Chesapeake Energy Corporation announced plans to sell its midstream assets in three separate transactions for total expected cash proceeds of more than $4.0 billion.
The midstream divestitures will also enable Chesapeake to reduce previously budgeted capital expenditures by approximately $3.0 billion over the next three years.
Chesapeake has agreed to sell its limited partner units and its general partner interests in Chesapeake Midstream Partners to Global Infrastructure Partners (GIP) for cash proceeds of $2.0 billion.
Chesapeake has also entered into a letter agreement with CHKM relating to the potential sale of certain Mid-Continent gathering and processing assets to CHKM and a separate letter agreement with GIP for the sale of the company’s interests in its wholly owned subsidiary, Chesapeake Midstream Development, L.P. (CMD) to GIP. Chesapeake expects total cash proceeds of more than $2.0 billion from these two transactions.
LNG World News Staff, June 8, 2012