REUTERS/Dado Ruvic/Illustration/File PhotoAug 14 (Reuters) - U.S. natural gas producer Chesapeake Energy (CHK.O) said on Monday it would sell its remaining Eagle Ford assets to SilverBow Resources (SBOW.N) for $700 million, completing its exit from the south Texas basin.
Chesapeake said last year it viewed the Eagle Ford acreage as no longer core to its strategy and would focus on the gas-rich Marcellus and Haynesville shale formations.
The Oklahoma City-based energy producer also faced pressure from activist investment firm Kimmeridge Energy Management, which has urged a shift toward solely natural gas production.
SilverBow said the deal, expected to close by the end of this year, would make it the largest public pure-play Eagle Ford operator and would immediately add to key financial and operating metrics.
The deal consists of a $650 million upfront cash payment due at closing and an additional $50 million deferred cash payment 12 months after close.
Persons:
Dado Ruvic, Chesapeake, Marcellus, boe, SilverBow, Arunima Kumar, Sriraj
Organizations:
Chesapeake Energy, REUTERS, Eagle Ford, SilverBow Resources, Energy, Oklahoma, Kimmeridge Energy Management, Chesapeake, Eagle, Thomson
Locations:
Texas, Eagle Ford, Dimmit, Webb, Chesapeake, Bengaluru