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Cone Midstream to buy additional interest in pipeline system for $248M

Published 11/16/2016, 08:41 AM
Cone Midstream to buy additional interest in pipeline system for $248M
  • Cone Midstream Partners (NYSE:CNNX) agrees to acquire an additional 25% interest in Cone Midstream DevCo's pipeline systems, known as Anchor Systems, from joint owners Consol Energy (NYSE:CNX) and Noble Energy (NYSE:NBL) for $248M in cash and stock.
  • Cone, an MLP formed by CNX, will own the entire group of assets after paying both CNX and NBL $70M in cash and 2.6M units.
  • The assets include 125 miles of pipelines with 650M cf/day of capacity in the Marcellus Shale.
  • CNNX expects the deal's anticipated increase in distributable cash flow will raise its future cash distribution coverage and enhance the ability to continue to grow quarterly cash distributions over time.

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