Chesapeake announces $4B sale of pipeline assets
Chesapeake Energy Corp. on Friday announced plans to sell its midstream assets for more than $4 billion, giving shareholders some good news heading into this morning’s annual meeting.
Chesapeake will sell its partnership interests in subsidiary Chesapeake Midstream Partners to Global Infrastructure Partners for $2 billion.
The company also announced agreements to sell natural gas gathering and processing assets to Chesapeake Midstream and its stake in Chesapeake Midstream Development LP to Global Infrastructure. Those deals are expected to net more than $2 billion.
“We have been working for the past few months to monetize our substantial and valuable midstream assets and are pleased to announce the sale of our investments in CHKM and a plan to sell our remaining midstream assets at attractive prices,” Chesapeake CEO Aubrey McClendon said.
He said Chesapeake’s ongoing asset sales program is on track to bring in as much as $14 billion this year.
“With our Permian asset sale, Mississippi Lime JV and other miscellaneous asset sales still to come in the second half of the year, we feel very good about our ability to meet our targeted range for 2012 asset sales. “
The Oklahoma City-based oil and natural gas producer has been facing heavy criticism from investors and analysts over the past couple of months amid media scrutiny of the complicated financial dealings of the company and McClendon.
Chesapeake relented to demand from its two largest shareholders this week when it announced plans to replace four of its board members by June 22.
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Comments
I absolutely agree with the original comment. This city has changed and grown in so many positive ways because of the vision of Aubrey and the resources afforded us through the success of Chesapeake. The city of OKC needs to get behind Aubrey and Chesapeake and show our gratitude and support.
I am sincerely appreciative for the contributions that have been attributed to Chesapeake and Aubrey’s generosity. However, there are several leaders in Oklahoma whose presence and the work they do contribute to the vitality of our state. Bob Stoops for example, but he has rules to follow, and if he doesn’t follow those same rules that apply to all collegiate football organizations, his impact on Oklahoma is diminished greatly. And he knows that, and in his position over that team which is rich in tradition and success, the Board of Regents expect him to know that and make it a priority. It’s a huge responsibility to sit in that kind of seat over something so influential. Every decision, every action, every thought is weighed carefully, and the potential outcomes and how they will effect the organization as a whole matter most. There is saying that goes something like this: “The sum of the whole, is greater than the sum of it’s parts.”
Beware of easy money! The secret to Aubrey’s success has been “drill baby drill”, now it’s “sell baby sell”. CHK has drilled OK and TX to death. It’s difficult now to walk out our front door without seeing a pump or an abandoned pad. For what, a fancy campus, a few gifts to charities and a new arena. Money is fleeting, our legacy to our children is precious. Now that we’re learning of the financial consequences, I’m afraid the next revelation will be the ecological ones.
Much like a ponzi scheme, CHK has to drill in order to maintain cashflow to pay creditors – new money in to pay creditors on the way out. Now he’s rumored to be courting the Chinese. You have to be kidding me! Are you ready OK for the “sickle and hammer” flapping in the OK wind on top of drilling rigs? I know THEY don’t care about groundwater contamination in OK.
Here’s a good shareholder question, has CHK ever had a bond repaid at maturity? Beware of those who have prospered alongside him. You know, the ones seen around the floor at the CHK Center…
We agree without the wonderful public service efforts of
Chesapeake our city would not be as well off as it is.Aubrey
McClendon needs to hear it from OKLAHOMA CITY. Opportunity
has been afforded to many people in the Bricktown area with
the river projects, and many others.
Thanks again to Chesapeake.