Chevron has reached a definitive agreement with Noble Midstream Partners to acquire all the remaining shares that it does not already owned in Noble Midstream, in an all-stock transaction valued at $1.3bn.
Noble Midstream is a limited partnership between Noble Energy and majority-owned by Chevron to own, operate, develop and acquire domestic midstream infrastructure assets.
The firm is engaged in providing crude oil, natural gas, and water-related midstream services and owns equity interests in oil pipelines in the DJ Basin in Colorado and the Delaware Basin in Texas.
Under the terms of the agreement, Noble Midstream shareholders are expected to receive 0.1393 per share from Chevron common stock, in exchange for each common share held.
Chevron midstream vice president Colin Parfitt said: “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.”
Chevron’s subsidiary has voted to approve the transaction, as a majority shareholder of the outstanding common stock.
Closing of the transaction is expected in the second quarter of 2021, subject to customary approvals.
For the transaction, Citi served as financial advisor, and Latham & Watkins as legal advisor to Chevron, while Janney Montgomery Scott served as financial advisor and Baker Botts as legal advisor to the conflicts committee of the Board.
In January , Noble Midstream agreed with a Chevron subsidiary to offer oil transmission services from the Wells Ranch development area to Platteville for long-haul transportation out of the Denver-Julesburg basin.
The deal involves providing all crude oil gathering and intermediate oil transportation services from the Wells Ranch.
