Chesapeake Energy Sells Remaining Eagle Ford Assets, Total Proceeds Rises To $3.5B
Portfolio Pulse from Lekha Gupta
Chesapeake Energy Corp (CHK) has agreed to sell its remaining Eagle Ford assets to SilverBow Resources Inc (SBOW) for $700 million. The deal includes around 42,000 net acres and about 540 wells. The total proceeds from Eagle Ford divestiture will exceed $3.5 billion. The transaction is expected to close in 2023. CHK plans to use the proceeds to boost its balance sheet and share repurchase program.
August 14, 2023 | 12:55 pm
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POSITIVE IMPACT
Chesapeake Energy's sale of its Eagle Ford assets to SilverBow Resources will boost its balance sheet and share repurchase program.
The sale of assets will provide Chesapeake Energy with significant capital, which it plans to use to strengthen its balance sheet and fund its share repurchase program. This could potentially increase the value of its remaining shares, making it a positive development for the company.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
SilverBow Resources is acquiring Chesapeake Energy's remaining Eagle Ford assets for $700 million.
SilverBow Resources is making a significant investment by acquiring Chesapeake Energy's remaining Eagle Ford assets. The impact on its stock price will depend on how well it manages these assets and whether it can generate a return on its investment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80