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Recent Key Developments at Noble Energy: A Birth and a Split

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Dec. 5 2016, Updated 11:06 a.m. ET

Noble Energy announces IPO

Noble Energy (NBL) announced the initial public offering of Noble Midstream Partners (NBLX) in early September 2016. The IPO offered 12,500,000 common units priced between $19.00–$21.00 per common unit, along with an underwriters’ option to purchase an additional 1,875,000 common units. The stock was sold at $22.50 per share—above the expected range—for a total offering of $281 million.

The master limited partnership’s operating assets are focused in Colorado’s DJ Basin and consist of crude oil, natural gas, and water-related midstream assets, used for servicing its parent company, Noble Energy.

Other MLP players in the DJ Basin include DCP Midstream Partners (DPM) and Western Gas Partners (WES). These companies make up 5.5% of the Alerian MLP ETF (AMLP).

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Noble and Consol to separate from JV

Another of Noble Energy’s (NBL) key developments in 2016 was its joint venture (or JV) separation. On October 31, 2016, NBL announced that it would separate from its 50-50 joint venture in the Marcellus Shale with Consol Energy (CNX).

Noble Energy intends to conduct operations on its own in 363,000 Marcellus acres having a production of ~450 MMcfepd (million cubic feet equivalent per day). The majority of the acreage under Noble Energy is located in West Virginia.

The company’s press release noted that their respective operating areas will continue to ship products through CONE Midstream Partners LP (CNNX).

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