Chesapeake plans to sell midstream assets

Chesapeake CEO Aubrey McClendon
Photo by Mark Hancock

The planned sale represents a
substantial majority of the company’s midstream assets in the Marcellus, Utica,
Eagle Ford, Haynesville and Niobrara shale plays. The buyer is Access Midstream
Partners LP. It includes the sale of new market-based gathering and processing
agreements that cover various acres.

“We are pleased to announce further progress
toward our asset sale goals for 2012-13,” said Chesapeake CEO Aubrey K.
McClendon. “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.”

Combined with other midstream
sales, the company will net a total of $4.875 billion from its midstream exit. That
includes the sale of other midstream assets in Oklahoma and Texas for about
$175 million in the fourth quarter of 2012, and the planned sale of remaining
midstream assets by the end of the first quarter of 2013 for about $425
million. In the second and third quarters of 2012, the company completed a
$2.125 billion sale of midstream assets.

Jefferies & Company Inc. and
Goldman, Sachs & Co. are serving as financial advisers to Chesapeake on its
midstream transactions.

Chesapeake shares closed down 12
cents at $16.98 Wednesday on the New York Stock Exchange.

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