Chesapeake sells Southern Marcellus and Utica shale assets to Southwestern for $5.375 billion

Southwestern has agreed to buy Chesapeake's Southern Marcellus and Utica assets for US$5.4 billion in cash. This deal will open up a third core area for Southwestern, while providing Chesapeake with an opportunity to de-leverage its balance sheet and focus on higher margin oil properties within its portfolio. As a result of this purchase, Wood Mackenzie expects medium term upside to the Southwest Marcellus shale, with production now expected to surpass 10 bcfd by 2020, up from 3.6 bcfd in 2013.