On Jan. 25, Chesapeake Energy flipped the script on its story. In a single move, the company announced the purchase of private Marcellus operator Chief Oil & Gas alongside an exit from the Powder River Basin, ultimately refocusing its portfolio mainly on shale gas after years spent trying to diversify into oil.
“My number one takeaway from these deals is that it’s still a great time to be a buyer in the upstream A&D space,” Andrew Dittmar, director at Enverus, told Hart Energy.
The current upstream M&A cycle has continued to churn out a steady stream of deals for several years now. However, with commodity prices coming up, Dittmar noted the possibility of deal values starting to creep up making it a bit of a stretch for buyers.
“But based on what we saw from Chesapeake and the numbers on this deal, it’s still a great time to be a buyer,” he said of the Chief acquisition.
Dittmar recently joined Hart Energy’s Emily Patsy for a discussion on Chesapeake’s recent dealmaking to share his analysis and outlook for the upstream M&A market. He also spoke about the strategy behind Chesapeake holding onto its shale oil assets in the Eagle Ford.
Jump to a topic:
- Main takeaway (0:40)
- The importance of scale (1:50)
- Chesapeake’s Eagle Ford position (4:05)
- Running room for upstream M&A (7:20)
2022-09-29 - Kimmeridge Energy, which spent more than $100 million to acquire SilverBow Resources stock, recently acquired another Eagle Ford E&P—Laredo Energy, an analyst said.
2022-09-27 - Strong demand and environmental awareness draw capital to natural gas in the upstream and midstream sectors.
2022-09-01 - Newly formed Permian Resources is the largest pure-play E&P company in the Delaware Basin with roughly 180,000 net acres across southeastern New Mexico and West Texas.
2022-08-18 - Doug Lawler joined Continental Resources in February as COO and executive vice president following three decades in the oil and gas industry.
2022-08-26 - With $2.6 billion in acquisitions this year, Devon Energy has made its first expansions since Devon and WPX merged in January 2021. Still, COO Clay Gaspar said the industry remains “fractured.”