Noble’s 50% CONE Midstream Sale in Trouble – Shopping Deal to CNX

In May MDN brought you the news that Noble Energy dropped a bombshell, selling its 100% interest in 385,000 Marcellus/Utica acres and wells producing 415 million cubic feet equivalent of natural gas in West Virginia and Pennsylvania for $1.225 billion to HG Energy (see Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?). A couple of weeks later the other shoe dropped when Noble announced they would sell their 50% stake in CONE Midstream, a 50/50 joint venture with CONSOL Energy (now CNX Resources), to Quantum Energy Partners for $765 million, meaning a total exit for Noble from our region (see Noble/CONSOL Breakup Continues: Noble Sells 50% of CONE Midstream). When we say Noble “sold” their CONE stake we mean “will be sold after all the lawyers and bean counters get done with drawing up the necessary paperwork.” Fact is, the CONE sale has still not happened, even though there is a Dec. 31 deadline for the deal to be completed. It appears Noble’s deal to sell it’s CONE stake to Quantum is now in jeopardy. We base that observation on information from a filing Noble made with the Securities and Exchange Commission last week. In an 8-K filing, Noble said (a) they’ve extended the deadline to complete the deal to sell CONE to Quantum from Dec. 31, 2017 to June 30, 2018, and (b) Noble has opened up discussions/negotiations with CNX to sell their half of CONE to CNX instead of selling it to Quantum–which would make CNX the 100% owner of CONE…

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