Houston-based independent exploration and production company, Noble Energy Inc., has agreed to acquire Denver-based Patina Oil & Gas Corp. for $2.76 billion in cash and stock. The deal, which is scheduled to be completed by April, is expected to raise Noble’s reserves and production by more than 50%.
Noble will pay approximately $1.1 billion in cash and 27 million of its shares, and assume some of Patina’s debt. Based on Noble’s closing share price of yesterday, the deal values Patina at about $37.89 a share, which is about a 20% premium over its closing price of yesterday.
Noble is acquiring Patina to add to its inventory of development opportunities. Patina’s assets are located primarily in the Rocky Mountain and mid-continent regions of the U.S., which are regions in which Noble already has substantial operations.
Noble’s Charles D. Davidson will remain chairman, president and chief executive of the merged company. Thomas J. Edelman, Patina’s chairman and CEO, will take a seat on Noble’s board along with one other director from Patina’s board. Mr. Edelman will also serve in a special advisory capacity to facilitate the integration of the two companies.