Exploration and production company,
Noble Energy Inc
. (
NBL
) announced the closure of its Central Kansas asset sale to an
affiliate of Houston-based energy company, Citation Oil and Gas
Corp.
Earlier, in mid-August 2012, Noble Energy inked an agreement to
divest its Central Kansas oil and gas assets for an amount of $140
million. The company secured roughly $130 million gains from this
transaction after considering certain adjustments, effective April
1, 2012.
As per the deal, the company sold 250 producing wells in an area
covering 14,000 acres with the primary production being that of
crude oil. Net proved reserves from the Kansas region were 7
million barrels of oil equivalent. With this sale, Noble Energy
completed four asset divestments in the first half of 2012.
We believe Noble Energy has successfully carried out its asset
divesture program. The aggregate proceeds of $1.1 billion from this
series of divestitures will help solidify the company's balance
sheet and enhance its liquidity profile. The company would exploit
the liquid capital earned from these divestments for the
development of its major deepwater projects and the existing
onshore resource prospects.
Recently, Noble Energy finalized the sale of its Mid-continent
assets in the Oklahoma and Texas region to United Petroleum
Corporation, a business wing of Tulsa-based,
Unit Corporation
(
UNT
), for roughly $594 million. The other two property sales concluded
by the company were in the Permian basin and in the Dumbarton and
Lochranza play in the North Sea for $309 million and $117 million,
respectively.
Noble Energy expects third quarter 2012 sales volumes to average
242-250 thousand barrels of oil equivalent per day (MBoe/d). The
company expects its sales volumes to improve due to higher
contribution from Galapagos, continuation of the drilling programs
in DJ Basin and Marcellus Shale, and increased sales in Israel. For
2012, the company expects volume in the range of 236 Mboe/d to 244
Mboe/d.
The Zacks Consensus Estimates for the third quarter and full
year 2012 for Noble Energy are currently pegged at $1.05 per share
and $4.91 per share, respectively. Noble Energy's closest peer
Anadarko Petroleum Corporation
(
APC
) during the second quarter 2012 monetized a part of its holding in
the Lucius development project in Gulf of Mexico and in the Salt
Creek field in Wyoming which led the company to accrue a total of
$956 million.
The Texas-based company presently has a Zacks #3 Rank (Hold
rating). Noble Energy engages in the acquisition, exploration,
development, production, and marketing of crude oil, natural gas,
and natural gas liquids in the DJ Basin, Marcellus Shale, deepwater
Gulf of Mexico, offshore Eastern Mediterranean, and offshore West
Africa. As of now, the company has a market capitalization of
$16.23 billion.
ANADARKO PETROL (APC): Free Stock Analysis
Report
NOBLE ENERGY (NBL): Free Stock Analysis Report
UNIT CORP (UNT): Free Stock Analysis Report
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