67 WALL STREET, New York - July 3, 2014 - The Wall Street Transcript has just published its Oil & Gas Review 2014 Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Oil & Gas Review 2014
Companies include: Access Midstream Partners, L.P. (ACMP) and many more.
In the following excerpt from the Oil & Gas Review 2014 Report, the CEO of Access Midstream Partners, L.P. (ACMP) discusses company strategy and the outlook for this vital industry:
TWST: Please start by introducing our readers to Access Midstream with a company history.
Mr. Stice: Access Midstream was formerly Chesapeake Midstream Partners. We originated as the midstream gathering arm for Chesapeake Energy, and effectively got our start around 2002. Chesapeake collected large acreage positions across all of the unconventional basins in North America and needed pipe capacity to be built to connect those wells to the market, so they created an in-house group to do so.
Then around 2008, it became very obvious to Aubrey McClendon that he needed a more formal approach to the business, and he specifically needed it to be funded by outside investors. So he hired me to come in and create a more independent organization, and we created Chesapeake Midstream Development - CMD - which was a separate legal entity. We carved out midstream from upstream, created a standalone business and took on a partner in Global Infrastructure Partners, which helped us fund it. Then we realized that the growth and the success that Chesapeake was experiencing meant that we needed additional capital, so we chose to take it public in July of 2010, and that's when Chesapeake Midstream Partners - CHKM - was born. So we were a publicly traded entity, still with our general partnership owned by GIP 50% and Chesapeake 50%, and now we had access to both the debt and equity markets, so we had a new source of capital.
Subsequently, in 2012, Chesapeake needed additional funding in upstream and elected to sell their 50% interest in the general partner and the remaining limited partner units they owned; GIP temporarily bought them all, and then subsequently sold their original position to Williams. Today we are no longer affiliated with Chesapeake; we're known as Access Midstream Partners, and we are owned at the general partner level by 50% Williams and 50% GIP. Roughly 44% of our LP units are floated to the public market. So that's been our journey.
TWST: Would you tell us about the kind and location of your assets? Where is your focus?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
- Basic Materials Industry
- Chesapeake Energy