Tag: oil and gas A&D

11May

Noble Energy to Acquire Rosetta Resources

Early this morning (Monday, May 11, 2015), Noble Energy announced that has entered into a definitive merger agreement under which it will acquire Rosetta Resources.

Since the onset of the oil collapse in October 2014, experts have been forecasting a massive wave of A&D activity in the oil and gas space. These forecasts have been steady since late 2014, but there has been very little consolidation activity thus far.

The Noble-Rosetta deal may mark the beginning of a huge wave of A&D activity in oil and gas.

Under the definitive merger agreement, which was unanimously agreed to by the directors for both companies, Noble will be acquiring Rosetta in an all-stock transaction, at a 38% premium over Rosett’a Friday close of $19.33.

The deal aims to bring Noble into two gigantic, oil-rich, and highly economic, shale plays: the Eagle Ford and Permian Basin. Rosetta currently has an assets base including approximately 50,000 net acres in the Eagle Ford and 56,000 net acres in the Permian.

This marks the first time since the oil downturn that a major U.S. oil and gas company has acquired another oil and gas company.

If you have been to one of my recent presentations on “A&D During the Oil Downturn,” then you have heard me outline several reasons experts believe this A&D activity has been delayed, and what companies are doing to prepare for these acquisitions.  Many sellers are likely to be strapped for cash, which introduces numerous potential issues for a due diligence team to tackle.

Share your thoughts below.

© Copyright 2012-2018, McGinnis Lochridge LLP. All Rights Reserved. DISCLAIMER: The information in this article is for general information purposes only. This article should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading this article does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided in this article.
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