Summary
Chesapeake Energy Corporation (the "Company") announced the completion of its previously disclosed acquisition of significant producing assets and drilling locations in the Marcellus Shale region of Northeast Pennsylvania on March 9, 2022. This "Marcellus Acquisition" involved approximately $2.65 billion, comprised of $2.0 billion in cash and $650.0 million in the Company's common stock. The acquisition was funded through existing cash reserves and $914 million in borrowings under the Company's credit agreement. In conjunction with the acquisition, the Company entered into Registration Rights Agreements with the sellers, ensuring the filing of a shelf registration statement for the registrable securities within fifteen days of closing. The Company will be responsible for maintaining the effectiveness of this registration statement. Importantly, detailed financial statements and pro forma information related to this acquisition will be provided in a future amendment to this filing.
Key Highlights
- 1Completion of a significant acquisition of Marcellus Shale assets for approximately $2.65 billion.
- 2Transaction funded by $2.0 billion cash and $650 million in Chesapeake Energy common stock.
- 3Utilized $914 million in borrowings under the existing credit agreement to finance the acquisition.
- 4Entered into Registration Rights Agreements with sellers to facilitate the registration of securities.
- 5The acquired properties were cash and indebtedness free as of January 1, 2022, subject to adjustments.
- 6Future amendment to the 8-K filing will include detailed financial statements and pro forma information for the acquired assets.