Noble Energy (NBL) Stock May Fall Today After Jordan Ends Talks on Deal for Israeli Gas

[05-01-2015 03:21 PM]

Ammon News - AMMONNEWS - Noble Energy (NBL) had talks suspended by Jordan to import natural gas from Israel from the Houston-based company, and the kingdom will instead sign an agreement with BG Group to buy Gaza Strip gas, according to Bloomberg.

The kingdom halted negotiations "recently" after Israeli authorities said they may move to prevent a regional "monopoly" for Noble, according to Jamal Qammouh, head of Jordan's Lower House energy committee. Israel's antitrust regulator is reconsidering a decision to let a group led by Noble develop the country's two biggest natural gas fields. Inbar Dovev, a spokeswoman for the company, declined to comment to Bloomberg.

"We were informed that there are differences between Israel and Noble Energy and we cannot proceed with talks until we know which side will develop the gas field in Israel," Qammouh said in a phone interview from Amman, Bloomberg reports.

Partners in Israel's Leviathan field, including Noble, and units of Delek Group and Ratio Oil Exploration 1992 LP signed a preliminary deal September 3 to sell gas to Jordan's National Electric Power Co. over 15 years. Noble had signed a $771 million agreement in February to supply gas to Jordan-based Arab Potash Co. starting 2016. Leviathan and neighboring, Bloomberg said.

Tamar in the Mediterranean Sea are among the biggest natural gas finds in recent years and have provided Israel with enough fuel for decades of energy self-sufficiency and export. Together, they hold an estimated 29 trillion cubic feet,

Shares of Noble Energy closed down 1.16% to $46.88 on Friday.

TheStreet Ratings team rates NOBLE ENERGY INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NOBLE ENERGY INC (NBL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."

*The Street

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