PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Chesapeake Energy sells reserves to Argonaut Private Equity for USD412m

Oklahoma City-based Chesapeake Energy has sold certain Chesapeake-operated long-lived producing assets in the Anadarko and Arkoma Basins in its fourth volumetric production payment tran

Oklahoma City-based Chesapeake Energy has sold certain Chesapeake-operated long-lived producing assets in the Anadarko and Arkoma Basins in its fourth volumetric production payment transaction to investors associated with Argonaut Private Equity.
 
The purchase was financed by GS Loan Partners, an affiliate of Goldman Sachs. The assets include proved reserves of approximately 98 billion cubic feet equivalent and current net production of approximately 60 million CFE per day for proceeds of USD412m, or USD4.20 per million CFE.

Chesapeake retained drilling rights on the properties below currently producing intervals.

The company had announced its intention to complete a volumetric production payment transaction in order to build larger cash reserves over the next two years.

The transaction, which closed on 31 December, will be treated as a sale for accounting purposes and the company’s proved reserves will be reduced accordingly. Chesapeake was advised on the transaction by Jefferies Randall & Dewey of Houston, Texas.

Chesapeake Energy Corporation is the largest producer of natural gas in the US.

Argonaut Private Equity is a diversified global private equity fund with more than USD3.5bn under management.

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured

Blackstone Private Equity