KKR & Co., a global investment firm, is teaming up with Oklahoma-based Chesapeake Energy Corp. to form a partnership that will offer owners of oil and gas royalty interests the chance for upfront cash from producing wells or money before the full resource is assessed.
KKR will commit an initial $225 million and Chesapeake will provide $25 million toward the partnership that will invest in mineral and royalty interests in oil and gas basins, the two firms said today in a joint statement.
Chesapeake said it expects to buy royalty interests from sellers who don't want to wait to see what's underground as well as those who want cash up front for royalties, a spokesman said.
The agreement is Chesapeake's first partnership that will acquire royalties, not interests in fields, the spokesman said.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
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Earthjustice, a national eco-group.
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Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.