- It appears that 2021 is shaping up to be a positive year for Noble Midstream Partners and their high distribution yield of almost 7%.
- Management has indicated that their capital expenditure will decrease significantly during 2021 versus 2020, which will help expedite their top priority of deleveraging.
- Whilst they are not facing any solvency issues, deleveraging remains important for unitholders because once completed, they could see their previous higher distributions reinstated.
- Their liquidity initially appears to be at crisis levels on the surface but given their connection to Chevron and their general fundamental viability, they should not have issues refinancing their debt.
- Given this situation, I believe that maintaining my bullish rating is appropriate heading into 2021.
For further details see:
Noble Midstream Partners: 2021 Shaping Up Positively And Could Expedite Deleveraging