Chesapeake Midstream agrees to acquire gas gathering assets for $865M
Chesapeake Midstream Partners (CHKM) announced it has agreed to acquire Appalachia Midstream Services, the wholly owned subsidiary of Chesapeake Midstream Development, that holds its Marcellus Shale midstream assets, for total consideration of $865M. Chesapeake Midstream Development, L.P. is a wholly owned subsidiary of Chesapeake (CHK). Through acquiring AMS, CHKM will own pproximately 47% of an integrated system of assets that consist of approximately 200 miles of gathering pipeline in the Marcellus Shale, including the liquids-rich Marcellus South region. Chesapeake has committed to generating EBITDA of not less than $100M in 2012 and $150M in 2013 from the Marcellus assets for the benefit of CHKM. The acquisition, which is expected to close by December 30, will be financed by $600M of cash drawn from CHKM's revolving credit facility and equity consideration of $265M, increasing Chesapeake's limited partnership ownership of CHKM to 46.1% from 42.3%. For the latest updates on the stock market, visit,
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