Chesapeake Energy Corporation Announces Agreement to Sell a Substantial Majority of Its Remaining Midstream Assets for $2.16 Billion
Recently Completed Midstream Transactions Yield Additional
Proceeds of $175 Million; Additional Midstream Sales of $425 Million
Anticipated by the End of the 2013 First Quarter, Bringing Total of
Current and Anticipated Midstream Asset Sales to $2.75 Billion
Combined with $2.125 Billion of Midstream Sales Completed in the
2012 Second and Third Quarters, Chesapeake to Net a Total of $4.875
Billion from its Midstream Exit
Chesapeake Energy Corporation (NYSE:CHK) today announced it has entered
into a definitive agreement to sell a substantial majority of its
remaining midstream assets to Access Midstream Partners, L.P.
(NYSE:ACMP) for approximately $2.16 billion. These midstream assets are
located primarily in the company′s Marcellus, Utica, Eagle Ford,
Haynesville and Niobrara shale plays. The transaction with Access
includes new market-based gathering and processing agreements covering
various acreage dedication areas and is expected to close by the end of
2012.
Additionally, the company has recently completed the sale of other
midstream assets in Oklahoma and Texas during the 2012 fourth quarter
for approximately $175 million.
Finally, Chesapeake anticipates completing the sale of its remaining
midstream assets, including Mid-Continent and other assets, by the end
of the 2013 first quarter for approximately $425 million, bringing the
total of current and anticipated midstream asset sales to $2.75 billion.
Including the approximate $2.125 billion of midstream asset sales
completed in the 2012 second and third quarters, the proceeds from the
company′s midstream exit are anticipated to total approximately $4.875
billion.
Jefferies & Company, Inc. and Goldman, Sachs & Co. are serving as
financial advisors to Chesapeake on its midstream transactions.
Management Comment
Aubrey K. McClendon, Chesapeake′s Chief Executive Officer, stated, 'We
are pleased to announce further progress towards our asset sale goals
for 2012-13. 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.?
This news release includes 'forward-looking statements? that give our
current expectations or forecasts of future events, including the
closing of sales of midstream assets.Although we believe the
expectations and forecasts reflected in our forward-looking statements
are reasonable, we can give no assurance they will prove to be correct.They can be affected by inaccurate assumptions or by known or unknown
risks and uncertainties, and actual results may differ from the
expectations expressed.The sale transaction with Access
Midstream Partners, L.P. is subject to closing conditions, and we have
not yet entered into definitive agreements for all of our other planned
asset sales.Any of our planned asset sales may not be completed
for the amounts expected, in the time frame anticipated or at all.Our
ability to achieve our goals of strengthening our balance sheet,
tightening our asset focus and increasing returns to shareholders is
dependent to a great extent on closing asset sales as anticipated.We
caution you not to place undue reliance on our forward-looking
statements, which speak only as of the date of this news release, and we
undertake no obligation to update this information.
Chesapeake Energy Corporation (NYSE:CHK) is the second-largest
producer of natural gas, a Top 15 producer of oil and natural gas
liquids and the most active driller of new wells in the U.S.Headquartered
in Oklahoma City, the company's operations are focused on discovering
and developing unconventional natural gas and oil fields onshore in the
U.S.Chesapeake owns leading positions in the Eagle Ford,
Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime and Niobrara
unconventional liquids plays and in the Marcellus, Haynesville/Bossier
and Barnett unconventional natural gas shale plays. The company also
owns substantial marketing and oilfield services businesses through its
subsidiaries Chesapeake Energy Marketing, Inc. and Chesapeake Oilfield
Operating, L.L.C. Further information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.
Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
John
J. Kilgallon, 405-935-4441
john.kilgallon@chk.com
or
Media
Contacts:
Michael Kehs, 405-935-2560
michael.kehs@chk.com
or
Jim
Gipson, 405-935-1310
jim.gipson@chk.com
