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Chesapeake Energy (CHK) agrees to sell a substantial majority of its remaining midstream assets...

Chesapeake Energy (CHK) agrees to sell a substantial majority of its remaining midstream assets to Access Midstream Partners (ACMP) for ~$2.16B; the assets are located primarily in the Marcellus, Utica, Eagle Ford, Haynesville and Niobrara shale plays. CHK also anticipates completing the sale of its remaining midstream assets by the end of Q1 2013 for ~$425M. CHK +0.3% AH.
Comments (18)
  • WOW. Once CHK sells all these assets will anything be left?
    11 Dec 2012, 05:44 PM Reply Like
  • Well, the only thing that ACMP is buying are the midstream assets(from wellhead to pipeline). Plus, ACMP is positioned quite well; right of first refusal on CHK asset sales, and anywhere that they currently operate, carries over on any asset sale. For instance, if BP buys a field that's already producing, they're bound by the contract that ACMP had with CHK. It's my biggest winner of the year, and pays a hearty distribution as well.
    11 Dec 2012, 05:52 PM Reply Like
  • Just to have it clear: your winner is CHK or ACMP?
    11 Dec 2012, 07:00 PM Reply Like
  • ACMP
    11 Dec 2012, 07:06 PM Reply Like
  • Energy systems-- on this deal yes, but I was saying if you add up all their asset sales in the past year, plus through 2013, what will be left?!
    11 Dec 2012, 07:07 PM Reply Like
  • haha, well that's CHK's problem. They've gotten themselves into quite a hole and will have to shed assets in order to keep from drowning. On the flipside, that creates an opportunity for more companies to get to know ACMP, thus probably expanding their customer base.
    11 Dec 2012, 09:09 PM Reply Like
  • E&P not MLP. Planned sale that reduces debt. Yawn. If NG goes to $6+ as some expect, then CHK will have made all the right moves (finally). Tell Obama to turn the thermostats down on global warming in WDC and the 13 original colonies and NG may get there.
    12 Dec 2012, 02:14 AM Reply Like
  • vs. $2.7B originally expected...but they claim the roughly $600mm in additional midstream asset sales are coming. So is Christmas.
    11 Dec 2012, 05:50 PM Reply Like
  • value---------77 Ah, but Christmas will be here soon!
    11 Dec 2012, 05:59 PM Reply Like
  • From wellhead to pipeline-- What else does this cover besides the tankage, heater treaters, separators, pipeline gathering systems at or near the wellhead ?
    11 Dec 2012, 09:23 PM Reply Like
  • CHK's and Aubrey's troubles may have just begun.Think IRS,DOJ and SEC not to mention shareholder suits..'When you're up to your ass in alligators,you forget that the initial objective was to clear the swamp'...
    11 Dec 2012, 09:23 PM Reply Like
  • Best and most honest comment yet, Bfeshbach. They are selling the very things they need to make money on. Not looking like a good 2013 for CHK.
    12 Dec 2012, 12:45 AM Reply Like
  • Zebra114:

     

    Yes you nailed it. The mid-stream assets, with cost and revenue exactly known, is known to be profitable without a question. They are selling the profitable business while keep losing money on the non-profitable part: drilling for shale gas. CHK must be desperate.

     

    I don't understand why any one still touches any shale player? The play you want to be in to make money, is in the coal sector.
    12 Dec 2012, 03:52 AM Reply Like
  • Right on Marc Anthony! Something leads me to think CHK is setting themselves up to be wholly purchased soon, but I could be wrong. Actions like this make me wonder who Aubrey is really working for. Could it be that he is setting the company up for failure while walking through another door and betting against CHK?

     

    On another note, doesn't the management at SA like you telling the public the truth? Haven't seen you in awhile.

     

    As far as other investments, I agree with you on coal, just haven't narrowed my focus to where to place my bets. News yesterday of the 7 Attorney Generals suing the EPA for methane emission rules could create massive expenditures for all shale companies. Shale is a lose lose proposition. The writing is on the wall.
    12 Dec 2012, 08:32 AM Reply Like
  • Thinking Aubrey needs to go....
    12 Dec 2012, 01:07 AM Reply Like
  • After the various asset sales, in addition to all the good stuff visible on the balance sheet, they will still have approximately 50 tcfe of risked unproven resources currently valued at zero on the balance sheet.

     

    That's tcfe with a 'T' as in trillion.
    12 Dec 2012, 03:40 AM Reply Like
  • Ya he seems to make good money selling antique maps
    12 Dec 2012, 09:31 AM Reply Like
  • Hell in the shale industry began.
    make your bets..........
    13 Dec 2012, 01:16 AM Reply Like
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