My guess is that this is just the start of an active M&A period.
Noble Energy Inc. agreed to acquire Rosetta Resources Inc. (ROSE) for $2.1 billion in stock, giving the natural gas and oil producer a position in two of the largest areas of shale production in Texas.
Noble will also assume Rosetta’s net debt of $1.8 billion, the Houston-based companies said in a statement on Monday. The per-share offer is valued at $26.62, a 38 percent premium to the target’s closing price on Friday.
Noble buying ROSE
Noble buying ROSE
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Noble buying ROSE
Bloomberg: The premium for Rosetta is below average for the sector over the past five years, suggesting there are more mergers to come, said Fadel Gheit, a New York-based analyst for Oppenheimer & Co. It’s the largest takeover of a U.S. oil and gas producer announced this year, according to data compiled by Bloomberg. “We’re going to see a lot of mergers and acquisitions,” Gheit, who rates Noble shares at market perform and owns none, said Monday in a telephone interview. “Everybody is looking for the big deal.”
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Noble buying ROSE
Nomura Securities Managing Director Lloyd Byrne discusses his investment ideas, weighs in on fracking and talks about the price of oil. He speaks on “Market Makers.”
The first major shale deal after the worst oil price collapse in five years is a model for future transactions that promises to quickly change the industry as companies expand in new areas or soak up struggling rivals.
To read the entire article, go to http://bloom.bg/1QAUoFI
The first major shale deal after the worst oil price collapse in five years is a model for future transactions that promises to quickly change the industry as companies expand in new areas or soak up struggling rivals.
To read the entire article, go to http://bloom.bg/1QAUoFI
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Noble buying ROSE
“We’re going to see a lot of mergers and acquisitions,” Gheit said Monday in a telephone interview. “Everybody is looking for the big deal.”
Investors didn’t immediately welcome the acquisition, as Noble’s shares fell 6.2 percent to $46.07 at the close in New York, the biggest one-day drop in four months. Still, the deal indicates merger activity is returning to the market, Neal Dingmann, an analyst at SunTrust Banks Inc., said in a note to investors Monday.
Other takeover targets are likely to have operations in West Texas’s Permian Basin, including Matador Resources Co., Callon Petroleum Co., Carrizo Oil & Gas Inc. and other smaller companies similar to Rosetta, he said. Concho Resources Inc. and Pioneer Natural Resources Co. are larger companies that could be attractive to a buyer with deeper pockets, Dingmann said.
Martijn Rats, an oil analyst at Morgan Stanley, said in a report on Monday that M&A was “arguably” a cheaper option for growth than organic investment. “Upstream M&A will likely accelerate as confidence grows,” he said.
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All of the companies in our Sweet 16 and Small-Cap Growth Portfolio are attractive takeover targets. - Dan
Investors didn’t immediately welcome the acquisition, as Noble’s shares fell 6.2 percent to $46.07 at the close in New York, the biggest one-day drop in four months. Still, the deal indicates merger activity is returning to the market, Neal Dingmann, an analyst at SunTrust Banks Inc., said in a note to investors Monday.
Other takeover targets are likely to have operations in West Texas’s Permian Basin, including Matador Resources Co., Callon Petroleum Co., Carrizo Oil & Gas Inc. and other smaller companies similar to Rosetta, he said. Concho Resources Inc. and Pioneer Natural Resources Co. are larger companies that could be attractive to a buyer with deeper pockets, Dingmann said.
Martijn Rats, an oil analyst at Morgan Stanley, said in a report on Monday that M&A was “arguably” a cheaper option for growth than organic investment. “Upstream M&A will likely accelerate as confidence grows,” he said.
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All of the companies in our Sweet 16 and Small-Cap Growth Portfolio are attractive takeover targets. - Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Noble buying ROSE
Good article:
http://www.oilandgas360.com/noble-energ ... 4-26401157
http://www.oilandgas360.com/noble-energ ... 4-26401157
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group