Noble Energy completes acquisition of Clayton Williams Energy

Oil and natural gas exploration and production company Noble Energy has closed the acquisition of Clayton Williams Energy, which has now become its wholly owned subsidiary.

The acquisition received approval of the shareholders of Clayton Williams.

In January, Noble Energy signed a definitive agreement to acquire all of the outstanding common stock of Clayton Williams Energy for $2.7bn in a stock-and-cash transaction.

The portfolio of acquired assets includes 71,000 contiguous net acres in the core of the Southern Delaware Basin, an additional 100,000 net acres in other areas of the Permian Basin, more than 300 miles of oil, natural gas, and produced water gathering pipelines.

The production aggregate of these assets is about 10,000 barrels of oil equivalent per day.

Noble Energy chairman, president and CEO David L Stover said: “We are pleased to close the transaction and appreciate the strong support of the stockholders of Clayton Williams Energy.

“Our plan to rapidly increase development of these highly prolific Delaware Basin assets will be a major contributor to Noble Energy’s leading US onshore oil volume growth of nearly 30% annually through to 2020.

“The scale and quality of these assets, combined with Noble Energy’s strong financial capacity and exceptional technical expertise, will drive significant cash flow growth and value creation for all our investors.”

This acquisition expands Noble Energy’s scale in the Delaware basin to 118,000 net acres, doubles net unrisked resources in the Delaware Basin to two billion barrels of oil equivalent, and augments oil and cash flow growth of the company.