“This new simplified fee structure will promote production growth and improve the economics on both the drilling and midstream operations,” adds Heath Deneke, Crestwood’s chief operating officer and pipeline group president. “The restructuring will create a win-win for the joint venture and for Chesapeake that aligns interests for mutual growth,” said Walter Bennett, senior vice president, Williams’ West operating area.

The restructured services are expected to replace the current cost-of-service arrangement and improve economics to support a ramp-up in near-term development and production activity and incentivize long-term development across an expanded area of dedication in the region. (NYSE: CEQP), as 50/50 joint venture partners in the Bucking Horse natural gas processing plant and Jackalope Gas Gathering System, today announced they have signed an agreement with Chesapeake Energy Corporation (NYSE: CHK) to restructure natural gas gathering and processing services in Wyoming’s Powder River Basin. (NYSE: WPZ) and Crestwood Equity Partners L.P.

Demonstrates parties’ commitment to align their interests for mutual growth while sustaining financial support of investments.

Expect win-win for the joint venture and Chesapeake with new long-term, fixed-fee structure designed to ramp up development and production opportunities in the Powder River and achieve the full potential of the acreage.

Chk investor relations