Chesapeake Announces $2 Billion Sale of Midstream Assets

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Recently Completed Midstream Transactions Yield Additional Proceeds of $175 Million; Additional Midstream Sales of $425 Million Anticipated by the End of the 2013 First Quarter, Bringing Total of Current and Anticipated Midstream Asset Sales to $2.75 Billion
Combined with $2.125 Billion of Midstream Sales Completed in the 2012 Second and Third Quarters, Chesapeake to Net a Total of $4.875 Billion from its Midstream Exit


Chesapeake Energy Corporation (NYSE:CHK) today announced it has entered into a definitive agreement to sell a substantial majority of its remaining midstream assets to Access Midstream Partners, L.P. (NYSE:ACMP) for approximately $2.16 billion. These midstream assets are located primarily in the company's Marcellus, Utica, Eagle Ford, Haynesville and Niobrara shale plays. The transaction with Access includes new market-based gathering and processing agreements covering various acreage dedication areas and is expected to close by the end of 2012.
Additionally, the company has recently completed the sale of other midstream assets in Oklahoma and Texas during the 2012 fourth quarter for approximately $175 million.
Finally, Chesapeake anticipates completing the sale of its remaining midstream assets, including Mid-Continent and other assets, by the end of the 2013 first quarter for approximately $425 million, bringing the total of current and anticipated midstream asset sales to $2.75 billion. Including the approximate $2.125 billion of midstream asset sales completed in the 2012 second and third quarters, the proceeds from the company's midstream exit are anticipated to total approximately $4.875 billion.
Jefferies & Company, Inc. and Goldman, Sachs & Co. are serving as financial advisors to Chesapeake on its midstream transactions.
Management Comment
Aubrey K. McClendon, Chesapeake's Chief Executive Officer, stated, "We are pleased to announce further progress towards our asset sale goals for 2012-13. We look forward to completing additional asset sales and achieving our goals of strengthening our balance sheet, tightening our asset focus and increasing returns to shareholders."


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