Access Midstream Partners To Buy Compression Assets From MidCon For $160 Mln

(RTTNews) - Access Midstream Partners, L.P. (ACMP) Friday announced that it has agreed to acquire certain midstream compression assets from MidCon Compression, L.L.C, a unit of Chesapeake Energy Corp. (CHK), for $160 million.

According to Access Midstream, the planned acquisition adds natural gas compression assets, historically leased from MidCon, in the rapidly growing Utica Shale and Marcellus Shale regions.

The assets include more than 100 compression units with a combined capacity of about 200,000 horsepower.

In addition, Exterran Partners L.P., 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.

Mike Stice, Access Midstream Partners' Chief Executive Officer said, "Additionally, we are equally excited to enter into an agreement with Exterran for compression services for our remaining operations. This agreement is consistent with our previous contracts with MidCon, supports our low-risk business model and will allow us to continue to provide excellent service to our customers."