Oil and gas explorer is focusing its efforts on its more promising shale plays.
Having amended its debt covenants, the iron ore and coal producer said it could close its Bloom Lake development.
Merger would create the second largest energy services provider in the world.
Combination would challenge Schlumberger's dominance in energy services, but obstacles loom.
Goldman is advising Baker Hughes while Credit Suisse is assisting Halliburton on a possible merger.
Deal implies a five times return for Nuevo backer Encap Flatrock Midstream.
The deal moves the gas company closer to a pure play general partner holding company.
Energy transportation and storage companies use sales to MLP to help raise money for expansion.
Sale by Chesapeake Energy continues reorganization spearheaded by new CEO Doug Lawler.
Deal valued at $7.7 billion in cash, stock and assumed debt is latest in bout of consolidation in midstream industry.