Chesapeake Conpletes Asset Sale; Announces $1 Bln Stock Buyback Authorization

(RTTNews) - Chesapeake Energy Corp. (CHK) said Monday that it has closed the sale of its assets in the Southern Marcellus Shale and a portion of the Eastern Utica Shale to Southwestern Energy Co. (SWN) for net proceeds of $4.975 billion.

The $400 million adjustment to the previously reported $5.375 billion sale price is attributable to a settlement for various items, including Southwestern's waiver of any future claims related to title defects and environmental liabilities, Chesapeake said.

The properties sold to Southwestern consist of approximately 413,000 net acres and approximately 1,500 wells located in northern West Virginia and southern Pennsylvania, along with related property, plant and equipment.

Doug Lawler, Chesapeake's Chief Executive Officer, said, "This transaction marks another significant event in Chesapeake's transformation and solidifies our strong financial position. With the closing of this transaction and the available borrowing capacity under our unsecured revolving credit facility, Chesapeake now has a liquidity position of approximately $9 billion, putting Chesapeake in an advantageous position to enhance shareholder value in this volatile commodity price market." Chesapeake also said that its Board of Directors has authorized a $1 billion common stock repurchase program.