Noble Energy sells Marcellus shale holdings in region
Texas-based Noble Energy, which owns and operates about 50 hydraulic fracturing wells in Washington and Greene counties, will move out of Marcellus shale and move on to “more lucrative oil fields,” the company announced Tuesday.
An undisclosed buyer agreed to purchase $1.2 billion worth of Noble Energy's Marcellus shale assets, according to a news release. Of the total amount, $100 million will be made in three separate payments as contingencies that depend on regional gas prices rising above a certain level over the next three years.
The sold assets produce 415 million cubic feet of natural gas equivalent a day and span 385,000 acres in northern West Virginia and southern Pennsylvania, with proved reserves reaching 1.5 trillion cubic feet.
Noble Energy CEO David L. Stover said the Marcellus shale play has been a strong performer for the last few years, but the company is moving to more lucrative plays in “liquid-rich, higher-margin onshore assets.”
“This enables us to further focus our organization on our highest-return areas that will deliver industry-leading U.S. onshore volume and cash flow growth,” Stover said in the release.
CONE Midstream Partners LP, a partnership based in Canonsburg that owns, operates, develops and acquires natural gas gathering and other midstream energy assets, will retain ownership of the Marcellus acreage in natural gas gathering.
The sale is expected to close by the second quarter.