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Access Midstream Partners to acquire midstream compression assets for $160 million


Published Mar 3, 2014
Access Midstream Partners, L.P.

Access Midstream Partners, L.P. has agreed to acquire certain midstream compression assets from MidCon Compression, L.L.C ('MidCon'), a wholly owned subsidiary of Chesapeake Energy Corporation, for $160 million. The planned acquisition adds natural gas compression assets, historically leased from MidCon, in the rapidly growing Utica Shale and Marcellus Shale regions. This transaction provides the opportunity to insource a key cost element of the Partnership's business model at an approximate 8x forward EBITDA multiple and adds future organic growth to the portfolio. The assets include more than 100 compression units with a combined capacity of approximately 200,000 horsepower.

Exterran Partners L.P. ('Exterran') has entered into an agreement to purchase MidCon's assets in the Partnership's other operating areas. The Partnership has agreed to long term compression service arrangements with Exterran in those areas. The acquisition will be funded with borrowings on the Partnership's revolving credit facility and is expected to close by March 31, 2014.

Tags: Access Midstream Partners, L.P.




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