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Noble Energy to acquire Clayton Williams Energy

17th January 2017

The acquisition will increase Noble Energy’s core Delaware basin position to nearly 120,000 net acres and materially enhances oil growth outlook

Noble Energy and Clayton Williams Energy have announced that the boards of directors of both companies have unanimously approved and the companies have executed a definitive agreement under which Noble Energy will acquire all of the outstanding common stock of Clayton Williams Energy for USD2.7 billion in Noble Energy stock and cash.

"We have been very disciplined in assessing expansion opportunities in the Delaware Basin and are extremely pleased to have reached this agreement with Clayton Williams Energy,” David L Stover, Noble Energy's chairman, president and CEO, stated. “This transaction brings all the key elements we value: excellent rock quality, a large contiguous acreage position adjacent to our own, and robust midstream opportunities, reinforcing the Delaware Basin as a long-term value and growth driver for Noble Energy. 

“This combination creates the industry's second largest Southern Delaware Basin acreage position and provides more than 4,200 drilling locations on approximately 120,000 net acres, with over 2 billion barrels of oil equivalent in net unrisked resource.  In addition to the benefits driven by larger scale, the midstream assets and planned buildout provide significant synergies and substantial dropdown potential in association with our ownership in Noble Midstream Partners.

"We are rapidly accelerating activity in 2017, starting the year with four rigs operating in the Southern Delaware Basin – three on Noble Energy's acreage and one on the Clayton Williams Energy position.  A second rig is planned to be added to the new acreage in the second quarter, following closing of the transaction, and a third later in the year, to exit 2017 with a combined six rigs running in the Delaware Basin. Following our ramp of activity in 2017, the acquired assets are expected to be self-funding and accretive to Noble Energy's earnings and cash flow per share beginning next year.  This is an excellent fit for Noble Energy, and we expect the transaction to generate substantial shareholder value.  We look forward to a smooth and seamless integration of Clayton Williams Energy."

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