EXCO Resources to Acquire Assets from Chesapeake Energy (XCO, CHK)
Oil and natural gas company, EXCO Resources Inc (XCO) announced on Wednesday that it will acquire assets from Chesapeake Energy Corp.
Exco will purchase undeveloped oil and gas assets in the Eagle Ford and Haynesville shale formations from Chesapeake Energy for $1 billion.
The Northern Eagle Ford Shale will include 55,000 acres in Texas with about 120 producing wells that produced 6,100 barrels of oil equivalent in May. The Haynesville Shale will include 9,600 acres in Louisiana. Exco plans to finalize the acquisitions in July 2013.
EXCO’s Chairman and CEO Douglas H. Miller commented “these acquisitions are consistent with our strategy of targeting opportunities in both existing core areas and new plays. The Eagle Ford acquisition establishes our position in the high value oil core area of the Eagle Ford shale, and delivers immediate production and reserve additions, significant resource potential, and solid economic returns. The Haynesville acquisition adds to our leading core position and provides an expanded platform to apply our technical expertise, best-in-class drilling and completion focus, and project execution skills.”
EXCO Resources shares were up 8 cents, or 1.08%, during Wednesday morning trading. The stock is up 10% YTD.
The Bottom Line
Shares of EXCO Resources Inc (XCO) have a 2.67% yield, based on Wednesday morning’s price of $7.49.
EXCO Resources Inc (XCO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.6 out of 5 stars.
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