By Josh Beckerman
Chesapeake Energy Corp. has completed a sale of West Virginia
and Pennsylvania assets to Southwestern Energy Co. for $4.975
billion.
The properties sold include about 1,500 wells overall. The
companies said in October that 435 of these are in the Marcellus
and Utica shale formations.
The price, originally $5.375 billion, was adjusted for certain
items including Southwestern's waiver of future claims related to
title defects and environmental liabilities.
The sale was expected to help Chesapeake reduce a substantial
amount of debt accumulated under former CEO Aubrey McClendon.
Chesapeake said the transaction "solidifies our strong financial
position." The company "has a liquidity position of approximately
$9 billion, putting Chesapeake in an advantageous position to
enhance shareholder value in this volatile commodity price
market."
Chesapeake also authorized a stock-buyback plan of up to $1
billion.
Chesapeake shares, which fell more than 7% during the regular
session, rose 3.15% to $19 in late trading.
Write to Josh Beckerman at josh.beckerman@wsj.com
Access Investor Kit for Chesapeake Energy Corp.
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Access Investor Kit for Southwestern Energy Co.
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