Friday, June 8, 2012

Chesapeake to Sell Midstream Assets

In what is not exactly a surprise in this chaotic week foe Chesapeake Energy, the company announced that it is selling its midstream (pipeline and gathering) assets in three deals for $4 billion. The move puts money in the bank when desperately needed and reduces some future capital expenditures. With this and other transactions, the company is dismantling its vertically integrated business model that made it unique among other independent producers.

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