Chesapeake completes sale of initial Ford Eagle package or $1.43B

Chesapeake Energy has entered into an agreement to sell the Brazos Valley region of its Eagle Ford asset to WildFire Energy I for $1.425B. Chesapeake 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 boe, 85% liquid, during 3Q22. As of December 31, 2021, net proved reserves associated with these properties were approximately 96.8 mmboe. Chesapeake expects the transaction to close in 1Q23. The company will receive $1.2B upon closing, subject to customary adjustments, with the additional $225M paid in yearly installments of $60M over the next three years and $45M 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.