Chevron has reached a definitive agreement with Noble Midstream Partners to acquire all the remaining shares that it does not already own in Noble Midstream, in an all-stock transaction valued at US$1.3bn (£94bn).
Noble Midstream is a limited partnership between Noble Energy and majority-owned by Chevron to own, operate, develop and acquire domestic midstream infrastructure assets. The firm is engaged in providing crude oil, natural gas and water-related midstream services and owns equity interests in oil pipelines in the DJ Basin in Colorado and the Delaware Basin in Texas.
Under the terms of the agreement, Noble Midstream shareholders are expected to receive 0.1393 per share from Chevron common stock, in exchange for each common share held.
Chevron’s subsidiary has voted to approve the transaction, as a majority shareholder of the outstanding common stock. Closing of the transaction is expected in the second quarter of 2021, subject to customary approvals.