Press release
CHESAPEAKE ENERGY CORPORATION ANNOUNCES SALE OF INITIAL EAGLE FORD PACKAGE FOR $1.425 BILLION
OKLAHOMA CITY, Jan. 18, 2023 /PRNewswire/ -- Chesapeake Energy Corporation (NASDAQ:CHK) today announced that it has entered into an agreement to sell the
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[{"type":"text","content":"OKLAHOMA CITY, Jan. 18, 2023 /PRNewswire/ -- Chesapeake Energy Corporation (NASDAQ:CHK) today announced that it has entered into an agreement to sell the Brazos Valley region of its Eagle Ford asset to WildFire Energy I LLC for $1.425 billion.\n\n \n \n \n \n \n \n\n \n\"Today marks an important step on our path to exiting the Eagle Ford as we focus our capital on the premium, rock, returns and runway of our Marcellus and Haynesville positions,\" said Chesapeake President and Chief Executive Officer Nick Dell'Osso. \"We remain actively engaged with other parties regarding the rest of our Eagle Ford position.\"\nChesapeake has agreed to sell approximately 377,000 net acres and approximately 1,350 wells in the Brazos Valley region of its Eagle Ford asset, along with related property, plant and equipment. Average net daily production from these properties was approximately 27,700 barrels of oil equivalent (boe) (85% liquid) during the third quarter of 2022. As of December 31, 2021, net proved reserves associated with these properties were approximately 96.8 million barrels of oil equivalent (mmboe).\nChesapeake expects the transaction to close in the first quarter of 2023. The company will receive $1.2 billion upon closing, subject to customary adjustments, with the additional $225 million paid in yearly installments of $60 million over the next three years and $45 million in year four. Chesapeake anticipates the proceeds will be used to repay borrowings under its revolving credit facility and be available for its share repurchase program.\nRBC Capital Markets, Citi, and Evercore are serving as financial advisors, Haynes and Boone, LLP is serving as legal advisor, and DrivePath Advisors is serving as communications advisor to Chesapeake.\nHeadquartered in Oklahoma City, Chesapeake Energy Corporation is powered by dedicated and innovative employees who are focused on discovering and responsibly developing our leading positions in top U.S. oil and gas plays. With a goal to achieve net zero GHG emissions (Scope 1 and 2) by 2035, Chesapeake is committed to safely answering the call for affordable, reliable, lower carbon energy. \nForward-Looking Statements \nThis news release includes \"forward-looking statements\" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Fo...