Summary
Chesapeake Energy Corporation (CHK) has announced the completion of a significant acquisition, purchasing $300 million of Mid-Continent gas reserves from a subsidiary of ONEOK, Inc. This strategic move, funded by recent equity and debt offerings, is aimed at enhancing Chesapeake's position as a major independent natural gas producer in the U.S. The acquired assets are expected to add substantial proved and probable reserves, along with a significant daily production volume, aligning with the company's strategy of consolidating and developing low-cost natural gas properties in the Mid-Continent region.
Key Highlights
- 1Chesapeake Energy completed a $300 million acquisition of Mid-Continent gas reserves from ONEOK, Inc.
- 2The acquisition was funded by proceeds from a December 2002 offering of common shares and senior notes.
- 3The company estimates acquiring approximately 200 billion cubic feet of gas equivalent (bcfe) of proved reserves and an additional 60 bcfe of probable and possible reserves.
- 4The acquired properties are expected to add approximately 47,000 thousand cubic feet of gas equivalent (mcfe) per day to Chesapeake's production.
- 5This transaction increases Chesapeake's total proved reserves to 2.4 trillion cubic feet of gas equivalent (tcfe).
- 6Current production is expected to increase to over 565,000 mcfe per day.
- 7The acquisition aligns with Chesapeake's strategy of acquiring and developing low-cost, long-lived natural gas assets in the Mid-Continent.