Assets Reshuffled at CONE Midstream/CONE Gathering

clear-as-mudCompanies in the oil and gas sector often split the ownership of assets into different companies (on paper) for various reasons: tax purposes…to attract investment…to give us laypeople headaches. CONE Midstream, a joint venture between CONSOL Energy and Noble Energy (CO from CONSOL and NE from Noble Energy) was formed in summer 2014 (see CONSOL & Noble Energy Form New Marcellus Midstream Company). CONE Midstream has been a small but stellar performer in the midstream (pipeline) sector, as evidenced by their most recent quarterly update (see CONE Midstream 3Q16: Success Story Continues). But before there was CONE Midstream, there was CONE Gathering (see New Pipeline, Wells Coming to Upshur & Barbour Counties in WV). There is also CONE Midstream DevCo, yet another entity on paper. Is your head spinning yet? CONSOL and Noble yesterday announced that, well, we’re not quite sure what was announced! It appears that the two CONE Midstreams and CONE Gathering are reshuffling the deck once again–transferring some of the assets held between them to the other entities. If you can figure it out, please let us know. Here’s what CONSOL and Noble said in a joint announcement yesterday…
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New Pipeline, Wells Coming to Upshur & Barbour Counties in WV

Drilling for natural gas in the largely dry gas West Virginia counties of Upshur and Barbour is about to pick up–a lot. How do we know? CONE Gathering, the midstream part of a joint venture between CONSOL Energy and Noble Energy, is constructing a new 24-inch, 37-mile gathering pipeline through the heart of both counties. When that pipeline is done, it will start to connect a flurry of new wells drilled by CONSOL and Noble.

Construction on the new pipeline is set to start in six to nine months and will be completed another six to nine months after that. So the new pipeline may be online as early as a year from now…
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