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OKLAHOMA CITY, Okla., Oct 16, 2008 (BUSINESS WIRE) -- Chesapeake Energy Corporation (NYSE:CHK) today announced that it has
closed a new secured revolving bank credit facility for an affiliate of
its unrestricted subsidiary, Chesapeake Midstream Partners, L.P. ("CMP").
The facility, which matures in October 2013, has initial availability of
$460 million and may be expanded up to $750 million at CMP's
option, subject to additional bank participation. CMP plans to utilize
the facility to partially fund capital expenditures associated with
building additional natural gas gathering and other systems associated
with Chesapeake's active drilling program in
various plays, including the Barnett, Haynesville, Fayetteville and
Marcellus Shales.
Twelve financial institutions participated in the facility that was
jointly led by Wells Fargo Bank, National Association and RBS Securities
Corporation d/b/a RBS Greenwich Capital. Additionally, Wells Fargo Bank,
National Association acted as sole Administrative Agent, The Royal Bank
of Scotland plc as sole Syndication Agent and Bank of Montreal as
Documentation Agent. CMP's affiliate,
Chesapeake Midstream Operating, L.L.C., is the borrower under the
revolving bank credit facility.
Management Comments
Aubrey K. McClendon, Chesapeake's Chief
Executive Officer, commented, "We are pleased
to close our new bank facility for CMP, despite the turbulent financial
market conditions. This new facility clearly demonstrates that lenders
continue to support companies with strong credit profiles and profitable
businesses. We look forward to growing the operations of CMP in the
years ahead."
Chesapeake Energy Corporation is the largest producer of natural gas
in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on exploratory and developmental drilling and
corporate and property acquisitions in the Fort Worth Barnett Shale,
Haynesville Shale, Fayetteville Shale, Anadarko Basin, Arkoma Basin,
Appalachian Basin, Permian Basin, Delaware Basin, South Texas, Texas
Gulf Coast and Ark-La-Tex regions of the United States. Further
information is available at www.chk.com.
SOURCE: Chesapeake Energy Corporation
Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
Senior Vice President --
Investor Relations and Research
jeff.mobley@chk.com
or
Marc Rowland, 405-879-9232
Executive Vice President
and Chief Financial Officer
marc.rowland@chk.com