SilverBow Resources, Inc. (NYSE:SBOW) entered into an agreement to acquire an unknown remaining stake in Eagle Ford Assets from Chesapeake Energy Corporation (NasdaqGS:CHK) for $750 million on August 11, 2023. The company will receive $650 million upon closing, subject to customary adjustments, with the final $50 million installment paid one year from the closing date. SilverBow has also agreed to pay Chesapeake an additional contingent payment of $25 million should oil prices average between $75 and $80 per barrel WTI NYMEX or $50 million should WTI NYMEX prices average above $80 during the year following the close of the transaction, which could increase total proceeds of the deal to $750 million.

Chesapeake anticipates the proceeds will be available to further strengthen its balance sheet and for its share repurchase program. Chesapeake expects the transaction will close, subject to certain regulatory approvals and consents, in 2023, with an effective transaction date of February 1, 2023. RBC Capital Markets, Citi, and Evercore are serving as financial advisors, Haynes and Boone, LLP is serving as legal advisor, and DrivePath Advisors is serving as communications advisor to Chesapeake.

Mizuho Securities is serving as financial advisor to SilverBow. Stephen T. Olson of Gibson, Dunn & Crutcher LLP acted as legal advisors to SilverBow on the Chesapeake Transaction. James Longhofer of Vinson & Elkins LLP acted as legal advisor to SilverBow Resources, Inc.