Noble Midstream Partners LP (NBLX) to Cut Dividend 73%, Announces $75M Capital Reduction

Noble Midstream Partners LP (NASDAQ: NBLX) 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.

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