[Context: On June 28, Quantum Energy-backed HG Energy II announced the close of its $1.125bn acquisition of West Virginia and southern Pennsylvania assets from Noble Energy. Further details and related links are below.]
Noble Energy Closes Upstream Appalachia Sale
Houston, June 28, 2017 (GLOBE NEWSWIRE) — Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or “the Company”) announced today that it has closed the transaction divesting its upstream assets in northern West Virginia and southern Pennsylvania to HG Energy II Appalachia, LLC, a portfolio company of Quantum Energy Partners (“Quantum”). The purchase price of $1.125 billion is subject to customary closing adjustments. An additional contingent amount of $100 million, structured as three separate payments of $33.3 million, is payable to the Company should the average annual price realization at Dominion South exceed $3.30 per million Btu in the individual annual periods from 2018 through 2020.
Proceeds from the transaction will be used to pay down borrowings on Noble Energy’s revolving credit facility by the end of June 2017.
Total production from the assets averaged approximately 70 thousand barrels of oil equivalent per day from the beginning of 2017 through the closing date.
Closing of the separate midstream transaction divesting the holding company which owns a 50 percent interest in CONE Gathering, LLC and 21.7 million common and subordinated limited partnership units in CONE Midstream Partners LP (NYSE:CNNX) to a portfolio company of Quantum is still expected to occur in the third quarter of this year.
Noble Energy (NYSE: NBL) is an independent oil and natural gas exploration and production company with a diversified high-quality portfolio of both U.S. unconventional and global offshore conventional assets spanning three continents. Founded more than 80 years ago, the company is committed to safely and responsibly delivering our purpose: Energizing the World, Bettering People’s Lives®.