Noble Midstream (NYSE: NBLX) burst on to the scene a few years ago as the best-performing master limited partnership of 2017. But it's been all downhill since its excellent rookie season as a public company. Despite growing its distribution by a 20% annual rate since its initial public offering (IPO) in late 2016, the MLP's unit price has slumped 17% from its IPO price. It's even farther off its all-time high, and its yield has risen to an eye-popping 12.4%.
Given that the market isn't rewarding its growth, Noble Midstream has decided to shift gears. It recently completed a major transaction with its parent, oil and gas producer Noble Energy (NYSE: NBL), which will simplify their relationship and sharpen its focus. It will also have the company slowing its distribution growth rate. However, it hopes this new strategy will create more value for investors over the long term.
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Source: Motley Fool
(November 19, 2019 - 9:16 AM EST)
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