Chesapeake Energy announces the sale of their Ohio Utica Shale for 2 billion

Chesapeake announced the sale of their Ohio Utica interests today after the market closed.

Chesapeake Energy Corporation (CHK) today announced that it has entered into an agreement to sell its interests in the Utica Shale operating area located in Ohio for approximately $2.0 billion to Encino Acquisition Partners, a private oil and gas company headquartered in Houston, Texas. The transaction, which is subject to certain customary closing conditions, including the receipt of third-party consents, is expected to close in the fourth quarter of 2018. The purchase price includes a $100 million contingent payment based on future natural gas prices and is subject to adjustment for certain customary items at or following closing. Chesapeake intends to use the anticipated net proceeds to reduce debt.

Transaction highlights:

  • $1.9 billion initial closing proceeds to be applied toward reduction of debt; up to $150 million reduction in annual cash interest expense
  • $450 million reduction of projected 2019 gathering, processing and transportation expense, for an expected improvement of approximately $0.50 per barrel of oil equivalent (boe); eliminates all future Utica Shalemidstream and downstream commitments of approximately $2.4 billion
  • Improves EBITDA by approximately $0.70 per boe in 2019, due to lower cash operating costs and improved oil differentials, assuming flat 2018 commodity prices
  • Expect organic replacement of divested EBITDA within one year, primarily driven by oil volume growth from the Powder River Basin (PRB)
  • 2019 oil production expected to grow approximately 10% from 2018, adjusted for asset sales, with additional oil growth anticipated for 2020
  • 2018 Outlook updated to reflect business performance year to date and impact of pending transaction

https://seekingalpha.com/pr/17227911-chesapeake-energy-corporation-...

Views: 3084

Reply to This

Replies to This Discussion

I agree that its a done deal, so why do I have to sign consent? my contract is done in 8 months, so they will have to resign then, i would rather lease with someone else anyway.pretty sure they wont have drill bit in ground as my lease states by then.wonder if they know how many leases they are going to have to renew in 8 months due to 8 year term being up?btw this is reply to tusc co man

not sure why they need/would ask for your consent......a lawyer may know

I just think that logically, every landowners consent is not possible....can't ever get 3 people to agree on dinner!

I agree that its a done deal, so why do I have to sign consent? my contract is done in 8 months, so they will have to resign then, i would rather lease with someone else anyway.pretty sure they wont have drill bit in ground as my lease states by then.wonder if they know how many leases they are going to have to renew in 8 months due to 8 year term being up?btw this is reply to tusc co man
I agree that its a done deal, so why do I have to sign consent? my contract is done in 8 months, so they will have to resign then, i would rather lease with someone else anyway.pretty sure they wont have drill bit in ground as my lease states by then.wonder if they know how many leases they are going to have to renew in 8 months due to 8 year term being up?btw this is reply to tusc co man
I agree that its a done deal, so why do I have to sign consent? my contract is done in 8 months, so they will have to resign then, i would rather lease with someone else anyway.pretty sure they wont have drill bit in ground as my lease states by then.wonder if they know how many leases they are going to have to renew in 8 months due to 8 year term being up?btw this is reply to tusc co man

Here's a nice article from Farm & Dairy on assigning leases. See the link.....

https://www.farmanddairy.com/news/what-does-it-mean-to-reassign-oil...

If Chesapeake sold all their Utica assets,why are they still getting permits to drill?

The sale is supposed to close in the 4th qtr. Under the deal they were obligated to continue drilling and completing wells.

does CHK  understand the meaning of the word "obligated"? actual D&C expenditures will reveal "their" definition.

RSS

Local Groups

Latest Activity

Blog Posts

Those French Fuel Riots and the “Great Wall of Cuomo”

Posted by Thomas J Shepstone on December 3, 2018 at 10:33am 0 Comments

The French fuel riots demonstrate what can happen when ordinary people are denied the basic necessities of life by “let them eat cake” elitists with agendas.

The French Revolution is hardly a thing to be admired,…

Continue

© 2018   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service