CONE Midstream Partners: A New MLP With The Largest Marcellus Acreage

The initial public offering of CONE Midstream Partners LP Pending:CNNX is expected to price on September 24th, offering investors another choice for a growth-oriented midstream MLP. CNNX is the result of a 50/50 sponsorship by CONSOL Energy Inc. NYSE:CNX and Noble Energy, Inc. NYSE:NBL. The two sponsors have a joint active natural gas and NGLs drilling program in the Marcellus Shale play and are forming the MLP to drop down, and develop, assets to service their Marcellus production.CNNX will operate on a fee-based revenue model, with initial assets that include natural gas gathering pipelines, compression, and dehydration facilities along with condensate gathering, collection, stabilization and stabilization facilities. All of the partnerships’ revenues will initially come from the sponsors’ on long-term, fee-based gathering contracts. The gathering agreement initially covers 496,000 acres in the Marcellus Shale. The IPO proceeds will go to the sponsor companies and CNNX will have a $250 million revolving line of credit to provide liquidity. The management team comes from senior leadership at CONSOL and Noble.

via CONE Midstream Partners: A New MLP With The Largest Marcellus Acreage | Seeking Alpha.

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