GIP Buys Additional Chesapeake Assets

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
$2,700.0MM
Description

Purchase of gathering and processing assets in Eagle Ford, Utica, Haynesville and Powder River Basin.

Chesapeake plans to sell substantially all of its midstream assets in three separate transactions and also expects to enter into a fourth agreement, which would result in combined proceeds of approximately $3.0 billion.
Global Infrastructure Partners (GIP) plans to buy most of the midstream assets owned by Chesapeake Midstream Development LP, a wholly owned subsidiary of Chesapeake, for about $2.7 billion. Those assets include gathering and processing systems in the Eagle Ford, Utica, Haynesville and Powder River Basin Niobrara shale plays and certain other assets.

The transaction with GIP would include new market-based gathering and processing agreements covering certain acreage dedication areas and also include one new volume commitment covering approximately 70% of the company’s expected production volumes in the southern portion of our Haynesville Shale area during 2013-17.