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Noble Postpones Launch of DJ Basin Midstream MLP

Just a week after announcing that it would launch a public offering of shares in a new limited partnership with interests in some of its Denver-Julesburg (DJ) Basin crude oil, natural gas and water-related midstream services, Noble Midstream Partners LP has postponed it.

The Noble Energy Inc. (NBL) subsidiary said Thursday it had postponed the offering "as a result of unfavorable equity market conditions" and would "continue to evaluate the timing for the proposed offering as market conditions develop."

A registration statement relating to the proposed sale of the securities has been filed with the Securities and Exchange Commission (SEC), "but has not yet become effective," Noble said.

On Nov. 12, Noble Midstream said it had begun its initial public offering of 12.5 million common units at an anticipated price of $19-21/unit, and gave underwriters a 30-day option to purchase an additional 1.88 million shares at that price. The units being offered represented about a 34% limited partner interest in Noble Midstream, or about a 39% limited partner interest if underwriters exercised in full their options.

Noble Midstream also said in its SEC filing that the proposed maximum aggregate offering price, which had initially listed at $100 million, was being updated to $301.87 million.

The postponement came less than a month after the MLP filed with SEC for an IPO, saying it intended to apply to list the units on the New York Stock Exchange under the ticker symbol "NBLX" (see Shale DailyOct. 23). NBL would have owned the general partner of Noble Midstream, all of its incentive distribution rights and retained a majority of the MLP’s interests.

According to the filing, Noble Midstream has a 75% ownership interest in its "core assets," including crude oil gathering at the Wells Ranch and East Pony integrated development plans (IDP), natural gas gathering at Wells Ranch, and crude oil treating at all NBL DJ Basin acreage, and also a 5-10% ownership interest in its "growth assets," including crude oil gathering at the Mustang, Greeley Crescent and Bronco IDPs, and natural gas gathering at Mustang.

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