Analysis Of Recent Chesapeake Divestiture -- Zeits -- December 18, 2016

Updates

December 20, 2016: second Haynesville sale in last week or so by Chesapeake.  Data points:

• 41,500 nets acres; 326 operated and non-operated sites
• buyer: Dallas-based Covey Park Energy, LLC
• $465 million 
• $11,000 / acre
• Chesapeake says it has now exceeded its 2016 asset sales goal by $500 million, bringing total gross proceeds from divestitures signed or closed this year: $2.5 billion

Original Post 

I thought I had posted a short note on this. If I did, I can't find it -- whatever. I know I debated whether to post it. This is not an investment site and natural gas, Chesapeake, and divestiture analysis was getting a bit far afield of the purpose of the best non-commercial (no ads/no subscription) blog on the Bakken. I don't even have the Haynesville linked at the sidebar at the right. Whatever.

But my editor said, "go ahead and post it. What have you go to lose? It's not like you have any subscription base to worry about. Speaking of which, why aren't you posting ads? You could at least post a small 'gofundme' link. Think about it. Do it for Sophia."

Not tonight.

Here's the link to Richard Zeits' analysis: http://seekingalpha.com/article/4028484-chesapeake-energy-favorable-price-received-haynesville-divestiture. Key points:

• Zeits thought the deal was good for Chesapeake
• Chesapeake received an estimated $10,000+ per undeveloped core acre in Haynesville
• acreage is 100% HBP; 25% developed
• greater than 200% improvement in year-over-year gas production
• 78,000 net acres; 40,000 net acres considered "core"
• the map suggests that Chesapeake sold its less valuable acreage

Much more at the link.

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Zsa Zsa Is Dead At 99 

I assume the Kardashian of her age. I don't know much about Zsa Zsa. But I seldom missed an episode of Green Acres in which her sister starred. In another life, I suppose, Donald Trump would have played the part of Mr Douglas, played by Eddie Albert. Ted Cruz had a cameo. 

With Guest Star, Ted Cruz