
Oil pumping unit in Eagle Ford in South Texas. (Source: Shutterstock.com)
Chesapeake Energy Corp.’s recent divestment of its Brazos Valley assets to WildFire Energy I LLC for $1.43 billion was due to the assets not matching the company’s portfolio, CEO Nick Dell’Osso said on the sidelines of NAPE 2023.
“We completed that acquisition in the beginning of 2019, a very different time in the market, a very different time for our company… we've done well owning that asset. It's generated a lot of free cash flow for us,” Dell’Osso told Hart Energy. “That asset really doesn't fit in the portfolio of the company we are today. So, we are moving on, selling that [and] focused on our very best assets in our portfolio, which are Marcellus and Haynesville.”

Oklahoma City-based Chesapeake’s Jan. 18 divestment included approximately 377,000 net acres and approximately 1,350 wells in the Brazos Valley, along with related property, plant and equipment.
On Feb. 1, 2019, Chesapeake acquired about 420,000 net acres from WildHorse Resources Development Corp. The deal, valued at almost $4 billion in cash and stock, included the assumption of WildHorse’s $930 million net debt and was consummated with plans to create an Eagle Ford oil-producing powerhouse.
Recommended Reading
Despite Gas Price Slump, EOG Full Steam Ahead in Emerging Plays
2023-03-02 - Undeterred by volatility in U.S. natural gas prices, Houston-based EOG Resources plans to accelerate drilling and gas production this year, including its emerging plays in South Texas and the Utica Shale.
Ecopetrol Eyes Double-digit Permian Production Growth in 2023
2023-03-03 - Colombia’s state oil company Ecopetrol looks to report another year of double-digit production in the Permian, where it has joint operations with Occidental Petroleum.
The State of the Service Sector
2023-01-20 - Product and equipment limitations on U.S. oilfield service companies are on track to perpetuate rising inflation throughout the coming year.
Williams Deepwater GoM Expansions Add Significant Growth
2023-02-22 - Williams reported another year of record financial performance, and six key projects underway in the U.S. Gulf of Mexico will drive impressive EBITDA growth in coming years.
Brad Gray on Diversified’s Strategy Past Appalachia [WATCH]
2023-03-30 - Diversified Energy’s Brad Gray sat down with Pietro Pitts at Hart Energy’s DUG Haynesville Conference in Shreveport to talk about what Diversified is doing to set itself apart from other E&Ps and future plans as the company expands outside of the Appalachian Basin.