The Marcellus Shale is the largest and most profitable natural gas shale in North America. It stretches from New York through Pennsylvania, Ohio, West Virginia and Virginia. It includes a liquid-rich region that is still in the early stages of development that will allow for significant organic growth. The region also offers premium marketing optionality with Central New York Oil & Gas (CNYOG), Dominion, EQT, NiSource Transmission, MarkWest, Mountaineer Gas and Tennessee Gas Pipeline.
In December 2011 Chesapeake Midstream Partners (CHKM) acquired an equity interest in 10 gathering systems in the Marcellus. Other participating owners in these gathering assets include midstream affiliates of Anadarko Petroleum Corporation, Epsilon Energy USA, Mitsui E&P USA and Statoil USA Onshore Properties. The Marcellus is well-matched with the CHKM business model and growth opportunities of the existing midstream assets in the Barnett Shale, Mid-Continent and Haynesville Shale regions.
There are approximately 250 wells currently connected and an inventory in excess of 5,500 potential drilling locations within CHKM’s dedicated acreage. CHKM owns approximately 47% of Marcellus gathering systems that comprise approximately 200 miles of gathering pipeline with more than 1 billion cubic feet (Bcf) of daily throughput using more than 57,000 horsepower of compression.