Chesapeake Midstream Partners, L.P. (NYSE :CHKM) is a midstream natural gas company which gathers liquid gas produced produced at the well and sells it to third-party pipelines. The company was formed as a limited partnership between Chesapeake Energy (CHK) and Global infrastructure Partners. Chesapeake Midstream Partners was spun-off of Chesapeake in 2008 and inherited many of its predecessor's assets outside of Appalachia. Chesapeake Midstream is among the largest midstream natural gas producers in the United States.
The company has many agreements with Chesapeake Energy (CHK), which is the second largest producer of natural gas in the US and is the largest natural gas company in terms of active drilling. These agreements give Chesapeake Midstream access to many of Chesapeake Energy's resources. In addition, Chesapeake Midstream has the right of first offer on any midstream divestitures that Chesapeake Energy might conduct. The company focuses on unconventional onshore resource plays that tend to get relatively low amounts of funding.
The company's initial public offering occurred on the 28th of July on the New York Stock Exchange. The deal priced at $21. The company offered 21.3M shares, making the total deal $446M. The lead underwriters for the deal were UBS Investment Bank, Citigroup (C), and Morgan Stanley (MS).
For FY2009 with year ended 31 December 2008, the company reported total revenues of $333 million, which was a 74% increase from 2007. The company's revenue for the 9 months ended September 2009 was $359M, which puts the company on track to another strong year. Net Income also rose by a substantial 217% from 2007 to 2008.