Noble Midstream Partners (the Partnership) has signed an agreement to acquire additional interest in Colorado River DevCo and Blanco River DevCo from Noble Energy for $270m.
Through the acquisition, Noble Midstream will increase its interest in Colorado River DevCo to 100% from 80%, and in Blanco River DevCo to 40% from 25%.
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Noble Energy will hold the remaining 60% interest in Blanco River DevCo.
Noble Midstream general partner CEO Terry Gerhart said: “We are very pleased to further the partnership’s exposure to the Delaware Basin through this accretive acquisition of additional interests in Blanco River DevCo, ahead of the significant growth anticipated from Noble Energy in the Delaware Basin.
“Additionally, acquiring the remaining interest in Colorado River DevCo adds immediate scale to the partnership and complements our growth outlook as we continue to gather an increasing share of Noble Energy’s DJ Basin production.”
Blanco River DevCo holds around 111,000 acres in the Delaware Basin for oil and produced water gathering, also meant for gas gathering.
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By GlobalDataIt will construct four central gathering facilities and backbone pipeline infrastructure to support Noble Energy’s Delaware Basin activity.
The first facility is expected to be completed by mid-year, with the second one slated for completion in the fourth quarter of this year, and the remaining two in the first half of next year.
Noble Midstream noted that the four central gathering facilities are expected to provide oil capacity expandable up to 120,000 barrels per day by the end of next year.
Following the closure of the transaction and a separate private placement, Noble Energy will have a 50.1% limited partner interest in Noble Midstream.
The acquisition is subject to the satisfaction of customary closing conditions and slated for closure prior to the end of this year's second quarter.
