Chesapeake Midstream Partners agrees to acquire gas gathering assets in Marcellus Shale from Chesapeake Energy for $865 million
Client(s) Chesapeake Midstream Development L.P.
Jones Day advised Chesapeake Midstream Development L.P., one of the energy industry's largest midstream MLPs, in its acquisition of Appalachia Midstream Partners, L.L.C. ("AMS") from Chesapeake Midstream Development, L.P. ("CMD"), a wholly owned subsidiary of Chesapeake Energy Corporation. The total consideration for the acquisition was $865 million, of which $600 million was paid in cash and $265 million was paid in CHKM common units. The transaction was approved by both the conflicts committee and the board of directors of the general partner of CHKM and closed on December 29, 2011. Upon effectiveness of the acquisition, which will occur on December 31, 2011, CHKM will own--through its ownership of AMS--an approximately 47% undivided interest in an integrated system of assets consisting of approximately 200 miles of gathering pipeline in the Marcellus Shale, with daily throughput of just over one billion cubic feet.