OKLAHOMA CITY--(BUSINESS WIRE)--Feb. 28, 2014--
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.
Source: Chesapeake Energy Corporation
Chesapeake Energy Corporation
Investors:
Gary T. Clark, CFA,
405-935-8870
ir@chk.com
or
Media:
Gordon
Pennoyer, 405-935-8878
media@chk.com