As part of the deal, Noble Energy will acquire 71,000 net acres in the core of the Southern Delaware Basin in Reeves and Ward counties in Texas, which are a part of the larger Permian Basin.
Noble Energy expects the combination to create the industry's second largest Southern Delaware Basin acreage position and provide more than 4,200 drilling locations on approximately 120,000 net acres.
Noble Energy chairman, president and CEO David Stover said: "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.
“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."
Planned to be closed in the second quarter of 2017, the deal is subject to customary regulatory approvals, approval by the holders of a majority of Clayton Williams Energy common stock, and certain other conditions.
Stover added: “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.”
In 2017, Noble Energy plans to invest $2.1bn-$2.5bn to boost its production output and increase the rigs count on the new acreage to three from one currently by the end of the year.
