CONE Midstream’s Strong Beginning, Hits 500 Mmcf/d 6 Mos Early

NOTE: The original version of this article incorrectly stated CONE had hit 1 billion cubic feet per day of throughput. MDN regrets the mathematical error!

In August 2014, CONSOL Energy and Noble Energy formed a midstream joint venture called CONE Midstream to primarily serve to connect their Marcellus and Utica wells (see CONSOL & Noble Energy Form New Marcellus Midstream Company). In October, CONE floated an initial public offering (IPO) to sell units (units are like stocks for master limited partnerships) in the new jv, raising $423 million (see CONE Midstream’s IPO Takes in $423M, Market Cap Already $1.71B!). The fledgling jv is growing up fast. The company has already passed the 500 million cubic feet per day (Mmcf/d) of throughput on its pipeline system–six months ahead of schedule. In 2014 the company had $15.3 million of revenue…
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CONE Midstream’s IPO Takes in $423M, Market Cap Already $1.71B!

A little over a month ago CONSOL Energy and Noble Energy, two otherwise competitors that often cooperate on drilling programs in the northeast, together formed a new pipeline company called CONE Midstream (see CONSOL & Noble Energy Form New Marcellus Midstream Company). A couple of weeks ago CONSOL & Noble announced they would float an initial public offering (IPO) to sell stock in the new venture, hoping to raise $423 million (see CONSOL/Noble IPO for CONE Midstream Hopes to Raise $423M). Good news: Mission accomplished. Yesterday CONE issued a press release saying the IPO of 20.1 million shares for $22 per share has successfully closed…
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CONSOL/Noble IPO for CONE Midstream Hopes to Raise $423M

Three weeks ago MDN brought you the news that CONSOL Energy together with Noble Energy (two drillers who joint venture together on some Marcellus drilling) have joined forces to form a midstream (pipeline) company called CONE Midstream to hook up pipelines to their Marcellus wells (see CONSOL & Noble Energy Form New Marcellus Midstream Company). The new pipeline company will take the corporate form of a master limited partnership, or MLP. Yesterday Noble announced an initial public offering (IPO) for “units” in the new company (think shares of stock). The companies hope to sell 20.1 million units and raise $422.6 million for the fledgling midstream company…
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CONSOL & Noble Energy Form New Marcellus Midstream Company

Rather than contract with MarkWest Energy, Williams, or another midstream company, CONSOL Energy and Noble Energy, who together have a joint venture to drill in certain areas of the Marcellus Shale (or “upstream” venture), have now decided to form their own “midstream” (or pipeline) company too. Dubbed CONE Midstream–perhaps some weird amalgamation of the CONSOL and Noble Energy names–the new midstream company will take the form of a master limited partnership, or MLP. So far CONSOL and Noble have only filed paperwork and announced who will sell units (rough equivalent of shares of stock). While the announcement from CONSOL doesn’t say who will operate the new midstream company, it sure looks to us like CONSOL will be the one calling the shots…
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