Noble Midstream Launches IPO



On November 12, Noble Midstream Partners LP launched its initial public offering.

$301.87 million is the maximum aggregate offering price for the Noble Energy subsidiary according to the filing with the U.S. Securities and Exchange Commission. The offer represents a 39 percent interest in the company.

Noble Midstream will offer 12.5 million common units (priced between $19 and $21) representing limited partner interest. It will also give underwriters a 30-day-option to purchase an additional 1.88 million shares at the IPO price.

Noble Midstream provides crude oil, natural gas, and water-related midstream services for Noble Energy through long-term, fixed-fee contracts. It operates a wide range of domestic midstream infrastructure assets including the Denver-Julesburg Basin, or DJ Basin, in Colorado.

Noble Energy has a proven track record as well with total reserves of 1.7 billion barrels of oil equivalent by the end of 2014. Noble Energy also had recent success with their Big Bend oil development, which is anticipated to reach a maximum gross production rate of approximately 20,000 barrels of oil equivalent per day over the next few weeks.

Book-running managers for the offering include Barclays, Baird, J.P. Morgan, Bank of America Merrill Lynch, Citigroup, Deutsche Bank Securities and Wells Fargo Securities. Barclay and Baird are acting as structuring fee agents.

“NBLX” will be the ticket symbol on the New York Stock Exchange.

Written by HEI contributor Aliyah Cole.

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