Chesapeake Energy, the second-largest producer of natural gas and the most active driller of new wells in the United States, has agreed to a series of asset sales for a total $6.9bn to cut debts.
The transactions include the sale of oil and gas assets representing 21,000 bbl/d of oil and 90 mcf/d (930 bcm/year) in the Permian Basin (Delaware, Texas and New Mexico) for a total $3.3bn, to Shell, Chevron and EnerVest. Shell acquired assets in Texas for $1.935bn ; terms of the Chevron and EnerVest deals weren’t disclosed.
In addition, Chesapeake has entered into sale agreements with respect to substantially all of its midstream assets in three separate transactions and also expects to enter into a fourth agreement, which would result in combined proceeds of approximately $3bn. Most of the assets were sold to Global Infrastructure Partners ($2.7bn) and include processing systems in the Eagle Ford, Utica, Haynesville and Powder River Basin Niobrara shale plays and certain other assets. Chesapeake has also sold or entered into purchase and sale agreements with two other companies to sell certain Mid-Continent midstream assets and also expects to enter into a fourth agreement to sell certain oil gathering assets in the Eagle Ford Shale for combined proceeds of approximately $300m.
Finally, in four separate transactions, Chesapeake has recently sold or entered into purchase and sale agreements to sell noncore leasehold assets in the Utica Shale and various other areas for approximately $600m.