Chesapeake Energy Corporation announced it has completed its previously announced acquisition of Chief E&D Holdings, LP and associated non-operated interests held by affiliates of Tug Hill, Inc.
The Oklahoma company announced in January it would buy the natural gas producer and some non-operated stakes held by Tug Hill in a nearly $2.6 billion cash and stock deal. At the same time, Chesapeake signed an agreement to sell its Powder River Basin assets in Wyoming for $450 million cash to Continental Resources Inc., also headquartered in Oklahoma City.
“The Chief transaction deepens our premium inventory, allowing us to allocate additional capital toward our world class Marcellus Shale position and accelerate returns for our shareholders,” said Nick Dell’Osso, Chesapeake’s President and Chief Executive Office.
“With the integration of these assets into our existing portfolio, we look forward to generating greater free cash flow, growing our dividend programs, and improving our GHG emissions metrics as we continue to responsibly deliver reliable, affordable, lower carbon energy in 2022 and beyond.”