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McClendon's AEP Launches Midstream Company
OKLAHOMA CITY -- American Energy Partners LP, along with the Energy & Minerals Group, announced Wednesday the formation of American Energy-Midstream LLC, a company that will develop pipeline and processing networks in shale plays across the country, including the Utica shale in southeastern Ohio.
American Energy, founded by former Chesapeake Energy CEO Aubrey McClendon, and EMG plan to focus on regions where the companies hold active drilling and leasehold operations, American Energy said.
American Energy Midstream plans to "build a portfolio of midstream assets strategically focused on natural gas gathering and processing systems and long-haul pipelines" that are connected to four American Energy affiliates working in the Utica, Marcellus, Permian Basin and Woodford shale plays.
EMG is the lead investor in all of the affiliates.
The announcement comes after American Energy reported a deal June 9 in which the company's Marcellus and Utica affiliates acquired 75,000 net acres in the southern tiers of those plays from East Resources and another unnamed company for $1.75 billion. The transaction boosted AEU’s leasehold in the play to approximately 280,000 net acres, the largest leasehold position in the Utica, according to the company.
American Energy–Utica says it has invested more than $3.5 billion in the Utica to date and plans to drill 2,600 gross wells and 1,560 net wells on its acreage in the years ahead.
During the past nine months, the McClendon’s American Energy Partners LP platform has raised equity and debt capital of approximately $10 billion to fund the development of five play or strategy specific companies: American Energy–Utica, American Energy– Woodford, American Energy– NonOp, American Energy–Marcellus and American Energy–Permian Basin.
SOURCE: American Energy Midstream.
Published by The Business Journal, Youngstown, Ohio.
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