Summary
Chesapeake Energy Corporation (the Company) announced the closing of the sale of its Fayetteville Shale assets in central Arkansas to BHP Billiton Petroleum for $4.637 billion in cash on March 31, 2011. This significant disposition includes approximately 487,000 net acres, current production of 415 million cubic feet of natural gas equivalent per day, and associated midstream assets. The substantial cash proceeds from this transaction are a key event for investors, indicating a major shift in the company's asset portfolio and a significant influx of capital.
Key Highlights
- 1Chesapeake Energy has completed the sale of its Fayetteville Shale assets for $4.637 billion in cash.
- 2The divested assets include approximately 487,000 net acres of leasehold in central Arkansas.
- 3The sale encompasses current net production of approximately 415 million cubic feet of natural gas equivalent per day.
- 4Associated midstream assets, including around 420 miles of pipeline, were also part of the transaction.
- 5Chesapeake Energy will provide technical and business services for BHP Billiton's Fayetteville properties for up to one year for a fee.
- 6The company issued a press release on March 31, 2011, to announce the closing of the transaction.
- 7Unaudited pro forma financial statements reflecting the impact of the sale are furnished with the filing.