Chevron Offers to Acquire Noble Midstream in Equity Exchange

Chevron’s proposed offer to buy any remaining Noble Midstream interests not already owned by Chevron and its affiliates values the pipeline operator at about $1.13 billion.

Chevron Offers to Acquire Noble Midstream in Equity Exchange

Noble Midstream provides crude oil, natural gas, and water-related midstream services and owns equity interests in oil pipelines in the Denver-Julesburg Basin in Colorado and the Permian’s Delaware Basin in Texas. (Source: Shutterstock.com)

Chevron Corp. offered to buy out Noble Midstream LP on Feb. 5, months after closing its acquisition of the pipeline operator’s sponsor, Noble Energy.

“We have viewed a consolidation of the NBLX platform into CVX as the mostly likely outcome following the upstream merger and see a transaction as supporting the sustainability of the $1 million in opex reduction in 2020 into 2021 and beyond,” analysts with Tudor, Pickering, Holt & Co. (TPH) wrote in a Feb. 5 research note.

Noble Midstream is an MLP originally formed by Noble Energy and indirectly majority-owned by Chevron. The company provides crude oil, natural gas, and water-related midstream services and owns equity interests in oil pipelines in the Denver-Julesburg Basin in Colorado and the Permian’s Delaware Basin in Texas.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.