Access Midstream’s 2012 Numbers: Chesapeake Deal Nets 1 Bcf/d
In December, MDN told you about a complex 3-way deal in which Chesapeake Energy sold off its remaining midstream subsidiary (pipelines, compressor stations and processing plants), including midstream assets in the Marcellus and Utica Shale, to Access Midstream Partners. Access immediately turned around and sold 50% of itself to Williams. In essence, Chesapeake sold its midstream assets to Williams using Access as an intermediary (see Chesapeake, Access & Williams in Complex 3-Way Midstream Deal). No doubt there are certain tax advantages to structuring the deal the way they did. The Chesapeake acquisition netted an additional 1 billion cubic feet of natural gas per day for Access.
Access issued its fourth quarter and full year 2012 report yesterday. They spent $735 million and made $478 million in revenue for 2012. Access predicts capital spending in 2013 will be $1.6-$1.7 billion and they expect to make around $850 million in revenue. They predict the revenue number will grow to over $1 billion by the end of 2014, more than doubling revenue from 2012 (in just two years).