The buyer is Exco Resources Inc. (NYSE: XCO), which has agreed to pay up to 90% of the purchase price as soon as the deal closes and the remaining portion “subject to certain closing conditions” after the deal closes, which is expected this month.
Exco has said it will finance the acquisition under a $1.6 billion credit agreement with J.P. Morgan. Kohlberg Kravis Roberts & Co. (NYSE: KKR) also has agreed to fund approximately $133 million drilling costs in the Eagle Ford shale.
The Eagle Ford assets include 120 producing wells and production of about 6,100 barrels of oil equivalent a day in May. The Haynesville assets include net daily production of about 114 million cubic feet of natural gas equivalent, also in the month of May.
Shares of Chesapeake are down about 0.1% in premarket trading this morning, at $20.90 in a 52-week range of $16.23 to $22.97.
Shares of Exco are inactive, having closed last night at $7.44 in a 52-week range of $5.97 to $9.08.
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