Posted on 12/23/2014 8:21:58 AM PST by thackney
Southwestern Energy Co. said Tuesday it is planning to snap up Statoil’s 20-percent stake in oil and gas assets in West Virginia and southwest Pennsylvania for $394 million, just a day after closing its biggest-ever deal with Chesapeake Energy in the region.
The transaction, which encompasses 30,000 net acres, boosts Southwestern Energy’s working interests in that area of the Marcellus and Utica shale plays by 5.8 percent to 73 percent. The wells on the land produce about 29 million cubic feet of gas a day, as of October.
The deal is expected to close early next year. It’s the Houston natural gas and oil producer’s third proposed acquisition since October.
It had bought $5.4 billion worth of gas land from Oklahoma City-based Chesapeake, though the final closing price fell to $4.98 billion by Monday. And earlier this month, Southwestern agreed to acquire more nearby acreage in Pennsylvania for $300 million.
All told, the Chesapeake and the Statoil acreage amount to 443,000 net acres in the gas-rich region, cementing its bet on natural gas at a time when oil prices have fallen dramatically.
OMG! American oil is totally dead right now! </s>
Southwestern Energy cuts $5.4 billion deal for Chesapeake gas land
http://fuelfix.com/blog/2014/10/16/chesapeake-strikes-5-4b-deal-with-southwestern-energy/
October 16, 2014
Southwestern Energy to pay $300M for gas-rich land in Pennsylvania
http://fuelfix.com/blog/2014/12/03/southwestern-energy-to-pay-300m-for-gas-rich-land-in-pennsylvania/
December 3, 2014
Cash is king when credit is tough.
It was surprising to consider any gas/oil company wanting out of a money maker.
Chesapeake has its problems and Southwestern seems to have itself a lot more mature and responsible
Trade-Ideas LLC identified Chesapeake Energy as a “dead cat bounce” (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Chesapeake Energy as such a stock due to the following factors:
CHK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $372.8 million.
CHK has traded 763,583 shares today.
CHK is up 5.9% today.
CHK was down 7.3% yesterday.
http://www.thestreet.com/story/12994171/1/todays-dead-cat-bounce-stock-is-chesapeake-energy-chk.html
I thought we were running out iof oil? What happened.
We are mostly out of $20 oil, somewhat low on $50, fairly plentiful at $100.
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