Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) plans to acquire a 32% equity interest in privately held Oklahoma City-based Chaparral Energy Inc. for $280 million.
Chesapeake will acquire 361.3 Chaparral shares at $775,000 each. Chaparral will receive $102 million of the funds and two shareholders, Oklahoma-based privately held general partnership Altoma Energy and Fischer Investments LLC, will receive $178 million.
Chaparral has properties in Oklahoma, Texas, Kansas, Arkansas and New Mexico, with total production of 82.8 million cu. ft. of gas per day. Proved reserves are 33.9 million bbl. of oil and 414.4 billion cu. ft. of gas for a total 617.9 billion cu. ft. of gas equivalent.
Chaparral has $475 million in debt and is planning an initial public offering.
Standard & Poor's reports this deleveraging event and others, including an eventual initial public offering, are factored into its rating of Chaparral (B+/Stable/-). However, Chaparral's aggressive spending levels may affect the benefits of potential debt-reduction plans, and the company's credit ratings would suffer if debt leverage increases, S&P reports.
In January, Chaparral filed for an IPO to raise up to $345 million. The proposed symbol on the NYSE is CPR.
Recommended Reading
Antero Stock Up 90% YoY as NatGas, NGL Markets Improve
2025-02-14 - As the outlook for U.S. natural gas improves, investors are hot on gas-weighted stocks—in particular, Appalachia’s Antero Resources.
DUCs Fly the Coop: Big Drawdowns from the Midland to Haynesville
2025-02-14 - The Midland Basin depleted its inventory of excess DUCs the most last year, falling from two months of runway to one during the past year, according to a report by Enverus Intelligence Research.
Element3 Produces Lithium Carbonate from Permian Oil, Gas Wastewater
2025-02-10 - Element3 says it produced the battery-grade lithium carbonate using a Double Eagle Energy Holding subsidiary’s wastewater in the Midland Basin.
Halliburton-Backed Startup Espiku Nears Water Treatment Pilot
2025-02-04 - Oregon-based Espiku, in collaboration with Halliburton Labs, aims to help drillers reuse produced water and reduce disposal. The company is scouting potential pilot project sites in the Permian Basin, Bakken and North Texas.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.