US-based natural gas contract operations services company Exterran Partners will acquire natural gas compression assets from Chesapeake Energy subsidiary MidCon Compression for approximately $135m.
Under the agreement, Exterran will acquire 162 natural gas units, of which the majority are currently used to provide compression services to BHP Billiton Petroleum in Arkansas’ Fayetteville Shale.
The acquisition adds 110,000hp, the majority of which is under a five-year contract operations services agreement.
Exterran Partners managing general partner senior vice president and chief financial officer David Miller said that the company expects the transaction to be immediately accretive to distributable cash flow per limited partner unit.
"As a result of this acquisition, we expect to recommend to the Board of Exterran Partners’ managing general partner that Exterran Partners increase the distribution to limited partner unit holders by an incremental $0.02 per limited partner unit on an annualised basis, or an incremental $0.005 per limited partner unit on a quarterly basis, beginning in the quarter that the transaction closes," Miller added.
The transaction, which will be financed through Exterran’s available credit, is expected to be completed in the third quarter.
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