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Volatility Is the Word of the Year for Noble Energy’s Stock

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Noble Energy’s stock performance

Noble Energy’s (NBL) stock has been volatile for most of 2016. Year-over-year, its stock has fallen ~5%. Natural gas prices (UNG) have risen ~34% in the same period. 

Meanwhile, the broader energy ETF, the Energy Select Sector SPDR ETF (XLE), has risen 0.33% in the same period.

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Noble executes gas sales contract with NEPCO

On September 26, 2016, NBL announced that it had executed a gas sales and purchase agreement (or GSPA) with the National Electric Power Company (NEPCO). Under the GSPA, NBL and its partners in the Leviathan field would supply ~1.6 Tcf (trillion cubic feet), or 300 MMcfepd (million cubic feet per day), of natural gas from the Leviathan field over a 15-year term.

NBL holds 39.7% working interest in the Leviathan field.

Noble’s asset sales

On July 5, 2016, NBL announced that it had agreed to sell 3% working interest in the Tamar field in offshore Israel. After-tax proceeds are expected to be $275 million. The transaction is expected to close in 3Q16.

NBL’s 2Q16 earnings presentation noted that its year-to-date asset sales totaled ~$1 billion

NBL’s acreage exchange

On June 16, Noble Energy announced that it had agreed to exchange certain acreage in the greater Wattenberg area of northern Colorado with PDC Energy (PDCE).

Noble Energy will receive 12,000 net acres in the Wells Ranch development area in exchange for 14,000 net acres in its Bronco area, located southwest of Wells Ranch. The transaction is expected to close in early 4Q16.

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