Exterran Partners buying Chesapeake Gas

Exterran Partners is spending $360 million to buy natural gas compression assets from Chesapeake Energy Corp.

Exterran Partners L.P. will spend $360 million to buy the natural gas-compression assets of Chesapeake Energy Corp.’s MidCon Compression subsidiary and use them to provide services in the Eagle Ford Shale and other domestic energy plays, officials say.

The assets include 334 compression units currently used to provide compression services to Access MLP Operating LLC, a subsidiary of Oklahoma City-based gas pipeline giant Access Midstream Partners LP.

In connection with the deal, Exterran will provide contract compression services to Access in the Eagle Ford, Permian, Barnett, Anadarko, Mississippi Lime, Granite Wash, Woodford, Haynesville and Niobrara basins.

Chesapeake runs its Barnett Shale operations from a headquarters building in Fort Worth, which is up for sale.

The deal is expected to close in the second quarter.

“With this transaction, we continue to deliver on our strategy of growing our core contract operations business,” Exterran Partners CEO Brad Childers said in a written statement. “Because the units we are acquiring are highly standardized and average less than five years in age, the acquisition is also consistent with our strategy to modernize and standardize our existing fleet.”