Chesapeake Energy Corp. closes sales of Permian Basin assets

Chesapeake Energy Corp. has completed the sale of its previously announced asset packages in the Permian Basin. The company sold its southern Delaware Basin assets in the Permian Basin to SWEPI LP, a subsidiary of Royal Dutch Shell plc; its northern Delaware Basin portion of the Permian Basin to Chevron U.S.A. Inc., a subsidiary of Chevron Corporation; and its producing assets in the Midland Basin portion of the Permian Basin to affiliates of Houston-based EnerVest, Ltd.

The Permian Basin assets sold produced approximately 21,000 bpd of condensates and 90 million ft³/d of natural gas during the second quarter of 2012, or approximately 5.7% of Chesapeake’s production during the quarter.

Total combined net proceeds from the three transactions, inclusive of preferential rights exercised by other parties, are approximately US$ 3.3 billion, of which Chesapeake received approximately US$ 2.8 billion in cash at closing.

With the net proceeds from the Permian transactions along with various other asset sale proceeds, the company will reduce the total outstanding balance on its existing term loans from US$4 billion to approximately US$ 1.2 billion by the end of October 2012. The company plans to fully repay the term loans by year-end 2012.

Adapted from press release by Peter Farrell.

Read the article online at: https://www.worldpipelines.com/business-news/23102012/chesapeake_completes_sale_of_permian_assets_293/