Noble Energy Inc. has an agreement with an affiliate of private equity firm Quantum Energy Partners to extend the deadline for selling its Appalachian midstream interests in Cone Midstream Partners LP, allowing it to explore a sale to CNX Resources Corp.
In a U.S. Securities and Exchange Commission filing last Friday, Noble said it has extended the deadline for the $765 million sale to Wheeling Creek Midstream LLC from Dec. 31 to June 30. If the sale isn’t completed by then, the parties would be entitled to terminate the deal.
Noble, whose U.S. onshore focus is in Texas and Colorado, struck a deal in May to sell its half-stake in Cone Gathering LLC and limited partnership units representing one-third ownership in Cone Midstream. The transaction came after Noble dissolved a 50/50 joint venture (JV) with CNX and sold 385,000 net acres in Pennsylvania and West Virginia to a Quantum portfolio company.
Cone was formed by Noble and CNX, formerly Consol Energy Inc. in 2014. The midstream sale was originally scheduled to close in the third quarter, but Noble also revealed in its filing last week that the new agreement allowed it to negotiate the midstream sale to a CNX affiliate.
CNX, which owns the other half-stake in Cone, said it wanted the JV dissolved to gain more control over its pace of development after splitting the coal and natural gas businesses, which was finalized last month.