CONSOL Energy To Form MLP With Noble Energy; IPO To Come

Benzinga

Before the market open on Thursday, CONSOL Energy (NYSE: CNX) and Noble Energy (NYSE: NBL) announced that the companies intend to form a master limited partnership (MLP).

The purpose for the venture is to "provide mainstream gathering services for production from their jointly owned acreage in the Marcellus Shale."

Additionally, an S-1 form has been confidentially filed with the SEC for an initial public offering of common units of the MLP, which is expected to be completed either late in the third or early in the fourth quarter of 2014. Following the IPO, CONSOL and Noble would own a majority of the limited partner interests and incentive distribution rights.

As of now, the IPO is still subject to approval of Noble Energy's board, as well as a variety of market and other conditions.

Following the announcement, shares of CONSOL are trading up as much as two percent in the pre-market.

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