Chesapeake Energy to Revise Wyoming Pact

Shutterstock photo

By Josh Beckerman

Chesapeake Energy Corp. ( CHK ) will revise its gas-gathering and processing agreement with Williams Partners LP ( WPZ ) and Crestwood Equity Partners LP ( CEQP ) for Wyoming'sPowder River Basin, moving from a cost-of-service arrangement to a fixed-fee structure.

In a statement, the companies said the simplified fee structure will help "improve the economics on both the drilling and midstream operations."

The new agreement is expected to include minimum revenue guarantees supporting a transition to a new fixed-fee structure over the next five to seven years.

Williams Partners and Crestwood are partners in the Bucking Horse processing plant and the Jackalope Gas Gathering System.

Williams Partners has a role in another recently announced Chesapeake move. In one of several transactions connected to Chesapeake's plan to exit the Barnett Shale, Chesapeake said in August that it would pay $334 million to Williams to get out of a pipeline contract.

In September, activist investor Carl Icahn exited more than half of his stake in Chesapeake, citing tax-planning reasons.

Write to Josh Beckerman at

  (END) Dow Jones Newswires
  Copyright (c) 2016 Dow Jones & Company, Inc.

This article appears in: Energy
Referenced Symbols: CEQP , CHK , WPZ

More from Dow Jones Business News


See headlines for CEQP

Follow on: