American Oil and Gas Reporter - September 2021 - 19

IndustryDigest
shale plays, Chesapeake notes. The
company says the agreement offers
Vine shareholders $15.00 a share,
comprising 92% stock and 8% cash.
Chesapeake cites several benefits of the
transaction, including that it:
· Increases Chesapeake's
cumulative five-year free cash flow
outlook by approximately $1.5 billion,
or 68% of the transaction value, to
approximately $6.0 billion, or 66% of
pro forma enterprise value;
· Is immediately accretive to
operating cash flow per share, free cash
flow per share and free cash flow yield
as well as improving the company's
greenhouse gas emissions profile;
· Enables operating and capital
synergies Chesapeake estimates will
save $50 million a year;
· Consolidates the company's
position in the Haynesville/Bossier and
adds approximately 370 premium
drilling locations with a 50% rate of
return at $2.50 natural gas price on the
New York Mercantile Exchange; and
· Lowers Chesapeake's pro forma
total gathering, processing and
transportation expenses about 15%
and diversifies the company's
midstream partnerships.
" This transaction strengthens
Chesapeake's competitive position,
meaningfully increasing our free cash
flow outlook and deepening our
inventory of premium gas locations,
while preserving the strength of our
balance sheet, " comments Chesapeake
Chairman and Interim Chief Executive
Officer Mike Wichterich. " By
consolidating the Haynesville,
Chesapeake has the scale and operating
expertise to quickly become the
dominant supplier of responsibly
sourced gas to premium markets in the
Gulf Coast and abroad. "
Vine Chairman, President and CEO
Eric Marsh points out a few other
acquisition drivers, including the
companies' synergy on environmental,
social and governance considerations.
" We firmly believe that the quality of
our assets, combined with the scale,
depth and diversity of Chesapeake's
portfolio, and our shared unwavering
commitment to ESG excellence,
provides significant opportunity to
accelerate the return of capital to our
combined shareholders, " he says.
Chesapeake predicts the transaction
will close in the fourth quarter of 2021. ❒
SilverBow Obtains
Assets In Eagle Ford
HOUSTON-SilverBow Resources
Inc. says it has entered into definitive
agreements to acquire oil and gas
assets in the Eagle Ford Shale from an
undisclosed seller in an all-stock
transaction valued at approximately
$33 million.
By adding 45,000 total net acres in
the Eagle Ford, the deal bolsters
SilverBow's gas position in the Texas
counties of McMullen and Live Oak,
while adding new oil positions in the
Texas counties of Atascosa, Lavaca and
Fayette, SilverBow describes.
According to the company, the
properties' April 2021 net production of
1,580 barrels of oil equivalent a day
consisted of 39% liquids and net oil
production of 569 bbl/d.
SilverBow Chief Executive Officer
Sean Woolverton says the company
continues to execute on accretive
opportunities and bolster its balanced
oil and gas portfolio. " This marks the
second acquisition we have announced
since the beginning of August, " he
relates. " Our first deal increased our
Oklahoma Governor Signs Lien Act Change
OKLAHOMA CITY-Representatives
from the Oklahoma Energy Producers
Alliance joined Governor Kevin Stitt
when he signed SB 632, which amends
the Oklahoma Oil and Gas Lien Act.
According to the state's legislative
website, the bill passed both chambers
without a single nay vote. " This is a
huge legislative win for Oklahoma
producers, " affirms OEPA Chairman
Dewey Bartlett, owner of Keener Oil
& Gas Co. in Tulsa. " We now know
that small producers in Oklahoma are
protected in the future. "
According to OEPA, SB 632
modifies the Oklahoma Oil & Gas
Lien Act to expand the types of oil
and gas proceeds classified as priority
claims in bankruptcy. The new law
adds pooling bonuses, oil and gas
lease revenue bonuses and
uncompleted mineral sales
transactions as first priority lien
holders in bankruptcy filings. The bill
was authored by Senator Zack Taylor,
R-Seminole, and Representative
Marcus McEntire, R-Duncan.
OEPA President David Little,
owner of Kingery Energy in Ardmore,
Ok., commends members who stepped
up to help craft the legislation and see
it to the governor's desk. " We are
thankful to have a robust volunteer
Legislative Committee that set an
agenda at the beginning of the year, "
Little says. " They worked tirelessly to
push this important piece of legislation
through the legislative process. " ❒
Pausing before the gubernatorial signature is added to SB 632 are, from left, Representative
Brad Boles, R-Marlow; Sydney Hill, OEPA lobbyist; Darlene Wallace, Columbus Oil Co.;
Parker Bowles; Governor Kevin Stitt; Michael Booze, Oklahoma Energy Advisors PLLC;
Senator Zack Taylor, R-Seminole; David Guest, Guest Petroleum Inc.; Joe Warren, Cimarron
Production Co. Inc.; and Greg Piatt, OEPA lobbyist.
SEPTEMBER 2021 19

American Oil and Gas Reporter - September 2021

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