Rosetta Resources, Inc. (ROSE) Stock Higher on Noble Energy (NBL) Deal

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Rosetta Resources Inc. (NASDAQ:ROSE) stock is up on news that it will by acquired by Noble Energy, Inc. (NYSE:NBL).

rosetta-resources-inc-noble-energy-nbl-roseThe deal will have Rosetta Resources being acquired by Noble Energy for $2.1 billion. It’s being treated as a merger and all of the company’s stock will be bought by Noble. ROSE shareholders will receive 0.542 NBL shares for each ROSE share they own. Noble will also take over Rosetta’s $1.8 billion of debt, reports The Wall Street Journal.

The deal between Rosetta and Noble will have the latter gaining access to roughly 100,000 acres of shale basins in Texas. This includes locations in Eagle Ford and Permian, which are two of the basins with the best production in the area. NBL CEO Dave Stover said this expansion was a good opportunity for the company, WSJ notes.

Oppenheimer & Co analyst Fadel Gheit says that there will be more acquisitions and mergers on the way for oil companies. He says that all the companies are “looking for the big deal,” reports Bloomberg.

ROSE shares were up 26% and NBL shares were down 5% as of Noon Monday.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/05/rosetta-resources-inc-noble-energy-nbl-rose/.

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