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Image courtesy of Chesapeake Energy.

Chesapeake Energy agreed to sell assets in the southern Marcellus shale play and a portion of the eastern Utica shale play to Southwestern Energy Company for $5.375 billion.

Chesapeake will sell 413,000 net acres and 1,500 wells in northern West Virginia and southern Pennsylvania, with 435 of those wells located in the Marcellus and Utica formations.

Houston-based Southwestern will also acquire related property, plant and equipment at the acreage.

Average net daily production from the properties was 56,000 barrels of oil equivalent in September, consisting of 184,000 cubic feet of gas, 20,000 barrels of natural gas liquids and 5,000 barrels of condensate.

As of December 31, 2013, net proved reserves associated with the properties were 221 million barrels of oil equivalent.

Oklahoma-based Chesapeake said the sale will not impact its expected growth profile or projected 2015 production guidance.

The transaction is expected to close in the fourth quarter of 2014.

“Today’s announcement marks a major step in Chesapeake’s transformation and a dramatic improvement in our financial strength as we seek to maximize value for our shareholders,” Chesapeake’s CEO Doug Lawler said.

Prior to the sale Chesapeake had already sold or spun off about $3 billion in assets including gas fields, pipelines and rigs as the company unwinds deals made by former CEO Aubrey McClendon, Bloomberg said.