CONE Midstream Partners (CNNX) Comments on CONSOL Energy, Noble Energy Marcellus Shale Joint Venture Separation
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CONSOL Energy Inc. (NYSE: CNX) and Noble Energy, Inc. (NYSE: NBL), whom we refer to as our Sponsors, jointly announced that the two companies have entered into a definitive agreement to separate their upstream Joint Venture. According to that announcement, the Exchange Agreement between by our Sponsors will split the Joint Venture that was formed in 2011 for the exploration, development, and operation of their Marcellus Shale properties in Pennsylvania and West Virginia.
As indicated in the Sponsors’ announcement, while the Exchange Agreement creates independent ownership interests in the Marcellus Formation acreage and production currently gathered by CONE Midstream Partners, LP (NYSE: CNNX) (“CONE”), it does not change the total acreage dedicated by CONSOL and Noble to CONE, the gathering rates, or other fundamental terms for the services provided by CONE. CONSOL and Noble remain as co-sponsors of CONE, retain their respective general partnership and limited partner ownership interests in CONE, and continue as shippers on CONE’s gathering systems.
John T. Lewis, Chairman of the Board and Chief Executive Officer of CONE Midstream GP LLC (the “General Partner”), commented, “We look forward to continuing to work closely with and serve both of our Sponsors as they proceed with the development of their respective acreage positions. The total acreage dedicated to CONE by the Sponsors remains unchanged, and we will continue to gather their production under the same economic terms. We anticipate the changes brought about by the Exchange Agreement between CONSOL and Noble will be beneficial to CONE and all of our unitholders. The Agreement allows each Sponsor to independently advance their own development programs in the Appalachian Basin and should foster continued throughput growth on CONE’s gathering systems.”
As previously announced, CONE is scheduled to hold its third quarter earnings conference call on November 4, 2016, at 10:00am ET. A webcast of the conference call will be available, on either a live or replay basis, through a link on our company website, www.conemidstream.com.
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Create E-mail Alert Related CategoriesCorporate News, Guidance, Management Comments
Related EntitiesCrude Oil, Earnings, Definitive Agreement
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