Chesapeake Energy sells off last of its Eagle Ford assets

Chesapeake Energy has agreed to sell its remaining Eagle Ford assets to SilverBow Resources for USD 700 million, the US E&P company announced on Monday.

The sale consists of 170 square kilometres of concessions that contain around 540 wells and related property, plants and equipment in Dimmit and Webb counties in Texas, USA.

Net average production from these assets was around 29,000 boepd, with 60% of the production being liquids. The properties contain net proven reserves of around 124 million boe.

The assets generated earnings before interest, taxes, depreciation, amortisation, and exploration expense of around USD 50 million.

“We are pleased to have successfully completed the exit of our Eagle Ford asset, allowing us to focus our capital and team on the premium rock, returns and runway of our Marcellus and Haynesville positions,” said Nick Dell’Osso, president and CEO of Chesapeake Energy.

The transaction is expected to close in 2023.

Upon completion, SilverBow Resources will become the largest public pre-play Eagle Ford operator.

Previously, Chesapeake Energy made large divestments to its Eagle Ford portfolio, including a USD 1.43-billion sale to WildFire Energy and a USD 1.4-billion sale to INEOS in February 2023.

The company has so far made more than USD 3.5 billion by divesting from its Eagle Ford assets.