Houston-based Noble Energy closed Monday on its previously announced $2.1 billion acquisition of Rosetta Resources.
Noble Energy said the stockholders of Rosetta Resources “overwhelmingly approved” the merger of Rosetta into a subsidiary of Noble Energy.
The transaction closed following the shareholders meeting and the merger was effective as of July 20.
Rosetta stockholders will receive 0.542 shares of Noble Energy common stock for each of their shares, with cash in lieu of fractional shares.
Noble Energy will issue about 41 million shares of common stock in the transaction and also assumed Rosetta’s outstanding debt.
When the deal was announced in May, Noble placed the size of Rosetta’s net debt at $1.8 billion.
In conjunction with the closing, Rosetta will become a wholly owned subsidiary of Noble Energy and its CEO, chairman and president James E. Craddock, will join the Noble Energy board of directors.
As part of the deal, Noble will acquire 50,000 net acres in the Eagle Ford shale play and 56,000 net acres in the Permian Basin, with 46,000 net acres located in the Delaware Basin and 10,000 net acres in the Midland Basin.
Noble said it is also acquiring year-end 2014 proved reserves of 282 million barrels of oil equivalent and about 63,000 barrels of oil equivalent per day in average current production as of the second quarter of 2015.
The deal also includes more than 1,800 gross horizontal drilling locations identified for development, with net unrisked resource potential of about one billion barrels of oil equivalent.
“Today’s closing of the Rosetta acquisition represents another milestone for Noble Energy. The addition of Rosetta’s Eagle Ford Shale and Permian positions expands our onshore buisimess with high-quality acreage in two premier unconventional basins, increasing our development inventory and further diversifying our portfolio,” Noble Energy CEO, chairman and president Dave Stover said.
Noble Energy anticipates more than 15 percent annual production growth to an average of more than 100,000 barrels of oil equivalent per day in 2018.