Chesapeake to sell most of midstream assets to Access for $2.16bn

12 December 2012 21:11  [Source: ICIS news]

HOUSTON (ICIS)--Chesapeake Energy has entered into an agreement to sell most of its remaining midstream assets to Access Midstream Partners LP (ACMP) for about $2.16bn (€1.66bn), the US natural gas producer said on Wednesday.

The assets are located primarily in the company’s shale plays in the Marcellus, Utica, Eagle Ford, Haynesville and Niobrara, Chesapeake said. The deal also includes new market-based gathering and processing agreements in other acreage dedication areas.

The transaction is expected to close by the end of the year, the company said.

The deal is part of Chesapeake’s $4.875bn midstream exit, recently completing the sale of its Oklahoma and Texas midstream assets for about $175m. The company hopes to sell its mid-continent and remaining midstream assets for about $425m by the end of the first quarter.

The agreement follows Williams Energy’s announcement on Tuesday that it will invest up to $2.4bn to acquire a 50% interest in Access Midstream Partners GP and 25% of ACMP's limited partners units.

The investment will open Williams up to 10 major shale and unconventional producing areas.

The remaining 50% interest of Access Midstream Partners GP will be owned by Global Infrastructure Partners (GIP).

By: Tracy Dang
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