Shearman & Sterling advised Chesapeake Energy Corporation (Chesapeake) in connection with its acquisition of entities owning oil and gas assets located in the Marcellus Shale. Chesapeake and its subsidiary Chesapeake Appalachia, L.L.C. finalized the acquisition of 100% of the interests of Chief E&D Holdings LP (Chief) and associated non-operated interests held by affiliates of Tug Hill, Inc. (Tug Hill).

The Chesapeake buyers paid the sellers a purchase price of $2.65 billion, consisting of $2 billion in cash and $650 million in shares of Chesapeake common stock.

Chief and Tug Hill hold high quality producing assets and an inventory of premium drilling locations in the prolific Marcellus Shale in Northeast Pennsylvania. The cash portion of the transaction was financed with cash on hand and the use of the company's revolving credit facility.

Headquartered in Oklahoma City, Chesapeake’s operations are focused on discovering and responsibly developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States.

The Shearman & Sterling team below included associates Annie Anderson and Jacquelyn Watson (both New York-Compensation, Governance and ERISA).

The Team