Energizing the World, Bettering People’s Lives® Disclaimer

This report contains certain “forward-looking statements” within the involve a number of risks and uncertainties that could cause actual results meaning of federal securities laws. Words such as “anticipates,” “believes,” to differ materially from those projected. These risks and uncertainties “expects,” “intends,” “will,” “should,” “may” and similar expressions include, without limitation, the volatility in commodity prices for may be used to identify forward-looking statements. Forward-looking crude oil and natural gas, the presence or recoverability of estimated statements are not statements of historical fact and reflect Noble Energy’s reserves, the ability to replace reserves, environmental risks, drilling views about future events as of the date this report is first made public. and operating risks, exploration and development risks, competition, Such forward-looking statements may include, but are not limited to, government regulation or other actions, the ability of management future financial and operating results, and other statements that are to execute its plans to meet its goals and other risks inherent in Noble not historical facts, including estimates of oil and natural gas reserves Energy’s businesses that are discussed in Noble Energy’s most recent and resources, estimates of future production, assumptions regarding annual reports on Form 10-K, respectively, and in other Noble Energy future oil and natural gas pricing, planned drilling activity, future results reports on file with the Securities and Exchange Commission (the “SEC”). of operations, projected cash flow and liquidity, business strategy and These reports are also available on Noble Energy’s website and the SEC’s other plans and objectives for future operations. No assurances can be website. Forward-looking statements are based on the estimates and given that actual results will occur as projected by the forward-looking opinions of management at the time the statements are made. Noble statements; actual results may differ materially from those projected. Energy does not assume and expressly disclaims any obligation to update Forward-looking statements are based on expectations, estimates and any forward-looking statements should circumstances or management’s assumptions made as of the date this report is first made public that estimates or opinions change. TABLE OF Contents

Section 4: 03 Letter from the Chairman and CEO 12 Strategy

Section 5: 04 Executive Summary 16 2FC Scenario Analysis

Section 1: Section 6: 06 About Noble Energy 25 Metrics and Targets

Section 7: Section 2: Task Force on Climate-Related 08 Governance 31 Financial Disclosures (TCFD)

Section 3: 10 Risk Management The land must continue to provide for our food, clothing and shelter, long after the oil is gone. — Lloyd Noble

2 Letter FROM THE CHAIRMAN

I AM PLEASED to share this Climate Resilience Report on the many strides Noble Energy is taking to better the future for people and society, while delivering on our commitments to our shareholders, employees and communities. Climate change represents risks and opportunities to our business. We are committed to applying our demonstrated know-how, resilience and adaptability to shifting environmental and business conditions by being proactive and efficient in our operations and strategic planning.

Noble Energy is one of the longest-operating exploration and production companies in the U.S. We have survived and thrived in this cyclical business and are strong today because we have been open to new ideas and innovative in the face of challenges. Indeed, we seek opportunities by emphasizing agility and David Stover willingness to continuously improve our business planning Chairman and and operations. Chief Executive Officer In the pages that follow, we describe how we apply our continuous improvement culture to climate-related issues through rigorous analysis, careful planning, disciplined management and innovation.

In many ways, Noble Energy has been quietly taking steps to reduce emissions for many years. We are proud of our record of reducing methane emissions across our operations and engaging our shareholders, stakeholders and peer companies on this important issue. This report explains how and why we take steps to understand and address climate issues and builds upon other sustainability information which can be found on our website.

We thank you for caring about the broader issues we all face as stewards of this planet. We welcome your input on emerging climate issues and look forward to continuing the conversation in our pursuit of making Noble Energy among the best in class.

David Stover

2 3 EXECUTIVE Summary

Governance Our management of climate-related risks and opportunities is woven throughout the organization. NOBLE ENERGY has thrived for over This starts at the top with our Chairman, our full Board 85 years. We are keenly aware that the of Directors (whose selection includes consideration of environmental and risk management skills and demographic, physical, regulatory, experience) and our Board’s committees, including geopolitical, financial and policy our Safety, Sustainability and Corporate Responsibility Committee. Our executive leadership has the knowledge, environments in which we operate tools and experience to actively manage climate issues. steadily change. Aligned with the core elements of recommendations from the Management of Climate Risks Financial Stability Board’s Task Force on Climate risk assessment is an important part of Noble Energy’s multidisciplinary approach to Enterprise Risk Climate-Related Financial Disclosures Management. In considering how to best manage our (TCFD), this report highlights how we business, Noble Energy strives to identify climate-related risks; assess the relative likelihood, severity and mitigation anticipate, identify, manage and adapt opportunities associated with each; assign oversight to evolving climate-related risks and responsibility; track management and mitigation efforts; and conduct regular auditing and follow up. opportunities.

A fundamental element of Noble Energy’s business strategy and approach to risk management is our commitment to continuously improve environmental performance.

4 EXECUTIVE Summary

Stakeholder Engagement Denver-Julesburg and Eagle Ford). Our low-cost Eastern Mediterranean natural gas assets are strategically To manage any risk, we must identify and understand positioned as demand grows to reduce emissions and it. To do this with respect to climate, we actively displace coal power generation. Despite our competitive seek information from a wide variety of internal and position, we think it is important to steadily assess 2°C external sources holding a broad spectrum of views. scenario signposts associated with potential market We engage our shareholders, stakeholders, think tanks, changes. We share some of these early signposts in governmental bodies, industry specialists, consultants, this report and plan to incorporate them into future policy-focused non-governmental entities and our risk monitoring, strategic planning and operations as employees, many of whom we recruit based on their appropriate. expertise in strategic assessments, business planning and forecasting. Metrics and Targets Strategic Planning Our commitment to continuously improve environmental performance is a fundamental element Our business and long-range strategic planning groups of Noble Energy’s business strategy and approach to analyze the key economic, policy and market trends risk management. It is also the right thing to do. This is along with other external information we collect. In our demonstrated in our commitment to reducing methane approach to planning, we test economic and financial emissions. We have cut our greenhouse gas emissions assumptions regularly, and create pricing scenarios intensity by more than 50 percent over approximately that inform capital allocation decisions. We have been 10 years. We support methane regulation provided the analyzing these scenarios for decades and are working to regulations are effective and technically feasible. We more deliberately integrate climate considerations into continue to look for opportunities to further reduce our assessments. methane emissions through the design and operation of our facilities, including helping to advance methane 2°C Scenario Analysis detection and reduction technologies. Knowing that clear metrics are important to improve performance, For this report, we used the International Energy we joined the ONE Future Coalition and are guided by Agency’s (IEA) World Energy Outlook 2018 Sustainable its methane targets. We also plan to consider new ways Development Scenario (SDS) to assess our business to set performance goals that, among other things, strategy against a 2°C scenario. In the SDS, global oil empower our employees to seek innovative solutions in demand peaks before 2020 and then declines while our operations. remaining a critical energy source. Lower oil demand depresses prices compared to IEA’s other scenarios. Natural gas demand grows as coal-fired generation is Agility and Continuous Improvement curtailed to reduce emissions in the global power sector. Our demonstrated agility enables us to pivot quickly The SDS shows that substantial new investment in oil in our business strategy as risks and opportunities and gas production will be required to make up for the change. By retaining a high ratio of discretionary natural decline rate of existing production and to meet capital, focusing on strict operating cost management, global demand projections. Noble Energy assessed the identifying and monitoring external conditions and SDS results and key drivers of change and tested them signposts, and using conservative financial practices, against our business strategy. we have the ability to adjust and succeed in the future. We also invest in continuous operating improvements. Risks, Opportunities and Signposts These include approaches to emissions detection and reduction such as installing condensate recovery Applying the 2°C scenario to Noble Energy’s business and gas reinjection units and deploying advanced indicates that we are well positioned for sustainable production facilities that can reduce our surface performance throughout the period covered by the footprint by over 99 percent in the areas deployed. We projection. Our current range of planning prices describe examples of our investments in innovation ($45 to $65 per barrel of West Texas Intermediate oil) is in this report, and we continue to seek opportunities below the SDS outlooks. We are competitively positioned across all our operations. in three U.S. low-cost liquids-rich basins (Delaware,

4 5 01 About NOBLE ENERGY

NOBLE ENERGY HIGHLIGHT NOBLE ENERGY (NYSE: NBL) is a

leading independent oil and natural gas OUR MISSION IS exploration and production company GOVERNED BY OUR CORE VALUES OF: committed to meeting the world’s growing energy needs and delivering leading returns to shareholders. Our Integrity global operations are strategically Caring focused onshore in the United States and Creativity offshore in the Eastern Mediterranean and the west coast of Africa. Our superior Wisdom portfolio, operational execution and Agility financial strength deliver long-term Excellence growth and differential value for our Alignment shareholders.

MAP OF NOBLE ENERGY OPERATIONS Energizing the World, FIGURE 01 Bettering People’s Lives® Noble Energy is guided by its values, Eastern its commitment to safety and respect Mediterranean for stakeholders, communities and the environment. Across our diverse portfolio, we bring geoscience, engineering and major project expertise to all our operations along with a consistent focus on community engagement and transparency.

DJ Basin

Delaware Basin Eagle West Africa Ford Shale

6 Noble Energy is guided by its values, its commitment to safety and respect for stakeholders, communities and the environment.

6 7 02 Governance

AT NOBLE ENERGY, consideration of climate issues starts at the top with our Board of Directors, Chairman and “Meeting the world’s Board Committees but is also integrated throughout demand for energy, our company as part of the roles and responsibilities of our management and operations professionals. Our while addressing employees play a role in monitoring and resolving climate- climate-related related risks within their departments and operations. concerns, has become 2.1 Board of Directors and Board Committees a defining strategic Our Board is responsible for overseeing the strategic planning of our business in order to enhance long-term value for our shareholders. In its regular meetings, challenge of our time.” the Board reviews both near-term and long-term strategic plans and assesses future challenges and opportunities facing the company. James Craddock Board Member and Responding to climate-related concerns facing major economies and businesses, Chairman of the Safety, our Board has placed greater focus on monitoring and responding to these Sustainability and Corporate challenges and the risks they may present. The Safety, Sustainability and Responsibility Committee Corporate Responsibility (SSCR) Committee is specifically tasked with tracking and providing updates directly to the Board on climate change. In 2018, the Board approved a new charter that reflects the expanded scope of the SSCR Committee and codifies its responsibilities to advise the Board on climate change. Alongside other environmental, health, safety, social and public policy issues, the SSCR Committee evaluates and monitors climate change-related topics and determines whether the company has appropriate policies, management systems and strategies to address associated risks. The Committee meets three times a year and presents its findings to the Board at least once a year.

8 Governance

2.2 Executive Leadership and Business Our commitment to environmental performance is Operations reinforced through the design of our compensation program. As a matter of good governance, Noble Energy's Our management has the knowledge, tools and Board of Directors oversees executive compensation and experience to effectively manage climate-related risks has established a direct link between our short-term and opportunities. At Noble Energy, we promote proactive incentive plan and company environmental, health and tracking and reporting of climate issues across business safety performance. units and programs. For example, our teams:

■ Conduct in-depth internal analyses and consider a wide range of third-party analyses to develop our 2.3 Climate-Focused Governance near-term and long-term strategies (see Section 4). Our climate-focused governance helps shape company- ■ Adopt elements of global best-practice standards wide initiatives and engagement related to climate including those relating to environment and climate change. Our SCR working group, led by senior-level using our Global Environmental Health Safety employees with extensive climate, environmental, Management System. operations and health and safety experience, supports and informs both the executive team through the ■ Train employees and contractors in our operations SCR Committee and our Board of Directors through and safety programs, including ensuring that they the SSCR Committee. Noble’s climate-focused are trained to comply with applicable regulations governance is guided by advice of company experts and Noble Energy policies. in risk management, long-range planning and data ■ Conduct remote monitoring and control of domestic management/metrics, with support from external experts and international operations. In Colorado, we use covering a wide range of perspectives on climate-related technology that monitors operating conditions in topics. We focus these activities on three primary areas: real time, thereby facilitating immediate remote ■ adjustments and/or the dispatch of teams to Risk management, planning and disclosure. find and fix leaks or malfunctions that contribute ■ Technology and innovation. to greenhouse gas emissions. We are now ■ Policy, legislative and regulatory participation. implementing these capabilities in Texas. Through our Incident Command System, we prepare for We refine our climate-focused governance through emergency response to extreme weather events and engagement with investors, environmental advocates, other environmental situations. industry peers, energy experts and others equipped to ■ Consider stakeholder concerns and expectations continue growing our understanding of potential climate- including those of policy makers and communities related impacts. We also collect data to inform our where we operate. assessment of climate-related risks and opportunities and use all of this information to identify potential actions the ■ Assess international, U.S. federal, state and local company could take in the near and long term to improve climate policy, such as carbon pricing and the our business strategy. Paris Agreement. ■ Assess environmental and climate policies when considering new venture opportunities and risks.

Adding to our leadership approach, we have an executive- level Sustainability and Corporate Responsibility (SCR) Committee that works with a cross-functional group of internal experts to consider climate, health, safety, social and public policy issues and other corporate responsibility matters relevant to our business. We also integrate climate risk into our Enterprise Risk Management process (see Section 3).

8 9 03 Risk MANAGEMENT

■ Align executive and senior leadership on our risk profile. AS AN OIL and NATURAL GAS exploration ■ Assure that periodic risk assessments are conducted by our business units. and production company with global ■ Confirm that risk assessments are integrated with operations, Noble Energy recognizes that business and capital structure planning. a robust risk identification, assessment ■ Help the company identify emerging risks and early and management program is critical warning signs. to our success. Noble Energy employs ■ Facilitate working-level ownership and accountability of process risks by all employees. a multidisciplinary, company-wide ■ Oversee development and implementation of risk approach known as the Enterprise Risk management plans. Management (ERM) process. Across the business units, bottom-up assessments We track climate-related issues through our ERM system. feed into our ERM process. These assessments address We continue to integrate new climate risks into our risk potential operational and external risks. We proactively assessments as they come into view. seek input from local communities on a regular basis to ensure we have broad knowledge about the local conditions of our operations. Building on the input from 3.1 The Enterprise Risk Management Process across the organization, our ERM committee assesses the relative likelihood and severity of different strategic A committee of leaders from each of our business units is risks. In our ERM process, we regularly revisit and audit responsible for our ERM process. This committee meets risk reports, track risk mitigation implementation progress multiple times a year. Specifically, it works to: and identify whether new actions are necessary to address existing or identified emerging risks (see Figure 2).

Figure 2 NOBLE ENERGY RISK MANAGEMENT PROCESS FIGURE 02

Risk Develop Management Mitigation Closeout Planning Strategies

Monitor Prioritize and Risks Review

10 Risk MANAGEMENT

3.2 Factoring Climate Change Risk into the ERM Process We organize ERM risks into four main categories with core teams responsible for tracking risks within each one. Table 1 shows that climate risks fall into each of these categories, with specific risks often intersecting or spanning multiple categories. Where possible, we focus on tracking and accounting for climate- related linkages across these categories.

CLIMATE-RELATED RISK EXAMPLES BY ERM RISK CATEGORY TABLE 01

ERM Risk Category Climate-Related Risk

Operational Exposure to external events associated with ■ Physical risks associated with extreme weather our internal systems, processes and personnel events (e.g., drought, wildfire, hurricanes, extreme actions including personnel safety, cyber precipitation, intense heat). security, production reliability and technology ■ Water supply and life cycle management. deployment.

Compliance and Public Policy Exposure to domestic and international policies ■ Regulation of greenhouse gas emissions that may result in penalties, financial forfeiture (federal, state, local) (e.g., carbon pricing). or material loss or that could increase operating ■ International climate agreements. costs, reduce returns or change the competitive ■ Water quality and use/disposal restrictions. landscape.

Financial Risks associated with financial transactions and ■ Changes in demand for and prices of oil and defaults that could result in failure to achieve natural gas, including improved vehicle efficiency expected outcomes. This includes commodity or growth in electric vehicle transportation. prices, access to capital and taxes. ■ Increased cost to business including greater liability risk, insurance premiums, credit downrating and changes in tax policy.i

Strategic and Reputational Risks associated with poor business decisions, ■ Issues regarding oil and natural gas development ineffective execution, inadequate resource activity including concern by neighboring allocation or failure to respond to changes communities and environmental groups. in the business environment. Such risks may ■ Stakeholder concerns, including shareholder also damage the company’s reputation, interest in how much the company strategy takes resulting in lost revenue, increased operating account of climate-related risk. costs, regulatory damages or destruction of shareholder value.

10 11 04 Strategy

AT NOBLE ENERGY, our comprehensive approach to business strategy development is critical to maintaining a competitive advantage. We are positioned to adjust and succeed in the dynamic energy market because we align business strategy with market trends while focusing on capital efficiency, strict operating cost management and signposts that might affect the energy landscape. As a part of our planning process, we assess our business strategy against a wide range of future scenarios, including a 2°C scenario (see Section 5).

4.1 Our Approach to Strategy Development A core principle of our business strategy is maintaining agility while managing a high-quality, diverse portfolio. To maintain high performance in a competitive landscape, we assess our business strategy by monitoring and analyzing key factors such as:

■ Macroeconomic factors that influence energy supply and demand. ■ Cost competitiveness of various energy supplies. ■ Risks in the regions where we operate. ■ Legal, regulatory and public policy factors. ■ Environmental and social standards. ■ Community interests and concerns in the regions where we operate. ■ Workforce patterns that affect our employee recruiting and retention. ■ Shareholder and stakeholder views.

We use in-depth internal analysis (e.g., individual business unit assessments, ERM reporting) and consult with third-party analysts to inform our long-range planning and business strategy. We test operational and financial assumptions against future uncertainties in commodity prices. In regions where it is appropriate (e.g., Canada), we incorporate specific policies, such as carbon pricing, into investment decisions.

12 Strategy

4.2 Our Current Oil and Gas Market Outlook NOBLE ENERGY Based on internal analysis and recognized third-party energy outlooks, HIGHLIGHT we believe oil and natural gas will play a vital role in the global energy supply for many years to come.ii Figure 3 illustrates this point by showing multiple market outlooks that project steady growth in global An Innovative Strategy: oil and natural gas demand. These outlooks include the U.S. Energy Information Administration (EIA), the International Energy Agency Colorado Comprehensive (IEA), and the energy research firm Wood Mackenzie (WoodMac). Drilling Plan We also use outlooks by RS Energy, IHS Markit, S&P Global, OPEC, investment banks, and other third-party sources of information.

The outlooks show that population growth, economic expansion and growing prosperity in developing nations are key drivers for this oil demand trend with the largest changes in demand projected to come Our one-of-a-kind Mustang from China and India.iii WoodMac projects continued growth in the Comprehensive Drilling Plan, global vehicle market will drive greater consumption of petroleum approved in 2018, is a blueprint fuels through 2035. Expansion of aviation and consumer demand for for master-planned energy petrochemical products are also projected to contribute to growing oil development that provides a markets.iv clear line of sight to long-term Current outlooks also project growth in global natural gas demand to execution in the DJ Basin. It serve the manufacturing, power, transportation and building sectors. reduces business uncertainty Even if near-term demand is lower than currently projected, significant and our operating footprint in a new investment in oil and natural gas is necessary to fill the production host of ways. The blueprint: gap resulting from the natural production decline of producing wells.

■ Modernizes operations to increase efficiency, enhance GLOBAL OIL AND NATURAL GAS

safety and reduce truck and FIGURE 03 DEMAND OUTLOOK INDEXED TO 2017 other emissions. 160 ■ Cuts carbon dioxide emissions by 768,000 tons over the life 140 of the project from reduced 120 truck traffic alone.

■ Establishes Noble Energy 2017 = 100

as sole operator over an 80 area spanning 100 square miles of contiguous land. 60 IEA Current Policies Scenario ■ Creates the first large- 40 Wood Mackenzie Energy Markets scale development plan in IEA New Policies Scenario EIA International Energy Outlook Colorado, with more than 20

400 approved permits. 0 2010 2015 2020 2025 2030 2035 ■ Allows for row development Sources as modified by Noble Energy:EIA, International Energy Outlook 2018, and reuse of production eia.gov/outlooks/ieo/; IEA, World Energy Outlook 2018 iea.org/weo2018/; Wood Mackenzie Energy Markets Service H2 2018. facilities to minimize our Note: The IEA Current Policies Scenario considers policies adopted by governments as of 2017. operational footprint. The IEA New Policies Scenario considers additional announced policies, including Paris Agreement commitments. See Section 5 for the IEA Sustainable Development Scenario, which considers an emissions trajectory consistent with limiting warming to 2°C.

12 13 Strategy

4.3 Our Business Strategy over 90 percent of our 2019-2020 capital allocation (see Figure 4).v By 2020, we expect our U.S. and Eastern Our capital allocation, portfolio development and strategy Mediterranean projects will account for 75 percent of decisions are guided by our ERM process, strategic total sales. We anticipate first sales from our Leviathan planning activities and commodity pricing scenarios. We project in Israel to occur in late 2019. Our differentiated believe our business strategy is well aligned with current portfolio, combining high-quality U.S. onshore assets market trends. Key features of our strategy include: with long-life offshore production, provides competitive ■ Production and expansion in the low-cost Delaware advantages through low base production declines and and DJ Basins. low maintenance capital needs (see Figure 5). Overall, we anticipate our U.S. onshore, Eastern Mediterranean ■ Continued focus on efficiencies in our drilling and and Equatorial Guinea operations will deliver a moderate completions activities. growth strategy with sustainable free cash flow. ■ Innovation in technologies and business processes to lower the cost of supply and reduce methane We regularly consider exploration opportunities to emissions (see Section 6). further build a diverse profile of low-cost development opportunities. In addition to our investments in new ■ Investment in low-cost, low-carbon natural gas development, we occasionally acquire or divest assets projects internationally. to maintain a well-positioned and diversified portfolio that maximizes strategic value. This dynamic process As of the end of 2018, we had 1.9 billion barrels of oil is informed by ongoing market assessments and the equivalent in proved reserves (15 years of reserve life at strategic planning process. 2018 production levels). Our portfolio is diversified across product categories and geographic regions (see Table 2). While we are confident in our business strategy, we recognize that it is important to continually assess a range of uncertainties, including a 2°C scenario, that may NOBLE ENERGY 2018 SALES impact our competitiveness and should be considered in TABLE 02 our overall capital allocation process. These uncertainties and potential long-term trends are discussed below Total (see Section 5). Crude Natural Production Oil and Gas Natural in Oil Condensate Liquids Gas Equivalent Region (MBbl/d) (MBbl/d) (MMcf/d) (MBoe/d) Figure 4 NOBLE ENERGY’S PLANNED U.S. 109 62 466 248 ( ) onshore FIGURE 04 CAPITAL ALLOCATION 2019-2020 U.S. Gulf 5 - 6 7 of Mexico

Israel - - 237 40

Equatorial 18 5 213 58 Guinea

Total 132 67 922 353

Our focus on maintaining a high ratio of discretionary capital and investing in short-cycle shale enhances our flexibility and ability to respond to changing market conditions. With our disciplined approach to capital allocation, we focus on the highest return, highest margin opportunities. Our investments in new developments in the U.S. and Eastern Mediterranean account for U.S. Onshore International Other

14 Strategy

Our differentiated portfolio, combining high-quality U.S. onshore assets with long- life offshore production, provides competitive advantage through low base production declines and low maintenance capital needs.

NOBLE ENERGY VS. ONSHORE BASIN FIGURE 05 2018 BASE DECLINE RATES

Annual Decline

50%

40%

30%

20%

10%

0% rd re rg K n ia n n o a u C se a a F ch a h e w sb A kke la B at n le la e T a t a g e l /S B pa n vi rr D P e e e a -Ju p rr L it E r O A u d ve O C ost e n C P M e S gy n D r y r e rg e n e st E n a le E E b le y o b g N o er N n E le ob Source: RS Energy Group, Inc. analysis of aggregate basin-level base production declines from Dec. 2018 N to Dec. 2019, as of February 2019. Noble Energy data based on company estimates as of September 2019.

14 15 05 2°C Scenario ANALYSIS

5.1 Oil Market Analysis With a focus on reducing global carbon dioxide emissions, GIVEN THE RISKS AND OPPORTUNITIES the SDS projects significant changes for oil markets while also showing that the fuel remains a critical energy associated with climate change and source. With oil accounting for 35 percent of global increasing investor interest in our energy-related carbon dioxide emissions in 2016, IEA’s SDS outlines a variety of emissions reduction strategies to approach to managing these issues, we reduce emissions for oil use.vii Under this scenario, global evaluated our business strategy against oil demand peaks before 2020 and then declines to 26 a scenario where global greenhouse percent below 2017 levels by 2040 (see Figure 6). Despite this market contraction, oil supplies about a quarter gas emissions are reduced to levels that of global energy demand for end uses such as vehicle constrain warming to 2°C. transportation, aviation and shipping in 2040. Demand for petrochemical feedstocks grows modestly under the SDS with expanding global markets for plastic. To conduct our analysis, we:

■ Reviewed publicly available scenarios consistent HISTORICAL AND PROJECTED with limiting warming to 2°C. GLOBAL OIL DEMAND FIGURE 06 UNDER WEO SCENARIOS ■ Chose the IEA’s World Energy Outlook (WEO) 2018

Sustainable Development Scenario (SDS), which MMBbl/d includes an emissions trajectory consistent with 140 limiting warming to 2°C.vi 120 100 ■ Assessed key outputs and drivers of change 80 within the SDS. 60 Current Policies Scenario ■ 40 Tested the SDS outputs against our business New Policies Scenario

strategy. 20 Sustainable Development Scenario

0 ■ Identified market signposts that may indicate the 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 need to shift strategy to mitigate risks and take Source: IEA, World Energy Outlook 2018, advantage of opportunities. www.iea.org/weo2018

We selected the SDS because of its global scope and prominence as a highly respected, well-documented and The long-term decline in global oil demand under the transparent resource. We will continue to use scenario SDS is primarily due to changes in transportation energy planning to help inform our risk management and use, including estimated global improvements in vehicle business strategy. Evaluation and consideration of future fuel efficiency and accelerated adoption of electric uncertainties is critical to maintaining our business agility vehicles and biofuels.viii Efficiency gains and fuel switching and strengthening our capital allocation process. in the power, buildings and industrial sectors also contribute to this trend but are modest in comparison to those in the transportation sector.

16 2°C Scenario ANALYSIS

The SDS leads to a significant divergence in the market outlook for oil by 2040 compared to a business-as-usual 2°C SCENARIO SPOTLIGHT case. Global oil consumption is 47 MMBbl/d lower in 2040 in the SDS than in the CPS, which projects steady growth in oil. Vehicle efficiency improvements resulting from IEA World Energy Outlook new policies and innovations are responsible for about 60 percent of this gap. Most of the remainder is the result Scenarios of transportation fuel switching to biofuels and electric vehicles. The impact of these influencers is modest in the near term but grows over time. For instance, WoodMac estimates that there are 4.7 million electric vehicles on the The IEA annually issues the World Energy Outlook road globally, displacing approximately 0.03 MMBbl/d.ix (WEO), a global benchmark for energy projections. Under the SDS, global passenger electric vehicle stock is The WEO includes three central scenarios: modeled to reach 69 million in 2025, nearly 240 million in 2030 and more than 900 million by 2040. By 2040, IEA's ■ The Current Policies Scenario (CPS) represents modeling suggests electric vehicles could be responsible a business-as-usual scenario based on policies for almost 10 MMBbl/d in reduced oil demand. adopted by governments as of 2017. ■ The New Policies Scenario (NPS) considers Different demand outlooks affect oil prices across IEA’s additional announced or proposed policies scenarios (see Figure 8). Under the SDS, low oil demand including commitments under the Paris Agreement. depresses global oil prices compared to the other scenarios, peaking at $74 per barrel in 2025 and declining ■ The Sustainable Development Scenario (SDS) to $64 per barrel by 2040. However, the variance in oil models a global energy system that limits warming prices across all scenarios over the next decade is within to 2°C while achieving universal access to energy the range of market prices over the past 15 years. and reducing health impacts of air pollution. In this scenario, ambitious policies set a global emissions trajectory leading to net zero emissions by mid- century. HISTORICAL AND PROJECTED Additional information on the IEA WEO 2018 is available OIL PRICES UNDER on IEA’s website at: www.iea.org/weo. FIGURE 08 WEO SCENARIOS (2017$)

$/Bbl $160 HISTORICAL AND PROJECTED $140 CARBON DIOXIDE EMISSIONS $120 FIGURE 07 UNDER WEO SCENARIOS $100 $80

$60 Gigatons CO2 Current Policies Scenario $40 45 New Policies Scenario $20 Sustainable Development Scenario 40 $0 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 35

30 Source: IEA, World Energy Outlook 2018, www.iea.org/weo2018

25 Note: Oil prices under WEO scenarios reported as weighted average Current Policies Scenario import price among IEA member countries. 20 New Policies Scenario

15 Sustainable Development Scenario

10 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045

Source: IEA World Energy Outlook 2018, www.iea.org/weo2018

16 17 2°C Scenario ANALYSIS

5.2 Natural Gas Market Analysis A central uncertainty in natural gas outlooks is the liquefied natural gas (LNG) market. In the SDS, LNG The SDS highlights an important role for natural gas, shipments nearly double by 2040, from 323 billion cubic offering immediate greenhouse gas benefits by replacing meters (bcm) to over 600 bcm. The U.S. is projected to coal-fired generation as a source of electricity. While the be a significant exporter of LNG and China, India, Japan, power sector in the U.S. has made a significant shift away Korea and other Asian markets are the primary importers. from coal and toward natural gas for electricity over the However, the expectations for LNG could change past decade, the SDS projects growth in the use of natural depending on the infrastructure build-out and changes in gas for power generation in China, India and the Middle natural gas production in LNG importing markets. East. Beyond the power sector, the SDS also highlights future demand for natural gas globally to satisfy industrial, Looking ahead and across IEA’s WEO scenarios, natural commercial and residential demand. gas prices remain relatively low but vary regionally. Due to the abundance of supply, North American natural Figure 9 shows gas consumption for major geographic gas prices are projected to be less than $4 per MMBtu regions under each of the IEA WEO scenarios. Under through 2040 in the SDS. Other major markets such as the SDS, global natural gas demand grows by 15 percent Europe and Japan maintain a premium compared to through 2030 before contracting between 2035 and North America (see Figure 10). 2040. In 2040, total projected global gas demand under the SDS is more than 10 percent higher than it was in 2017. Underlying the global demand picture are shifts in regional demand, with SDS projecting natural gas demand in IEA’s Asia Pacific region to almost double by 2040.

HISTORICAL AND PROJECTED NATURAL GAS DEMAND BY REGION UNDER WEO SCENARIOS FIGURE 09

bcm 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Historical North America

2000 Asia Pacific Middle East Europe Historical 2017 Eurasia Central & South America Africa Current Policies Scenario

New Policies Scenario 2030

Sustainable Development Scenario

Current Policies Scenario

New Policies Scenario 2040

Sustainable Development Scenario

Source: IEA, World Energy Outlook 2018, www.iea.org/weo2018

18 2°C Scenario ANALYSIS

Looking ahead and across IEA’s scenarios, natural gas prices remain relatively low but vary regionally.

HISTORICAL AND PROJECTED NATURAL GAS PRICES BY REGION FIGURE 10 UNDER IEA’S WEO SCENARIOS (2017$)

$/MMBtu 20

15

10

Japan

5 United States European Union

Historical

0 2000 2005 2010 2015 2020 2025 2030 2030

United States European Union Japan Current Policy Scenario Current Policy Scenario Current Policy Scenario New Policy Scenario New Policy Scenario New Policy Scenario Sustainable Development Sustainable Development Sustainable Development Scenario Scenario Scenario

Source as modified by Noble Energy: Noble Energy analysis; IEA, World Energy OutlookSource: 2018 IEA, World Energy Outlook 2018, www.iea.org/weo2018

18 19 2°C Scenario ANALYSIS

5.3 2°C Scenario Implications for Noble Energy To test the impact of a 2°C scenario on our business, we compared our planning prices against the SDS prices. Applying insights from our evaluation of the 2°C scenario, As shown below (see Figure 11), our current range of we assessed the sensitivity of our business strategy. As planning prices ($45 to $65 per barrel of oil) is below the discussed below, we find that our strategic approach is SDS outlooks. resilient to the changes projected in the 2°C scenario. Nonetheless, future resilience projections will consider the signposts presented in Table 3 (see Section 5.4). COMPARISON OF NOBLE ENERGY Under a 2°C scenario, IEA projects continued global OIL PRICE TO 2025 AND 2040 demand for oil and gas of about 70 MMBbl/d for oil and FIGURE 11 SDS OIL PRICE (2017$) 11 bcm per day for natural gas. Absent new investment,

IEA projects that there would be a 26 MMBbl/d gap SDS 2025 Oil between supply and demand by 2025 under the SDS. $74 Meeting this demand will require substantial new investment in oil and gas production to make up for the SDS 2040 Oil $64 natural decline rate of existing production.x

Globally, the SDS projects that oil and gas investment would be over $13.6 trillion through 2040—with upstream oil and gas investments averaging $427 billion annually. Currently, IEA estimates that upstream oil and gas Current Noble Energy investments total $580 billion annually. Our ability to Planning prosper in this scenario will depend on global oil prices Price Range and our performance against competitors.

0 10 20 30 40 50 60 70 80 90

$/Bbl Source: Noble Energy; IEA, World Energy Outlook 2018, www.iea.org/weo2018 Note: Oil prices under WEO scenarios reported as weighted average import price among IEA member countries. Noble Energy planning prices based on WTI using Noble's current planning horizon.

Another indicator of our competitive position is our cost of production relative to peers. Relative production costs will become even more important in demand-constrained scenarios. We are strategically positioned to produce oil in liquids-rich plays in the U.S. (see Figure 12). These plays have lower average costs than natural gas plays in Canada and the lower 48 states in the U.S. and liquids plays in Canada. Within the liquids-rich plays, we have assets in three low-cost basins: the Delaware Basin (part of the Permian Basin) in Texas, the DJ Basin in Colorado and the Eagle Ford Basin in Texas.

20 2°C Scenario ANALYSIS

Noble Energy has strategically positioned its onshore portfolio within some of the lowest breakeven liquids-rich plays in North America.

PERFORMANCE OF NOBLE ENERGY BASINS FIGURE 12 RELATIVE TO OTHER MAJOR U.S. ONSHORE PLAYS (BREAKEVEN WTI)

$/Bbl $80 SDS 2025 Oil: $74

$70 SDS 2040 Oil: $64 Canadian Liquids Plays

$60 Lower 48 Natural Gas Plays $59

$54 $52 $53 $53 Lower 48 Liquids Plays Canadian $50 $49 $48 Gas Plays $46 $46 $46 $46 $44 $44 $43 $42 $43 $42 $41 $41 $40 $39 $39 $38 $39 $39 $39 $36 $37 $36 $35 $35 $34 $32 $30

$20

$10

$0 S s e e n l y CK alley YESO Utica Uinta Viking Midland Barnett Cardium Montney Delaware Nm Shelf Marcellu Cleveland San Juan Duverna Eagle Ford Bakken-U Haynesville Fayettevill Shaunavo Deep Basin Granite Wash Cotton V Bakken-CDN SCOOP/STA Lower Cleveland Mississippi Lim Denver-Julesburg Arkoma Woodford Oil Sands - SAGD Powder River Basin Cold Flow Heavy Oi Central Basin Platform Noble Energy Source: RS Core�, retrieved on January 14, 2019; Noble Energy applied the following filters when retrieving RSEG’s breakeven calculations: Completion Records: >10, Well Status: Producing, Trajectory: Horizontal, First Production Date: 1/1/2017 - 12/31/2018, Total Producing Months: 5-24, BOE Economic Equivalency: 15:1 Ratio. Others

Notes: Based on 30-year curves, EUR, differentials, D&C, royalties. All available royalty rate data is incorporated and at the play level. Breakeven price calculated on a weighted-average basis across all wells. Breakevens are not fully burdened (exclude land costs and corporate burdens).

20 21 2°C Scenario ANALYSIS

While we believe our business is competitively positioned Contracting demand will subject oil producers to under the 2°C scenario analyzed, it would be incorrect greater market volatility and greater competition. to suggest there are no risks. There is significant While not captured by average oil prices modeled in uncertainty in how markets would respond to flattening the SDS, volatility is common in our industry. We have and diminishing oil demand. Prices may experience demonstrated an ability to make successful strategic greater volatility in a 2°C world than is reflected in the decisions in response to significant swings in oil prices, IEA analysis. We may face greater risks if North American including over the past five years when oil prices dropped oil demand falls faster than declining supply and we below $40/Bbl (see Figure 13). Our ERM process, market are unable to access other markets. This would be analysis and business strategy favoring agility and exacerbated if distribution bottlenecks, limited take-away flexibility are all factors in this success. infrastructure or other barriers jeopardize U.S. production. These uncertainties mean that we must continue our We are also well-positioned to take advantage of future focus on technological innovation, increasing business growth in natural gas demand. Our newest project in the and operating efficiencies to lower the cost of supply, and Eastern Mediterranean, Leviathan, is among the lowest- developing a portfolio in low-cost production basins to cost projects in the world. We have secured several long- maintain a competitive position under a 2°C scenario. We term contracts for anticipated production. Furthermore, also recognize the importance of continued monitoring Noble Energy produces natural gas which allows Israel of emerging trends and shifting market conditions or to reduce emissions in line with its climate commitments signposts that may indicate a need to alter course. (see Highlight in Section 6.6).

FIVE-YEAR HISTORICAL CRUDE OIL PRICES RELATIVE TO SDS PROJECTIONS (2017$) FIGURE 13

$/Bbl

$120

$110

$100 WTI Brent

$90

$80 SDS 2025 Oil - $74

$70

$60 SDS 2040 Oil - $64

$50

$40

$30

$20 4 5 6 7 8 9 -1 -1 -1 -1 -1 1 n n n n n n- Ja Ja Ja Ja Ja Ja

Source: S&P Capital IQ; IEA, World Energy Outlook 2018, www.iea.org/weo2018 Notes: All prices in real terms (2017$). Crude prices converted to real dollars based on observed changes in the U.S. Consumer Price Index between Jan. 2014 - Jan. 2019. Oil prices under SDS projections reported as weighted average import price among IEA member countries.

22 2°C Scenario ANALYSIS

Our Alen gas monetization project in Equatorial Guinea is estimated to commence gas sales in the first half of 2021 (see Highlight in Section 5.4). With a global NOBLE ENERGY HIGHLIGHT footprint and significant international gas resources positioned near existing LNG infrastructure, we are competitively positioned across a range of natural gas demand scenarios. Cutting Emissions While Increasing Productivity in

5.4 Signposts of Market Changes Consistent Equatorial Guinea With a 2°C Scenario Scenario analysis can be used to identify, evaluate and track future signposts or indicators that point to major We initiated our first operated production in shifts in market trends. InTable 3, we identify examples Equatorial Guinea in 2011. As production began, we of signposts that reflect specific technological, policy or took the following actions which cut greenhouse gas market developments, including consumer preferences, aligned with a 2°C scenario. These signposts provide and air pollutant emissions, while increasing saleable early warning signals for potential risks and opportunities commodities: outlined throughout this section (see Sections 5.1 ■ through 5.3). We will continue to revisit, refine and Installed a condensate recovery and gas reinjection integrate these signposts into our risk management and facility at the offshore Alen field to capture strategic planning processes, and adjust our business nonsalable natural gas. strategy as necessary. ■ Enhanced condensate production from the reservoir, minimizing flaring and storing natural gas.

■ Executed an agreement in 2018 to develop the gas from the Alen field and process it for sale on the global LNG market.

22 23 2°C Scenario ANALYSIS

SIGNPOSTS OF MARKET CHANGE CONSISTENT WITH 2°C SCENARIO TABLE 03

Category Impact 2°C Signpost Examples

Climate Policies Role of energy ■ Greenhouse gas emission pricing, such as caps efficiency and energy or carbon taxes. sources, including ■ Zero-emission incentives or mandates for power fossil fuels, in future generation technologies, such as renewable energy markets. portfolio standards, zero-emission crediting programs and procurement policies. ■ Energy efficiency mandates for electricity use and vehicles, including in emerging economies. ■ Electric vehicle incentives or mandates. ■ Efforts by cities and countries around the world to phase out internal combustion engine vehicles.

Cost and Demand for natural ■ Cost of electricity from natural gas-fired Consumer Use gas for electricity generation with and without carbon capture and of Power Sector generation. storage compared to zero-emitting alternatives. Technologies ■ Renewable power purchases by electricity customers. ■ Expansion of carbon capture and storage use.

Cost and Demand for oil in the ■ Cost of vehicles with internal combustion Consumer Use transportation sector. engines relative to alternatives, such as electric or of Transportation hydrogen. Technologies ■ Cost of fossil fuels relative to alternatives, such as biofuels. ■ Pace of vehicle stock turnover, especially in response to mandates, incentives and shifts in consumer preferences.

LNG Infrastructure Scale of global ■ Cost of LNG relative to alternatives. natural gas market. ■ Expansion of LNG infrastructure in U.S., Africa, Europe and Asian markets, including siting approvals.

24 06 Metrics AND TARGETS

NOBLE ENERGY HIGHLIGHT A CORE ELEMENT of Noble Energy’s business strategy and climate risk management approach is our commitment Initiatives and to continuously improve environmental Collaboration performance, responsibly and sustainably. We believe this commitment strengthens our purpose and reception of the communities Our participation in the following environmental where we conduct business, and enhances initiatives further demonstrates our commitment to continuous emissions improvements: our ability to recruit talented people and deliver on our long-term goals. An ■ ONE Future Coalition - Working with natural gas important and representative example of this companies to voluntarily reduce methane emissions across the natural gas supply chain. commitment is our performance in reducing ■ Stanford/Environmental Defense Fund Mobile methane emissions from our operations. Monitoring Challenge - Working to test and compare technologies for rapid, mobile and/or remote Over approximately 10 years, we have cut our greenhouse detection and quantification of methane leaks. gas emissions intensity by over 50 percent (see Figure 14) ■ Colorado Oil and Gas Association’s Voluntary Ozone to 12 metric tons CO2e per Mboe. This significant reduction was achieved by developing and applying Reduction Program - Working with oil and gas innovative technologies and best practices throughout companies in Colorado to reduce ground-level ozone. our operations, beginning before there were federal or ■ American Petroleum Institute’s Environmental state methane regulations. We further demonstrated our Partnership Program - Providing industry leadership commitment to methane reductions by joining the ONE as part of a coalition of U.S. oil and natural gas Future Coalition. producers working to reduce emissions via leak detection and repair, well unloading and pneumatic control device upgrades.

NOBLE ENERGY GREENHOUSE GAS EMISSIONS INTENSITY FIGURE 14 (2010 - 2018)

metric tons CO2e/MBoe 35

30

25

20

15

10

5

0 2010 2011 2012 2013 2014 2015 2016 2017 2018

Note: From 2010 – 2018, production growth rate increased 63%.

24 25 Metrics AND TARGETS

Noble Energy supports the regulation of methane, 6.2 Cutting Fugitive Methane and VOC Emissions provided the regulations are reasonable and effective. Noble Energy has established itself as a leader in reducing We will continue to prioritize reducing methane emissions emissions of methane and volatile organic compounds through the design and operation of our facilities, (VOC). A key to our success is a commitment to finding including helping to advance and test methane detection and fixing leaks by continuous improvement in our leak and measurement technologies. We will also consider new detection and repair (LDAR) program. We have a team of ways to set performance goals and targets that, among individuals specifically trained to monitor work sites with other things, empower our employees to seek innovative infrared cameras that detect natural gas leaks invisible to solutions in all aspects of our operations. the naked eye. Reducing methane leaks is not only good for the climate, it reduces safety risks and increases the quantity of natural gas available for sale. 6.1 Environmental Initiatives: Disclosure and Collaboration In 2009, we voluntarily implemented our LDAR program Our environmental strategy includes adopting innovative for operations in Colorado’s DJ Basin, prior to regulations technologies and participating in initiatives that promote for doing so. In 2013, we worked together with the transparency and performance. Since 2009, we have Governor of Colorado, environmental community and reported annual greenhouse gas emissions and other peer companies to develop the nation’s most progressive environmental data to the CDP, and more recently to air quality regulations for oil and natural gas facilities. the Disclosing the Facts Investor Report. We also issue We further refined our LDAR process after Colorado an annual sustainability report consistent with the Oil Regulation 7 was adopted in 2015 (see Highlight on and Gas Industry Guidance on Voluntary Sustainability page 27). Consistent with our commitment to continually Reporting by IPIECA, the American Petroleum Institute improve performance, we have expanded our LDAR and International Association of Oil & Gas Producers. program to all of our U.S. onshore production areas.

Brian Leen, 26 ABB Los Gatos Research Metrics AND TARGETS

6.3 Reducing Vented Air Emissions and Flaring Noble Energy also has programs that reduce natural NOBLE ENERGY HIGHLIGHT gas venting and flaring. Using production technology, including vapor recovery units (VRUs), we can increase efficiency by recovering and repressurizing natural gas, thereby minimizing or eliminating flaring. For example in Leak Detection and Repair 2011, we integrated VRUs into our standard design for new in Colorado well pad facilities in the U.S. In 2018, we prevented the emission of more than 2.2 billion cubic feet of methane.

Noble Energy is also focused on improving the performance of pneumatic devices. We partnered with In 2018, our LDAR technicians inspected 11,299,225 government agencies, NGOs and academic institutions components. For less than one percent of those to better understand how pneumatic devices can operate components requiring repair, 72 percent were with lower emissions – including using air skids to power repaired at the time of inspection, with the these components. We also use solar energy to power remainder repaired in an average of three days. various on-well chemical injection pumps and telemetry systems. As a result, we reduced the number of releases detected by more than 70 percent compared to four years earlier. Through Colorado’s regulatory 6.4 Business Innovation efforts and the use of innovative technologies, the We continually evolve production facility design and oil and gas industry nearly halved its emissions incorporate advanced technologies to increase efficiency, of VOCs in the Denver Metro/North Front Range reduce our environmental impact and maximize value. ozone nonattainment area, while oil production For example, in Colorado we have developed and quadrupled statewide.xi Methane reductions are a deployed an innovative new production facility, the “Gen co-benefit of the Regulation 7 required emission 4 Econode,” and have begun deploying this design at our reductions. Texas operations (see Highlight on Page 29).

Additionally, in Equatorial Guinea we used an innovative process to increase saleable natural gas supplies and reduce emissions by capturing the gas and reinjecting it. This decision not only reduced the need for flaring, but allows us to recover the gas when timely and sell it on the global market starting in 2021 (see Highlight on Page 23).

6.5 Improving Water Use Efficiency Climate change poses a risk to global water supply, including water availability in the western U.S., where much of our operations are based. We continually work to reduce our water footprint (the total volume/amount of water we use annually to produce oil and gas). As our portfolio grows and changes, we are committed to improving our water footprint (see Table 4 and associated notes for additional details).

26 27 Metrics AND TARGETS

6.6 Metrics Table 4 highlights environmental metrics that we track and reported annually to organizations such as CDP. Additional metrics are available on our website and through our annual sustainability report.xii Noble Energy continues to evaluate and, where practical, employ additional practices, goals, and metrics for the most appropriate ways to reduce and disclose emissions across our operations, communicate the nature of any reductions and refine our climate-related performance strategy.

ENVIRONMENTAL METRICS TABLE 04

Greenhouse Gases 2016 2017 2018 Emissions and Intensity

Scope 1 and 2 Emissions (metric tons CO2e) 2,601,249 2,477,108 2,313,463 Combustion 1,613,107 1,628,891 1,652,042 Flaring 554,790 375,367 383,106 Fugitive 126,073 83,308 41,259 Indirect 23,011 38,438 30,803 Mobile 29,348 33,197 37,197 Venting 254,920 317,907 169,056

Scope 3 Emissions (Travel Only) (metric tons CO2e) 12,675 13,337 17,088

1 Greenhouse Gas Intensity (metric tons CO2e per Mboe) 12 13 12 Reductions U.S. Methane Emission Reductions (Mcf Methane) 1,621,094 2,083,496 2,319,299

Infrared Camera 148,106 65,998 102,378 Vapor Recovery Units 1,472,988 2,017,498 2,216,921 Water Consumption 2016 2017 2018 U.S. Onshore Water Consumption (barrels)2 49,656,000 97,105,178 86,260,491

Recycled or Reused Water3 3,610,000 1,376,944 4,844,438 Water from Public or Private Sources 46,046,000 95,728,234 81,416,053 U.S. Onshore Water Disposed (barrels)4 18,966,000 37,452,039 56,903,891

Offshore Water Consumption (barrels)5 29,622,000 29,532,784 28,135,726

Seawater 29,378,000 29,404,528 28,135,726 Freshwater 244,000 128,256 0 Offshore Water Discharged (barrels) 15,194,000 19,354,058 20,218,576

Notes for Table 4: 1. The acquisition of Clayton Williams Energy in Texas increased our greenhouse gas intensity in 2017. These assets are being upgraded to comply with our standard operating practices. Even after accounting for these new assets and the 2017 sale of assets in the Marcellus Shale, our greenhouse gas emissions intensity was more than 50 percent lower in 2017 than it was in 2010 (see Figure 14). 2. In 2016, our U.S. onshore operations recycled and reused 7 percent of water consumed. In 2017, this amount fell to 1.4 percent, while our onshore water consumption nearly doubled to 97 million barrels. The increase in consumption and decrease in recycling is due to increased drilling associated with the Clayton Williams acquisition, combined with the divestment of our Marcellus Shale assets, which allowed significant water reuse and recycling. Furthermore, we drilled longer lateral wells to increase efficiency and decrease surface impacts, leading to increased water consumption per well. In 2018, the amount of water recycled and reused rose to 6 percent as we significantly increased water recycling in the Permian Basin. 3. The Marcellus Shale divestiture also resulted in a reduction of the total volume of recycled water from 2016 to 2017. Recycling levels rose again in 2018. We are actively investigating opportunities to expand our water recycling program in core operating areas. For example, in the Permian Basin we have strategically designed operations infrastructure to include produced water recycling along with disposal options. This includes a network of water pipelines that will allow us to reuse water from one site to another. This system became operational in late 2017 and is intentionally compatible with our central gathering facilities to expand the water recycling program. 4. In 2018, we disposed of 56.9 million barrels of water in our U.S. onshore operations. None of this water was discharged to surface water bodies. 5. We have eliminated our freshwater consumption in our offshore operations in 2018. Our operations in Equatorial Guinea utilize a process that circulates seawater through the offshore platforms to produce the freshwater we need. Our Eastern Mediterranean operations do not currently use freshwater. 28 Metrics AND TARGETS

NOBLE ENERGY HIGHLIGHT

Improving Oil and Gas Production through Innovation

As part of our commitment to improve operations, we identified and developed new approaches for reducing our surface footprint to limit impacts. We use a fourth generation Econode production facility design that can take only 2.5 surface acres to produce the same amount of energy that previously required 400 surface acres—a reduction in land use of more than 99 percent. These facilities are equipped with solar-powered automation and communications that enable continuous monitoring. They also:

■ Consolidate production operations into one system and inject oil and natural gas directly into the pipeline.

■ Eliminate production tanks, combustion equipment and fuel trucks.

■ Cut combustion emissions and potential leak sources.

Since 2017, the Colorado Gen 4 Econode contributed to a reduction of more than 30 percent in our onshore U.S. emissions of VOCs.

As part of our commitment

to improve operations,

we identified and

developed new approaches

for reducing our surface

footprint to limit impacts.

28 29 Metrics AND TARGETS

NOBLE ENERGY HIGHLIGHT

Improving Air Quality and Cutting Carbon Emissions in Israel

PERCENT OF ELECTRICITY FROM Noble Energy is playing an integral COAL IN ISRAEL AND GROSS part in Israel’s plan to reduce its FIGURE 15 REGIONAL NATURAL GAS PRODUCTION greenhouse gas emissions. As

part of the Paris Agreement, Israel MMcf/d % coal committed to reduce its emissions 1,200 55% by 26 percent below 2005 levels 1,000 by 2030. Phasing out coal power 800 generation by 2030 and replacing 45% it with natural gas and renewable 600

energy is an important part of 35% 400 the Israeli plan.xiii Much of the gas 200 required to support this transition 25%

will be supplied by our assets in the 0 Eastern Mediterranean. 2013 2014 2015 2016 2017 2018 Source: Gross Production Noble Energy analysis using announced developments Israel has already made progress % Power Supplied by Coal and discoveries; Israeli government data. towards that goal. In 2014, coal supplied 50 percent of Israel’s electricity generation. In 2018, coal was down to 30 percent of Israel’s electricity generation, with natural gas from our Tamar project satisfying more than 60 percent of the country’s electricity demand. With the Leviathan project coming online in 2019, the share of electricity from natural gas is expected to grow.

Israel has noted the role our Leviathan field will play in achieving its goal of natural gas supplying 80 percent of electricity generation. xiv This transition is already yielding benefits for the climate and for Israel’s air quality. Between 2012 and 2015, emissions of nitrogen oxides in Israel fell 34 percent. All told, utilization of natural gas from our Tamar and Leviathan fields is expected to reduce carbon dioxide emissions by a total of 350 million metric tons.

30 TASK FORCE ON CLIMATE-RELATED 07 TCFD FINANCIAL DISCLOSURES

7.0 TCFD Cross Reference When we decided to undertake our first climate assessment and prepare a report, we committed to our investors, stakeholders and ourselves to make it comprehensive, thorough and transparent. This Climate Resilience Report is aligned with the core elements of the recommendations from the Financial Stability Board’s TCFD (see Table 5). We have provided initial but critical insight as to how Noble Energy considers and integrates climate risks and opportunities into our business planning.

This exercise continues our desire to build opportunities for learning, collaborating and decision-making across the company. We have expanded our internal capacity to consider and track climate risks going forward. Most importantly, we intend to continue building and refining the analyses described in this report as we investigate, evaluate and manage climate risks and opportunities in the coming years.

INDEX OF TCFD RECOMMENDATIONS TABLE 05

TCFD Category Recommendation Location in Report

Governance a. Describe the board’s oversight of climate-related risks Governance 2.1, 2.3 Disclose the organization’s and opportunities. governance around climate-related risks and b. Describe management’s role in assessing and managing Governance 2.2, 2.3 opportunities. climate-related risks and opportunities.

Strategy a. Describe the climate-related risks and opportunities the 2°C Scenario Analysis 5.1, 5.2, 5.3, 5.4 Disclose the actual and organization has identified over the short, medium, and potential impacts of climate- long term. related risks and opportunities on the organization’s b. Describe the impact of climate-related risks and 2°C Scenario Analysis 5.3, 5.4 businesses, strategy, and opportunities on the organization’s businesses, strategy, financial planning where such and financial planning. information is material. c. Describe the resilience of the organization’s strategy, Strategy 4.1, 4.2, 4.3 taking into consideration different climate-related 2°C Scenario Analysis 5.3, 5.4 scenarios, including a 2°C or lower scenario.

Risk Management a. Describe the organization’s processes for identifying and Risk Management 3.1, 3.2 Disclose how the organization assessing climate-related risks. 2°C Scenario Analysis 5.0, 5.4 identifies, assesses, and man- ages climate-related risks. b. Describe the organization’s processes for managing Risk Management 3.1, 3.2 climate-related risks. Strategy 4.1

c. Describe how processes for identifying, assessing, and Risk Management 3.1, 3.2 managing climate-related risks are integrated into the Strategy 4.1 organization’s overall risk management. 2°C Scenario Analysis 5.0, 5.4

Metrics and Targets a. Disclose the metrics used by the organization to assess 2°C Scenario Analysis 5.4 Disclose the metrics and climate-related risks and opportunities in line with its targets used to assess and strategy and risk management process. manage relevant climate- related risks and opportunities b. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 Metrics and Targets 6.6 where such information is greenhouse gas emissions, and the related risks. material. c. Describe the targets used by the organization to manage Metrics and Targets 6.0 climate-related risks and opportunities and performance against targets.

30 31 Footnotes

Footnotes i For example, we monitor information released by rating agencies on how environmental, social and governance (ESG) factors could impact credit rating decisions. In early 2019, Fitch Ratings released an integrated scoring system that found ESG factors had “no impact” on our credit rating. ii Wood Mackenzie, Energy View to 2035, April 17, 2018. Energy Information Administration, International Energy Outlook 2018, June 30, 2018. OPEC, World Oil Outlook 2018, September 23, 2018. International Energy Agency, World Energy Outlook 2018, November 18, 2018. iii International Energy Agency, World Energy Outlook 2018, November 18, 2018. Energy Information Administration, International Energy Outlook 2018, June 30, 2018. iv International Energy Agency, World Energy Outlook 2018, November 18, 2018. Energy Information Administration, International Energy Outlook 2018, June 30, 2018. v See our 2018 Form 10-K. vi International Energy Agency, World Energy Outlook 2018, November 18, 2018. This work is partially based on the World Energy Outlook 2018 developed by the International Energy Agency, © OECD/IEA 2018 but the resulting work has been prepared by Noble Energy and does not necessarily reflect the views of the International Energy Agency. vii International Energy Agency, World Energy Outlook 2018, November 18, 2018. viii International Energy Agency, World Energy Outlook 2018, November 18, 2018. ix Wood Mackenzie, Macro Oils Long Term Outlook H2 2018. x Wood Mackenzie forecasts a decline in production of 11 MMBbl/d for onstream non-OPEC projects over the time period 2019 to 2025. In the time period to 2025, sanctioned conventional projects, new drilling onshore U.S. Lower 48 and OPEC capacity growth meet much of the gap. By 2030, the need for additional development of supply beyond visible projects has grown significantly. See Wood Mackenzie,Macro Oils Long Term Outlook H2 2018. xi “COGA members to deploy voluntary measures to reduce ozone pollution,” Press Release, April 22, 2019. Available at: https://www.coga.org/wp-content/uploads/2019/04/Press-Release-Voluntary-Ozone-Reduction-Initiative.pdf xii See our Sustainability Report at: https://www.nblenergy.com/sustainability xiii Israel’s Intended Nationally Determined Contribution (INDC) submitted to the UNFCCC on September 29, 2015. Available at: https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Israel%20First/Israel%20INDC.pdf xiv Rinat, Zafrir, “Israel to Favor Natural Gas Over Coal for Power Production,” Haaretz, November 15, 2017. Available at: https://www.haaretz.com/israel-news/.premium-israel-to-favor-natural-gas-over-coal-for-power-production-1.5465555

32 32