SilverBow Resources Inc. agreed Monday to acquire Chesapeake Energy Corp.’s natural gas and oil assets in South Texas, a deal that would create the largest publicly held Eagle Ford Shale pure-play.

Chesapeake would receive $700 million for the assets, including $650 million at closing and a $50 million deferred payment one year after the transaction is completed. The Oklahoma City-based independent, which earlier this year sold its Upper Eagle Ford assets for $1.4 billion, also could receive up to $50 million from SilverBow based on future commodity prices.

“The Chesapeake transaction transforms SilverBow into the largest public pure-play Eagle Ford operator,” CEO Sean Woolverton said. “This acquisition advances all our long-term strategic objectives by materially...