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UPDATE 2-Chevron makes offer to buy out Noble Midstream

· 02/05/2021 06:28
UPDATE 2-Chevron makes offer to buy out Noble Midstream

Updates shares, adds background

- Chevron Corp CVX.N said on Friday it had offered to buy Noble Midstream Partners LP NBLX.O in a deal valuing the company at $1.13 billion, months after the U.S. oil major bought the pipeline operator's sponsor, Noble Energy.

Chevron, the second-largest U.S. oil producer, in October closed a $4.1 billion all-stock purchase of smaller rival Noble Energy, gaining a majority stake in Noble Midstream alongside large shale and international natural gas reserves.

Now Noble Midstream's largest customer, Chevron said taking full ownership of the assets will help it streamline their governance and is in line with the producer's long-term interests.

Noble Midstream provides crude oil, natural gas and water-related midstream services in the DJ Basin in Colorado and the Delaware Basin in Texas.

Chevron said it had offered to buy the rest of Noble Midstream at $12.47 per common unit, in line with its closing price on Thursday.

Noble Midstream's units rose over 7% in premarket trading.

Chevron said any deal agreement is subject to negotiation and will require approval by Noble Midstream's board.

In October, Chevron said it got a 62.5% stake in Noble Midstream as part of the Noble Energy deal, and it plans to hold talks with the pipeline business's leaders and other interested companies about its options, which could include a sale of the stake.

(Reporting by Shariq Khan in Bengaluru; Editing by Maju Samuel)

((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780, outside U.S. +91 80 6182 2681; Twitter: @shariqrtrs;))