Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
Chesapeake Divests More Eagle Ford Assets; 172,000 n.a. and 2K+ Wells Sold to INEOS For $1.4 billion
03/16/2023![Chesapeake-Divests-More-Eagle-Ford-Assets-172-000-n-a-and-2K-Wells-Sold-to-INEOS-For-1-4-billion](https://images2.rextag.com/public/blog/133Blog_Chesapeake_Divests_More_Eagle_Ford_Assets.png)
Chesapeake Energy Corp. has announced that it will receive $1.4 billion from INEOS Energy for the sale of its remaining Eagle Ford asset, just a month after selling its Brazos Valley assets for a similar amount. This brings the total value of Chesapeake's Eagle Ford assets to over $2.82 billion. The Oklahoma City-based company will continue to market its other Eagle Ford assets.
Chesapeake has agreed to sell almost 172,000 net acres and 2,300 wells in the black oil portion of its Eagle Ford asset, Situated mainly in Dimmit, LaSalle, and McMullen counties in Texas, along with related property, plant, and equipment.
During the fourth quarter of 2022, the assets had an average net production of roughly 36,000 boe/d, with 81% being liquid. The net proved reserves associated with the properties were estimated to be about 144 MMboe as of December 31, 2022.
INEOS, a chemical company with some shale holdings, is acquiring the Eagle Ford asset and entering the U.S. for the first time through this acquisition. However, INEOS Group Holdings SA purchased a shale oil and gas business in the Giddings Field in Texas in 2019, and also owns petrochemical plants in Texas, including the Chocolate Bayou cracker.
In 2021, the company reported that its South Texas Giddings Field assets included 108 operated wells spread across 44,701 net mineral acres in Austin, Brazos, Burleson, Fayette, and Washington counties in Texas.
Chesapeake anticipates the transaction closing in the second quarter of 2023, with an effective transaction date of October 1, 2022. Upon closing, Chesapeake will receive $1.175 billion, subject to customary adjustments, with an additional $225 million paid in annual installments of $56.25 million.
The company expects that the proceeds will be used to repay borrowings under its revolving credit facility and be available for its share repurchase program.
Chesapeake has secured an aggregate of $2.825 billion to date and remains actively engaged with other parties regarding the rest of our Eagle Ford position. In January, Chesapeake agreed to sell its Brazos Valley region assets to WildFire Energy I LLC for $1.425 billion.
Chesapeake Energy's Eagle Ford Shale assets, located across Texas, are an important part of the company's operations. The Eagle Ford Shale is a geological formation that has the capability to produce both natural gas and oil. Named for the town of Eagle Ford, Texas, this shale play extends nearly 50 miles wide and 400 miles long with an average thickness of 250 feet and depths reaching between 4,000 and 14,000 feet. Its high percentage of carbonate makes the shale more brittle and more conducive to hydraulic fracturing.
In 2023, Chesapeake Energy has entered into agreements to sell a portion of its Eagle Ford assets to WildFire Energy I LLC and INEOS Energy for $1.425 billion and $1.4 billion, respectively. The company will have approximately 50,000 acres in the southwest portion of the play, the "Rich Gas" portion, remaining after the two announced sales.
Chesapeake Energy expects to have 0.5 to 1 active rig in the area resulting in 20 to 25 wells to be turned in line in the Rich Gas portion of the play in 2023. As of 4Q'22, the Eagle Ford Shale assets accounted for 13% of the company's total production, with 90 net production (mboe/d), an average of 2 active rigs, 12 wells drilled, and 16 wells turned in line. The company has field offices in Caldwell and Carrizo Springs, TX.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Chesapeake Sells Its Brazos Valley Assets to Be Sold for $1.43 Billion to WildFire Energy
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/119Blog_Chesapeake_Sells_Brazos_Valley_Assets_to_WildFire_Energy_012022.png)
In order to sell its part of the sprawling Eagle Ford Shale acreage, Chesapeake Energy Corp. on January 18 concluded an agreement to trade its Brazos Valley region assets to WildFire Energy I LLC for $1.425 billion.
Who's Next after Diamondback? Potential Takeover Targets in the Permian Basin
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/239_Blog_Who's Next after Diamondback_ Potential Takeover Targets in the Permian Basin.png)
The $26 billion purchase of Endeavor Energy Resources by Diamondback Energy, with its stock up 2.6%, is the newest big deal combining oil and gas production in the Permian Basin under a few big companies
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/297_Blog_Keystone XL Pipeline Controversy and Wildlife Disaster From Trump's Green Light to Biden's Red Light on the 15 Billion Project.jpg)
The pipeline industry in the USA faced and still faces a range of regulatory challenges, including permitting delays, environmental requirements, and public opposition to pipeline projects. In recent years, pipeline projects like the Keystone XL and Dakota Access pipelines had legal and regulatory obstacles that delayed or canceled their construction. Keystone XL Pipeline, proposed by TransCanada in 2008, aimed to transport crude oil from Canada (around Calgary and Edmonton) to refineries on the Gulf Coast (Port Arthur). The project faced opposition from environmental groups and indigenous communities, who argued that it would contribute to climate change and pose a risk to water resources. In 2015, President Obama rejected the project, citing concerns about its environmental impact. However, in 2017, President Trump revived the project, leading to further legal challenges. In June 2021, U.S. President Joe Biden officially canceled the project on his first day in office.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/282_Blog_Renewable Natural Gas How RNG Changes the Industry.jpg)
The renewable natural gas (RNG) industry in the United States is showing promising signs of growth. As of 2019, the U.S. consumed 261 billion cubic feet (BCF) of RNG, primarily utilized by independent power producers, electric utilities, and various commercial and industrial entities. However, this figure represents only a small fraction of its potential. Research indicates that the U.S. could theoretically produce up to 2,200 BCF of RNG through anaerobic digestion alone, which would equate to about 11% of daily national natural gas consumption.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/295_Blog_Renewable Efforts Lag as Global Oil and Gas Demand Continues to Rise.jpg)
Recently, the progress toward an energy transition is hitting a snag. Sales of electric vehicles are decelerating, and the growth in wind and solar power needs to be keeping pace with expectations. To make matters more challenging, electricity prices are climbing when they were expected to fall. Amidst these setbacks, the oil and gas sectors are proving resilient. According to BP's latest energy outlook, not only are these energy mainstays here to stay, but their demand is expected to remain relatively high even after reaching a peak. Interestingly, BP forecasts that oil demand will reach its zenith next year, marking a critical moment in energy consumption trends. This isn't the first time BP has projected a peak in oil demand. Back in 2019, their review anticipated a decline in demand growth, but the prediction fell flat. Instead, oil demand surged to unprecedented levels following the end of the global pandemic lockdowns, defying previous forecasts and underscoring the enduring dominance of traditional energy sources in the global market.