Cone Gathering LLC Sells Additional Interest in Pipeline and Compression Systems to Cone Midstream Partners LP
November 16 2016 - 6:01AM
Noble Energy, Inc. (NYSE:
NBL) and CONSOL Energy
Inc. (NYSE:
CNX) (the “Sponsors”) announced today
that CONE Gathering LLC, which is jointly owned by the Sponsors,
has entered into a definitive agreement to contribute its remaining
25% ownership interest in CONE Midstream DevCo I LP (the “Anchor
Systems”) to CONE Midstream Partners LP (NYSE:
CNNX) for a total valuation of $248 million.
Upon closing, each Sponsor will receive $70 million in cash
and approximately 2.6 million limited partnership units of
CNNX.
The Anchor Systems include over 125 miles of
pipelines and 650 million cubic feet per day of natural gas
compression capacity, which gather and transport production from
the Sponsors’ Marcellus natural gas assets. The Anchor
Systems represent a substantial majority of CNNX’s revenues and
cash flows.
The transaction represents the initial dropdown
of assets from the Sponsors following CNNX’s IPO in late
2014. As part of the transaction, the Conflicts Committee of
the Board of Directors of CNNX consulted with an independent
valuation expert who issued a fairness opinion to CNNX.
Following closing of the transaction, which is
anticipated by the end of 2016, CNNX will own 100% of the Anchor
Systems. CONE Gathering LLC continues to own 95% interests in
each of the CONE Midstream DevCo II LP (the “Growth Systems”) and
CONE Midstream DevCo III LP (the “Additional Systems”), with CNNX
owning the remaining 5% in each. NBL and CNX will each hold
approximately 34.2% of the common and subordinated limited
partnership units of CNNX.
About CONSOL EnergyCONSOL Energy Inc. (NYSE:
CNX) is a Pittsburgh-based producer of natural gas and coal. The
company is one of the largest independent natural gas exploration,
development and production companies, with operations centered in
the major shale formations of the Appalachian basin. CONSOL Energy
deploys an organic growth strategy focused on rapidly developing
its resource base. As of December 31, 2015, CONSOL Energy had 5.6
trillion cubic feet equivalent of proved natural gas reserves. The
company's premium coals are sold to electricity generators and
steel makers, both domestically and internationally. CONSOL
Energy is a member of the Standard & Poor's Midcap 400
Index. Additional information may be found at
www.consolenergy.com.
About Noble EnergyNoble Energy (NYSE: NBL) is
an independent oil and natural gas exploration and production
company with a diversified high-quality portfolio of both U.S.
unconventional and global offshore conventional assets spanning
three continents. Founded more than 80 years ago, the company
is committed to safely and responsibly delivering our purpose:
Energizing the World, Bettering People’s Lives®. For more
information, visit www.nobleenergyinc.com.
Cautionary Statements This press release
contains certain "forward-looking statements" within the meaning of
federal securities laws. Words such as "anticipates", "believes,"
"expects", "intends", "will", "should", "may", and similar
expressions may be used to identify forward-looking statements.
Forward-looking statements are not statements of historical fact
and reflect CONSOL Energy's and Noble
Energy's current views about future events. Such
forward-looking statements include, but are not limited to,
statements about CONSOL Energy's and Noble
Energy's plans, objectives, expectations and intentions, the
expected timing of completion of the transaction, and other
statements that are not historical facts, including business
strategy and other plans and objectives for future
operations. No assurances can be given that the
forward-looking statements contained in this press release will
occur as projected and actual results may differ materially from
those projected. Forward-looking statements are based on current
expectations, estimates and assumptions that involve a number of
risks and uncertainties that could cause actual results to differ
materially from those projected. These risks and uncertainties are
discussed in CONSOL Energy's and Noble
Energy's most recent annual reports on Form 10-K,
respectively, and in other CONSOL Energy and Noble
Energy reports on file with the Securities and Exchange
Commission. Forward-looking statements are based on the
estimates and opinions of management at the time the statements are
made. Neither CONSOL Energy nor Noble Energy undertakes
any obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
Contacts
CONSOL Energy:
Investor Relations: Tyler Lewis (724) 485-3157
Media: Brian Aiello (724) 485-3078
Noble Energy:
Investor Relations: Brad Whitmarsh (281) 943-1670
Media: Reba Reid (713) 412-8441
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