Chesapeake Energy Corporation Announces Closing of Permian Basin Asset Sales
Chesapeake Energy Corporation (NYSE:CHK) announced today it 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
(NYSE:RDS.B); its northern Delaware Basin portion of the Permian Basin
to Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:CVX);
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 barrels of liquids and 90
million cubic feet of natural gas per day during the 2012 second
quarter, 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 $3.3
billion, of which Chesapeake received approximately $2.8 billion in cash
at closing. Payment of the remaining proceeds will be subject to certain
title, environmental and other standard contingencies. 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 $4.0 billion to approximately $1.2 billion
by the end of October 2012. The company plans to fully repay the term
loans by year-end 2012.
Jefferies & Company, Inc. and Goldman, Sachs & Co. served as financial
advisors to Chesapeake regarding the Permian Basin asset sales.
This news release includes 'forward-looking statements? that give our
current expectations or forecasts of future events, including the
planned use of asset sale proceeds.Although we believe the
expectations and forecasts reflected in our forward-looking statements
are reasonable, we can give no assurance they will prove to be correct.They can be affected by inaccurate assumptions or by known or unknown
risks and uncertainties, and actual results may differ from the
expectations expressed.We caution you not to place undue
reliance on our forward-looking statements, which speak only as of the
date of this news release, and we undertake no obligation to update this
information.
Chesapeake Energy Corporation (NYSE:CHK) is the second-largest
producer of natural gas, a Top 15 producer of oil and natural gas
liquids and the most active driller of new wells in the U.S.Headquartered
in Oklahoma City, the company's operations are focused on discovering
and developing unconventional natural gas and oil fields onshore in the
U.S.Chesapeake owns leading positions in the Eagle Ford,
Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime and Niobrara
unconventional liquids plays and in the Marcellus, Haynesville/Bossier
and Barnett unconventional natural gas shale plays. The company also
owns substantial marketing and oilfield services businesses through its
subsidiaries Chesapeake Energy Marketing, Inc. and Chesapeake Oilfield
Services, L.L.C. Further information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.
Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
John
J. Kilgallon, 405-935-4441
john.kilgallon@chk.com
or
Media
Contacts:
Michael Kehs, 405-935-2560
michael.kehs@chk.com
or
Jim
Gipson, 405-935-1310
jim.gipson@chk.com
