Chesapeake Energy Corp. has entered into an agreement to sell its interests in the Utica Shale operating area located in Ohio, US, for approximately US$2 billion to Encino Acquisition Partners, a private oil and gas company headquartered in Houston, Texas, US.
The transaction, which is subject to certain customary closing conditions, including the receipt of third-party consents, is expected to close in 4Q18.
The purchase price includes a US$100 million contingent payment based on future natural gas prices and is subject to adjustment for certain customary items at or following closing.
Chesapeake intends to use the anticipated net proceeds to reduce debt.