Chesapeake Energy Corp. on Tuesday snapped up a batch of natural gas-rich Marcellus Shale assets with a $2 billion-plus takeover of Chief E&D Holdings LP and affiliates of Tug Hill Inc.

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According to the Oklahoma City-based independent, pro forma natural production capacity could increase by up to 200 MMcf/d. The transaction, set for completion by the end of March, also may expand undeveloped locations by around 25% and expand the drilling inventory by more than 15 years at current activity levels.

Chesapeake agreed to pay a total of $2 billion cash and trade 9.44 million shares. The company was trading above $61.00/share early Tuesday. To help pay for the transaction, the Powder River Basin (PRB) portfolio in Wyoming is being sold to Continental Resources Inc. for $450...