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Noble Energy sells Cone Gathering
Posted on Thursday, 18 May 2017 13:46
Noble Energy is selling its entire 50.0 per cent interest in Cone Gathering to Quantum Energy Partners in an all-cash deal worth USD 765.00 million aimed at paying down debt to bolster its balance sheet to support US onshore oil development.
The Texan hydrocarbon company and Consol Energy each have joint ownership of the venture formed in September 2011 to construct, own and operate all of their Marcellus Shale midstream infrastructure.
Cone owns the general partner controlling interest in Cone Midstream Partners, established in May 2014 to manage and acquire natural gas gathering and other midstream assets to serve their own activities in the formation in Pennsylvania and West Virginia.
Today’s announced sale comprises the divestment of the holding company through which Noble Energy owns its 50.0 per cent in the joint venture.
As it stands, terms of the deal also include the transfer of 21.70 million common and subordinated limited partnership units representing a 33.5 per cent ownership in interest in Cone Midstream, which listed in September 2014.
President David Stover, noted: “Noble Energy will realise more than USD 1.00 billion in total value from our Marcellus midstream business, which represents approximately three times our net invested capital.”
The company has raised an aggregate USD 2.00 billion so far this year through divestments, most of which represents an exit from its Appalachia upstream and midstream operations.
Proceeds are covering the cash costs associated with the USD 3.20 billion acquisition of Clayton Williams Energy in April, which included the assumption of about USD 500.00 million in net debt.
Money raised from divestments are also being used to strengthen the balance sheet by paying down obligations and providing additional financial capacity and flexibility to support the company’s US onshore oil development.
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