Jan 5, 2018 3 min read

CANONSBURG – CNX Resources Corp. and CNX Midstream Partners LP said Wednesday CNX closed its previously announced acquisition of Noble Energy Inc.’s 50 percent membership interest in Cone Gathering LLC, which holds the general partner interest and incentive distribution rights in Cone Midstream Partners LP.

CNX said in a press release in conjunction with the closing, Cone Midstream Partners LP was renamed CNX Midstream Partners LP and will commence trading on the New York Stock Exchange under the ticker “CNXM” effective Thursday.

Separately, CNXM announced its board of directors, has authorized CNXM to enter into an amendment to its gas gathering agreement with CNX Gas Co. LLC, a wholly owned subsidiary of CNX. As part of the amendment to the GGA:

• CNX will dedicate approximately 63,000 dry Utica acres to CNXM, of which approximately 51,000 will be located in the development company I, or DevCo I, area, which is 100% owned by CNXM.
• CNX has provided a minimum well commitment of 140 wells over the next four years in the DevCo I area that provides CNXM with downside protection and continued cash flows to support distribution growth.
• CNXM has agreed to a major system expansion to support production from the newly dedicated Utica areas.

CNX said the amendment is expected to help it unlock the stacked pay potential of the core of southwest Pennsylvania and capitalize on economies of scale, which would support accelerating drilling activity and production moving forward.

CNX and Noble have agreed to divide equitably their jointly owned water assets so either CNX or Noble will own all of the formerly jointly owned water assets within agreed upon areas.

“Owning 100 percent of the general partner of CNXM, while simultaneously amending the existing GGA, is very significant for CNX,” said Nicholas J. DeIuliis, president and CEO. “CNX will benefit from increased control and flexibility with respect to the scope and timing of midstream development, which in turn will give CNX a greater level of optionality in its development plans and future drop opportunities. Ultimately, this GGA allows CNX to lock in our multiyear development plan under mutually beneficial terms for both CNX and CNXM. The single sponsor MLP model is the first key step in unlocking the value potential of CNX Midstream.”

As part of the change in ownership, effective immediately DeIuliis will serve as chief executive officer of CNXM, in addition to his current role as president and CEO of CNX. Also, Donald W. Rush will serve as chief financial officer of CNXM in addition to his current role as CFO of CNX.