Noble Energy is selling its upstream assets in West Virginia and Pennsylvania to an undisclosed buyer for US$1.225 billion. This includes US$100 million contingent upon annual Dominion South prices averaging above US$3.30 per million BTU from 2018 through 2020. The assets currently target the Marcellus Shale. Noble's acreage lies primarily in the Rich Gas Core and West Virginia Wet and Dry sub-plays in southwestern Pennsylvania and northern West Virginia. In October 2016, Noble dissolved its 50-50 Marcellus joint venture with CONSOL, and we suggested at the time that Noble may sell down or sell out. Our valuation assumes 120-acre spacing in the Rich Gas Core and West Virginia Dry sub plays and 140-acre spacing in West Virginia Rich. In total, we model roughly 1,000 remaining net locations. We see this deal at positive for both Noble and the undisclosed buyer.