What is the primary purpose of this 8-K filing?

This filing announces a material event: EXPAND ENERGY Corp (EXE), through its subsidiary, has entered into a definitive agreement to sell its Fayetteville Shale assets to BHP Billiton for approximately $4.75 billion. This represents a significant strategic divestiture.

What assets are being sold and what is their approximate value?

The company is selling its interests in approximately 487,000 net acres of leasehold, producing natural gas properties, and related midstream assets (including about 420 miles of pipeline) in the Fayetteville Shale play. The agreed-upon purchase price is approximately $4.75 billion.

When is the transaction expected to close and what are the major hurdles?

Closing is expected in the first half of 2011. Key conditions include expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and a review by the Committee on Foreign Investment in the United States (CFIUS), among other customary closing conditions.

Are there any specific financial adjustments to the purchase price?

Yes, the $4.75 billion purchase price is subject to customary adjustments. These include adjustments for title defects, environmental defects, casualty losses, gas imbalances, hydrocarbon storage, proceeds related to post-effective date production, and unpaid taxes.

EXPAND ENERGY Corp 8-K SEC Disclosure

Summary

EXPAND ENERGY Corp (EXE) announced a significant divestiture through its wholly-owned subsidiary, Chesapeake Exploration, L.L.C., entering into a Purchase and Sale Agreement to sell substantially all of its Fayetteville Shale assets to BHP Billiton Petroleum (North America 1) LLC for approximately $4.75 billion. The divested properties include approximately 487,000 net acres, producing natural gas assets with a daily output of 415 million cubic feet equivalent, and associated midstream infrastructure. The transaction's effective date is January 1, 2011, with an expected closing in the first half of 2011, subject to customary closing conditions including regulatory approvals.

Key Highlights

1Agreement to sell Fayetteville Shale assets for $4.75 billion to BHP Billiton.
2Divested properties include ~487,000 net acres and daily production of ~415 MMcfe.
3Transaction includes midstream assets comprising ~420 miles of pipeline.
4Economic effective date of the sale is January 1, 2011.
5Closing is anticipated in the first half of 2011.
6Key closing conditions include Hart-Scott-Rodino approval and CFIUS review.
7Affiliated entities of CEO Aubrey K. McClendon are also selling their interests under the same terms.

EXPAND ENERGY Corp 8-K Report, Corporate Update (Feb 25, 2011)

Summary

Key Highlights

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