![]() ![]() “By consolidating the Haynesville, Chesapeake has the scale and operating expertise to quickly become the dominant supplier of responsibly sourced gas to premium markets in the Gulf Coast and abroad.” “This transaction strengthens Chesapeake’s competitive position, meaningfully increasing our free cash flow outlook and deepening our inventory of premium gas locations, while preserving the strength of our balance sheet,” said Mike Wichterich, Chesapeake’s Board Chairman and Interim Chief Executive Officer. Chesapeake’s pro forma total gathering, processing and transportation (GP&T) expense is lowered by approximately 15% and diversifies the company’s midstream partnerships. The deal is also expected to increase the base dividend by 27% to $1.75 per share post close reflecting cash flow accretion of transaction, subject to Board approval. Vine, based in Plano, Texas, is an energy company focused on the development of natural gas properties in the over-pressured stacked Haynesville and Mid-Bossier shale plays in Northwest Louisiana.Ĭhesapeake will benefit from this transaction by realizing approximately $50 million in average annual savings expected from operating and capital synergies. Chesapeake Energy Corporation is making another big move as it announced Wednesday that the Oklahoma City-based energy company will acquire Vine Energy Inc.
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