Covey Park Energy LLC said it closed its acquisition of Chesapeake Energy Corp.'s (NYSE: CHK) Haynesville assets, the Denham Capital-backed E&P said Feb. 15.
In the deal, an affiliate of Covey Park agreed to pay about $465 million for roughly 41,500 net acres and producing properties in northern Louisiana. Production consisted of 50 million cubic feet per day of gas, net to Chesapeake.
The deal was Chesapeake's second Haynesville sale it had announced in December.
On Dec. 5, Chesapeake also agreed to sell 78,000 net Haynesville acres to an undisclosed buyer for about $450 million. In total, the company is expecting $915 million of gross proceeds from the sale of noncore Haynesville properties.
Covey Park said it funded a portion of its acquisition with additional equity investments from Denham Capital, as well as incremental debt commitments from its core lender group.
The company also issued preferred equity to Magnetar Capital, KKR (through the energy income and growth fund) and Triangle Peak Partners to fund the balance of the deal and support growth initiatives. Wells Fargo was Covey Park's financial adviser.