Noble Midstream Partners finalized a deal with Chevron selling the oil giant the rest of its midstream oil and gas pipeline business, and the deal value has grown since Chevron first made its all-stock offer.
The transaction will make Noble Midstream’s pipelines and gathering systems in the Denver-Julesburg Basin and the Permian Basin of West Texas completely owned by San Ramon, California-based Chevron (NYSE: CVX) after the share exchange closes in spring.
Chevron owns 62% of Houston-based Noble Midstream (Nasdaq: NBLX) already.
“We believe this buy-in transaction is the best solution for all stakeholders, enabling us to simplify the governance structure and capture value in support of our leading positions in the DJ and Permian basins,” said Colin Parfitt, vice president of Chevron Midstream and chairman of the general partner of Noble Midstream Partners LP, in a deal announcement made Friday.
Chevron agreed to acquire the remaining 33.925 million shares of Noble Midstream stock it doesn’t yet own by swapping 0.1393 shares of Chevron stock for each share of the Noble Midstream business.
The offer to acquire shares, which Chevron announced a month ago, initially valued Noble Midstream stock at $12.47 per share.
Chevron’s stock price, like many oil and gas companies, has risen steadily in recent weeks and that has increased the deal value.
The oil company’s shares ended trading Friday valued at $109 each, implying a value of $15.18 for each share of Noble Midstream to be exchanged.
The transaction would be worth $515.1 million if Chevron’s stock holds that current price.
Noble Midstream’s pipelines and gathering systems in the Denver-Julesburg Basin oilfields carry oil, natural gas products and water from wells on 545,000 acres. Three-quarters of the volume the company handles comes from the northeast Colorado basin, most of it from Chevron wells that the company acquired when it bought Houston-based Noble Energy Inc. in a $13 billion deal last year.
Noble Energy was Colorado’s second-largest oil producer by volume, and among the largest producers of natural gas in the state, according to Denver Business Journal research.
The Noble Midstream systems averaged carrying 314,866 barrels of crude oil and natural gas equivalents a day last year.
The company generated $764.6 million in revenue in 2020, according to Noble Midstream’s most recent income statement. That represented an 8.6% increase from the same stretch of 2019.
| 1 | Kerr-McGee Oil & Gas Onshore LP 5 Greenway Plaza #110 Houston, TX 77046 713-215-7000 oxy.com |
39.67 million | 39.69 million | Occidental Petroleum Corp. 1 | OXY |
| 2 | Noble Energy Inc. 1001 Noble Energy Way Houston, TX 77070 281-872-3100 nblenergy.com |
31.77 million | 31.79 million | Noble Energy Inc. | NBL |
| 3 | Extraction Oil & Gas Inc. 370 17th St. #5300 Denver, CO 80202 720-557-8300 extractionog.com |
21.68 million | 21.68 million | Extraction Oil & Gas LLC | XOG |
| 4 | PDC Energy Inc. 4 1775 Sherman St. #3000 Denver, CO 80203 303-860-5800 pdce.com |
19.49 million | 19.49 million | PDC Energy Inc. | PDCE |
| 5 | Great Western Oil & Gas Co. LLC 1001 17th St. #2000 Denver, CO 80202 303-398-0302 gwogco.com |
14.76 million | 14.78 million | Great Western Oil & Gas Co. LLC | NA |
| 6 | SRC Energy Inc. 4 1675 Broadway #2600 Denver, CO 80202 720-616-4300 srcenergy.com |
11.42 million | 11.42 million | SRC Energy Inc. | SRCI |
| 7 | HighPoint Resources 7 555 17th St. #3700 Denver, CO 80202 303-293-9100 hpres.com |
10.06 million | 10.06 million | HighPoint Resources Corp. | HPR |
| 8 | Crestone Peak Resources LLC 1801 California St. #2500 Denver, CO 80202 720-410-8500 crestonepeakresources.com |
8.96 million | 8.95 million | Crestone Peak Resources | NA |
| 9 | Bonanza Creek Energy Inc. 410 17th St. #1400 Denver, CO 80202 720-440-6100 bonanzacrk.com |
7.68 million | 7.70 million | Bonanza Creek Energy Inc. | BCEI |
| 10 | Whiting Canadian Holding Co. Ulc. 11 1625 Broadway Suite 250 Denver, CO 80202 303-592-8075 kodiakog.com |
3.41 million | 3.42 million | Kodiak Oil & Gas Corp. | KOG |
- 1 In August 2019, Occidental Petroleum Corp. finalized its acquisition of Anadarko Petroleum for $55 billion. As part of the deal, Occidental also acquired Kerr-McGee, which was owned by Anadarko prior to the merger.
- 4 On Jan. 14, 2020, PDC Energy Inc. acquired SRC Energy Inc. in a $1.7 billion deal.
- 7 Highpoint Resources was formed as the result of a merger between Bill Barrett Corp. and Fifth Creek Energy Operating Co. in March 2018.
- 11 Formerly Kodiak Oil & Gas Corp.
