Chesapeake Energy Corporation Announces Midstream Compression Asset Sales
February 28 2014 - 09:01AM
Business Wire
Chesapeake Energy Corporation (NYSE:CHK) announced today the
execution of two agreements to sell midstream compression assets
for total proceeds of approximately $520 million. Access Midstream
Partners, L.P. (NYSE:ACMP) and Exterran Partners, L.P.
(NASDAQ:EXLP) have agreed to purchase an aggregate of 437
compression units and related assets from Chesapeake subsidiary
MidCon Compression, L.L.C. in two separate transactions which,
subject to certain closing conditions, are expected to close before
the end of the 2014 second quarter.
Access Midstream Partners has agreed to purchase 103 compression
units with a combined capacity of approximately 200,000 horsepower
for $160 million. The units service gathering systems in Ohio,
Pennsylvania and West Virginia.
Exterran Partners has agreed to purchase 334 compression units
with a combined capacity of approximately 440,000 horsepower for
approximately $360 million. The units service gathering systems in
Arkansas, Louisiana, Oklahoma, Texas and Wyoming.
Chesapeake’s Chief Financial Officer, Domenic J. Dell’Osso, Jr.,
commented, “Chesapeake continues to streamline its overall
portfolio to focus on our core assets. These sales are consistent
with this strategy and will generate more than $500 million towards
improving our balance sheet, while having minimal impact on our
2014 cash flow guidance.”
Chesapeake Energy Corporation (NYSE:CHK) is the
second-largest producer of natural gas and the 10th largest
producer of oil and natural gas liquids in the U.S. Headquartered
in Oklahoma City, the company's operations are focused on
discovering and developing its large and geographically diverse
resource base of unconventional natural gas and oil assets onshore
in the U.S. The company also owns substantial marketing,
compression and oilfield services businesses. Further information
is available at www.chk.com where Chesapeake
routinely posts announcements, updates, events, investor
information, presentations and news releases.
This news release includes "forward-looking statements" that
give Chesapeake's current expectations or forecasts of future
events. The transactions with Access Midstream Partners and
Exterran Partners are subject to closing conditions and may not be
completed in the time frame anticipated or at all. Although we
believe the expectations, intentions and forecasts reflected in our
forward-looking statements are reasonable, we can give no assurance
they will prove to have been correct. They can be affected by
inaccurate assumptions or by known or unknown risks and
uncertainties, and actual results may differ from the expectation
expressed. We caution you not to place undue reliance on our
forward-looking statements, which speak only as of the date of this
news release, and we undertake no obligation to update this
information, except as required by applicable law.
Chesapeake Energy CorporationInvestors:Gary T. Clark, CFA,
405-935-8870ir@chk.comorMedia:Gordon Pennoyer,
405-935-8878media@chk.com
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