Chevron has struck an agreement to acquire all the outstanding shares of Noble Midstream Partners that it does not already own.
The super-major already owns a nearly 63% majority stake in Noble Midstream, which it acquired when it took over its parent company, Noble Energy, in a deal worth $4.1bn last year.
Under the new all-stock deal, Noble Midstream’s shareholders will receive 0.1393 of a Chevron share for each Noble Midstream unit they own. The transaction, which comprises 33.925mn Noble Midstream shares, is valued at $1.32bn and comes after Chevron made a similar – but slightly smaller – takeover offer around a month ago.
“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 [Denver-Julesburg] and Permian basins,” stated Chevron Midstream’s vice-president, Colin Parfitt, who also serves as chairman of the board of directors of Noble Midstream’s general partner.
Noble Midstream transports oil, natural gas and water for producers in the DJ and Permian basins, and Chevron is its largest customer. The super-major previously talked about “efficiently combining two highly integrated businesses while streamlining governance of the [Noble Midstream] assets” when it announced its initial takeover offer for the remainder of the unit.
The original Chevron-Noble transaction kicked off a wave of consolidation across the US oil and gas industry as producers sought to achieve greater scale and additional efficiencies. Some of the major transactions announced during that wave only closed in recent weeks.

 

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