Total to acquire a 25% stake in Chesapeake’s Barnett Shale portfolio for US$2.25 billion
Total and Chesapeake have reached agreement to form a JV that will see Total acquire 25% of Chesapeake's interests in the Fort Worth Barnett Shale. The total consideration is US$2.25 billion, comprising US$800 million in cash at closing and US$1.45 billion in future drilling and completion cost-carries. Under our base case assumptions, Wood Mackenzie values the acquired portfolio at US$1.8 billion (NPV10). Against the US$2.25 billion consideration, this equates to an implied ...