SemGroup closes acquisition of Mississippi Lime assets from Chesapeake

8/1/2013

SemGroup closes acquisition of Mississippi Lime assets from Chesapeake

BY MELANIE CRUTHIRDS, News Editor

TULSA -- Oklahoma-based midstream service company SemGroup has completed its previously disclosed acquisition of the gas gathering and processing assets owned by Chesapeake Energy, in the Mississippi Lime play for $300 million in cash. Approximately $125 million of additional capital expenditures will be required for the completion of the Rose Valley plants I and II, as well as additional capital related to future well connects.

The acquisition includes 200 mi of gathering pipeline and approximately 540,000 dedicated net acres in the core of the Mississippi Lime. Also included were the Rose Valley I plant, a 200-Mmcfd cryogenic processing plant expected to be operational first quarter 2014, and the Rose Valley II plant, also a 200-Mmcfd cryogenic processing plant that is expected to be operational first quarter 2016. The deal also included a 20-year, 100% fee-based, gas gathering and processing agreement.

LCT Capital and Citi acted as financial advisors to SemGroup.

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