Noble Energy Sells Marcellus Midstream to Quantum Energy Partners for $765 Million
May 18 2017 - 7:45AM
Noble Energy, Inc. (NYSE:NBL) (“Noble Energy” or “the Company”)
today announced that it has signed a definitive agreement to divest
the holding company which owns a 50 percent interest in CONE
Gathering, LLC (“CONE Gathering”) and 21.7 million common and
subordinated limited partnership units to a portfolio company of
Quantum Energy Partners (“Quantum”) for total cash consideration of
$765 million. The limited partnership units represent a 33.5
percent ownership interest in CONE Midstream Partners LP
(NYSE:CNNX) (“CONE Midstream”). CONE Gathering owns the general
partner of CONE Midstream.
David L. Stover, Noble Energy’s Chairman,
President and CEO, commented “CNNX has performed exceptionally well
since its IPO in late 2014, exceeding forecasts despite a
challenging macro-economic backdrop. Including this transaction,
Noble Energy will realize more than $1 billion in total value from
our Marcellus midstream business, which represents approximately
three times our net invested capital. Going forward, our midstream
efforts are focused on Noble Midstream Partners, supporting our DJ
Basin and Delaware Basin growth areas.”
Dheeraj Verma, President of Quantum Energy
Partners, said “Quantum is excited to once again work with Noble
Energy on a substantial acquisition. This transaction follows the
recently announced sale of Noble Energy’s upstream Appalachia
assets to a separate portfolio company of Quantum. We have a
strong track record of sponsoring and growing both upstream and
midstream companies across the Appalachian Basin and we look
forward to partnering with CONSOL Energy Inc. in continuing the
success of CONE Midstream.”
Noble Energy’s cumulative 2017 divestiture
proceeds total approximately $2 billion, with the amount primarily
representing an exit of the Company’s Appalachia upstream and
midstream businesses. Proceeds announced year-to-date are being
utilized to cover the cash costs associated with the Clayton
Williams Energy acquisition, to further strengthen the balance
sheet through debt reduction, and to provide additional financial
capacity and flexibility to support the Company’s U.S. onshore oil
development.
Closing of the transaction is anticipated in the
third quarter this year, subject to customary closing conditions
and adjustments. BofA Merrill Lynch acted as the sole financial
advisor to Noble Energy on the CONE Midstream transaction and
Vinson & Elkins LLP served as legal counsel.
Noble Energy (NYSE:NBL) is an
independent oil and natural gas exploration and production company
with a diversified high-quality portfolio of both U.S.
unconventional and global offshore conventional assets spanning
three continents. Founded more than 80 years ago, the company is
committed to safely and responsibly delivering our purpose:
Energizing the World, Bettering People’s Lives®. For more
information, visit http://www.nblenergy.com.
Forward Looking StatementsThis
news release contains certain “forward-looking statements” within
the meaning of federal securities law. Words such as
“anticipates”, “believes”, “expects”, “intends”, “will”, “should”,
“may”, and similar expressions may be used to identify
forward-looking statements. Forward-looking statements are
not statements of historical fact and reflect Noble Energy’s
current views about future events. They may include estimates
of oil and natural gas reserves, estimates of future production,
assumptions regarding future oil and natural gas pricing, planned
drilling activity, future results of operations, projected cash
flow and liquidity, business strategy and other plans and
objectives for future operations. No assurances can be given
that the forward-looking statements contained in this news release
will occur as projected and actual results may differ materially
from those projected. Forward-looking statements are based on
current expectations, estimates and assumptions that involve a
number of risks and uncertainties that could cause actual results
to differ materially from those projected. These risks
include, without limitation, the volatility in commodity prices for
crude oil and natural gas, the presence or recoverability of
estimated reserves, the ability to replace reserves, environmental
risks, drilling and operating risks, exploration and development
risks, competition, government regulation, third-party litigation
or other actions, the ability of management to execute its plans to
meet its goals and other risks inherent in Noble Energy’s business
that are discussed in its most recent annual report on Form 10-K
and in other reports on file with the Securities and Exchange
Commission. These reports are also available from Noble Energy’s
offices or website, http://www.nblenergy.com. Forward-looking
statements are based on the estimates and opinions of management at
the time the statements are made. Noble Energy does not
assume any obligation to update forward-looking statements should
circumstances, management’s estimates, or opinions change.
Investor Contacts
Brad Whitmarsh
(281) 943-1670
brad.whitmarsh@nblenergy.com
Megan Repine
(832) 639-7380
megan.repine@nblenergy.com
Megan Dolezal
(281) 943-1861
megan.dolezal@nblenergy.com
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Deena McMullen
(281) 943-1732
media@nblenergy.com
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