Marcellus Minutes is a subscription-based newsletter sent to all subscribers registered through the Marcellus Minutes website that contains information on legislation including bill tracking, committee hearings and news from the Capitol in Harrisburg. Access to the website is free and provided to those directly involved and those with an interest in Pennsylvania’s oil and gas industry.

Oil News: First Billion Dollar Shale Deal Since Oil Prices Plunged

We all knew this was coming. At some point someone was going to lead the charge and acquire an overlevered U.S. shale producer. That someone came from a rather unlikely source as Noble Energy, (NYSE: NBL) is leading the charge as it has agreed to take outRosetta Resources (NASDAQ: ROSE) in a $2.1 billion deal, including the assumption of $1.8 billion in debt. Noble Energy is offering a very generous 28% premium — as it the deal is clocking in at an Enterprise Value-to-Proved Reserves of about $13.65 per barrel of oil equivalent for Rosetta’s reserves — in order to gain a foothold in two key Texas shale plays. Given the price that foothold is clearly the key to this deal, which now provides a baseline for future shale deals.

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