Chesapeake sells pipeline business
Chesapeake Energy, the troubled energy company that owns nearly half the “midstream” pipelines in Pennsylvania's Marcellus Shale natural-gas industry, is selling those assets as part of a three-prong deal totaling $4 billion.
Chesapeake said today it would sell its stake in the midstream business Chesapeake Midstream Partners, for $2 billion to Global Infrastructure Partners, an infrastructure investment private-equity fund founded by Credit Suisse and General Electric Co.
Chesapeake also said it would sell “certain mid-continent gathering assets” as well as another subsidiary, Chesapeake Midstream Development, to Chesapeake Midstream Partners for another $2 billion.
Chesapeake Midstream says it owns more than 200 miles of gathering pipelines totaling 47 percent of Pennsylvania’s midstream infrastructure and more than 3,700 miles of pipeline nationwide.
Chesapeake Energy’s annual meeting is today. The Oklahoma City-based company is struggling with billions of dollars in debt, low natural-gas prices and revelations that its CEO, Aubrey McClendon, used the firm’s assets to secure $1.5 billion in personal loans.
Chesapeake owns about 200 active natural-gas wells in Pennsylvania, according to the Department of Environmental Protection.