Cone Midstream Partners, the child company to Consol Energy Inc. and Noble Energy Inc., shared that it may be picking up some new assets and allowing other companies to use its pipelines.
On Monday during a phone call with analysts, Cone Midstream’s CEO and Chairman John Lewis expressed that Cone is expected to meet and possibly exceed its growth projections. However, since commodity prices are still low, Cone’s parent companies, Consol and Noble, may not produce as much gas. Currently, Noble and Consol are Cone’s only customers.
As reported by the Pittsburgh Business Times, Lewis explained that in order to supplement growth and fill any void that may occur due to Consol’s and Noble’s natural gas production, Cone is considering making capacity available to other companies. The company is also tossing around the idea to “move other midstream assets under the Cone umbrella.” Cone’s CFO David Khani said the company is currently evaluating “dropping down” some of its assets:
We’re looking at it now … I will say we’re pleased with the underlying organic throughput right now for 2015 and what looks like for 2016 because a lot of the activity level of 2015 really drives the production throughput of 2016.
According to Brian Aiello, Consol’s spokesperson, Consol looks at Cone’s moves in a positive light. He did mention the company does feel that to reach growth targets Cone will not have to open its pipes to outside companies, but it would be an option to supplement growth. According to the Pittsburgh Business Times, Aiello also said, “Cone is looking to the stacked shale layers Consol and Noble are sitting on as another potential source of growth in gas volumes.”