Chesapeake sells $4.975 billion of assets to Southwestern Energy
Southwestern Energy Company has completed the acquisition of Chesapeake Energy Corp.’s West Virginia and Pennsylvania assets for $4.975 billion.
The assets include approximately 1,500 wells, of which 435 are located in the Marcellus and Utica shale formations.
The original price for the buyout was $5.375 billion. However, this figure was adjusted for certain items such as Southwestern’s waiver of future claims related to title defects and environmental liabilities.
The transaction was temporarily financed using a $4.5 billion 364-day senior unsecured bridge term loan credit facility and a $500 million two-year unsecured term loan.
Steve Mueller, Chairman and Chief Executive Officer of Southwestern Energy, said:
“We are very pleased with today’s closing and the addition of this world-class asset into our portfolio,”
“We believe this is a transformational transaction for the company and we are excited to begin development of this new asset as we continue our focus on creating value for our shareholders.”
Shares of Chesapeake Energy (NYSE:CHK) fell by 7.25% on Monday, dropping to $18.42. The stock had a trading volume of 20,322,522 shares.