Noble Energy, Inc. (NYSE: NBL) has posted better than expected results in the third quarter of FY 17 helped by cost cuts and rising commodity prices. However, the stock fell as production fell 17% year on year to 355K boe/day partly due to asset sales and heavy storms in late September and early October that shut in most Eagle Ford production.

Noble Energy has reported the adjusted loss per share of 2 cents in the third quarter of FY 17, beating the analysts’ estimates for the adjusted loss per share of 13 cents according to Zacks Investment Research. The company had reported the adjusted revenue growth of 35.9 percent to $960 million in the third quarter of FY 17, beating the analysts’ estimates for revenue of $935 million.

Moreover, the total company sales volumes for the third quarter of 2017 were 355 thousand barrels of oil equivalent per day (MBoe/d), up 10 MBoe/d from the midpoint of original guidance.  Approximately 60 percent of the increase from original guidance is related to oil. The pro-forma for the Marcellus divestment in June 2017, third quarter sales volumes were up four percent from the second quarter of 2017 and seven percent from the third quarter of last year.  Crude oil and condensate sales volumes were 129 thousand barrels per day (MBbl/d), natural gas liquids (NGLs) totaled 63 MBbl/d and natural gas contributed 978 million cubic feet per day.  However, the heavy localized storms resulted in flash floods and the temporary shut-in of the vast majority of Eagle Ford production in late September and early October, reducing the company’s average third quarter volumes by approximately 5 MBoe/d. Further, the U.S. onshore oil volumes grew to a quarterly record of 93 MBbl/d, up approximately 25 percent from the third quarter of last year. The onshore operating cash flow per BOE is up approximately 50 percent over the same period.

Additionally, NBL has raised its fourth-quarter U.S. shale oil production forecast, now expects it rise 15 percent sequentially with crude oil, NGL and natural gas all expected higher by double-digits. The onshore oil volumes are reconfirmed at 102K-108K bbl/day, mostly due to a ramp up in Delaware Basin wells starting production late in third quarter and fourth quarter.

In addition, NBL has commenced operation at the NBL’s initial Central Gathering Facility in the Delaware Basin, Billy Miner operated by Noble Midstream Partners, with 10 wells producing through the facility as of the end of the third quarter. NBL had appointed Ladhani to its Board of Directors, effective from October 26, 2017.