Chesapeake’s Eagle Ford Midstream & Gathering Being Sold to Bridge Funding Gap

CHK is selling Eagle Ford midstream assets in two separate deals
Permian Basin Map

Permian Basin Map | Click to Enlarge

Chesapeake Energy plans to sell Eagle Ford midstream & gathering assets as part of a larger deal with Global Infrastructure Partners for $2.7 billion. The bulk of the assets included in the deal are located in the Eagle Ford, Haynesville Shale, Utica Shale, and Niobrara Shale in the Powder River Basin of Wyoming. The company is also selling oil gathering assets in combination with other Mid-Continent assets for proceeds of $300 million. The $3 billion midstream deal was one of several divestitures announced earlier in the week that also included the sale of Permian properties for $3.3 billion. The company has planned $13-14 billion in asset sales in 2012 and announced $6.9 billion in sales so far in September 2012. 

The assets sold in the third quarter included most of the company’s Permian properties, almost all of the company’s midstream assets, and non-core acreage in the Utica Shale. Permian properties were sold in three separate transactions with Shell, Chevron, and EnerVest. Midstream assets are being sold to Global Infrastructure Partners and oil gathering assets are being sold to an undisclosed buyer.

Read more in the chk press release.

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R.T. Dukes

R.T. Dukes

Managing Editor at
R.T. is the managing editor of In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

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