Deals
Chesapeake Sells $2.6 Billion in Assets to Blackstone, Exxon
This article is for subscribers only.
Chesapeake Energy Corp., the second-largest U.S. natural-gas producer, announced $2.6 billion in asset sales that will cut debt and fund drilling after slumping gas prices eroded cash flow.
The company sold shares in a new subsidiary to an investment group led by a Blackstone Group LP-led affiliate that includes TPG Capital and EIG Global Energy Partners LLC, Oklahoma City-based Chesapeake said in a statement today. The agreement gives the buyers a share of royalties from oil wells in the Cleveland and Tonkawa plays in Oklahoma and a 6 percent annual distribution.