Chevron offers to buy Noble Energy’s midstream unit

SAN RAMON, California and HOUSTON — Months after it closed a $5 billion acquisition of Weld County’s second-largest oil producer, Chevron Corp. (NYSE: CVX) has offered to buy full control of Noble Energy’s pipeline partner in the region.

In a disclosure to the U.S. Securities and Exchange Commission Friday, the California-based Chevron offered to purchase the remainder of Noble Midstream Partners LP (Nasdaq: NBLX) for $12.47 per share. That figure is higher than the $10.38 per share Chevron offered to acquire Noble last year, although that figure did not include premiums for Noble’s proven reserves.

Chevron already owns 62% of Noble Midstream’s shares. The deal would value Noble Midstream at $1.12 billion.

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Noble was previously the second-largest producer of oil and gas in Weld County, having produced 30.91 million barrels of oil and 215.18 million metric cubic feet of natural gas in 2019, according to data from the Colorado Oil and Gas Conservation Commission. The vast majority of its Colorado operations are in Weld County.

Friday’s offer is non-binding, and has yet to receive approval from Noble’s board.

Noble Midstream was originally set up as a partner to the energy company to transfer and store oil and gas produced in Northern Colorado to a refinery in Oklahoma, along with servicing some of the Permian Basin operations in Texas.

It currently serves about 300,000 acres of oilfields in Northern Colorado, including the Greeley Crescent, Wells Ranch, Bronco and Mustang fields along the Front Range. Part of its dedicated acreage is controlled by Denver-based PDC Energy Inc. (Nasdaq: PDCE).