Plains All American (PAA) added another deal to Chesapeake’s list of midstream sales. The companies agreed to a $125 million deal for crude oil and condensate gathering assets located in Webb and Dimmit counties. This follows a Chesapeake deal with Access Midstream Partners for $2.16 billion that also included Eagle Ford assets.
The assets include 40 miles of crude oil and condensate gathering lines with capacity to move 50,000 b/d, 150,000 bbls of storage capacity, 300,000 bbls of storage capacity under construction, and a truck unloading terminal.
Chesapeake also made acreage dedications including future production as part of the sale (CHK’s Eagle Ford acreage is highlighted in the map above). The gathering assets will now connect with PAA’s existing assets in the area.
CHK’s CEO Aubrey McClendon made the following comment as part of a press release related to a larger midstream package:
“We are pleased to announce further progress towards our asset sale goals for 2012-13. We look forward to completing additional asset sales and achieving our goals of strengthening our balance sheet, tightening our asset focus and increasing returns to shareholders.”
Read the press release at paalp.com