8-KRegulation FDOther EventsExhibits & Filings

EXPAND ENERGY Corp 8-K Report, Regulation FD Disclosure (Jul 6, 2012)

Filed July 6, 2012For Securities:EXEEXEELEXEEWEXEEZ

Summary

EXPAND ENERGY Corp (EXE) filed an 8-K on July 6, 2012, to report on the completion of a significant transaction involving its interests in Chesapeake Midstream Partners, L.P. (CHKM). On June 29, 2012, the company successfully divested its common and subordinated units in CHKM, along with its 50% interest in Chesapeake Midstream Ventures, L.L.C., to funds managed by Global Infrastructure Management, LLC. This sale, referred to as the CHKM Transaction, generated substantial cash proceeds of $2.0 billion. Investors should note that as part of the agreement, EXPAND ENERGY Corp will continue to provide certain general and administrative services and personnel secondment to CHKM and its general partner through at least the end of 2013. This ongoing support is on terms consistent with prior arrangements.

Key Highlights

  • 1Completion of the CHKM Transaction: EXPAND ENERGY Corp sold its interests in Chesapeake Midstream Partners, L.P. (CHKM).
  • 2Significant Cash Infusion: The transaction generated aggregate proceeds of $2.0 billion in cash.
  • 3Strategic Divestiture: The sale included common units, subordinated units, and a 50% interest in Chesapeake Midstream Ventures, L.L.C.
  • 4Buyer Identified: The transaction was with funds managed by Global Infrastructure Management, LLC.
  • 5Post-Closing Obligations: EXPAND ENERGY Corp will provide G&A services until December 31, 2013.
  • 6Personnel Support: Continued secondment of personnel to CHKM is agreed until at least December 31, 2012, extendable to March 31, 2013.

Frequently Asked Questions

The primary purpose of this 8-K filing was to announce and provide details regarding the completion of the sale of EXPAND ENERGY Corp's interests in Chesapeake Midstream Partners, L.P. (CHKM) to funds managed by Global Infrastructure Management, LLC.

EXPAND ENERGY Corp received aggregate proceeds of $2.0 billion in cash from the CHKM Transaction.

Following the sale, EXPAND ENERGY Corp has committed to providing certain general and administrative services to CHKM and its general partner until December 31, 2013. Additionally, they will continue the secondment of certain personnel to CHKM until at least December 31, 2012, with a possible extension to March 31, 2013.

The assets sold included 33,704,666 common units of CHKM, 34,538,061 subordinated units of CHKM, and EXPAND ENERGY Corp's 50% interest in Chesapeake Midstream Ventures, L.L.C.