Oklahoma City-based Chesapeake Energy said last week it agreed to sell the black oil portion of its remaining Eagle Ford operations to INEOS Energy, affiliate of U.K. chemical giant INEOS Group, for $1.4 billion ($1.175 billion cash at closing in Q2). The transaction provides Ineos an entry into U.S. oil and gas onshore market with about 172,000 net acres and 2,300 wells primarily in Dimmit, LaSalle and McMullen counties; 2022Q4 production was 36,000 boed (81 percent liquids).
“Over the last two decades U.S. onshore oil and gas production has provided security of supply for the global market and competitive advantage for the U.S. industry,” INEOS Energy chairman Brian Gilvary said. “The deal marks our entry into the U.S. market.”
Chesapeake is exiting Eagle Ford and plans to focus on its assets in Haynesville and Marcellus. Chesapeake president and CEO Domenic J. Dell’Osso, Jr., said Feb. 21, “Today marks another important step on our path to exiting the Eagle Ford.”