Chesapeake sells midstream assets for $2.16B

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Associated Press

Posted on December 12, 2012 at 1:02 AM

Updated Wednesday, Dec 12 at 1:02 AM

NEW YORK (AP) — Chesapeake Energy Corp. will sell most of its remaining midstream assets for $2.16 billion as the company aims to strengthen its balance sheet and tighten its focus.

The Oklahoma City company, one of the nation's largest natural gas producers, has been reeling from a combination of historically low natural gas prices and questions from investors about its management. It has been selling off assets to pay off a heavy debt load incurred in recent years as it rushed to buy land and other assets.

Access Midstream Partners L.P. is buying the assets, located primarily in the Marcellus, Utica, Eagle Ford, Haynesville and Niobrara shale plays located throughout the continental U.S.

The deal is expected to close by year-end.

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