Why Noble Energy Stock Rocketed 10% at the Open on July 20

Shares of oil and gas driller Noble Energy (NASDAQ: NBL) jumped 10% right out of the gate on July 20. That's not at all shocking given that integrated energy giant Chevron (NYSE: CVX) agreed to buy the company. Here are the details.

In an all-stock deal, oil giant Chevron will pay $5 billion for Noble Energy. That works out to $10.38 per share, a roughly 7.5% premium over where the stock closed on July 17, the last trading day before the deal was announced. Noble Energy shareholders will receive 0.1191 shares of Chevron for each Noble Energy share they own.   

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Source Fool.com