Noble Energy Announces Tamar Sell-Down
January 29 2018 - 4:30PM
Noble Energy, Inc. (NYSE: NBL) (“Noble
Energy” or “the Company”) today announced that it has signed a
definitive agreement to divest a 7.5 percent working interest in
the Tamar field, offshore Israel, to Tamar Petroleum Ltd. (TASE:
TMRP) (“Tamar Petroleum”) for cash proceeds of
approximately $560 million and 38.5 million shares of Tamar
Petroleum. Based upon today's closing price of Tamar
Petroleum, total consideration of this transaction is approximately
$800 million. This follows an initial divestment of 3.5
percent of the Tamar field in mid-2016. Combined proceeds
from both transactions total nearly $1.25 billion, including almost
$1 billion in cash.
David L. Stover, Noble Energy’s Chairman,
President and CEO, commented, “This transaction supports our
commitment to sell down our Tamar interest in accordance with the
government of Israel’s Natural Gas Regulatory Framework. It
highlights the strong value of our world-class Levant Basin assets,
while providing additional upside exposure from our equity interest
in Tamar Petroleum. These assets are some of the world’s most
attractive energy investment opportunities, with margins
competitive to the best U.S. onshore oil plays and a stable,
long-term cash flow profile. Our team is doing an excellent
job operating Tamar reliably at capacity while developing Leviathan
which is on track to deliver first gas sales by the end of
2019.”
The effective date of the transaction is January
1, 2018. Closing of the transaction is expected by the end of the
first quarter of 2018, subject to Tamar Petroleum’s debt financing
and customary approvals, terms and conditions.
Cash proceeds from the transaction will be
utilized to support the capital investment in the Company’s
Leviathan development. Noble Energy expects to incur capital
gains tax of approximately 23 percent, paid upon the receipt of
cash consideration at closing and as shares are divested. The
Company intends to divest shares held in Tamar Petroleum over the
next several years. As a shareholder of Tamar Petroleum,
Noble Energy anticipates receiving dividend income.
Noble Energy operates the Tamar field with a
32.5 percent working interest. Following closing of the
transaction, the Company will retain a 25 percent working interest
and will remain the operator. The divested working interest
represents approximately 62 million cubic feet equivalent per
day of 2017 production and proved reserves of approximately 500
billion cubic feet equivalent as of year-end 2017.
Noble Energy (NYSE: NBL) is an
independent oil and natural gas exploration and production company
with a diversified high-quality portfolio of both U.S.
unconventional and global offshore conventional assets.
Founded more than 85 years ago, the company is committed to safely
and responsibly delivering our purpose: Energizing the World,
Bettering People’s Lives®. For more information, visit
http://www.nblenergy.com.
Tamar Petroleum (TASE: TMRP) is a
publicly traded yield company founded in July 2017 that held a 9.25
percent working interest in the Tamar field prior to the announced
transaction. Pro forma for this transaction, Tamar Petroleum will
hold a 16.75 percent working interest in the Tamar field.
Forward Looking Statements
This news release contains certain
"forward-looking statements" within the meaning of federal
securities laws. Words such as "anticipates", "believes",
"expects", "intends", "will", "should", "may", and similar
expressions may be used to identify forward-looking statements.
Forward-looking statements are not statements of historical fact
and reflect Noble Energy's current views about future events. Such
forward-looking statements may include, but are not limited to,
future financial and operating results, and other statements that
are not historical facts, including estimates of oil and natural
gas reserves and resources, estimates of future production,
assumptions regarding future oil and natural gas pricing, planned
drilling activity, future results of operations, projected cash
flow and liquidity, business strategy and other plans and
objectives for future operations. No assurances can be given
that the forward-looking statements contained in this news release
will occur as projected and actual results may differ materially
from those projected. Forward-looking statements are based on
current expectations, estimates and assumptions that involve a
number of risks and uncertainties that could cause actual results
to differ materially from those projected. These risks and
uncertainties include, without limitation, the volatility in
commodity prices for crude oil and natural gas, the presence or
recoverability of estimated reserves, the ability to replace
reserves, environmental risks, drilling and operating risks,
exploration and development risks, competition, government
regulation or other actions, the ability of management to execute
its plans to meet its goals and other risks inherent in Noble
Energy's businesses that are discussed in Noble Energy's most
recent annual reports on Form 10-K, respectively, and in other
Noble Energy reports on file with the Securities and Exchange
Commission (the "SEC"). These reports are also available from the
sources described above. Forward-looking statements are based on
the estimates and opinions of management at the time the statements
are made. Noble Energy does not assume any obligation to update any
forward-looking statements should circumstances or management’s
estimates or opinions change.
Investor Contacts
Brad Whitmarsh
(281) 943-1670
Brad.Whitmarsh@nblenergy.com
Megan Dolezal
(281) 943-1861
Megan.Dolezal@nblenergy.com
Lauren Brown
(281) 872-3208
Lauren.Brown@nblenergy.com
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Paula Beasley
(281) 876-6133
media@nblenergy.com
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