Noble Midstream Partners LP (Noble Midstream or the Partnership) announced that the Partnership has successfully integrated its business into its new affiliate, Chevron Corporation (Chevron). Chevron has announced its capital and exploratory budget for 2021, with activity planned on Noble Midstream dedicated acreage in both the DJ and Delaware basins.
On Noble Midstream’s dedicated acreage, the Partnership anticipates Chevron activity to be primarily in the DJ Basin, where there is significant backbone infrastructure in place. As a result, Noble Midstream expects to allocate the majority of its 2021 organic capital programme to well connections with minimal larger-scale facility spending. Noble Midstream plans to provide a detailed 2021 investment programme and guidance after its third-party customer base finalises activity plans and the Partnership receives Board approval early in the first-quarter 2021.
In its Equity Method Investments, Noble Midstream does not anticipate any material capital outlays next year. The Partnership anticipates growing full-year run rate cash flow contribution in 2021 from the intermediate and long-haul assets brought online or acquired this year.
Robin Fielder, President and CEO of the Partnership stated, “Noble Midstream achieved significant accomplishments this year, reducing its cash operating costs by more than 20%, placing multiple major equity-method investment pipelines into full service, and beginning to fund our investments and distribution from cash flow from operations. Along with these wins and a 2021 organic capital programme focused mainly on well connections, we expect Noble Midstream to generate sizable cash flow in excess of capital expenditures in 2021 and enable the Partnership to reduce debt and protect the balance sheet.”
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