Rosetta Resources Inc. will officially be a wholly owned subsidiary of Noble Energy Inc. by close of business July 20, according to a news statement from Noble.
Rosetta’s stockholders “overwhelmingly” approved the merger of the company to become a Noble subsidiary, the statement said. Rosetta’s chairman, president and CEO James Craddock will join the Noble Energy board of directors.
The acquisition introduces Noble into the highly coveted Eagle Ford Shale and the Permian Basin with more than 50,000 net acres in each. Noble expects more than 15 percent annual production growth for an average of more than 100,000 barrels of oil equivalent per day in 2018.
Noble’s CEO Dave Stover said the closing of the Rosetta acquisition represents another milestone for Noble Energy.
“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 in the statement. “The strength of these assets and the Rosetta team, combined with Noble Energy’s exceptional financial and operating capacity, will drive significant value creating for our existing and new shareholders.”
Analysts at Raymond James said in July 17 note the merger was expected to be approved by the boards of both companies.
“Bottom line: The merger with [Rosetta] appears to be right on track,” RayJa wrote. “The quarter’s results are a positive read-through for Noble.”
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