Williams Co.’s Global Resolution with Chesapeake

Haynes and Boone represented The Williams Companies, Inc. in connection with a global resolution between Williams and bankrupt producer Chesapeake Energy Corp.

Williams (NYSE: WMB) has reached a global resolution with Chesapeake as part of Chesapeake’s Chapter 11 bankruptcy restructuring process, including Williams’ acquisition of a portion of Chesapeake’s South Mansfield assets.

Key highlights of the approved global resolution include: Chesapeake will pay all pre-petition and past due receivables related to midstream expenses, per the existing contracts; Chesapeake will not attempt to reject Williams’ gathering agreements in the Eagle Ford, Marcellus, or Mid-Con shale plays; In the Haynesville Shale, Williams has agreed to reduce its gathering fees in exchange for gaining ownership of a portion of Chesapeake’s South Mansfield producing assets, which consist of approximately 50,000 net mineral acres. In addition, Chesapeake will enter into a long-term gas supply commitment of a minimum 100 Mdth/d and up to 150 Mdth/d for the Transco Regional Energy Access (REA) pipeline currently under development.

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.

Chesapeake Energy is the second largest producer of natural gas in the United States, and one of the biggest producers of oil and natural gas liquids, in addition to being the most active driller of new wells in the U.S.

Haynes and Boone team was led by Partner Austin Elam (Picture), and included Associates Matt Rountree, Ellen Conley, and Reem Abdelrazik.

Involved fees earner: Reem Abdelrazik – Haynes and Boone; Ellen Conley – Haynes and Boone; Austin Elam – Haynes and Boone; Matthew Rountree – Haynes and Boone;

Law Firms: Haynes and Boone;

Clients: Williams Companies, Inc.;

Author: Ambrogio Visconti