Consol Energy Agrees With Noble Energy To Separate Marcellus Shale JV

(RTTNews) - Consol Energy Inc. (CNX) and Noble Energy, Inc. (NBL) Monday jointly announced that the two companies have entered into a definitive agreement to separate their Marcellus Shale 50-50 Joint Venture.

As per the separation of the joint venture that was formed in 2011 for the exploration, each party will own and operate a 100 percent interest in its properties and wells in two separate operating areas. The companies will have independent control and flexibility with respect to the scope and timing of future development over its operating area.

Further, Consol Energy and Noble Energy, Inc. in their respective operating areas will remain fully dedicated to Cone Midstream Partners LP (CNNX). Nicholas DeIuliis, president and CEO said, "The separation of the Joint Venture is consistent with CONSOL's transitional journey to a pure-play exploration and development company, and the company's commitment to future growth, in what is now a more robust and actionable stacked pay opportunity set. As the parties work towards closing, CONSOL will remain focused on conducting operations in a safe and environmentally compliant manner to maximize value to our shareholders."

Prior to the Exchange Agreement, the Joint Venture collectively operated approximately 669,000 Marcellus acres, with the companies each holding 50 percent working interest.

CONSOL Energy will operate a 100% working interest in approximately 306,000 Marcellus acres with associated production of approximately 620 million cubic feet per day of natural gas equivalents. While, Noble Energy, Inc. will operate a 100% working interest in approximately 363,000 Marcellus acres with associated production of approximately 450 million cubic feet per day of natural gas equivalents.