Chesapeake to sell midstream assets

Chesapeake Energy Corp., Oklahoma City, plans to sell midstream assets to two companies in three transactions for a total of more than $4 billion.

Global Infrastructure Partners is to buy all of Chesapeake’s limited partner units and general partner interest in Chesapeake Midstream Partners LP for $2 billion. Closing is expected by June 29.

In addition, Global Infrastructure is to buy Chesapeake Midstream Development LP, and Chesapeake Midstream Partners LP is to buy certain Midcontinent midstream assets from Chesapeake. Those two deals are expected to yield a total of $2 billion.

The three midstream divestitures are expected to enable Chesapeake to reduce previously budgeted capital expenditures by $3 billion over the next 3 years.

Aubrey K. McClendon, Chesapeake’s chief executive officer, said proceeds of these transactions are an important part of the company’s program to sell assets for a total of $11.5-14 billion.

Chesapeake has announced asset sales so far this year of $6.6 billion, including the midstream transactions.

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