Subsequent Events

12 Months Ended

Dec. 31, 2021


25.			Subsequent Events

On January 24, 2022, Chesapeake entered into definitive agreements to acquire Chief and associated non-operated interests held by affiliates of Tug Hill, Inc. ("Tug Hill"), for $2.0 billion in cash and approximately 9.44 million common shares. Chief and Tug Hill hold producing assets and an inventory of premium drilling locations in the Marcellus Shale in Northeast Pennsylvania. The cash portion of the transaction will be financed with cash on hand and the use of our Exit Credit Facility. The transaction, which is subject to customary closing conditions, including certain regulatory approvals, is expected to close by the end of the first quarter of 2022. In January 2022, we announced our intent to increase the base quarterly dividend to $0.50 per share beginning in the second quarter of 2022, reflecting the cash flow accretion of the transaction.

Additionally, on January 24, 2022, Chesapeake signed an agreement to sell its Powder River Basin assets in Wyoming to Continental Resources, Inc. (NYSE: CLR) for approximately $450 million in cash. The transaction, which is subject to certain customary closing conditions, is expected to close in the first quarter of 2022. At closing, net proceeds from the sale will go toward the purchase price of the Chief Acquisition. The Powder River Basin assets were not classified as held for sale as of December 31, 2021, as the agreement had not been finalized and formal authorization from Chesapeake’s Board of Directors had not yet been obtained.