Chevron has reached a deal with Noble Midstream to acquire the shares in the pipeline operator it does not already own in an all-stock deal worth $1.32 billion. The agreement comes just a month after Chevron made a slightly smaller offer to purchase the 33.925 million shares.
“We believe this buy-in transaction is the best solution for all stakeholders, enabling us to simplify the governance structure and capture value in support of our leading positions in the DJ and Permian Basins,” said Colin Parfitt, vice president of Chevron Midstream and chairman of the board of the general partner of Noble Midstream Partners LP.
Noble Midstream Partners is a master limited partnership formed by Noble Energy to own, operate, develop, and acquire midstream infrastructure assets. The bulk of the assets reside in the DJ Basin in Colorado, where the partnership’s footprint spans across roughly 441,000 acres, and the Delaware Basin in Texas, where it has 110,000 dedicated acres in Reeves County.
The final value under the new deal will depend on the price Chevron’s shares are trading at when the deal closes, expected in the second quarter. The transaction has been board-approved but remains subject to other customary closing conditions.
Chevron, the second-largest US oil producer, closed a $4.1 billion all-stock purchase of smaller rival Noble Energy this past October. The purchase netted the operator a nearly 63% stake in Noble Midstream alongside the explorer’s domestic shale and international reserves.