Encino Acquires Chesapeake Energy’s Oil, Gas Assets in Ohio
August 7, 2018
Steubenville Herald-Star. Encino Acquisition Partners announced recently it signed a definitive agreement to acquire all of Chesapeake Energy’s Utica Shale oil and gas assets in Ohio for $2 billion.
EAP is acquiring 933,000 net acres of leasehold spanning the condensate, liquids-rich and dry gas windows of the Utica play in Ohio. On that property are 920 wells producing and non-producing wells, and EAP plans to operate multiple drilling rigs on the properties to increase production and cash flow.
Chesapeake was the largest leaseholder in Columbiana County and at the forefront of the leasing boom in the Utica shale that began in 2010.
Canada Pension Plan Investment Board and Encino Energy formed EAP in 2017 to acquire large, high-margin oil and gas production and development assets in the U.S. lower 48 states. In support of this acquisition, CPPIB will invest approximately $1 billion in EAP and will own approximately 98 percent of the partnership. Houston-based Encino will invest in EAP alongside CPPIB and will operate the acquired assets on behalf of EAP.
Together, EAP’s owners plan to build a large, well-capitalized independent E&P company.
“At EAP, Encino and CPPIB are building a company focused on shareholder returns with top-notch people, carefully managed risk and sustainable, safe operations,” said Hardy Murchison, Encino’s chief executive officer. “With a multi-decade inventory of development projects held by 920 producing wells, the Utica acquisition provides an excellent start for EAP. We are excited to work with Chesapeake’s employees in the Utica and all other stakeholders in the state of Ohio. With a strong balance sheet and a partner of CPPIB’s stature, EAP is well positioned for continued growth through drilling and acquisitions.”
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