Noble Energy’s shares on the Nasdaq rose 5.4 on Monday, bringing its downing in 12 months to 51% and its market capitalization to $4.9 billion. Chevron’s shares in New York fell 2.2% on the Monday after the news, bringing his 12-month drop to 29% and its market capitalization to $159 billion.
Leviathan’s offshore herbal fuel box, Noble’s largest discovery to date, began production in December 2019. Noble holds a 39.66% stake in the cash box and is a spouse on the site with Ratio Oil Exploration (1992) LP, which owns 15%. Delek Drilling LP, with a 45.43% share.
Noble also owns a 25% stake in the closure of the Tamar box, which began generating fuel in 2013 and provided fuel to Israel. Tamar contains approximately 10 trillion cubic feet (tcf) of herbal fuel, part of the amount of Leviathan. Noble also has an interest in the much smaller box of the Dalits, also on the coast of Israel.
This acquisition is smart news for Israel, Shaffer said. “Noble Energy has done a wonderful task here and Israel is grateful to have been there when no one else is in a position to come and explore.”
The Texas-based explorer “also made a lot of cash with his Israeli assets,” Shaffer said. “Having a company at the Chevron level will do even more technologically and environmentally, expanding the quality of its operations.
Israeli environmentalists have complained about the number of disruptions to Leviathan’s processing platform in the months following the start of its operations and the location of the platform. Consumer teams also protest that long-term contracts signed to obtain fuel for Israeli consumers are significantly higher than the United States.
Shaffer said it is not yet clear whether Chevron planned to retain Israeli assets or sell them, based on purely advertising factors, he said.
“We still don’t know what component noble literally wants,” she says. “There may be a scenario when they close the deal and sell some of the assets. We don’t know if they’re going to take all of Noble’s assets under his belt, and it’s unclear how long Chevron plans to keep Israeli assets. “.
On monday, Chevron lobbied the importance of Noble Energy’s Israeli assets.
“Noble Energy brings low-capital offshore assets and money turbines to Israel, strengthening Chevron’s position in the eastern Mediterranean,” Chevron said. Noble’s large-scale production position in the eastern Mediterranean “should generate returns and cash flows with low capital requirements.”
“This indicates that they are attracted to them, but in the end they can actually sell them, basically for advertising reasons, not for reasons similar to those of Israel,” Shaffer said. “Companies sell assets even if they succeed and are good, but other assets may be more successful. It is not enough for something to be good; will have to be greater than the alternative. And there is the challenge of not being too geographically dispersed and having the right administrative infrastructure. »
Finding a client for Israeli assets might not be so difficult, he said. “These are very successful assets. Israel is a reliable, solid and well-paid market,” and there is an order from Jordan and the Palestinian Authority. “For a company with a long-term perspective, it’s a very successful market.”
Shaffer rejected the no-view that America’s political maneuver was the agreement.
“That’s not how it works with American companies. There is no coordination with the United States government and it does not establish its investments according to the personal tastes of the United States government. This is by no means similar to anything political in terms of American policy.” They work absolutely independently “.
Meanwhile, inventories of Noble Energy partners in Leviathan and Tamar increased for a moment on Tuesday after the deal was announced. Delek Drilling’s inventory increased by 30% on Tuesday, after emerging 23% on Monday. The proportion increased by 26 percent, after jumping 25 percent on Monday. Tamar Petroleum and Isramco Negev LP, which have shares in Tamar, rose 7.4% and 6.4% respectively on Tuesday, after emerging 6% and 5% on Monday.
Ella Fried, an analyst at Bank Leumi Le-Israel, told investors in a note that she believes Chevron’s chances of promoting its Israeli assets are high, but that a client may not be as easy to find.
There is “a certain chance” that in the event of a successful acquisition, Chevron will stay with Noble’s operations in Israel, “but chances are that operations will be sold,” she wrote. “In such a case, it will be very difficult to find a suitable replacement in terms of capabilities and of resilience to stand up to complex geopolitical situations.”