Chesapeake purchases Chief, Tug Hill for over $2B
Thursday, January 27, 2022
Chesapeake Energy Corp. added a bunch of natural-gas-rich Marcellus Shale assets to its portfolio, purchasing Chief E&D Holdings LP and affiliates of Tug Hill in a deal valued at over $2 billion, according to Natural Gas Intelligence.
The transaction is set to be completed by the end of March. Chesapeake agreed to pay a total of $2 billion cash and trade 9.44 million shares. The power River Basin portfolio in Wyoming is being sold to Continental Resources Inc. for $450 million to help pay for the transaction.
With the acquisition, Chesapeake expects production capacity could increase by up to 200 MMcf/d, undeveloped locations may expand by 25% and drilling inventory could be extended by more than 15 years at current activity levels.
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