Chesapeake Energy agreed to sell gas-rich assets in Pennsylvania and West Virginia to Houston-based Southwestern Energy Co. for $5.4 billion. The assets include approximately 413,000 net acres and 1,500 wells across northern West Virginia and southern Pennsylvania. Of the 1,500 wells, 435 are located in the Marcellus and Utica formations. The properties produced 56,000 barrels of oil equivalent per day — 55% of which was natural gas — during September. Net proved reserves were approximately 221 million barrels of oil equivalent per day.
It will be the latest in a series of efforts Chesapeake has recently undertaken to improve its financial performance. Chesapeake in February agreed to sell its midstream compression assets to Access Midstream Partners and Exterran Partners for $520 million. In March it filed documents to spin off its $2.2 billion oilfield services unit.
