Cone Gathering LLC Sells Additional Interest In Pipeline And Compression Systems To Cone Midstream Partners LP

Houston and Pittsburgh, Nov. 16, 2016 (GLOBE NEWSWIRE) -- Noble Energy, Inc. (NYSE: NBL) and CONSOL Energy Inc. (NYSE: CNX) (the "Sponsors") announced today that CONE Gathering LLC, which is jointly owned by the Sponsors, has entered into a definitive agreement to contribute its remaining 25% ownership interest in CONE Midstream DevCo I LP (the "Anchor Systems") to CONE Midstream Partners LP (NYSE: CNNX) for a total valuation of $248 million.  Upon closing, each Sponsor will receive $70 million in cash and approximately 2.6 million limited partnership units of CNNX. 
CNX

The Anchor Systems include over 125 miles of pipelines and 650 million cubic feet per day of natural gas compression capacity, which gather and transport production from the Sponsors' Marcellus natural gas assets.  The Anchor Systems represent a substantial majority of CNNX's revenues and cash flows.

The transaction represents the initial dropdown of assets from the Sponsors following CNNX's IPO in late 2014.  As part of the transaction, the Conflicts Committee of the Board of Directors of CNNX consulted with an independent valuation expert who issued a fairness opinion to CNNX.

Following closing of the transaction, which is anticipated by the end of 2016, CNNX will own 100% of the Anchor Systems.  CONE Gathering LLC continues to own 95% interests in each of the CONE Midstream DevCo II LP (the "Growth Systems") and CONE Midstream DevCo III LP (the "Additional Systems"), with CNNX owning the remaining 5% in each.  NBL and CNX will each hold approximately 34.2% of the common and subordinated limited partnership units of CNNX. 

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