Chesapeake Energy Corp. Completes Acquisition


Published:

Chesapeake Energy Corp. has completed its previously announced acquisition of Mid-Continent, Permian Basin, South Texas and onshore Gulf Coast natural gas assets from privately-owned Concho Resources Inc. for $420 million.

In addition, the company has completed the previously announced acquisition of two smaller producing property packages totaling $90 million.

Based on internal reservoir engineering estimates, Chesapeake believes that through these three transactions it has acquired approximately 320 billion cubic feet of gas equivalent (bcfe) of proved gas reserves, approximately 195 bcfe of probable and possible gas reserves and current production of approximately 70 million cubic feet of natural gas equivalent (mmcfe) per day. The acquisitions were funded 60% with common equity issued in January 2004 and 40% from cash on hand and borrowings from the company's revolving bank credit facility.

Archive »Recent Articles

CNG Export Proposal Pending

A Morgan Stanley subsidiary has applied to the U.S. Department of Energy for a permit to export up to 60 Bfcy (1.7 x 109 m3/y) of compressed natural gas (CNG) gas from a proposed terminal near Freeport, Texas.

Cameron Sells Centrifugal Division to Ingersoll Rand

Cameron is selling its centrifugal compression division to Ingersoll Rand (IR) for US$850 million as part of a long-term business strategy to focus on its core markets.

U.S. Gas Exports to Mexico Set Record

U.S. natural gas exports to Mexico were a record 2.5 Bcfd (70.8 x106 m3/d) on July 24 and averaged 2.3 Bcfd (65.1 x106 m3/d) from June through August, more than double the pipeline flow in 2010.

USA Compression Orders More Horsepower

USA Compression Partners LP, Austin, said its fleet horsepower has increased 38.9% to 1.3 million hp (1000 MW), compared to the same period last year, aided in part by its acquisition of 138,000 hp (103 MW) from S&R Compression in August 2013.

Compressco Partners Improves Utilization Rate

Compressco Partners of Oklahoma City reported that its average compressor fleet utilization rate was 85.3% during the second quarter, compared to 82.6% in the same period of 2013.