FourPoint Energy LLC said June 1 it has closed its acquisition of Chesapeake Energy Corp.'s (NYSE: CHK) remaining Western Anadarko Basin assets, becoming one of the largest E&Ps in the Midcontinent region.
The $385 million acquisition includes an interest in nearly 3,500 producing wells primarily in the Granite Wash, Missourian Wash, Upper and Lower Cleveland and Tonkawa formations. The production mix is about 64% natural gas and 36% oil and NGL. The assets cover about 473,000 net acres, within 15 counties in Western Oklahoma and the Texas Panhandle and are 98% HBP.
As of June 1, Denver-based FourPoint Energy has assumed full operations of Chesapeake's remaining Western Anadarko Basin properties. FourPoint hired more than 90 former Chesapeake employees to join their existing field staff of 42 upon closing the deal, according to the release.
Included in the transaction FourPoint will take over three Chesapeake field offices located in Elk City, Okla., and Borger and Shamrock, Texas. Including FourPoint's current field office located in Woodward, Okla., the company will now manage its field operations from all four of these locations.
Prior to customary post-closing adjustments, FourPoint's Western Anadarko footprint boasts close to 900,000 net acres and net production of 435 million cubic feet equivalent per day (MMcfe/d) with 42% of the production coming from oil and NGL.
As the company begins the process of integrating these assets, FourPoint will continue to focus on growth through an active development program and through additional acquisitions, the release said.
The acquisition was funded by proceeds from equity issued to existing and new investors. Jefferies LLC was financial adviser and Andrews Kurth LLP was legal adviser to FourPoint Energy in connection with both the M&A and equity transactions.
RELATED: Anadarko Basin Redux: FourPoint Energy Again Buys Chesapeake Assets
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