Rose Rock to buy Chesapeake oil transportation assets

HOUSTON Thu Jun 5, 2014 10:32am EDT

HOUSTON (Reuters) - Rose Rock Midstream LP said on Thursday that it would acquire crude trucking operations from a unit of Chesapeake Energy Corp in a deal that will expand the company's reach into key oil producing shale basins.

The deal, which is expected to close in the second quarter, includes 124 trucks, 122 trailers and other equipment in Texas, Oklahoma and Ohio, said Tulsa, Oklahoma-based Rose Rock.

Terms of the transaction, which affects about 200 employees, were not disclosed. A spokeswoman for Rose Rock, a master limited partnership formed by SemGroup Corp, did not immediately return a call seeking comment.

Chesapeake, the second largest U.S. producer of natural gas, has been cutting costs and selling assets under Chief Executive Doug Lawler in a bid to cut debt and improve profitability.

Shares of Chesapeake rose 31 cents, or 1 percent, to $29.60 while Rose Rock shares rose 25 cents to $45.80 in morning New York Stock Exchange trading.

(Reporting by Anna Driver; Editing by Lisa Von Ahn and Nick Zieminski)

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