Exterran Buying Some MidCon Assets
Deal includes 334 compression units
Exterran Partners is acquiring 334 compression units totaling 440,000 hp (328 MW) from MidCon Compression LLC, a subsidiary of Chesapeake Energy Corp., for US$360 million.
The assets are being used to provide compression services to Access MLP Operating LLC, a subsidiary of Access Midstream Partners LP, the largest gathering and processing master limited partnership in the nation in terms of throughput volume.
In connection with the acquisition, Exterran Partners will provide Access contract compression services for 7 years in areas of the Permian and Niobrara basins and in the Eagle Ford, Barnett, Anadarko, Mississippi Lime, Granite Wash, Woodford and Haynesville shale areas.
Exterran CEO Brad Childers said, “With this transaction, we continue to deliver on our strategy of growing our core contract operations business. Because the units we are acquiring are highly standardized and average less than five years in age, the acquisition is also consistent with our strategy to modernize and standardize our existing fleet.”
The transaction is expected to close in the second quarter.