- There has been speculation that Chevron may acquire the outstanding stake in Noble Midstream Partners after acquiring their parent, Noble Energy.
- In my view, this seems unlikely since it would not move the needle for such a massive company. Plus, they will already get control over their assets anyway.
- Regardless of whether this eventuates, unitholders can still count of collecting that high near 9% distribution yield whilst they deleverage.
- During the second quarter of 2020, the sustainability of their distributions improved with operating cash flow increasing year on year, plus their liquidity also strengthened.
- Given this situation, it only feels appropriate to maintain my bullish rating.
For further details see:
Noble Midstream Partners: Count On That Distribution, Not A Takeover