Noble Midstream Partners (NYSE:NBLX) agrees to acquire additional interests in Colorado River DevCo in the DJ Basin and Blanco River DevCo in the Delaware Basin from Noble Energy (NYSE:NBL) for $270M in cash and units.
The acquisition will increase NBLX’s interest in Colorado River gathering system to 100% from 80% and in Blanco River to 40% from 25%; NBL will retain the remaining 60% interest in Blanco River.
NBLX plans to fund the cash portion of the deal with proceeds via a concurrent private placement of common units.
NBLX expects the deal to be immediately accretive to 2017 distributable cash flow, which it now projects at $112M-$125M, resulting in coverage of 1.8x-2.0x.
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