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.