Exterran Acquires Eagle Ford Gas Compression Assets from Chesapeake in $360 Million Deal

Exterran Enters Seven Year Agreement with Access Midstream Partners
MidCon Compression Operations Map

MidCon Compression Operations Map | Click to Enlarge

Exterran Partners will spend $360 million to acquire natural gas compression assets from MidCon Compression, a subsidiary of Chesapeake Energy. These assets will be used by Exterran to provide contract services in the Eagle Ford and other domestic plays.

Included in the deal are 334 compression units, with a total horsepower of ~440,000.

“With this transaction, we continue to deliver on our strategy of growing our core contract operations business,” said Exterran Partners CEO Brad Childers. “Because the units we are acquiring are highly standardized and average less than five years in age, the acquisition is also consistent with our strategy to modernize and standardize our existing fleet.”

Prior to the deal, MidCon was the service provider for Access MLP Operating, a subsidiary of Access Midstream Partners, in the Eagle Ford, Permian, Barnett, Anadarko, Mississippi Lime, Granite Wash, Woodford, Haynesville and Niobrara Basins.

At the closing of the deal, Exterran will enter a seven year operations agreement with Access Midstream Partners.

Exterran Partners Sr. VP, Rob Rice, said, “we are particularly pleased to establish this significant customer relationship with Access, and we look forward to servicing their contract compression needs for many years to come.”

Exterran Deal Highlights

  • Exterran acquires natural gas compression assets in $360 million deal from MidCon, a subsidiary of Chesapeake
  • Exterran enters seven year operations services agreement with Access at close of deal
  • Service area for acquired assets extends to the Eagle Ford, Permian, Barnett, Anadarko, Mississippi Lime, Granite Wash, Woodford, Haynesville and Niobrara Basins
  • Included in the deal are 334 compression units, with a total horsepower of ~440,000

Read more at exterran.com

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Kirk Eggleston

Kirk Eggleston

Contributor at EagleFordShale.com
Kirk Eggleston writes on significant news developments in the Eagle Ford and Bakken Shale plays. He is a former broadcast journalist, and has experience covering news and politics in the Texas and Louisiana markets.

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