Chesapeake Absorbs Marcellus Shale Midstream Assets
Tuesday, January 03, 2012
Chesapeake Midstream Partners LP (CHKM) is acquiring Appalachia Midstream Services LLC, the wholly owned subsidiary of Chesapeake Midstream Development LP that holds its Marcellus Shale midstream assets, for US$865 million.
Chesapeake Midstream Development is a wholly owned subsidiary of Chesapeake Energy Corp. The addition of the Marcellus pipeline and compression assets makes CHKM the industry's largest gathering and processing master limited partnership as measured by throughput volume, the company said.
The acquisition will give CHKM 47% of an integrated system of assets that consist of about 200 miles of gathering pipeline in the Marcellus Shale, including the liquids-rich southern region. Throughput for the assets on Dec. 15, 2011 was just over 1 Bfc/d.
Separately, Chesapeake Energy formally began its joint venture with Total E&P USA, under which Total acquired a 25% interest in 619 000 acres in the liquids-rich area of the Utica Shale in eastern Ohio.
Chesapeake contributed 542 000 acres to the joint venture and received US$2.32 billion. EnerVest Ltd. added the balance and received US$290 million.
For more information: www.chesapeakemidstream.com