Shell snaps up Texan assets from Chesapeake
Anglo-Dutch oil giant Royal Dutch Shell acquired some Texan assets from US titan Chesapeake Energy on Wednesday for a price of nearly two billion dollars.
Anglo-Dutch oil giant Royal Dutch Shell acquired some Texan assets from US titan Chesapeake Energy on Wednesday for a price of nearly two billion dollars.
The company said that the $1.935bn acquisition marks a further step in its strategy to build "a leading portfolio of shale assets rich in oil and natural gas liquids".
Shell has acquired 618,000 net acres of acreage in the Permian Basin in West Texas. The assets, which currently produce 26,000 barrels of oil equivalent per day, are said to have "significant" growth potential.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The acquisition provides both existing production and near-term growth potential from a proven resource, as well as promising opportunities for expansion," Shell said in a statement.
Chesapeake announced that it was selling off $6.9bn-worth of assets today, as it attempts to deal with an estimated $10bn funding gap. As part of this bumper sale, both Chevron and EnerVest are acquiring assets in the Permian Basin.
A "portion" of the proceeds from today's deals will be used to fully repay its $4bn of term loans during the fourth quarter this year, the US firm said.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
‘Inheritance tax insurance’ enquiries are soaring – but is it worth it?
Premiums for whole of life insurance can run to £5,000 a month to cover a £300,000 inheritance tax bill, with policies costing more the older you take them out.
-
MPs warn over Lifetime ISAs which could leave savers out of pocket
The Treasury Committee has highlighted confusion around the Lifetime ISA withdrawal charge, which risks consumers losing “a significant part of their savings”