Oil and natural gas exploration company
Noble Energy Inc
. (
NBL
) inked an agreement for sale with Unit Petroleum Company, a wholly
owned subsidiary of Tulsa, Oklahoma based
Unit Corporation
(
UNT
). Per the agreement, Noble Energy will divest its non-core oil and
natural gas assets in western Oklahoma and Texas Panhandle for an
amount of $617 million. The agreement is expected to close in
September 2012.
As per the deal, Unit Corporation will own 900 oil and gas
producing wells on roughly 84,000 acres in the Granite Wash and
Marmaton fields of western Oklahoma and Texas Panhandle. As of the
effective date, net production was 60 million cubic feet equivalent
per day with net proved reserves of approximately 250 billion cubic
feet equivalent.
Output mix consists of 65% natural gas, 27% natural gas liquids,
and 8% crude oil. Unit Corporation plans to finance the acquisition
through issue of long term debt.
This divestiture was part of Noble's previously announced strategic
plan to divert capital and human resources to high value areas. The
funds will increase its financial flexibility to execute
international programs and enhance its horizontal crude oil
operations in the DJ Basin in Colorado and Wyoming.
Noble Energy has been involved in high profile agreements which
will aid in improving its topline position. The company in the
first quarter of 2012 entered into a 15 year agreement with
Israel Electric Corporation Limited
(
IEC
) for sale of 2.7 trillion cubic feet of natural gas, which is
expected to significantly augment Noble's earnings prospects.
Noble's market share will likely be strengthened on the basis of
this sales. This is slated to render its portfolio attractive to
investors.
The company anticipates second quarter 2012 average sales volume to
be around 224-232 thousand barrels of oil equivalent per day
(MBoe/d), while it retains its 2012 guidance at 244-256 MBoe/d. The
company expects natural gas and liquid production in the second
quarter to be affected by a planned maintenance outage at the Alba
facilities in Equatorial Guinea.
The Zacks Consensus Estimates for the second quarter and full year
of 2012 is currently estimated at $1.21 per share and $5.93 per
share respectively.
Noble Energy's closest competitor is
Anadarko Petroleum Corporation
(
APC
). Anadarko has joined forces with an undisclosed party to develop
Lucius oil and natural gas field in its deepwater Gulf of Mexico
operations. The company sold 7.2% working interest of its Lucius
play and in return received $556 million, which will allow the
company to fund the development cost till the first phase of
production.
Based in Houston Texas, Noble Energy is an independent oil and gas
exploration and production (E&P) company, having high-grade
hydrocarbon assets across the U.S. and several international
locations. The company holds a Zacks #4 Rank (short-term Sell).
ANADARKO PETROL (APC): Free Stock Analysis
Report
IEC ELECTRS NEW (IEC): Free Stock Analysis
Report
NOBLE ENERGY (NBL): Free Stock Analysis Report
UNIT CORP (UNT): Free Stock Analysis Report
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