Noble Energy Closes Upstream Appalachia Sale
June 28 2017 - 3:15PM
Noble Energy, Inc. (NYSE:
NBL) (“Noble Energy” or
“the Company”) announced today that it has closed the transaction
divesting its upstream assets in northern West Virginia and
southern Pennsylvania to HG Energy II Appalachia, LLC, a portfolio
company of Quantum Energy Partners (“Quantum”). The purchase
price of $1.125 billion is subject to customary closing
adjustments. An additional contingent amount of $100 million,
structured as three separate payments of $33.3 million, is payable
to the Company should the average annual price realization at
Dominion South exceed $3.30 per million Btu in the individual
annual periods from 2018 through 2020.
Proceeds from the transaction will be used to
pay down borrowings on Noble Energy’s revolving credit facility by
the end of June 2017.
Total production from the assets averaged
approximately 70 thousand barrels of oil equivalent per day from
the beginning of 2017 through the closing date.
Closing of the separate midstream transaction
divesting the holding company which owns a 50 percent interest in
CONE Gathering, LLC and 21.7 million common and subordinated
limited partnership units in CONE Midstream Partners LP (NYSE:CNNX)
to a portfolio company of Quantum is still expected to occur in the
third quarter of this year.
Noble Energy (NYSE: NBL) is an
independent oil and natural gas exploration and production company
with a diversified high-quality portfolio of both U.S.
unconventional and global offshore conventional assets spanning
three continents. Founded more than 80 years ago, the company is
committed to safely and responsibly delivering our purpose:
Energizing the World, Bettering People’s Lives®. For more
information, visit http://www.nblenergy.com.
Forward Looking StatementsThis news release
contains certain "forward-looking statements" within the meaning of
federal securities laws. Words such as "anticipates", "believes",
"expects", "intends", "will", "should", "may", and similar
expressions may be used to identify forward-looking statements.
Forward-looking statements are not statements of historical fact
and reflect Noble Energy's current views about future events. Such
forward-looking statements may include, but are not limited to,
future financial and operating results, and other statements that
are not historical facts, including estimates of oil and natural
gas reserves and resources, estimates of future production,
assumptions regarding future oil and natural gas pricing, planned
drilling activity, future results of operations, projected cash
flow and liquidity, business strategy and other plans and
objectives for future operations. No assurances can be given
that the forward-looking statements contained in this news release
will occur as projected and actual results may differ materially
from those projected. Forward-looking statements are based on
current expectations, estimates and assumptions that involve a
number of risks and uncertainties that could cause actual results
to differ materially from those projected. These risks and
uncertainties include, without limitation, the volatility in
commodity prices for crude oil and natural gas, the presence or
recoverability of estimated reserves, the ability to replace
reserves, environmental risks, drilling and operating risks,
exploration and development risks, competition, government
regulation or other actions, the ability of management to execute
its plans to meet its goals and other risks inherent in Noble
Energy's businesses that are discussed in Noble Energy's and
Clayton Williams' most recent annual reports on Form 10-K,
respectively, and in other Noble Energy and Clayton Williams
reports on file with the Securities and Exchange Commission (the
"SEC"). These reports are also available from the sources described
above. Forward-looking statements are based on the estimates and
opinions of management at the time the statements are made. Noble
Energy does not assume any obligation to update any forward-looking
statements should circumstances or management’s estimates or
opinions change.
Investor Contacts
Brad Whitmarsh
(281) 943-1670
brad.whitmarsh@nblenergy.com
Megan Repine
(832) 639-7380
megan.repine@nblenergy.com
Megan Dolezal
(281) 943-1861
megan.dolezal@nblenergy.com
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Deena McMullen
(281) 943-1732
media@nblenergy.com
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