Less than two weeks after agreeing to sell its Marcellus Shale upstream assets, Noble Energy Inc. (NYSE: NBL) plans to complete its Appalachia exit with a deal to sell its midstream assets for triple its investment.
A Quantum Energy Partners’ portfolio company will buy Noble’s CONE Midstream Partners LP (NYSE: CNNX) gathering system for $765 million, the companies said May 18. The price comes in at about $300 million more than CONE’s May 18 value of $449 million, said Timothy Rezvan, managing director of Americas Research for Mizuho Securities USA LLC.
The sale more than offsets the cash portion of Noble’s April purchase of Clayton Williams Energy Inc.’s Midland Basin assets in April for $3.2 billion, Rezvan said.
“Following $1.9 billion of sales announced so far in May, pro-forma leverage declines to 1.98x vs. our prior estimate of 2.24x,” Rezvan said. Noble’s total proceeds may vary due to contingency payments.