Mizuho Positive On Noble Eneergy (NBL) Acquistion Of Claytom Williams (CWEI)

Mizuho Securities maintains Buy on Noble Energy (NYSE: NBL), keeps price target of $44.00.

Analyst Tim Rezvan comments "We are supportive of the deal to address the perceived lack of scale in the Delaware Basin that has been an overhang on NBL shares. Monday's acquisition of Clayton Williams Energy for $3.2B likely puts the issue to bed. Noble is adding 2,400 core locations (71,000 net acres) around its current northeastern Reeves County position at a fair price ($1.08 mm/location, 36,500/acre). In our view, the acquisition: 1) provides enough scale for 20+ years of inventory at a ten-rig pace; 2) deepens the bench of dropdown candidates to Noble's midstream subsidiary; and 3) debunks the bear case on Delaware Basin inventory. We anticipate news on asset sales soon, given $500mm of net debt added."

For an analyst ratings summary and ratings history on Noble Energy click here. For more ratings news on Noble Energy click here.

Shares of Noble Energy closed at $37.39 Friday.

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