Chesapeake, Enterprise line to ship ethane from Northeast to Gulf Coast

HOUSTON, Texas - Chesapeake Energy Corp. said on Nov. 2 that it will anchor Enterprise Products Partners LP's proposed ethane pipeline from northeastern states to the Gulf Coast.

The companies did not disclose financial details of their long-term contract.

The pipeline would have an initial capacity to carry 125,000 barrels per day (b/d) and could be expanded, the companies said.

Shippers who commit to use the pipeline would pay between 14.5 cents and 15.5 cents per gallon.

The companies said the pipeline would deliver ethane produced in the Marcellus and Utica shale formations of Pennsylvania, West Virginia and Ohio about 1,230 miles to their storage complex for natural gas liquids in Mont Belvieu, Texas.

The pipeline could begin operating in early 2014, they said.

EV Energy soars as Chesapeake Energy reveals new shale find in Ohio

HOUSTON, Texas - EV Energy Partners (Nasdaq: EVEP) surged premarket on July 29 as Chesapeake (NYSE: CHK) announced a "major new liquids-rich discovery" in the Utica Shale play of eastern Ohio.

EVEP owns some 150,000 net acres and has royalty rights on another 80,000 in the Utica Shale.

EVEP on July 29 reached an interday high of $73.37, up $9.50, before closing at $70.99, up $7.12, in heavy trading of more than 1.5 million units.

Chesapeake Energy's disclosure of the Ohio gas find came as part of its second-quarter financial report, in which it announced that its profit doubled as production increased, while prior-year results included a derivatives loss. Chesapeake shares rose on July 29 as results topped analysts' expectations. However, the units closed up by only $0.92 per share. The stock closed at $34.35. Chesapeake said it values its Utica Shale holdings at a possible $12,000 to $16,000 an acre.

Oppenheimer and Wells Fargo on July 29 raised their rating on EVEP to outperform, with the former setting an $85 price target and Wells boosting its to about $76 from $56. "We acknowledge that we are relatively late to the game," says Oppenheimer, "but believe there is significant upside remaining."