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Chesapeake Energy sells its Barnett Shale assets to Saddle Resources

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Report summary

In lieu of proceeds Saddle Resources will provide a lump sum payment to Williams Partners as settlement for terminating Chesapeake's midstream contracts in the Barnett. Together Saddle Resources and Chesapeake will pay US$774 million to Williams Partners (US$334 million from Chesapeake US$420 million from Saddle Resources) to terminate a 20 year gas gathering and shipping contract Chesapeake had entered into in 2012. Plagued by low commodity prices and liquidity concerns Chesapeake is positioning the company to focus on its core strength delineating developing and growing unconventional plays. The Barnett failed to attract capital within the company's portfolio due to onerous gathering and transportation contracts and declining production. This strategic move improves Chesapeake's medium term liquidity financial liabilities and operational flexibility.

What's included

This report contains

  • Document

    Chesapeake Energy sells its Barnett Shale assets to Saddle Resources

    PDF 1.05 MB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 7 images and tables including:

Images

  • Chesapeake in the Barnett
  • Chesapeake's permit activity and IP (mmcfd) trend in Johnson and Tarrant Counties
  • Chesapeake historical gas production in the Barnett by vintage year
  • Chesapeake's progress on reducing fees, debt, and liabilities

Tables

  • Oil & gas pricing and assumptions: Table 1
  • Upstream assets: Table 1
  • Upstream assets: Table 2

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