Noble closes acquisition of Rosetta Resources

Noble Energy Inc. (NYSE: NBL) closed its acquisition of Rosetta Resources Inc. on July 20, after Rosetta stockholders approved the merger. 

In conjunction with the closing, Rosetta will become a wholly owned subsidiary of Noble Energy, and James E. Craddock, Rosetta's chairman, CEO, and president, will join the Noble Energy board of directors.

Highlights of the acquisition for Noble Energy include:

  • Approximately 50,000 net acres in the Eagle Ford shale play and 56,000 net acres in the Permian Basin (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
  • Current production of approximately 63,000 barrels of oil equivalent per day (second-quarter 2015 average)
  • More than 1,800 gross horizontal drilling locations identified for development, with net unrisked resource potential of approximately one billion barrels of oil equivalent
  • Noble Energy anticipates more than 15% annual production growth to an average of more than 100,000 barrels of oil equivalent per day in 2018
  • Operational synergies expected across the combined onshore US portfolio (Denver-Julesburg Basin, Marcellus and Eagle Ford shale plays, Permian Basin)

Rosetta stockholders will receive 0.542 shares of Noble Energy common stock for each of their shares (cash will be paid in lieu of fractional shares). Noble Energy will issue approximately 41 million shares of common stock in the transaction. Noble Energy also assumed the outstanding debt of Rosetta as part of the transaction.

Following the acquisition, Noble plans to close Rosetta’s headquarters in Houston. Eleven of Rosetta’s executives are expected to resign, and approximately 65 other jobs will be eliminated. The reduction will mainly affect Rosetta’s corporate-level staff, and not its field or operations personnel.

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