Noble Midstream Partners LP and Greenfield Midstream LLC have formed a joint venture (JV), Black Diamond Gathering LLC. The JV has entered into definitive agreements to acquire Saddle Butte Rockies Midstream LLC and affiliates for $625 million.
Noble Midstream will fund 50 percent of the purchase price and will receive a 4.4-percent ownership promote in the JV. Noble’s 54.4-percent ownership of the JV will be held in a wholly owned Noble Midstream subsidiary, Laramie River DevCo LP. Greenfield Midstream will own 45.6 percent of the JV.
Noble Midstream will operate and control the Saddle Butte system upon closing, which is expected in the first quarter of 2018, subject to customary closing conditions, including the receipt of regulatory approvals. Noble Midstream and Greenfield Midstream will jointly provide commercial efforts to attract further producer dedications.