Noble Midstream Partners Protects Financial Flexibility and Balance Sheet With Distribution Reduction
March 25 2020 - 4:16PM
Business Wire
Noble Midstream Partners LP (NASDAQ: NBLX) (Noble
Midstream or the Partnership) announced today that the Board of
Directors of the General Partner has approved a 73% reduction of
the quarterly distribution to $0.1875 per unit, which the
Partnership plans to hold flat in the current environment. This
change is effective immediately and is anticipated to preserve
approximately $200 million of annualized cash to support the
balance sheet.
In addition to the Partnership’s distribution policy revision,
Noble Midstream previously announced a $75 million capital
reduction for 2020. The Partnership has also identified at least
$15 million in operating cost savings and is pursuing additional
measures to further lower its cost structure and defer project
capital this year. With these plan adjustments and growing
equity-investment contributions, the Partnership is expected to
transition to self-funding in the second half of the year, reducing
overall net debt even in a low-to-no activity scenario.
“Noble Midstream continues to prioritize financial discipline
and is taking prudent steps to reduce leverage in this volatile
commodity and market environment. The new distribution amount,
along with the announced capital and cost reductions, is designed
to enhance the sustainability of the business and strengthen our
financial position and flexibility,” stated Brent Smolik, Chief
Executive Officer of the General Partner of Noble Midstream.
The Partnership continues to focus on its customer base and
maintaining safe and reliable operations and is working with its
customers to further align activity and volume expectations. Noble
Midstream plans to update its 2020 operational and financial
guidance with first-quarter 2020 results.
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.
Forward Looking Statements
This news release contains certain “forward-looking statements”
within the meaning of federal securities law. Words such as
“anticipates”, “believes”, “plans”, “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. These risks include, without
limitation, the Partnership’s targeted leverage and distribution
growth, its customers’ ability to meet their drilling and
development plans, changes in general economic conditions,
competitive conditions in the Partnership’s industry, actions taken
by third-party operators, gatherers, processors and transporters,
the demand for crude oil and natural gas gathering and processing
services, the Partnership’s ability to successfully implement its
business plan, the Partnership’s ability to complete internal
growth projects on time and on budget, the ability of third parties
to complete construction of pipelines in which the Partnership
holds equity interests on time and on budget, the price and
availability of debt and equity financing, the availability and
price of crude oil and natural gas to the consumer compared to the
price of alternative and competing fuels, and other risks inherent
in the Partnership’s business, including 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/20200325005741/en/
Park Carrere Investor Relations (281) 872-3208
park.carrere@nblmidstream.com
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