Noble Energy Inc. (NYSE: NBL) has struck a deal for a bolt-on Delaware Basin acquisition, which increases its core acreage by about 18% and adds another 150 well locations in Reeves County, Texas.

In a deal with an undisclosed seller, Noble added 7,200 net acres to its Reeves County holdings and net production of 2,400 barrels of oil equivalent per day (boe/d). Noble disclosed the transaction on Nov. 30.

Noble paid $30,000 per undeveloped acre, which analysts said suggested a price between $300 million and $350 million, though the company did not specify the amount it paid. The transaction was funded with cash on hand.

The “small but meaningful” deal adds contiguous acreage that will enable longer lateral wells, said Scott Hanold, an analyst at RBC Capital Markets LLC.

“The new acreage increases lateral lengths and working interest in 325 locations,” Hanold said. “Noble continues to look at enhancing its position through acreage trades and other bolt-on purchases.”

Noble describes the Delaware in presentations as the long-term growth engine for its U.S. onshore portfolio. However, some investors were apparently concerned about the size of the portfolio.

“Two of the main concerns from investors and the Street had been the cautious pace of development and relatively light inventory in the Permian,” David Tameron, a senior analyst at Wells Fargo, said in a Dec. 5 report. “The recent announcement of a third rig in Reeves County has begun to address the issue of pace of development, and these transactions help to bolster inventory in the basin.”

Noble appears well positioned to grow its Delaware asset to a more meaningful percentage of total company production in 2017 and beyond, Tameron said.

Capital One Securities estimated the properties generate about 26 million of annual EBITDA based on current production and a price deck of $$50/bbl of and $3 per million cubic feet of gas.

At a $350 million asking price, the deal represents about 1% of the company’s enterprise value and boosts the company’s production by about 1%.

“No surprise that a deal like this would be dilutive, but the dilution is very minor given the small size of the deal,” Capital One said in a Dec. 2 report. “The trade-off is a more robust inventory in Reeves County and the ability to drill longer laterals on about 20% of NBL’s existing footprint.”

Noble continues to capitalize off of its July 2015 merger with Rosetta Resources, which was then valued at $3.9 billion.

Since the merger, the company’s combined Texas Volumes are expected to average between 165 Mboe/d and 195 Mboe/d — an increase of 80% to 120% compared to the 2015 estimates.

Noble’s early entry into Delaware also enhanced its acreage value there by up to $1.8 billion, Noble said.

Darren Barbee can be reached at dbarbee@hartenergy.com.