US shale producer Chesapeake Energy has agreed to sell Texas oil assets to a subsidiary of British chemical company Ineos for $1.4 billion as it continues to move away from oil to focus on natural gas.
The deal with Ineos Energy comes just weeks after Oklahoma City-based Chesapeake agreed to sell oil assets in the same field, the Eagle Ford shale in South Texas, to private company WildFire Energy, also for 1.4 billion dollars.
Nick Dell'Osso, Chesapeake's chief executive, said the deal marked an "important step on our path out of Eagle Ford as we focus our capital on premium rock, returns and runway" from the prolific deposits. company's shale gas supply in Louisiana and Appalachia. region.
"We are pleased to have secured a total of $2.825 billion to date and continue to be actively engaged with other parties with respect to the remainder of our position in Eagle Ford."
The deal marks London-based Ineos' first entry into the US shale sector. In addition to its international petrochemical business, Ineos also operates some North Sea oil and gas infrastructure and renewable energy assets.
Ineos has more than 5,000 employees in the US and says it has already invested $21 billion in the country across 12 businesses, across 36 manufacturing sites. The company also owns shale assets in the UK.
Ineos Energy will purchase 36,000 barrels per day of oil equivalent production in the deal. Its president, Brian Gilvary, called the deal market "another significant step" for the company, noting that for the past two decades "US onshore oil and gas production has provided security of supply for the global market and a competitive advantage for US industry.
Chesapeake was one of the pioneers of the shale gas revolution earlier this century, before years of debt-fuelled expansion and an ill-timed move into oil production led it to seek Chapter 11 protection during the crash. of the 2020 crude oil price. He came out of bankruptcy two years ago.
On Tuesday, Chesapeake reported record free cash flow of $2.1 billion in the fourth quarter of 2022, while net income attributable to shareholders more than doubled to $3.5 billion amid rising demand for natural gas in the US
