Chevron has signed a definitive agreement with Noble Midstream Partners to acquire all the remaining shares of Noble Midstream in a deal worth $1.32bn.
Under the agreement, shareholders of Noble Midstream will receive 0.1393 of a share of Chevron common stock for each share held.
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Chevron Midstream vice-president Colin Parfitt said: “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.”
The transaction awaits customary approvals, with completion expected in the second quarter of this year.
Chevron said in a statement: “The Conflicts Committee of the board, comprised entirely of independent directors, after consultation with its independent legal and financial advisers, unanimously approved the merger. Subsequently, the merger was approved by the board.”
Noble Midstream is a limited partnership between Noble Energy and Chevron. It owns, operates, develops, and acquires domestic midstream infrastructure assets.
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By GlobalDataThe partnership provides crude oil, natural gas, and water-related midstream services, and owns stakes in oil pipelines in the DJ Basin in Colorado and the Delaware Basin in Texas.
In October 2020, Chevron acquired a stake in Noble Energy, including large shale and international natural gas reserves, in an all-stock transaction valued at $5bn.
Chevron said that the deal provides it with low-cost, proved reserves and attractive undeveloped resources, complementing its upstream portfolio.
