Michael Fitzsimmons
Oil & gas, dividend investing, research analyst

CONE Midstream Partners: A Marcellus/Utica Gas-Gathering Driven MLP

[Editor's Note, February 21, 2016: The author has included an update below to clarify year-over-year comparisons.]

CONE Midstream Partners (NYSE:CNNX) was formed in 2014 through an initial contribution of assets from CONE Gathering, LLC - a 50/50 joint venture formed in 2011 between CONSOL Energy (NYSE:CNX) and Noble Energy (NYSE:NBL) to service natural gas production in the Marcellus shale. The sponsors have dedicated over 516,000 acres in the core of the Marcellus play to CONE under a 20-year gas-gathering agreement. The LP operates three distinct segments - or "development companies" - which are best understood by taking a look at the organizational structure:

(click to enlarge)

Source: December Wells Fargo presentation (available here).

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