CNX Resources Corp. struck a deal to acquire Noble Energy Inc.'s 50% membership interest in CONE Gathering LLC for $305 million in cash and the mutual release of all outstanding claims.
At closing, CNX will own 100% of CONE Gathering, which holds all of the interests in CONE Midstream GP LLC, which in turn holds the general partnership interest in CONE Midstream Partners LP. The transaction will see CONE Midstream Partners become a single-sponsor master limited partnership, according to a Dec. 15 release.
Noble Energy has recently gained permission to discuss and negotiate a potential sale of its 50% stake in CONE Gathering.
"As the single sponsor of CONE, CNX will benefit from increased flexibility with respect to the scope and timing of midstream development, which will enhance the value of existing development and create future opportunities such as future dropdowns and gathering more CNX volumes including dry Utica," said Nicholas DeIuliis, president and CEO of CNX Resources.
The deal is expected to close in the first quarter of 2018.