Exterran Partners LP entered into an agreement to acquire natural gas compression assets from Chesapeake Energy Corp. subsidiary MidCon Compression LLC for about $135 million. The assets include 162 compression units, with a total horsepower of about 110,000.
Most of the units are currently providing compression services to BHP Billiton Petroleum in the Fayetteville Shale in Arkansas. As part of the transaction, the contract operations services agreement with BHP Billiton will be assigned to Exterran Partners at closing.
“We expect the transaction to be immediately accretive to distributable cash flow per limited partner unit,” David Miller, senior vice president and CFO of Exterran Partners’ managing general partner, said in a statement. “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 unitholders by an incremental 2 cents per limited partner unit on an annualized basis … beginning in the quarter that the transaction closes.”
The acquisition is expected to be financed under Exterran Partners’ revolving credit facility. It is subject to customary closing conditions and is planned to close in third-quarter 2014.
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