Noble Energy shares close higher on Friday, company to acquire Clayton Williams Energy in a deal valued at $2.7 billion

According to a January 16th statement, Noble Energy Inc is to acquire rival company Clayton Williams Energy Inc in a cash-and-stock deal valued at $2.7 billion in order to expand its operations in the Permian Basin. The deal, which is to be closed in Q2 2017, encompasses 71 000 net acres in the core of the Southern Delaware Basin in Reeves and Ward counties in Texas.

Noble Energy shares closed higher on Friday, while also marking a second gain in the past eight trading sessions. The stock went up 0.56% ($0.21) to $37.39, after touching a daily low of $36.80, or a level not seen since November 30th 2016 ($35.98). In the week ended on January 15th the shares of the oil producer lost 1.97% of their market value compared to a week ago, which marked a third drop in the past eight weeks. However, the stock has pared its loss to 1.76% so far during the current month, following a 0.26% retreat in December. For the entire 2016, Noble Energy shares gained 15.58%.

The agreement postulates that shareholders at Clayton Williams Energy Inc will obtain 2.7874 shares of Noble Energy common stock and the additional $34.75 in cash for every share of common stock they hold.

Taking into account the closing price of Noble Energy Inc on January 13th, the transaction is valued at about $139 per Clayton Williams Energy share, or at a total of $3.2 billion, if assuming the additional $500 million in net debt, according to the statement.

The cash portion of the deal is to be funded through a draw on Noble Energys revolving credit facility, standing at $4 billion as of the end of last year.

Noble Energys 2017 total capital budget is currently evaluated at $2.1 billion-$2.5 billion, while the companys sales volumes are projected to be within the range between 410 000 and 420 000 barrels of oil equivalent per day.

According to the Texas-based company, the number of rigs on the new acreage is to increase to 3 by the end of 2017 from 1 at present.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Noble Energy stock are presented as follows:

R1 – $37.46
R2 – $37.53
R3 (Range Resistance – Sell) – $37.60
R4 (Long Breakout) – $37.81
R5 (Breakout Target 1) – $38.06
R6 (Breakout Target 2) – $38.17

S1 – $37.32
S2 – $37.25
S3 (Range Support – Buy) – $37.18
S4 (Short Breakout) – $36.97
S5 (Breakout Target 1) – $36.72
S6 (Breakout Target 2) – $36.61

By using the traditional method of calculation, the weekly levels of importance for Noble Energy Inc (NBL) are presented as follows:

Central Pivot Point – $37.36
R1 – $37.92
R2 – $38.45
R3 – $39.01
R4 – $39.57

S1 – $36.83
S2 – $36.27
S3 – $35.74
S4 – $35.21