Chesapeake Energy announced that it has executed an agreement to sell a portion of its remaining Eagle Ford asset to INEOS Energy for $1.4B. Chesapeake has agreed to sell approximately 172,000 net acres and approximately 2,300 wells in the black oil portion of its Eagle Ford asset primarily in Dimmit, LaSalle and McMullen counties, along with related property, plant and equipment. Average net daily production from these properties was approximately 36,000 barrels of oil equivalent (81% liquid) during the fourth quarter of 2022. As of December 31, 2022, net proved reserves associated with these properties were approximately 144M barrels of oil equivalent. Chesapeake expects the transaction will close in the second quarter of 2023, with an effective transaction date of October 1, 2022. The company will receive $1.175B upon closing, subject to customary adjustments, with the additional $225M paid in annual installments of $56.25M. Chesapeake anticipates the proceeds will be applied to repay borrowings under its revolving credit facility and be available for its share repurchase program.
Published first on TheFly
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