Noble Energy (NYSE:NBL) has acquired Rosetta Resources (NASDAQ:ROSE) in a $2.1 billion deal. Rosetta Resource’s stock surged 28.6% to $24.86 on the news. Noble shares are down 7.39% to $45.49 this morning.
Noble Energy, the Houston gas and oil producer, paid $26.62 per share, which was a 38% premium on Friday’s closing price. The deal is expected to close during the third quarter this year, providing Rosetta Resource’s shareholders approve.
In the bid announcement, Noble Energy mentioned two plays: the Permian Basin (56,000 acres) and the Eagle Ford (50,000 acres). Together, the two produced 66,000 barrels of crude oil per day during the first quarter.
The deal includes $2.1 billion in stock and net debt worth $1.8 billion. Rosetta Resources shareholders will receive 0.542 of a Noble stock for every share they own. This equates to roughly $26.62 a share.
Jim Craddock, CEO of Rosetta Resources, stated that the acquisition will improve its asset base’s value delivery and give shareholders the chance to reap the benefits of that growth throughout commodity price cycles.
Noble’s CEO said the deal would add immediate value to the company’s pre-share production, earnings, reserves and cash flow. He went on to say that the strengths of the combined assets will add significant value to current and new shareholders.