Chesapeake Completes Asset Sale to Southwestern at Revised Price

By Josh Beckerman 

Chesapeake Energy Corp. has completed a sale of West Virginia and Pennsylvania assets to Southwestern Energy Co. for $4.975 billion.

The properties sold include about 1,500 wells overall. The companies said in October that 435 of these are in the Marcellus and Utica shale formations.

The price, originally $5.375 billion, was adjusted for certain items including Southwestern's waiver of future claims related to title defects and environmental liabilities.

The sale was expected to help Chesapeake reduce a substantial amount of debt accumulated under former CEO Aubrey McClendon. Chesapeake said the transaction "solidifies our strong financial position." The company "has a liquidity position of approximately $9 billion, putting Chesapeake in an advantageous position to enhance shareholder value in this volatile commodity price market."

Chesapeake also authorized a stock-buyback plan of up to $1 billion.

Chesapeake shares, which fell more than 7% during the regular session, rose 3.15% to $19 in late trading.

Write to Josh Beckerman at [e-mail]

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