Chesapeake Midstream Partners Acquires Shale Assets

Natural gas company Chesapeake Midstream Partners, LP (NYSE:CHKM) announced a deal to acquire shale assets, called Appalachia Midstream Services, LLC, from affiliated company Chesapeake Energy Corporation (NYSE:CHK) for roughly $865 million.

The company notes in its press release that “Through acquiring [Appalachia Midstream Services, LLC], CHKM will own approximately 47% of an integrated system of assets that consist of approximately 200 miles of gathering pipeline in the Macellus Shale, including the liquids-rich Marcellus South region.”

A number of institutional investors have been bullish on CHKM over the past quarter.  Mason Street Advisors picked up 1,100,000 shares in the quarter ending September 30th, 2011, Tortoise Capital Advisors LLC acquired 910,227 shares in that quarter, bringing its total position to 3,959,651 shares, and Goldman Sachs Group (NYSE:GS) acquired 304,817 shares, bringing its total position to 1,306.202 shares.

Here’s how Chesapeake’s competitors on trading on the news:

Crosstex Energy Inc. (NASDAQ:XTXI): XTXI shares recently traded at $12.40, down $0.06, or 0.48%. They have traded in a 52-week range of $8.29 to $15.30. Volume today was 118,704 shares versus a 3-month average volume of 418,397 shares. The company’s trailing earnings are $-0.14 per share.

Western Gas Partners Lp (NYSE:WES): WES shares recently traded at $41.02, up $0.19, or 0.47%. They have traded in a 52-week range of $29.96 to $40.99. Volume today was 101,476 shares versus a 3-month average volume of 195,771 shares. The company’s trailing P/E is 24.36, while trailing earnings are $1.68 per share.

UGI Corp. (NYSE:UGI): UGI shares recently traded at $29.49, up $0.32, or 1.1%. They have traded in a 52-week range of $24.07 to $33.53. Volume today was 241,742 shares versus a 3-month average volume of 1,091,230 shares. The company’s trailing P/E is 14.32, while trailing earnings are $2.06 per share.

National Fuel Gas Co. (NYSE:NFG): NFG shares recently traded at $55.70, up $0.48, or 0.87%. They have traded in a 52-week range of $44.51 to $75.98. Volume today was 146,028 shares versus a 3-month average volume of 545,700 shares. The company’s trailing P/E is 18.03, while trailing earnings are $3.09 per share.

New Jersey Resources Corp. (NYSE:NJR): NJR shares recently traded at $49.82, up $0.48, or 0.97%. They have traded in a 52-week range of $39.60 to $49.99. Volume today was 46,833 shares versus a 3-month average volume of 215,538 shares. The company’s trailing P/E is 20.42, while trailing earnings are $2.44 per share.

To contact the reporter on this story: Dave Friedman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com