In hopes of continuing its planned Appalachia exit, Noble Energy Inc. (NYSE: NBL) reached an agreement on Dec. 15 with CNX Resources Corp. (NYSE: CNX) to sell its Marcellus midstream assets, quickly resolving a lingering legal dispute between the two companies.
In the agreement, CNX Resources will acquire Noble’s 50% interest in CONE Gathering LLC, which owns the general partner of CONE Midstream Partners LP (NYSE: CNNX), for $305 million cash. Noble will retain its 21.7 million common limited partner units in CONE Midstream with plans to divest them over the next few years, according to a company press release.
As a result of the transaction with CNX, Noble terminated its prior agreement to divest its entire Marcellus midstream holdings to Wheeling Creek Midstream LLC, a portfolio company of Quantum Energy Partners, for $765 million. That particular deal came under fire when CNX, which holds a 50% interest in CONE Gathering, filed a suit to enjoin Noble’s transaction with Wheeling Creek.