From Access Midstream today:



OKLAHOMA CITY--(BUSINESS WIRE)--Feb. 28, 2014-- Access Midstream Partners, L.P. (NYSE:ACMP) today announced it has agreed to acquire certain midstream compression assets from MidCon Compression, L.L.C (“MidCon”), a wholly owned subsidiary of Chesapeake Energy Corporation, for $160 million. The planned acquisition adds natural gas compression assets, historically leased from MidCon, in the rapidly growing Utica Shale and Marcellus Shale regions. This transaction provides the opportunity to insource a key cost element of the Partnership’s business model at an approximate 8x forward EBITDA multiple and adds future organic growth to the portfolio. The assets include more than 100 compression units with a combined capacity of approximately 200,000 horsepower.



Exterran Partners L.P. (“Exterran”) has entered into an agreement to purchase MidCon’s assets in the Partnership’s other operating areas. The Partnership has agreed to long term compression service arrangements with Exterran in those areas. The acquisition will be funded with borrowings on the Partnership’s revolving credit facility and is expected to close by March 31, 2014.



Management Comments



J. Mike Stice, Access Midstream Partners’ Chief Executive Officer, commented, “We are pleased to announce this attractive bolt-on acquisition of compression assets in the Utica and Marcellus regions. These assets fit the Access Midstream business model extremely well. Internalizing a portion of our compression expense is consistent with maintaining strong visibility to our cash flows. This acquisition is expected to be immediately accretive to distributable cash flow and enhances our organizational capability in this important aspect of our service offering for our producer customers.



“Additionally, we are equally excited to enter into an agreement with Exterran for compression services for our remaining operations. This agreement is consistent with our previous contracts with MidCon, supports our low-risk business model and will allow us to continue to provide excellent service to our customers.”



Access Midstream Partners, L.P. (NYSE:ACMP) is the industry’s largest gathering and processing master limited partnership as measured by throughput volume. The Partnership owns, operates, develops and acquires natural gas gathering and processing systems and other midstream energy assets. Headquartered in Oklahoma City, the Partnership's operations are focused on the Barnett, Eagle Ford, Haynesville, Marcellus, Niobrara and Utica Shales and Mid-Continent region of the U.S. The Partnership’s common units are listed on the New York Stock Exchange under the symbol ACMP.Further information is available at www.accessmidstream.com where the Partnership routinely posts announcements, updates, events, investor information and presentations and all recent press releases.