Noble Midstream Partners Announces Pipeline Joint Venture Expanding Delaware Basin Footprint

HOUSTON--()--Noble Midstream Partners LP (NYSE:NBLX) (“Noble Midstream” or "the Partnership") and Plains All American Pipeline, L.P. (NYSE:PAA) (“Plains”) today announced they have entered into definitive agreements to form a 50/50 joint venture (“JV”) to acquire Advantage Pipeline, L.L.C. (“Advantage”), which owns a 70-mile, 16-inch crude oil pipeline located in the southern Delaware Basin (the “Advantage Pipeline”).

The Advantage Pipeline, constructed in 2013, has 150,000 barrels of daily shipping capacity from Reeves County, Texas to Crane County, Texas. The Advantage system also includes approximately 490,000 barrels of combined crude storage at three separate trucking stations in Reeves, Pecos and Crane Counties.

We are excited to expand our Delaware Basin footprint further downstream and establish a partnership with Plains,” stated Terry R. Gerhart, Chief Executive Officer of Noble Midstream. “Advantage has created a leading crude transmission pipeline and storage system in the Southern Delaware Basin. With this transaction we are able to provide our sponsor and third party producers connections to multiple market centers and Plains’ premier pipeline network.”

The JV will acquire Advantage for $133 million, with Noble Midstream’s 50% interest totaling $66.5 million. Upon close of the JV, throughput growth on the Advantage Pipeline will be driven by an acreage dedication from Noble Energy, Inc. and a volume commitment from Plains Marketing, L.P.

Noble Midstream will serve as the operator, and will construct a wholly owned 15-mile pipeline to deliver crude oil to the Advantage Pipeline from its first central gathering facility. Plains will construct a pipeline to connect its Wolfbone Ranch facility to the Advantage Pipeline near Highway 285. The connections are estimated to be completed in the second quarter of this year.

Noble Midstream’s JV interest will be funded with cash on hand and its undrawn credit facility. The Partnership's JV interest will be held by Trinity River DevCo LP, a newly formed, 100% owned development company. The closing of the transaction is anticipated to occur in the first quarter 2017 and is subject to certain conditions precedent specified in the agreement.

Conference Call and Supplemental Information

Supplemental materials related to the transaction are currently available on the ‘Investors’ page of Noble Midstream’s website, www.nblmidstream.com. Noble Midstream will discuss the transaction on its previously scheduled conference call and webcast on Tuesday, February 14, 2017, at 1:00 p.m. Central Time to discuss fourth quarter and year end results and 2017 guidance. Fourth quarter and year end results, along with 2017 guidance, will be released later today after market close.

Conference call numbers for participation are 877-883-0383, or 412-902-6506 for international calls. The passcode number is 9134791. The webcast and a replay of the event will be available on the ‘Investors’ page of Noble Midstream’s website.

About Noble Midstream Partners LP

Noble Midstream is a growth-oriented Delaware master limited partnership formed by our sponsor, Noble Energy, Inc., to own, operate, develop and acquire a wide range of domestic midstream infrastructure assets. We currently provide crude oil, natural gas, and water-related midstream services for Noble Energy, Inc. in the DJ Basin in Colorado. Our areas of focus are in the DJ Basin and the Delaware Basin in Texas. For more information, please visit www.nblmidstream.com.

This news release contains certain “forward-looking statements” within the meaning of federal securities law. Words such as “anticipates”, “believes”, “expects”, “intends”, “will”, “should”, “may”, “estimates”, and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect the Partnership’s current views about future events. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, Noble Energy, Inc.’s ability to meet its drilling and development plans, changes in general economic conditions, competitive conditions in the Partnership’s industry, actions taken by third-party operators, gatherers, processors and transporters, the demand for crude oil and natural gas gathering and processing services, the Partnership’s ability to successfully implement its business plan, the Partnership’s ability to complete internal growth projects on time and on budget, the price and availability of debt and equity financing, the availability and price of crude oil and natural gas to the consumer compared to the price of alternative and competing fuels, and other risks inherent in the Partnership’s business that are discussed in its registration statement on Form S-1 and in other reports on file with the Securities and Exchange Commission (“SEC”). These reports are also available from the Partnership’s office or website, www.nblmidstream.com. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Midstream does not assume any obligation to update forward-looking statements should circumstances, management’s estimates, or opinions change.

Contacts

Noble Midstream
Chris Hickman
VP, Investor Relations
(281) 943-1622
chris.hickman@nblmidstream.com

Release Summary

Noble Midstream Announces Delaware Basin Joint Venture Acquisition

Contacts

Noble Midstream
Chris Hickman
VP, Investor Relations
(281) 943-1622
chris.hickman@nblmidstream.com