Seeking Alpha

Chesapeake sells midstream compression assets in deals totaling $520M

  • Chesapeake Energy (CHK) announces two agreements to sell midstream compression assets for a combined $520M, as it continues to streamline its portfolio towards improving its balance sheet with "minimal impact" on 2014 cash flow guidance.
  • Access Midstream Partners (ACMP) will purchase 103 compression units with a combined capacity of ~200K hp from CHK subsidiary MidCon Compression for $160M, and Exterran Partners (EXLP) will purchase 334 compression units with a combined capacity of ~440K hp for $360M.
  • CHK +0.4% premarket.
Comments (1)
  • GamCap LLC
    , contributor
    Comments (445) | Send Message
     
    I give Lawler credit for continuing on the path to a pure-play E+P and away from a land devouring, nat gas trading team taking huge risks. Lawler has done everything which he has promised to this point and should be applauded.

     

    We still have the services div, 30% stake in FTS Intl and the Barnett sales to look forward to(maybe the Niobrara?) this year. A settlement with the State of Michigan is a couple weeks away and hopefully put to rest the DOJ ant-trust investigation as well. CHK has pulled their Michigan acerage(has been listed for sale since june 2012) off the Meagher Energy website. A deal gets done and they probably sell it off to Enervest for chump change but will be done with it once and for all.
    1 Mar 2014, 05:24 PM Reply Like
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