OKLAHOMA CITY (AP) — Chesapeake Energy Corp. says it’s selling its pipeline assets in three separate deals for a total of more than $4 billion in cash.
The struggling Oklahoma City-based natural gas producer will sell its ownership stake in its Chesapeake Midstream Partners LP pipeline company to Global Infrastructure Partners for about $2 billion.
It also will sell certain mid-continent gathering and processing assets to Chesapeake Midstream Partners. In a separate deal, Global Infrastructure Partners will buy the company’s interests in its Chesapeake Midstream Development LP subsidiary.
Chesapeake expects cash proceeds of more than $2 billion from those two deals.
Chesapeake says the sales will allow it to cut its capital spending by about $3 billion over three years. Chesapeake is under pressure to sell assets and cut spending to reduce debt.
