Chevron offers to take pipeline operator Noble Midstream private
- Chevron, the second-largest US oil producer, in October closed a $4.1 billion all-stock purchase of oil and gas producer Noble Energy, gaining a majority stake in the pipeline business.
- On Friday, the company said it has offered to buy the rest of Noble Midstream at $12.47 per common unit, the same price Noble's shares ended on Thursday.
Chevron Corp said on Friday it had offered to buy Noble Midstream Partners LP in a deal valuing the company at $1.13 billion, months after the US oil major bought the pipeline operator's sponsor Noble Energy.
Chevron, the second-largest US oil producer, in October closed a $4.1 billion all-stock purchase of oil and gas producer Noble Energy, gaining a majority stake in the pipeline business Noble Midstream alongside large shale and international natural gas reserves.
In October, Chevron had said it got a 62.5% stake in Noble Midstream as part of the deal and plans to hold talks with the pipeline business's leaders and other interested companies about what it would do with that investment.
On Friday, the company said it has offered to buy the rest of Noble Midstream at $12.47 per common unit, the same price Noble's shares ended on Thursday.
Noble Midstream's units rose over 7% to $13.39 in premarket trading.
Chevron said the deal aligns with its long-term interests and streamlines governance of Noble Midstream's assets, for which Chevron is now the largest customer.
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