Access Midstream buys Chesapeake gas compression assets in US
Access Midstream has agreed to acquire several midstream compression assets from MidCon Compression, a wholly-owned subsidiary of Chesapeake Energy, for $160 million.
The planned acquisition adds natural gas compression assets, historically leased from MidCon, in the rapidly growing Utica Shale and Marcellus Shale regions.
The assets include more than 100 compression units with a combined capacity of approximately 200,000 horsepower.
Exterran Partners has entered into an agreement to purchase MidCon’s assets in the partnership’s other operating areas. The partnership also agreed to long-term compression service arrangements with Exterran in those areas.
The acquisition is expected to close by March 31, 2014.
“We are pleased to announce this attractive bolt-on acquisition of compression assets in the Utica and Marcellus regions," said J. Mike Stice, Access Midstream CEO. "These assets fit the Access Midstream business model extremely well.
"Internalizing a portion of our compression expense is consistent with maintaining strong visibility to our cash flows. This acquisition is expected to be immediately accretive to distributable cash flow and enhances our organizational capability in this important aspect of our service offering for our producer customers.
“Additionally, we are equally excited to enter into an agreement with Exterran for compression services for our remaining operations. This agreement is consistent with our previous contracts with MidCon, supports our low-risk business model and will allow us to continue to provide excellent service to our customers.”
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