Zeits Says Chesapeake Marcellus Land Deals Not a Fire Sale

MDN recently highlighted two deals by Chesapeake to sell Marcellus Shale acreage at what we consider fire sale prices--in one case $574 per acre (see Southwestern Energy Buys 162K PA Marcellus Acres from Chesapeake), and in a second case $606 per acre (see Chesapeake Fire Sale Continues – EQT Picks up 99K Acres in SW PA). However, Seeking Alpha blogger and energy analyst Richard Zeits--someone whose opinion we respect--has a different take. He says when you analyze the deals closely, they aren't as irrational as they may appear, and these deals are far from a "fire sale"...

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