Noble Midstream Partners LP (NBLX) (Noble Midstream or the Partnership) announced that the Partnership has entered into an agreement with a Chevron Corporation (CVX) (Chevron) subsidiary to provide oil transmission services from the Wells Ranch development area to Platteville, Colorado, for long-haul transportation out of the DJ Basin. With this agreement, Noble Midstream will now be responsible for substantially all crude oil gathering and intermediate oil transportation services from the Wells Ranch development area.
Concurrent with this new transmission service, Noble Midstream has executed a capacity lease with a subsidiary of Energy Transfer LP (NYSE: ET) for capacity on Energy Transfer’s Wattenberg Oil Trunkline (WOT). The Partnership has contracted for the ability to utilize a substantial portion of the capacity on this in-service pipeline through 2031. The WOT pipeline terminates in Platteville, Colorado, where Noble Midstream has extensive existing infrastructure and storage with access to all four major long-haul pipelines in the DJ Basin.
The WOT capacity lease highlights Noble Midstream’s strategy to seek highly accretive and capital-efficient opportunities to best serve customer needs. Additionally, this transaction furthers the Partnership’s objective to high-grade and diversify its cash flow profile.
John Reuwer, Vice President of Business and Corporate Development of the Partnership stated, “This important transaction marks the first business development agreement with Chevron as well as a new commercial partnership with a key midstream provider in the DJ Basin. The WOT capacity lease provides both operational support and value for Chevron and the Partnership and gives Noble Midstream the ability to add incremental third-party business and further bolster our strong presence in the DJ Basin.”