Noble Midstream Partners Reduces Expected 2020 Capital by $75 Million
March 13 2020 - 7:39AM
Business Wire
~35% reduction in 2020 organic capital on
lower activity and sustainable capital efficiency gains
Noble Midstream Partners LP (NASDAQ: NBLX) (Noble
Midstream or the Partnership) announced that the Partnership has
reduced its 2020 organic capital guidance to a range of $120 to
$150 million to reflect updated producer forecasts in the DJ and
Delaware basins.
With increasing capital efficiency and a 2020 organic capital
program focused mainly on well connections, Noble Midstream
anticipates the additional capital savings will essentially offset
the cash flow loss from reduced activity. Noble Midstream will
continue to communicate with its customer base and is well
positioned to further adjust its capital program. Noble Midstream
will update detailed guidance for 2020 in association with its
first quarter conference call.
“Following recent volatility and announced changes to customer
activity plans, Noble Midstream has reduced its expected organic
capital spend. We are also nearing full service on several pipeline
investments, which are expected to contribute meaningfully to our
2020 EBITDA. Noble Midstream will prioritize free cash flow1 and
protect our balance sheet in the current market environment,”
stated Brent Smolik, Chief Executive Officer of the General Partner
of Noble Midstream.
About Noble Midstream
Noble Midstream is a growth-oriented master limited partnership
formed by Noble Energy to own, operate, develop and acquire
domestic midstream infrastructure assets. Noble Midstream currently
provides crude oil, natural gas, and water-related midstream
services in the DJ Basin in Colorado and the Delaware Basin in
Texas. For more information, please visit www.nblmidstream.com.
- Free Cash Flow is defined as adjusted Net EBITDA less
Maintenance, Growth Capital and Equity Investments.
Cautionary Statements
This news release contains certain “forward-looking statements”
within the meaning of federal securities law. Words such as
“anticipates”, “believes”, “expects”, “intends”, “will”, “should”,
“may”, “estimates”, and similar expressions may be used to identify
forward-looking statements. Forward-looking statements are not
statements of historical fact and reflect the Partnership’s current
views about future events. 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. For further discussion of risks
and uncertainties, you should refer to those described under “Risk
Factors” and “Forward-Looking Statements” in the Partnership’s most
recent Annual Report on Form 10-K and in other reports we file with
the Securities and Exchange Commission. These reports are also
available from the Partnership’s office or website,
www.nblmidstream.com. Forward-looking statements are based on the
estimates and opinions of management at the time the statements are
made. Noble Midstream does not assume any obligation to update
forward-looking statements should circumstances, management’s
estimates, or opinions change.
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version on businesswire.com: https://www.businesswire.com/news/home/20200313005189/en/
Park Carrere Investor Relations (281) 872-3208
park.carrere@nblmidstream.com
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