Via: Reuters- Chesapeake in talks to sell pipeline biz: source
Thursday, June 7, 2012
Chesapeake Energy’s money problems are forcing the company to potentially sell more assets, including Chesapeake Midstream Partners LP, its pipeline company.
According to Reuters, the energy giant is in late-stage talks to sell $4 billion in pipeline assets to Global Infrastructure Partners, an infrastructure investment fund.
Here’s an excerpt:
Under the deal being discussed, GIP would buy out Chesapeake’s stake in the midstream company and its general partner, as well as other pipeline assets, said the person, who spoke on the condition of anonymity.
It appears that Chesapeake will continue selling assets until the company’s profit situation improves.
Read the entire article here.
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.