The Rising Influence of Rising Affluence

[DewDiligence]

NBL acquires CWEI for ~$139/sh in cash and stock—a 34% premium to Friday’s closing price:

http://finance.yahoo.com/news/noble-energy-acquire-clayton-williams-200000579.html

Clayton Williams Energy shareholders will receive 2.7874 shares of Noble Energy common stock and $34.75 in cash for each share of common stock held. In the aggregate, this totals 55 million shares of Noble Energy stock and $665 million in cash.

While the aggregate amount of cash and stock in the transaction will not change, on an individual basis shareholders will be able to elect to receive cash or stock, subject to proration. The value of the transaction, based on Noble Energy’s closing stock price as of January 13, 2017, is approximately $139 per Clayton Williams Energy share, or $3.2 billion in the aggregate, including the assumption of approximately $500 million in net debt.

Low oil prices (relative to pre-2014-crash) have made the Permian Basin hotter than ever.