About CONE Midstream

Positioned To Become A Leading Midstream Energy Company.

CONE Midstream Partners (NYSE:CNNX) is a fee-based, growth-oriented master limited partnership that owns, operates, develops and acquires natural gas gathering and other midstream energy assets to service the rapidly growing production in the Marcellus Shale in Pennsylvania and West Virginia. Our assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. We generate all of our revenues under long-term, fixed-fee gathering agreements that are intended to mitigate our direct commodity price exposure and enhance the stability of our cash flows. Our gathering agreements also include substantial acreage dedications currently totaling approximately 500,000 net acres in the Marcellus Shale.

CONE Midstream was formed by CONSOL Energy Inc. (NYSE: CNX) and Noble Energy, Inc. (NYSE: NBL), whom we refer to as our Sponsors. Each of our Sponsors is a large, independent oil and natural gas exploration and production company with a substantial resource base and a history of growing production in its areas of operation. Our Sponsors hold one of the largest aggregate acreage positions in the Marcellus Shale, which is widely viewed as a premier North American shale play due to its significant hydrocarbon resources in place, consistent and predictable geology, high well recoveries relative to drilling and completion costs and proximity to high-demand metropolitan markets in the northeastern United States.

We believe that our strategically located assets, our relationship with our Sponsors and our Sponsors’ intention to use us as their primary midstream services company in the Marcellus Shale position us to become a leading midstream energy company.

Our Business Strategies:

Our primary business objectives are to generate stable and predictable cash flows and increase our quarterly cash distribution per unit over time. We intend to accomplish these objectives by executing the following strategies:

 

  • Capitalizing on organic growth opportunities. We anticipate significant growth in demand for our midstream services driven by our Sponsors’ substantial drilling and development program. As of December 31, 2016, Our Sponsors had approximately 3,700 combined potential new drilling locations on on our dedicated acreage, which we believe provides visible long-term demand for our midstream services.
  • Completing accretive acquisitions from CONE. We expect to make accretive acquisitions of additional interests in each of our systems from CONE over time to expand our operations and increase our distributable cash flow per unit. CONE has granted us a right of first offer for a period of ten years to acquire CONE’s retained interests in our midstream systems. 
  • Pursuing fixed-fee cash flows. All of our revenues are generated from our Sponsors under long-term, fixed-fee gathering agreements that are designed to mitigate direct commodity price exposure and enhance our long-term cash flow stability. We intend to continue pursuing similar fixed-fee opportunities from our Sponsors and third parties in the future as we focus on capturing anticipated production growth in our areas of operation.
  • Attracting third-party volumes. In addition to being the primary gatherer of our Sponsors’ production in the Marcellus Shale, we also intend to market our services to, and pursue strategic relationships with, third-party producers over the long term. We believe that our portfolio of gathering systems in the Marcellus Shale positions us favorably to compete for third-party production.

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