CNX Midstream Partners LP on March 16 completed its $265 million acquisition of CNX Resources Corp.'s 95% interest in the Shirley-Pennsboro gathering system. CNX Midstream funded the deal with a portion of the proceeds from the sale of $400 million of 6.500% senior notes due 2026, which also closed the same day.
The system, which has about 180 MMcfe/d of flowing production, gathers and transports gas from the core wet gas region of the Marcellus Shale in West Virginia. Upon deal close, the system, previously held in CNX Resources' 95%-owned CNX Midstream DevCo III, will be transferred to CNX Midstream's 100% owned subsidiary, CNX Midstream DevCo I.
Both parties, in connection with the acquisition, have agreed to amend the existing gathering agreement to provide for a minimum volume commitment with respect to the system.
Latham & Watkins LLP served as legal adviser to CNX Resources for the acquisition, while the conflicts committee of CNX Midstreams' board was advised by Evercore on financial matters and Baker Botts LLP on legal matters.
CNX Resources is an independent natural gas exploration, development and production company with operations centered in the major shale formations of the Appalachian basin. CNX Midstream is a master limited partnership that owns, operates, develops and acquires gathering and other midstream energy assets to service natural gas production in the Appalachian Basin in Pennsylvania and West Virginia.
