With a recent Permian Basin acquisition worth around $6 billion, Exxon Mobil isn’t the only oil and gas company making waves in the new year. Noble Energy announced Jan. 16 it plans to acquire Clayton Williams Energy for $2.7 billion in Noble Energy stock and cash. The Noble Energy press release notes the acquisition will advance the companies goals within the Delaware Basin in West Texas and eastern New Mexico, part of the larger Permian Basin.
David L. Stover, Noble Energy’s Chairman, President and CEO, stated:
We have been very disciplined in assessing expansion opportunities in the Delaware Basin and are extremely pleased to have reached this agreement with Clayton Williams Energy. This transaction brings all the key elements we value: excellent rock quality, a large contiguous acreage position adjacent to our own, and robust midstream opportunities, reinforcing the Delaware Basin as a long-term value and growth driver for Noble Energy. This combination creates the industry’s second largest Southern Delaware Basin acreage position and provides more than 4,200 drilling locations on approximately 120,000 net acres, with over 2 billion barrels of oil equivalent in net unrisked resource. In addition to the benefits driven by larger scale, the midstream assets and planned buildout provide significant synergies and substantial dropdown potential in association with our ownership in Noble Midstream Partners.
Following the announcement, Noble Energy stock rose from $37.40 per share to $39.56, leading the energy sector on Tuesday. Currently, stock sits at $39.69 per share.