NEW YORK (TheStreet) -- Shares of Rosetta Resources Inc. (ROSE) are climbing higher by 0.08% to $24.60 in late morning trading Tuesday, despite the company getting downgraded to "sector weight" from "overweight" by analysts at KeyBanc earlier today.
The firm also removed its $28 price target on shares of the oil and gas producer.
Noble paid $26.62 per share, which represents a 38% premium on Rosetta's closing price from Friday. The deal is expected to close in the third quarter of this year.
Houston-based Rosetta Resources is an independent exploration and production company engaged in the acquisition and development of onshore energy resources in the U.S.
Insight from TheStreet's Research Team:
Jim Cramer commented on Rosetta Resources in a recent post on RealMoney.com. Here is a snippet of what Cramer had to say about the stock:
Rosetta is a game changer. I have been waiting for real consolidation among the shale drillers, and here we go, with Noble (NBL) buying Rosetta Resources (ROSE) for a couple of billion and a beautiful $6 premium to where the stock stood Friday.
This deal involves Noble getting prime acreage in three key areas -- the Delaware Basin, the Permian and Eagle Ford. Ironically, these holdings are very close to where Pioneer(PXD) and EOG (EOG) have acreage. It's ironic because they were the companies targeted by hedge fund manager David Einhorn as shorts -- the Mother Fracker and the Father Fracker, respectively.