Chesapeake Energy ( NASDAQ: CHK ) has agreed to sell part of its Brazos Valley operations in Texas to WildFire Energy for $1.4B in cash in a deal that may be announced as soon as this week, Reuters reported Wednesday.
Chesapeake ( CHK ) has been trying to divest its entire South Texas operations to focus on natural gas-producing areas in other parts of the U.S., according to the report.
The company has attempted to exit its Eagle Ford position by conducting an auction process for two more land packages, the report said; Chesapeake's ( CHK ) entire Eagle Ford stake totals 610K0 net acres and is expected to produce 90K-100K boe/day in 2022, ~15% of the company's total production.
Chesapeake ( CHK ) said in August it no longer viewed the Eagle Ford acreage as a core of its strategy, three months after reports said activist investor Kimmeridge Energy had acquired a stake in the company and was urging it to expand its operations in the gas-rich Marcellus and Haynesville shales.
Chesapeake Energy ( CHK ) is "undervalued and well positioned heading into 2023," WR Investment Group writes in an analysis newly published on Seeking Alpha .
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Chesapeake Energy to sell Brazos Valley operations for $1.4B - report