Noble Energy Inc. (NBL) announced July 20 it closed its acquisition of Rosetta Resources Inc. in a $3.9 billion, all-stock deal.
The Houston-based companies said that Rosetta stockholders overwhelmingly approved the merger of Rosetta into a subsidiary of Noble. The transaction closed following the shareholder meeting and the merger will be effective at the end of July 20.
In conjunction with the closing, Rosetta will become a wholly owned subsidiary of Noble and James E. Craddock, Rosetta's chairman, CEO and president, will join the Noble Energy board of directors.
Highlights of the acquisition include:
- About 50,000 net acres in the Eagle Ford Shale and 56,000 net acres in the Permian (46,000 in the Delaware Basin and 10,000 in the Midland Basin);
- Year-end 2014 proved reserves of 282 million barrels of oil equivalent (MMboe);
- Current production of about 63 Mboe (second-quarter 2015 average);
- More than 1,800 gross horizontal drilling locations identified for development, with net unrisked resource potential of about 1 Bboe;
- Noble anticipates more than 15% annual production growth to an average of more than 100 Mboe/d in 2018; and
- Substantial operational synergies expected across the combined onshore U.S. portfolio (Denver-Julesburg Basin, Marcellus Shale, Eagle Ford Shale and Permian).
The closing of the Rosetta acquisition represents another milestone for Noble, said Dave Stover, the company's chairman, president and CEO, in a news release.
"The addition of Rosetta's Eagle Ford Shale and Permian positions expands our onshore business with high-quality acreage in two premier unconventional basins, increasing our development inventory and further diversifying our portfolio," he said. "The strength of these assets and the Rosetta team, combined with Noble Energy's exceptional financial and operating capacity, will drive significant value creation for our existing and new shareholders."
Rosetta stockholders will receive 0.542 shares of Noble common stock for each of their shares. Cash will be paid in lieu of fractional shares.
Noble will issue about 41 million shares of common stock in the transaction. Noble also assumed the outstanding debt of Rosetta as part of the transaction.
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