Noble Midstream Partners LP, a subsidiary of Noble Energy Inc. (NBL), has filed with the U.S. Securities and Exchange Commission for an initial public offering of shares in its new limited partnership with interests in certain of NBL's Denver-Julesburg (DJ) Basin crude oil, natural gas and water-related midstream services.
The master limited partnership (MLP) intends to apply to list the units on the New York Stock Exchange under the ticker symbol "NBLX." The number of common units to be offered and the price range for the offering have not been determined. NBL will own the general partner of Noble Midstream, all of its incentive distribution rights and expects to retain a majority of Noble Midstream's limited partner 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.
Earlier this year, NBL acquired struggling Texas producer Rosetta Resources Inc., which was active in the Eagle Ford Shale and Permian Basin, in an all-stock deal worth $2.1 billion plus debt assumption of $1.8 billion (see Shale Daily, Aug. 4; May 11).
NBL executives in August exuded a positive outlook for the future, despite recent red ink, emphasizing the company's significant acreage in more major U.S. unconventional plays since closing the Rosetta deal. The company holds core positions in the DJ Basin, Eagle Ford Shale, Delaware Basin and Marcellus Shale, and is active in the U.S. Gulf of Mexico. NBL claims proved reserves of 1.7 billion boe at year-end 2014 (pro-forma for the Rosetta acquisition). The company has a recent history of focusing on the U.S. onshore in the DJ Basin and Marcellus, and had considered its DJ activity and performance "the real driver for the rest of the year," according to CEO David Stover (see Shale Daily, Sept. 2).
Last month, NBL increased its third quarter production guidance by 10,000 boe/d at the midpoint, primarily to reflect increasingly efficient production from its wells in the DJ Basin (see Shale Daily, Sept. 8). The company said it expected to produce between 360,000 and 370,000 boe/d during the quarter, up from its previously announced third quarter guidance of 345,000-365,000 boe/d. While the company dropped its rig count earlier this year from 10 in the DJ Basin to four, it said production from the play averaged 115,000 boe/d in July and August. Noble produced 108,000 boe/d there in 2Q2015.
Noble is scheduled to hold a 3Q2015 earnings conference call Nov. 2.