Chesapeake Energy Corp. has closed on a previously announced asset sale in the Permian Basin in Texas and New Mexico.
The Oklahoma-based energy company Chesapeake Energy Corporation said on Monday that it has sold its southern Delaware Basin assets in the Permian Basin to SWEPI LP, a subsidiary of Royal Dutch Shell plc; its northern Delaware Basin portion of the Permian Basin to Chevron U.S.A. Inc., a subsidiary of Chevron Corporation; and its producing assets in the Midland Basin portion of the Permian Basin to affiliates of Houston-based EnerVest, Ltd.
The Permian Basin assets sold produced approximately 21,000 barrels of liquids and 90 million cubic feet of natural gas per day during the 2012 second quarter, or approximately 5.7% of Chesapeake’s production during the quarter.
Total combined net proceeds from the three transactions, inclusive of preferential rights exercised by other parties, are approximately $3.3 billion, of which Chesapeake received approximately $2.8 billion in cash at closing.
Payment of the remaining proceeds will be subject to certain title, environmental and other standard contingencies.
With the net proceeds from the Permian transactions along with various other asset sale proceeds, the company will reduce the total outstanding balance on its existing term loans from $4.0 billion to approximately $1.2 billion by the end of October 2012.
The company plans to fully repay the term loans by year-end 2012.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
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