Chesapeake Energy said today that it has entered multiple agreements to sell most of its Permian Basin properties and midstream assets for USD 6.9 billion.
The Oklahoma-based independent operator has entered purchase and sale deals with three companies for the majority of its Permian Basin assets for about USD 3.3 billion. These properties produced about 21,000 bbl of liquids and 90 MMcf/D of gas during the second quarter of this year.
The company will sell its southern Delaware Basin portion of the Permian to Shell subsidiary SWEPI, and its northern Delaware Basin portion to Chevron. As previously announced, it will sell its producing assets in the Midland Basin portion of the Permian to EnerVest affiliates.
Chesapeake will retain about 470,000 net acres of undeveloped lease land in the Midland Basin for future sale or development. These three transactions are expected to close in the next 30 days.
The company has also entered sale agreements for substantially all of its midstream assets in three transactions for expected combined proceeds of about USD 3 billion. It has also entered a letter of intent with Global Infrastructure Partners covering most of the midstream assets owned by Chesapeake Midstream Development for about USD 2.7 billion. These assets include gathering and processing systems in the Eagle Ford, Utica, Haynesville, and Powder River Basin Niobrara shale plays.
Chesapeake has also either sold or entered purchase agreements with two other companies for some of its midcontinental midstream assets and expects a fourth agreement to sell certain oil gathering assets in the Eagle Ford Shale for about USD 300 million.
Finally, in four transactions, the company has either sold or entered purchase and sale agreements for leasehold assets in the Utica Shale for about USD 600 million.