Chesapeake sells assets for more than $2.16 billion

Chesapeake has been under intense pressure from creditors and shareholders to reduce debt as it shifts its focus to oil from natural gas.

Chesapeake has now announced about $11.1 billion in assets to close this year and another $425 million to close in the first quarter of 2013. Tuesday's deal moves the company closer to its goal of selling $14 billion in 2012 and a total of $17 billion to $19 billion by the end of 2013.

Analyst Philip Weiss said the sale improves the company's financial position, but that more work is needed.

“Chesapeake needs to complete these sales and others,” said Weiss, an analyst with Argus Research Group in New York.

“Otherwise it will have to cut its capex (capital expenditure) budget. It could also potentially face a liquidity event. Completion of midstream sales is something the market is looking for, so this is a plus. But there's still more to go.”

Access Midstream executives said the deal will give the Oklahoma City midstream company “well-established footprints in virtually all of the major unconventional basins in the United States.”

“The acquisition of these midstream assets is a transformational opportunity for Access,” CEO Mike Stice said. “The extension of our services into gas processing, fractionation and NGL (natural gas liquids) pipelines will enhance our ability to grow and deliver additional value to our unit holders going forward.”