CONE Midstream Anticipates Continued Growth Following Separation of Sponsors’ Upstream JV
October 31 2016 - 6:49AM
CONSOL Energy Inc. (NYSE:CNX) (“CONSOL”) and Noble Energy, Inc.
(NYSE:NBL) (“Noble”), whom we refer to as our Sponsors, today
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.
CONE Midstream Partners is a growth-oriented
master limited partnership formed by CONSOL Energy Inc.(NYSE:CNX)
and Noble Energy, Inc. (NYSE:NBL), whom we refer to as our
Sponsors, to own, operate, develop and acquire natural gas
gathering and other midstream energy assets to service our
Sponsors' production in the Marcellus Shale in Pennsylvania and
West Virginia. Our assets include natural gas gathering
pipelines and compression and dehydration facilities, as well as
condensate gathering, collection, separation and stabilization
facilities. More information is available at our website
www.conemidstream.com.
This news release contains forward-looking
statements within the meaning of the federal securities laws.
Statements that are predictive in nature, that depend upon or refer
to future events or conditions or that include the words "believe,"
"expect," "anticipate," "intend," "estimate" and other expressions
that are predictions of or indicate future events and trends and
that do not relate to historical matters identify forward-looking
statements. Forward-looking statements are not guarantees of
future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict, and there can be no
assurance that actual outcomes and results will not differ
materially from those expected by our management. Factors
that could cause our actual results to differ materially from the
results contemplated by such forward-looking statements include,
among others: the effects of changes in market prices of natural
gas, NGLs and crude oil on our Sponsors’ drilling and development
plans on our dedicated acreage and the volumes of natural gas and
condensate that are produced on our dedicated acreage; changes in
our Sponsors’ drilling and development plans in the Marcellus Shale
and Utica Shale; our Sponsors’ ability to meet their drilling and
development plans in the Marcellus Shale and Utica Shale; the
demand for natural gas and condensate gathering services; changes
in general economic conditions; competitive conditions in our
industry; actions taken by third-party operators, gatherers,
processors and transporters; our ability to successfully implement
our business plan; and our ability to complete internal growth
projects on time and on budget. You should not place undue reliance
on our forward-looking statements. Although forward-looking
statements reflect our good faith beliefs at the time they are
made, forward-looking statements involve known and unknown risks,
uncertainties and other factors, including the factors described
under “Risk Factors” and “Forward-Looking Statements” in our Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q, which may
cause our actual results, performance or achievements to differ
materially from anticipated future results, performance or
achievements expressed or implied by such forward-looking
statements. We undertake no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events, changed circumstances or otherwise,
unless required by law.
Contact: Stephen R. Milbourne
CONE Midstream Partners Investor Relations
Phone: 724-485-4408
Email: smilbourne@conemidstream.com
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