Noble Energy, a Houston-based upstream energy company, is partnering with natural gas and coal producer Consol Energy to form a master limited partnership (MLP) that will own, operate and develop Noble Energy’s and Consol’s jointly-owned natural gas midstream assets in the Marcellus Shale.
According to the draft registration statement the two companies submitted to the Securities and Exchange Commission (SEC), Cone Gathering, which would be a 50/50 joint venture, would own the general partner of the MLP, Noble Energy said in a statement.
“The number of common units to be offered and the price range for the offering will be determined prior to the commencement of the offering,” the Houston company said.
Whether the two companies will proceed with the initial public offering (IPO) of common units of the MLP will depend on the assessment of market and other conditions, according to the statement. The IPO also requires authorisation from Noble Energy’s board of directors.
Spanning New York, Pennsylvania, West Virginia, Ohio and Maryland and covering about 95,000 square miles, the Marcellus Shale is one of the largest shale regions in the US.
In addition to the Marcellus Shale, New York-listed Noble Energy, which focuses on oil and gas exploration and production, also has core operations onshore in Colorado’s DJ basin, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa.
Based in Pittsburgh and also listed on the New York Stock Exchange, Consol Energy is an independent natural gas exploration, development and production company, with operations centered in the major shale formations of the Appalachian basin.