Chesapeake Fire Sale Continues – EQT Picks up 99K Acres in SW PA
The Chesapeake Energy fire sale of assets continues. On Friday, EQT Corp. announced they’re picking up 99,000 acres of leases and 10 horizontal wells in the Marcellus Shale from Chessy in southwestern PA for $113 million. Of that number, $60 million is the price for the acreage (and $53 million for the 10 operating wells). If you run the math, that’s $606 per acre ($60M/99K)–i.e. fire sale price.
Below is the EQT announcement (first), and analysis of the deal by Seeking Alpha blogger and energy analyst Richard Zeits (second):