and Manager, The Cawley Consulting Group, LLC Edward F. Cox* ••• Chair, New York Republican State Committee James E. Craddock ••• Former Chairman and Chief Executive Officer, Rosetta Resources Inc. Barbara J. Duganier •• Former Managing Director at Accenture Thomas J. Edelman ••• Managing Partner, White Deer Energy LP Holli C. Landhani • President and Chief Executive Officer, Select Energy Services, Inc. Scott D. Urban ••• Partner, Edgewater Energy LLC William T. Van Kleef •• Former Executive Vice President and Chief Operating Officer, Tesoro Corporation Committee Membership • Audit Committee • Compensation, Benefits and Stock Option Committee • Corporate Governance and Nominating Committee • Safety, Sustainability and Corporate Responsibility Committee EXECUTIVE OFFICERS GENERAL INFORMATION David L. Stover Chairman and Chief Executive Officer Brent J. Smolik President and Chief Operating Officer Kenneth M. Fisher Executive Vice President and Chief Financial Officer Rachel G. Clingman Senior Vice President, General Counsel and Corporate Secretary J. Keith Elliott Senior Vice President, Offshore Terry R. Gerhart Senior Vice President, Midstream John T. Lewis Senior Vice President, Corporate Development A. Lee Robison** Senior Vice President, Human Resources and Administration T. Hodge Walker Senior Vice President, U.S. Onshore Annual Meeting The Annual Meeting of Shareholders of Noble Energy, Inc. will be held on April 23, 2019, at 9:30 a.m. Central Time, at The St. Regis, 1919 Briar Oaks Lane, Houston, Texas 77027. All shareholders are cordially invited to attend. Form 10-K The company’s Annual Report on Form 10-K for the year ended on December 31, 2018, as filed with the Securities and Exchange Commission (SEC), is included in this report. Additional copies are available without charge upon request by writing to: Investor Relations, Noble Energy, Inc., 1001 Noble Energy Way, Houston, Texas 77070; via the company’s website: www.nblenergy.com; or via the SEC’s website: www.sec.gov. Noble Energy, Inc. Corporate Headquarters 1001 Noble Energy Way, Houston, Texas 77070 281.872.3100 | www.nblenergy.com Investor Relations Brad Whitmarsh, Vice President, Investor Relations 281.872.3100 | investor_relations@nblenergy.com Communications and Media Relations Ben Dillon, Vice President, Communications and Government Relations 281.872.3100 | media@nblenergy.com Independent Public Accountants KPMG LLP Transfer Agent and Registrar Computershare PO Box 505000 Louisville, KY 40233-5000 www.computershare.com 800-962-4284 Common Stock Listed New York Stock Exhange, Symbol – NBL Forward-Looking Statements This 2018 Annual Report to Shareholders contains forward-looking statements based on expectations, estimates and projections as of the date of this report. These statements by their nature are subject to risks, uncertainties and assumptions and are influenced by various factors. As a consequence, actual results may differ materially from those expressed in the forward- looking statements. For more information, see “Disclosure Regarding Forward-Looking Statements” in Noble Energy’s Form 10-K included in this report. * Departs Noble Energy Board of Directors April 2019 ** Retiring March 2019