Saturday, May 4, 2013

Chesapeake in $300m asset sale

SemGroup Corp is getting its hands on Chesapeake subsidiary Mid-American Midstream Gas Services in a deal worth $300 million, SemGroup said.

The agreement is an all-cash deal with SemGroup to dip into existing bank facilities to fund the acquisition which is set to close in the third quarter. Is covers the sale of gas-gathering and gas-processing facilities on the Mississippi Lime play.

Chesapeake has already stated that is wants to sell between $4 billion and $7 billion of assets this year. It has already agreed deals for $2 billion-worth of asset sales before the SemGroup announcement.

Independent giant Chesapeake revealed a first-quarter profit of $15 million despite taking a hit on hedging instruments.


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