To take advantage of the upswing that will likely happen after the company's quiet period expires, investors should begin building long positions.
The stock should move higher based on its strong performance since the IPO, fundamentals and underwriters who will be releasing reports about Noble Midstream Partners for the first time on Oct. 9. With these strong underwriters finally able to address the company's fundamentals and performance, the reports will likely be glowing.
These underwriters include Baird, Bank of America, Barclays, BB&T Capital Markets, BNP Paribas, CIBC, Citigroup, Deutsche Bank, DNB Markets, Fifth Third Securities, JPMorgan Chase, Mitsubishi, Mizuho Securities, PNC Capital Markets, Scotiabank/Howard Weil, SMBC Nikko, Societe Generale, TD Securities and Wells Fargo.
Since the company's IPO, shares of Noble Midstream Partners are up more than 23%. The company went public on Sept. 14 at a price of $22.50 a share and had a strong performance on the first day of trading, gaining more than 16%.
Shares continued to rise in the aftermarket, gaining another 6.2%. Performance has been strong since, with the stock trading above $27 on Friday.
Noble Midstream Partners, based in Houston, is a master limited partnership that provides a number of services by contract to the oil and gas industry. Its primary customer is Noble Energy.
The company provides gas, oil and water services to Noble Energy, and it acquires, develops, owns and operates oil and gas infrastructure assets. Noble Midstream Partners primarily focuses on the Delaware Basin in Texas and the Denver-Julesburg Basin in Colorado.
Chief Executive Terry R. Gerhart has more than 31 years experience in the oil and gas industry. He served in a variety of executive roles at Noble Energy before joining Noble Midstream Partners last October.
Gerhart purchased 15,000 shares of Noble Midstream Partners on Sept. 20 at $22.50 apiece.
Investors should buy the stock before Oct. 9 and cash in on any upward momentum that will likely result from the positive reports.
This article is commentary by an independent contributor. At the time of publication, the author was long NBLX.