Chevron Proposes to Acquire Noble Midstream

Chevron (NYSE: CVX) unveiled that it submitted a proposal to acquire all the publicly traded units of Noble Midstream Partners(NYSE: NBLX) -- a master limited partnership (MLP) -- that it doesn't already own. The oil giant is offering to exchange its shares for all the remaining publicly traded units of its affiliate at a value of $12.47 per unit, which is the MLP's closing price the day before Chevron announced its proposal. The deal values the midstream company at $1.13 billion.

Chevron initially acquired a 62.5% interest in Noble Midstream when it bought the MLP's former parent Noble Energy in a $13 billion deal last year. That transaction made it Noble Midstream's largest customer, as the pipeline operator provides crude oil, natural gas, and water-related midstream services to Chevron and other producers in Colorado's DJ Basin and Texas's Delaware Basin. 

Image source: Getty Images.

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Source Fool.com