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.