Chesapeake Energy (
) is down 1% at around $19.85, but above a day's low of $19.65,
after the company announced that has signed multiple agreements to
sell majority of its Permian properties, substantially all of its
midstream assets and certain noncore leasehold for total net cash
proceeds of $6.9 bln. The company will use a portion of the
proceeds from these asset sales to fully repay its $4 bln of term
loans during the 2012 fourth quarter.
Meanwhile, Bloomberg reported that Chesapeake, facing claims by
mineral rights holders in multiple states over canceled oil and gas
lease offers, lost a bid to reverse a $19.7 million judgment to a
Texas lease owner.
CHK will sell its assets in the southern Delaware Basin portion
of the Permian Basin to SWEPI, a subsidiary of Royal Dutch Shell
(RDS.A). CHK has also entered into purchase and sale agreements
with three other companies for total net proceeds of $3.3 bln.
Additionally, it sold its assets in the northern Delaware Basin
portion of the Permian Basin to Chevron U.S.A. Inc., a subsidiary
of Chevron Corporation (
Following these transactions, CHK will continue to own about 1.3
mln net acres of leasehold in the Utica Shale, in which its cost
basis, net of various sales and its joint venture with Total, will
be $200 per net acre (including all drilling carries in the Total
CHK trades in a 52-week range of $13.32 - $32.07; shares have
fallen 35% in the last 12 months.
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