Looking to build a long-term company in a solid basin with good full-cycle margins, this new E&P chose the Ohio Utica with a $2 billion deal. How does it plan to maximize its 900,000 acres?
SPEAKER:
- Ray Walker, COO of Encino Energy LLC
Last summer, Encino Energy unveiled the $2 billion-cash acquisition of all of Chesapeake Energy Corp.’s position in the Utica Shale of Ohio. Encino’s purchase, supported with funding from Canada Pension Plan Investment Board, included more than 900,000 net acres and roughly 900 producing wells in the Buckeye State.
The Chesapeake transaction closed late October 2018 and set Encino up to be more than twice the size of the next two to three acreage holders in Ohio, according to Walker. He estimates Encino has over 2,000 economic drilling locations and the company plans to focus on building a sustainable business over the next couple of years that generates free cash flow.
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