Oil and natural gas exploration company,
Noble Energy Inc
) inked a deal for the sale of certain oil and natural gas assets
in the Permian Basin to a Texas-based, privately owned oil and
natural gas company, Sheridan Holding Company II, LLC, for $320
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The properties up for sale are located in a major energy producing
region in the basin and include 250 oil and liquid hydrocarbons
wells. The production capacity of these wells is roughly 1,500
barrels of oil equivalent per day. The settlement is anticipated to
be finalized in August 2012.
Noble Energy for the past several quarters has been increasingly
involved in the divestiture of peripheral assets in western
Oklahoma and Texas panhandle regions as well as in the North Sea,
UK. The sale of the Permian resources is also a part Noble's
continued long-term divestiture strategy.
The divestiture of these non-core assets will enable the company to
concentrate on the development of its primary operations in the US
and overseas. In addition, the gain from this sale would boost
Noble's financials and add flexibility to its operations leading to
a ramp in its top- and bottom-line estimates.
Noble Energy's active competitor
Anadarko Petroleum Corporation
) is in talks to sell some or its entire stake (36.5%) in the
offshore gas fields of Mozambique to
Royal Dutch Shell Plc
). The company on initiation of the auction process could receive
$8 billion from this sale.
Noble Energy estimates sales volumes to average 242-250 thousand
barrels of oil equivalent per day (MBoe/d) in the third quarter
excluding volume from discontinued operation, while its 2012 volume
guidance is in the range of 236-244 MBoe/d. Noble expects
exploration expenses for 2012 to be in the range of $450 million to
The Zacks Consensus Estimates for the third quarter and full year
2012 are currently at $1.21 per share and $5.38 per share,
respectively. Noble Energy holds a Zacks #3 Rank, which translates
into a short-term Hold rating.
Based in Houston, Texas, Noble Energy is an independent exploration
and production (E&P) company, having high-grade hydrocarbon
assets across the U.S. and several international locations. Noble
Energy chiefly focuses on organic growth from exploration and
development drilling activities. This is further strengthened by
mergers and acquisitions.