Will 4Q16 Give Noble Energy’s Investors a Reason to Celebrate?



Noble Energy’s stock performance

Noble Energy’s (NBL) stock has been soaring since the news of its Clayton Williams (CWEI) acquisition. On January 17, 2017, the day after the announcement, NBL stock closed at a rise of 7.0% from its previous day’s close.

The deal will add 71,000 net acres to NBL’s existing acreage in the core of the Southern Delaware Basin, in the Permian Basin. Permian Basin deals have been frequent occurrences since late 2016. Read Inside the Permian Pie: Why E&P Players Are Snatching up Slices to know why.

In the two weeks since January 12, 2017, NBL has risen ~8.2%. Natural gas prices (UNG) have fallen ~0.12% during the same period.

NBL outperformed the broader energy sector, the Energy Select Sector SPDR ETF (XLE), as we can see in the graph above. It also outperformed the broader market ETF, or the S&P 500 SPDR ETF.

On a year-over-year basis, NBL has risen ~35%. Another natural gas stock that performed well in 2016 was Chesapeake Energy (CHK). You can read more in How Will Chesapeake Energy’s Stock Perform this Year?

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