Publish date:

Noble to Buy Frontier Drilling for $2.16B

Offshore drilling contractor Noble agreed to buy drilling company Frontier Drilling for $2.16 billion in cash.
Author:


NEW YORK (TheStreet) -- Offshore drilling contractor Noble (NE) - Get Report has agreed to buy drilling company Frontier Drilling for $2.16 billion in an all-cash transaction.

The deal is expected to close by the end of July and be accretive to Noble's cash flow immediately and earnings beginning in 2011, the company said in a written statement. Noble said that the acquisition will result in six additional floating drilling units to Noble's fleet and add about $3.2 billion in gross contract backlog over about 23 rig years.

Separately, the company said it also has agreements with

Shell

(RDS.A)

TheStreet Recommends

to provide 10-year contracts for two deepwater drillships and a multi-year extension on a deepwater semisubmersible.

The Shell agreements add about $4 billion in contract backlog over more than 25 rig years, Noble said.

Shares of Noble finished Friday's trading session 2.9% higher at $29.28. In Monday morning trading, Noble stock is down 0.3%, to $62.67.

-- Reported by Andrea Tse in New York

Get more stock ideas and investing advice on our sister site,

Stockpickr.com.