Texas company to buy Chesapeake acreage
Texas-based Energy & Exploration Partners Inc. is purchasing more than 57,000 acres in east Texas from Chesapeake Energy Corp. for $125 million, according to a regulatory filing.
A fledgling Texas company has struck a $125 million deal to acquire acreage in east Texas from Chesapeake Energy Corp.
Fort Worth-based Energy & Exploration Partners Inc. acknowledged the pending deal Monday in a regulatory filing.
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Chesapeake Energy Corp. has announced two asset sales this year as it tries to raise money to cover its projected capital costs. The company brought in about $2.6 billion from a series of deals announced in April for acreage and future production in Oklahoma and Texas. Chesapeake sold its stake in its former pipeline subsidiary for $2 billion in July. Future transactions with the newly named Access Midstream Partners could yield more money for the cash-strapped company.
A Chesapeake spokesman declined to comment on the deal, which Energy & Exploration Partners expects to close in the fourth quarter, according to its filing in advance of a planned initial public offering.
Chesapeake has spent much of 2012 trying to sell assets to cover budget shortfalls that could reach as high as $22 billion. The Oklahoma City-based company has announced about $4.7 billion this year, including the sale of its former midstream subsidiary.
The biggest assets still on the market are Chesapeake's holdings in west Texas' Permian Basin and a joint venture in the oil-rich Mississippian play in northern Oklahoma and southern Kansas.
Chesapeake expects to raise as much as $14 billion this year from asset sales, plus another $4 billion to $5 billion in 2013.
Oppenheimer analyst Fadel Gheit said the east Texas deal isn't a big one for Chesapeake.
“Chesapeake has bigger fish to fry,” he said.
Energy & Exploration Partners' Chesapeake deal covers more than 57,000 net acres in five east Texas counties. The area is part of what the Texas company calls the Eaglebine because it includes the Eagle Ford Shale and Woodbine Sandstone.
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