OREANDA-NEWS. October 26, 2012. Chesapeake Energy Corporation (NYSE:CHK) announced it has completed the sale of its previously announced asset packages in the Permian Basin, reported the press-centre of Chesapeake Energy. 

The company sold its southern Delaware Basin assets in the Permian Basin to SWEPI LP, a subsidiary of Royal Dutch Shell plc (NYSE:RDS.B); its northern Delaware Basin portion of the Permian Basin to Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:CVX); and its producing assets in the Midland Basin portion of the Permian Basin to affiliates of Houston-based EnerVest, Ltd. The Permian Basin assets sold produced approximately 21,000 barrels of liquids and 90 million cubic feet of natural gas per day during the 2012 second quarter, or approximately 5.7% of Chesapeake’s production during the quarter.

Total combined net proceeds from the three transactions, inclusive of preferential rights exercised by other parties, are approximately USD 3.3 billion, of which Chesapeake received approximately USD 2.8 billion in cash at closing. Payment of the remaining proceeds will be subject to certain title, environmental and other standard contingencies. With the net proceeds from the Permian transactions along with various other asset sale proceeds, the company will reduce the total outstanding balance on its existing term loans from USD 4.0 billion to approximately USD 1.2 billion by the end of October 2012. The company plans to fully repay the term loans by year-end 2012.

Jefferies & Company, Inc. and Goldman, Sachs & Co. served as financial advisors to Chesapeake regarding the Permian Basin asset sales.