Assets Include 400 mmcfd of Processing Capacity in Core Producing Area
Acquisition Increases Future Drop Down Asset Inventory to Rose Rock Midstream
TULSA, Okla., May 1, 2013 (GLOBE NEWSWIRE) -- SemGroup ® Corporation (NYSE:SEMG) today announced that it has executed a definitive agreement to acquire the equity interests of Mid-America Midstream Gas Services, L.L.C., a wholly owned subsidiary of Chesapeake Energy Corporation (NYSE:CHK), which is the owner of gas gathering and processing assets in the Mississippi Lime play for $300 million in cash. The transaction is expected to close by the third quarter of 2013 and is subject to certain regulatory approvals and closing conditions.Acquisition Highlights
- 200 miles of gathering pipeline;
- Rose Valley I plant: 200 mmcfd cryogenic processing plant, expected to be operational first quarter 2014;
- Rose Valley II plant: 200 mmcfd cryogenic processing plant, expected to be operational first quarter 2016;
- Approximately 540,000 net acre dedication in the core of the Mississippi Lime play, supported by a recently announced joint venture between Chesapeake Energy Corporation and Sinopec International Petroleum Exploration and Production Corporation; and
- Chesapeake Energy Corporation has committed to a 20-year, 100% fee-based, gas gathering and processing agreement.