Greenfield Midstream Announces JV for Hydrogen Pipeline Development

Source Intelligence

KEY DETAILS

Noble Midstream will fund 50% of the purchase price and will receive a 4.4% ownership promote in the JV. The Partnership’s 54.4% ownership of the JV will be held in a wholly owned Noble Midstream subsidiary, Laramie River DevCo LP. Greenfield Midstream will own 45.6% of the JV.

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Deal Size

The JV has entered into definitive agreements to acquire Saddle Butte Rockies Midstream, LLC and affiliates (collectively “Saddle Butte”) for $625 million.

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Capacity

Saddle Butte assets include a large-scale integrated crude oil gathering system in the DJ Basin, consisting of approximately 160 miles of pipeline in operation, 300,000 barrels per day of delivery capacity and approximately 210,000 barrels of crude oil storage capacity.

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Location

Saddle Butte assets include a large-scale integrated crude oil gathering system in the DJ Basin

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Announcement

December 12, 2017

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Expected Close

which is expected in the first quarter of 2018, subject to customary closing conditions, including the receipt of regulatory approvals.

PARTIES MENTIONED IN SOURCE

N

Noble Midstream Partners LP buyer

"Noble Midstream Partners LP (NYSE: NBLX) (“Noble Midstream” or the “Partnership”) and Greenfield Midstream, LLC announced today the formation of a joint venture, Black Diamond Gathering, LLC (“JV” or “Black Diamond”)."

G

Greenfield Midstream, LLC buyer

"Noble Midstream Partners LP (NYSE: NBLX) (“Noble Midstream” or the “Partnership”) and Greenfield Midstream, LLC announced today the formation of a joint venture, Black Diamond Gathering, LLC (“JV” or “Black Diamond”)."

B

Black Diamond Gathering, LLC buyer

"Noble Midstream Partners LP (NYSE: NBLX) (“Noble Midstream” or the “Partnership”) and Greenfield Midstream, LLC announced today the formation of a joint venture, Black Diamond Gathering, LLC (“JV” or “Black Diamond”). The JV has entered into definitive agreements to acquire Saddle Butte Rockies Midstream, LLC and affiliates (collectively “Saddle Butte”) for $625 million."

S

Saddle Butte Rockies Midstream, LLC seller

"The JV has entered into definitive agreements to acquire Saddle Butte Rockies Midstream, LLC and affiliates (collectively “Saddle Butte”) for $625 million."

E

EnCap Flatrock Midstream investor

"Greenfield Midstream is an EnCap Flatrock Midstream portfolio company."

P

PDC Energy customer

"Saddle Butte has approximately 115,000 dedicated acres from six customers under fixed fee arrangements, including approximately 72,000 dedicated acres from PDC Energy."

D

Deutsche Bank Securities Inc. advisor

"Deutsche Bank Securities Inc. served as financial adviser to Noble Midstream in connection with the transaction"

V

Vinson & Elkins LLP advisor

"Vinson & Elkins LLP acted as outside legal counsel to Noble Midstream in connection with the acquisition agreement and joint venture."

B

Baird advisor

"Greenfield Midstream’s financial adviser was Baird"

R

Reed Smith LLP advisor

"Greenfield Midstream’s financial adviser was Baird and legal counsel was Reed Smith LLP."