![Eagle Ford shale](/sites/default/files/styles/hart_news_article_image_640/public/image/2023/02/eagle-ford-shale-rig.jpg?itok=iHYxuYtb)
Oil pumping unit in Eagle Ford in South Texas. (Source: Shutterstock.com)
Chesapeake Energy Corp.’s recent divestment of its Brazos Valley assets to WildFire Energy I LLC for $1.43 billion was due to the assets not matching the company’s portfolio, CEO Nick Dell’Osso said on the sidelines of NAPE 2023.
“We completed that acquisition in the beginning of 2019, a very different time in the market, a very different time for our company… we've done well owning that asset. It's generated a lot of free cash flow for us,” Dell’Osso told Hart Energy. “That asset really doesn't fit in the portfolio of the company we are today. So, we are moving on, selling that [and] focused on our very best assets in our portfolio, which are Marcellus and Haynesville.”
![Chesapeake Energy deals chart](/sites/default/files/inline-images/chesapeake%20deals%20chart.jpg)
Oklahoma City-based Chesapeake’s Jan. 18 divestment included approximately 377,000 net acres and approximately 1,350 wells in the Brazos Valley, along with related property, plant and equipment.
On Feb. 1, 2019, Chesapeake acquired about 420,000 net acres from WildHorse Resources Development Corp. The deal, valued at almost $4 billion in cash and stock, included the assumption of WildHorse’s $930 million net debt and was consummated with plans to create an Eagle Ford oil-producing powerhouse.
Recommended Reading
Halliburton Working to Assess Cause, Impacts of Cyberattack
2024-08-22 - A Halliburton spokesperson said the company had activated a response plan and was working internally and with external experts to remediate the “issue.”
Energy Execs Plan Blank-check IPO to Buy E&P, Midstream Property
2024-06-12 - EQV Ventures Acquisition Corp. reports that $75 billion of aging private-equity investments are looking for liquidity in the next five years, and they want to be in the hunt to buy.
Producers Trim 2024 Hedges Amid Bullish Oil Prices, M&A
2024-06-14 - Meanwhile, gas-weighted players are benefitting from solid hedge books planned ahead of price uncertainty.
CEO: Baker Hughes Lands $3.5B in New Contracts in ‘Age of Gas’
2024-07-26 - Baker Hughes revised down its global upstream spending outlook for the year due to “North American softness” with oil activity recovery in second half unlikely to materialize, President and CEO Lorenzo Simonelli said.
Offshore Guyana: ‘The Place to Spend Money’
2024-07-09 - Exxon Mobil, Hess and CNOOC are prepared to pump as much as $105 billion into the vast potential of the Stabroek Block.