Noble Energy Signs Agreement to Divest Non-Core DJ Basin Acreage
09 November 2017 - 8:01AM
Noble Energy, Inc. (NYSE:
NBL) (“Noble Energy” or “the
Company”) today announced that it has signed a definitive agreement
with SRC Energy Inc. to divest approximately 30,200 net acres from
the Company’s non-core DJ Basin position in Weld County,
Colorado. Included with the acreage sold is approximately
4,100 barrels of oil equivalent per day (Boe/d). The total
value of the transaction is $608 million. The transaction,
effective as of November 1, 2017, is anticipated to close on two
separate dates, with acreage and non-operated production included
in the initial closing by the end of 2017, followed by a second
closing for operated producing properties by mid-2018. The
closings are subject to customary terms and conditions, with the
initial closing representing over 90 percent of the total
transaction value.
Gary W. Willingham, Noble Energy’s Executive
Vice President, Operations, commented, “This sale of acreage in our
Greely Crescent and Bronco development areas represents an
acceleration of value as it was not likely to be developed by us
for a number of years. Our DJ Basin activities, both now and
for several years to come, will remain focused on the northern and
eastern parts of the basin. This is where we have a deep
inventory of long lateral drilling opportunities in an oilier part
of the basin and where our infrastructure provides a competitive
advantage. Proceeds from this transaction continue to
highlight a strong market valuation for our DJ Basin position and
will be prioritized to further strengthen our investment-grade
balance sheet.”
Approximately 50 percent of the acreage is
located in the Company’s Greely Crescent area and the remainder is
in the Bronco area. A map related to the transaction can be
found on the ‘News Releases’ page under ‘Investors’ on the
Company’s website at www.nblenergy.com.
Noble Midstream Partners LP (NYSE: NBLX)
maintains the acreage dedication for in-basin oil gathering,
produced water gathering and fresh water delivery.
Non-operated production associated with the
transaction totals approximately 2,500 Boe/d. Operated production,
assumed at the time of the second closing, is estimated to be 1,600
Boe/d. The commodity mix of the production divested is 20
percent oil, 30 percent natural gas liquids, and 50 percent natural
gas. The acreage and production divested represent
approximately eight percent and four percent, respectively, of the
Company’s totals in the DJ Basin. Post transaction close,
Noble Energy’s DJ Basin position will be approximately 335,000 net
acres.
Tudor, Pickering, Holt & Co. acted as the
lead financial advisor, and Bracewell LLP acted as outside legal
advisor to Noble Energy on the transaction.
Noble Energy (NYSE: NBL) is an independent oil and
natural gas exploration and production company with a diversified
high-quality portfolio of both U.S. unconventional and global
offshore conventional assets spanning three continents.
Founded 85 years ago, the company is committed to safely and
responsibly delivering our purpose: Energizing the World, Bettering
People’s Lives®. For more information, visit
http://www.nblenergy.com.
This news release contains certain "forward-looking statements"
within the meaning of federal securities laws. Words such as
"anticipates", "believes", "expects", "intends", "will", "should",
"may", and similar expressions may be used to identify
forward-looking statements. Forward-looking statements are not
statements of historical fact and reflect Noble Energy's current
views about future events. Such forward-looking statements may
include, but are not limited to, future financial and operating
results, and other statements that are not historical facts,
including estimates of oil and natural gas reserves and resources,
estimates of future production, assumptions regarding future oil
and natural gas pricing, planned drilling activity, future results
of operations, projected cash flow and liquidity, business strategy
and other plans and objectives for future operations. No
assurances can be given that the forward-looking statements
contained in this news release will occur as projected and actual
results may differ materially from those projected. Forward-looking
statements are based on current expectations, estimates and
assumptions that involve a number of risks and uncertainties that
could cause actual results to differ materially from those
projected. These risks and uncertainties include, without
limitation, the volatility in commodity prices for crude oil and
natural gas, the presence or recoverability of estimated reserves,
the ability to replace reserves, environmental risks, drilling and
operating risks, exploration and development risks, competition,
government regulation or other actions, the ability of management
to execute its plans to meet its goals and other risks inherent in
Noble Energy's businesses that are discussed in Noble Energy's most
recent annual reports on Form 10-K, respectively, and in other
Noble Energy reports on file with the Securities and Exchange
Commission (the "SEC"). These reports are also available from the
sources described above. Forward-looking statements are based on
the estimates and opinions of management at the time the statements
are made. Noble Energy does not assume any obligation to update any
forward-looking statements should circumstances or management’s
estimates or opinions change.
Investor Contacts
Brad Whitmarsh
(281) 943-1670
Brad.Whitmarsh@nblenergy.com
Megan Dolezal
(281) 943-1861
Megan.Dolezal@nblenergy.com
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Paula Beasley
(281) 876-6133
media@nblenergy.com
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