After acquiring oil producer Noble Energy for $5 billion in October 2020, Chevron Corp. has offered to purchase full control of that company’s pipeline partner.
Chevron announced Feb. 5 that it has submitted a non-binding proposal to the board of directors of Noble Midstream GP LLC, the general partner of Noble Midstream Partners LP (NBLX), to acquire all of the publicly held common units representing limited partner interests in NBLX not already owned by Chevron and its affiliates.
Chevron already owns 62 percent of Noble Midstream’s shares. Chevron is proposing to acquire the remaining Common Units through a merger transaction in exchange for shares of common stock of Chevron, at a value of $12.47 per Common Unit. The deal would value Noble Midstream at approximately $1.12 billion.
Chevron expects the proposed transaction to align long term interests by efficiently combining two highly integrated businesses while streamlining governance of the NBLX assets, which primarily serve Chevron as its largest customer. Agreement of definitive terms is subject to negotiations and approval by the NBLX board. There can be no assurance that any such approvals will be forthcoming, that a definitive agreement will be executed or that any transaction will be consummated, according to a Chevron statement.
NBLX is a master limited partnership originally formed by Noble Energy Inc. and indirectly majority-owned by Chevron to own, operate, develop and acquire domestic midstream infrastructure assets. NBLX currently provides crude oil, natural gas and water-related midstream services and owns equity interests in oil pipelines in the DJ Basin in Colorado and the Delaware Basin in Texas. NBLX operations were integrated into Chevron in 2020 following the close of the Noble Energy acquisition.