Over 3,839,682 readers this year!

Chesapeake Energy sells Wyoming’s Powder River Basin assets for $450 million

(Shutterstock)

Chesapeake Energy Corp. announced the sale of its Powder River Basin assets in Wyoming to Continental Resources Inc. on Tuesday, according to MarketWatch.

The sale is for $450 million in cash, which will help fund Chesapeake’s purchase of Chief E&D Holdings LP, and associated non-operated interests held by affiliates of Tug Hill Inc. The cost of those purchases are $2 billion in cash, and around $9.44 million in shares, said Market Watch.

The transaction is expected to close at the end of the first quarter of this year.

According to the Financial Times, the deal is a continuation of a consolidation trend across the US shale patch as the sector emerges from the oil crash. The deals “rebalance Chesapeake’s portfolio towards gas,” the Financial Times said.

Continental Resources, controlled by shale billionaire Harold Hamm, is focusing on strengthening focus on US oil. The company entered the Powder River Basin market last year after buying assets from Samson Resources II LLC, Tulsa, Oklahoma.

Related