NEW YORK (TheStreet) -- Rosetta Resources (ROSE) shares are up 28.6% to $24.86 in early market trading on Monday after the Houston-based oil and gas producer was bought by rival Noble Energy (NBL) for $2.1 billion today.
Noble paid $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. The deal still needs to be approved by Rosetta's shareholders.
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.
Noble shares are down 7.39% to $45.49 in morning trading today.
TheStreet has further coverage of the deal here.
TheStreet Ratings team rates ROSETTA RESOURCES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROSETTA RESOURCES INC (ROSE) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."