Chesapeake Leaves the Burnett

Chesapeake Energy reached an agreement on Aug 11 with Saddle Barnett Resources to transfer their remaining Barnett Shale assets. This marks Chesapeake’s exit from the” birthplace of horizontal drilling”, and will allow the company to eliminate drilling costs and pipeline contracts (with Williams Partners). In addition to cost saving, the move will benefit Chesapeake proved reserves value by $550 million by removing assets and commitments that have hurt the company. Abandoning the Burnett is seen as a positive impact on Chesapeake’s future.