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Are there other companies able/willing to fill the pipeline volume originally signed with Chesapeake? That is one alternative *if* it exists. Could an existing pipeline contractor "take over" the volume/capacity filled by Chesapeake and thus offer a higher rate to the pipeline owner?

Interesting question, so I took a look.

Normally it is hard enough to get one pipeline to move your production from the field to the customer unless you are a big guy. Unfortunately a pipeline is for the most part an unmoving container. Often smaller collector pipelines gather oil from multiple points and deliver it to main pipelines. The companies that specialize in this sort of thing actually often do very well for their shareholders as their are rarely competitors at hand. I own a couple of Canadian companies that dabble in the business. I have no knowledge or background in CHK, all of my dividend payers are Canadian, the pipelines are my favourites.



The filing also showed Chesapeake's plans to operate an average of just six rigs between Appalachia and the Gulf Coast in the third and fourth quarters, compared with 14 across several U.S. fields in the first quarter. Its second-quarter average is estimated at seven rigs, with 36 gross wells drilled.

The producer, which spent heavily to become the top U.S. producer of natural gas at one point, is still the No. 2 shale gas producer behind EQT Corp, according to data provider Enverus.

One of Chesapeake's pipeline providers, Crestwood Equity Partners LP, said on Monday it does not expect a financial hit from the bankruptcy - Chesapeake is current on outstanding invoices and additional cash flow protection is in place though letters of credit. Crestwood gathers and processes Chesapeake's natural gas and liquids in the Powder River Basin and Marcellus fields.
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