Chesapeake Energy sells part of its WildFire Energy business

Chesapeake Energy Corporation announced yesterday that it has reached an agreement to sell its Eagle Ford WildFire Energy asset, a private investment company, in the Brazos Valley, Texas, for $1.42 billion. Chesapeake has agreed to sell approximately 377,000 net acres and approximately 1,350 wells along with related property, plant and equipment. Average net daily production from these properties was approximately 27,700 barrels of oil equivalent during the third quarter of 2022.

With this acquisition, WildFire will operate approximately 2,000 gross wells on approximately 600,000 net acres in eastern Eagle Ford, encompassing Burleson, Brazos, Robertson, Madison, Lee, Washington and Grimes counties in Texas.

Chesapeake expects the transaction to close in the first quarter of 2023. The company will receive $1.2 billion at closing, subject to customary adjustments, with the additional $225 million being paid in annual installments of $60 million. over the next three years and $45 million over the fourth year.