* Access Midstream Partners to buy 103 compression units for
* Exterran Partners to purchase 334 compression units for
* Chesapeake shares rise 1 pct
Feb 28 Chesapeake Energy Corp said it
would sell 437 natural gas compression units and related assets
in two separate deals to Access Midstream Partners LP
and Exterran Partners LP for a total of $520 million.
The No.2 U.S. natural gas producer is selling assets to plug
a $1 billion gap between operating cash flow and capital
expenditure and said earlier this month that it would cut
spending by 20 percent this year.
Access Midstream Partners has agreed to purchase 103
compression units, which service gathering systems in Ohio,
Pennsylvania and West Virginia, for $160 million.
The 334 compression units Exterran Partners has agreed to
buy for $360 million service gathering systems in Arkansas,
Louisiana, Oklahoma, Texas and Wyoming.
Both deals are expected to close before the end of the
Doug Lawler, who became CEO last June, said on a
post-earnings conference call on Wednesday that the company no
longer needed to divest assets to survive or fund its drilling
Chesapeake shares rose 1 percent to $26.20 in early trading
on Friday. They have risen about 26 percent in the past year.