Chesapeake Energy to Exit Barnett Shale
August 10 2016 - 5:53PM
Dow Jones News
By Josh Beckerman
Chesapeake Energy Corp. is exiting the Barnett Shale in Texas,
which will eliminate about $1.9 billion of future commitments and
improve its operating income over the next few years.
Chesapeake, which noted the "significant negative cash flow
profile" of the Barnett assets, said it would convey its Barnett
interests to Saddle Barnett Resources LLC, which is backed by
private-equity firm First Reserve Corp.
Meanwhile, Chesapeake and Williams Partners LP will terminate a
gathering agreement. Chesapeake will pay Williams $400 million in
connection with the termination and a renegotiation of an agreement
in the Mid-Continent area.
The proposed Barnett transaction includes about 215,000 net
developed and undeveloped acres and about 2,800 operated wells.
Chesapeake expects the moves to increase its operating income
for the rest of 2016 through 2019 by $200 million to $300 million
annually.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
August 10, 2016 17:38 ET (21:38 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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