Summary
EXPAND ENERGY Corp (EXE) has filed an 8-K report detailing a significant asset sale. On October 14, 2014, a subsidiary of Chesapeake Energy Corporation, CHK Appalachia, entered into a Purchase and Sale Agreement with Southwestern Energy Production Company (SEPC) to sell approximately 413,000 net acres and associated wells (the 'Designated Properties') in northern West Virginia and southern Pennsylvania for approximately $5.375 billion. The Designated Properties include interests in the Marcellus and Utica formations and generated average net daily production of approximately 56,000 barrels of oil equivalent in September 2014. As of December 31, 2013, these properties held net proved reserves of 221 million barrels of oil equivalent. The transaction is expected to close in the fourth quarter of 2014, subject to customary closing conditions and regulatory approvals.
Key Highlights
- 1Significant divestiture of approximately 413,000 net acres and 1,500 wells in West Virginia and Pennsylvania.
- 2Total sale price of approximately $5.375 billion.
- 3Assets sold include interests in the Marcellus and Utica formations.
- 4Average daily production from divested assets was approximately 56,000 boe/d in September 2014.
- 5Net proved reserves associated with the divested properties were 221 million boe as of December 31, 2013.
- 6Transaction closing is anticipated in the fourth quarter of 2014.
- 7Closing is contingent upon satisfaction of customary conditions, including antitrust approval (Hart-Scott-Rodino).