American Chesapeake Energy announced that it will sell oil assets in Texas to a division of the British chemical company Ineos for $1.4 billion.
The area of the Eagle Ford shale deposit for sale has an area of 172,000 acres (about 700 sq. km), it has about 2.3 thousand finished wells, the press release says. The total volume of hydrocarbon production at this area in the fourth quarter of 2022 amounted to about 36 thousand barrels of oil equivalent per day.
Chesapeake continues to divest oil assets to focus on natural gas production. In January of this year, it sold another plot of Eagle Ford to WildFire Energy for $1.425 billion.
Chesapeake produced the equivalent of 4.05 billion cubic feet per day in the fourth quarter of 2022, with 90% of production coming from natural gas. Production for the entire past year amounted to the equivalent of 4 billion cubic feet / day, the company said in a report.
Chesapeake’s net profit in October-December amounted to $3.5 billion, or $24 per share, profit excluding one-time factors – $618 million, or $4.22 per share.
The company will pay a dividend of $1.29 per share for the quarter.
Over the past 12 months, Chesapeake’s capitalization has grown by 14%.