The sale includes southern Delaware Basin assets to SWEPI LP, a subsidiary of Royal Dutch Shell, northern Delaware Basin portion to Chevron USA and the producing assets in the Midland Basin to Ener Vest.
The net proceeds from the transactions are about $3.3bn, including preferential rights exercised by other parties.
The company received about $2.8bn in cash at closing and it will receive the remaining proceeds after completing the approval of such as title, environmental and other standard contingencies.
The company said, it will use the proceeds to repay some of its debts and reduce it from $4bn to about $1.2 bn by the end of October 2012. It also plans for a full repayment of the term loans by end of 2012.
The Permian Basin assets produced about 21,000 barrels of liquids and 90 million cubic feet of natural gas per day during the second quarter of 2012, which aggregates about 5.7% of Chesapeake’s production during the quarter.
Jefferies & Company and Goldman Sachs Group served as financial advisors to Chesapeake Energy regarding the selling of the Permian Basin assets.
