Noble Energy plans to sell its stake in a company that operates pipelines in the gas-rich Marcellus Shale for $765 million in cash, the company said Thursday.
The Houston oil company said it would sell a holding company that has a 50-percent stake in Cone Gathering, a company that owns the general partner of publicly traded pipeline firm Cone Midstream Partners, which is based in Pennsylvania.
It’s also selling limited partnership units that represent a 33.5 percent stake in Cone Midstream, which operates pipelines and natural gas processing plant in the Marcellus, to private equity-backed Quantum Energy Partners in Houston.
Noble CEO David Stover said his company has made more than $1 billion on Marcellus pipelines since 2014, when Cone Midstream went public. But the Houston company plans to shift capital to its pipelines and other assets in the DJ Basin in Colorado and the Delaware Basin in West Texas.
Noble has agreed to sell off $2 billion in assets this year as it exits both production and pipeline businesses in the Appalachian region, an area rich in natural gas. The Cone deal is expected to close in the third quarter.