2023-03-06 09:54:18 ET
Chesapeake Energy ( NASDAQ: CHK ) said Monday it signed a Heads of Agreement with Gunvor to supply up to 2M metric tons/year of liquefied natural gas to Gunvor with the purchase price indexed to Japan Korea Marker for a period of 15 years.
Following execution of the HOA, Chesapeake ( CHK ) and Gunvor will jointly select the most optimal liquefaction facility in the U.S. to liquify the gas produced by Chesapeake and deliver the LNG to Gunvor on a free-on-board basis with a targeted start date in 2027.
"This agreement reflects the powerful combination of the premium rock, returns, and runway of our competitively positioned Haynesville natural gas assets combined with the strength of our balance sheet and financial position to securely supply global LNG markets," Chesapeake ( CHK ) President and CEO Nick Dell'Osso said.
Chesapeake Energy ( CHK ) has a strong balance sheet, plenty of hedges and a favorable valuation, Leo Nelissen writes in an analysis published recently on Seeking Alpha .
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Chesapeake Energy, Gunvor sign long-term supply deal