Exterran Partners To Buy Natural Gas Compression Assets From MidCon

(RTTNews) - Exterran Holdings, Inc (EXH) Friday announced that Exterran Partners, L.P. (EXLP) has signed an agreement to acquire natural gas compression assets, which include 334 compression units, from MidCon Compression, L.L.C., a subsidiary of Chesapeake Energy Corporation (CHK) for about $360 million.

These assets are currently being used to provide compression services to Access MLP Operating, L.L.C., a unit of Access Midstream Partners LP (ACMP). Exterran Partners have entered into a seven-year contract operations services agreement with Access to provider compression services. The agreement will be effective following the closing of the acquisition.

Exterran partners will fund a portion of the purchase price through the proceeds from the sale of $150 million of its newly issued common units to Exterran Holdings, if Exterran Partners does not obtain equity capital markets financing before the closing date of the acquisition.

In addition, the acquisition will alter the Omnibus agreement with Exterran Partners and Exterran Holdings to raise the cap on selling, general and administrative costs to $17.7 million per quarter from $15 million per quarter.