Transaction Details: 

SilverBow Resources said today that it is acquring  Chesapeake Energy oil and gas assets in South Texas for a purchase price of $700 million, comprised of a $650 million upfront cash payment due at closing and an additional $50 million deferred cash payment due 12 months post close, subject to customary adjustments.

 Chesapeake may also receive up to $50 million in additional contingent cash consideration based on future commodity prices.

Transaction Summary

Purcahse Price : $700m

Land : 42,000 net acres

Production : ~32mboe/d (60% oil/NGLs)

Locations : 300

Proforma

• Production : 87 - 99 Mboe/d (4Q'23) (+50% increase)
• Oil & NGL 50% (10% increase)
• Land/ Net Acres 222,000 (+25% increase)
• Gross Drilling Inventory : 950 (+45% increase)

CHESAPEAKE SOUTH TEXAS ASSET HIGHLIGHTS

Adds ~42,000 net acres in Dimmit and Webb counties across the highly prolific, liquids-heavy window of South Texas

Expected production of ~31,000-33,000 Boe/d (~60% oil/NGLs) for the fourth quarter of 2023
~$850 million of Proved Developed Producing (“PDP”) PV-10 reserves value2 compared to the $700 million purchase price

~300 additional high-confidence drilling locations across the Austin Chalk and Eagle Ford formations which immediately compete for capital

Gulf Coast Deal Activity In Last 12 Months