Noble Energy Inc. (NYSE: NBL), CONSOL Energy Inc. (NYSE: CNX) and CONE Midstream Partners LP, a Delaware limited partnership formed by CONSOL and Noble Energy, report that CONE Midstream Partners has closed its initial public offering of 20,125,000 common units representing limited partner interests at a price to the public of $22 per common unit.
An analyst at Renaissance Capital noted that CONE Midstream Partners, formed to own gathering pipelines in the Marcellus shale play, raised $385 million by offering 17.5 million shares at $22, above the range of $19 to $21.
The common units issued at closing included 2,625,000 common units that were issued pursuant to the full exercise of the underwriters' option to purchase additional common units. The common units began trading on the New York Stock Exchange on Sept. 25 under the ticker symbol "CNNX."
As of the closing of the offering, the public owns a 33.8% limited partner interest in CONE Midstream Partners. Each of CONSOL and Noble Energy own a 32.1% limited partner interest in CONE Midstream Partners. In addition, CONSOL and Noble Energy own, through their Marcellus Shale midstream joint venture, CONE Gathering LLC, a 2% general partner interest and the incentive distribution rights in CONE Midstream Partners.
Wells Fargo Securities, BofA Merrill Lynch, Citigroup, JP Morgan, Baird, Barclays, Deutsche Bank Securities, Goldman, Sachs & Co., Morgan Stanley, Credit Suisse, and RBC Capital Markets acted as book-running managers of the offering. MUFG, PNC Capital Markets LLC, BB&T Capital Markets, BBVA, BNP PARIBAS, DNB Markets, Mizuho Securities, and TD Securities acted as co-managers of the offering.