NEW YORK (TheStreet) -- Noble Energy (NBL) shares are down 4.97% to $46.68 in pre-market trading on Monday after the oil and gas explorer and producer today purchased Houston-based oil company Rosetta Resources (ROSE) for $2.1 billion.
The company agreed to purchase Rosetta for $26.62 per share, a 38% premium over Rosetta's closing price on Friday, with the deal expected to close in the third quarter of this year.
Two of the plays that Noble specifically mentioned in its bid announcement are the 50,000 acre Eagle Ford and 56,000 acre Permian Basin which were responsible for producing 66,000 barrels of crude per day in the first quarter.
"The Eagle Ford and the Permian are premier unconventional resource plays, two of the most economic in the U.S. The transaction will be immediately accretive to our per share production, reserves, earnings, and cash flow," said Noble CEO Dave Stover.
Rosetta shares are up 30.42% in pre-market trading today.
TheStreet Ratings team rates NOBLE ENERGY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NOBLE ENERGY INC (NBL) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow."