Midstream Executive Speaks Candidly About Strategy, Growth Prospects And Safety

By Jeff Share, Editor | May 2012, Vol. 239 No. 5

There are few executives around today better able to discuss the evolution of the natural gas industry on this planet than J. Mike Stice, CEO of Chesapeake Midstream Partners, President of Chesapeake Midstream Development and Senior Vice President of Natural Gas Projects for Chesapeake Energy Corp.

He is responsible for overseeing Midstream-related activities and managing corporate natural gas projects.

Before joining Chesapeake in October 2008, Stice spent 27 years in a variety of technical and managerial positions with ConocoPhillips and its predecessor companies where he most recently served as president of ConocoPhillips Qatar. While At ConocoPhillips, he also served as vice president of Global Gas LNG, as president of Gas and Power and as president of Energy Solutions in addition to other positions within ConocoPhillips’ midstream businesses. Stice received his chemical engineering degree in 1981 from the University of Oklahoma, a master’s degree in business from Stanford University in 1995 and an international director’s diploma from Queensland University in 1997. He recently completed his doctorate of education at The George Washington University. He and his wife, Joni, have two sons.

Chesapeake Midstream Partners, L.P. was created to be a growth-oriented midstream natural gas services provider with operations focused on owning, operating, developing and acquiring midstream energy assets in the United States. The company provides gathering, treating and compression services to producers under long-term, fixed-fee contracts and has a strong asset base and extensive intrastate pipeline infrastructure located strategically in the Barnett Shale, Haynesville Shale, Marcellus Shale and Mid-Continent regions.

The company owns and operates natural gas midstream assets across seven states, with an average throughput of approximately 2.7 Bcf/d and more than 3,700 miles of natural gas gathering pipelines.

In this interview with P&GJ, Stice explains the company’s strategy involving the midstream energy sector and the characteristics that set Chesapeake Midstream apart from other midstream operators.

P&GJ: What is Chesapeake’s strategy involving the midstream energy sector?
Stice:
Chesapeake Midstream (CM) is focused on becoming the number one or number two midstream service provider in every region in which we operate by leveraging Chesapeake Energy Corporation’s growth, knowledge and upstream presence. Our midstream assets include more than 5,000 miles of active pipelines connected to more than 6,000 wells and 227 gathering systems, which transport around 4 Bcf/d. In addition, we operate 139 compressor stations.

P&GJ: What characteristics make Chesapeake unique from other midstream operators?
Stice:
Chesapeake Midstream has unique access to growth prospects as a result of its relationship with Chesapeake Energy. Moreover, Chesapeake Midstream has differentiated itself from its peers through a rigorous commitment to safety and environmental excellence. ZERO safety and environmental incidents is our goal.