Chord Energy Sells Non-Operated Marcellus Assets for $550 Million
Chord Energy Sells Non-Operated Marcellus Assets for $550 Million
In a significant move aimed at streamlining its portfolio and enhancing capital efficiency, Chord Energy Corporation has announced the divestiture of its non-operated Marcellus assets. This decision, made public on September 16, 2026, involves the sale of approximately 32,000 net acres to POSCO International Corporation for a total gross consideration of $550 million. The transaction is set to close in the fourth quarter of 2026, contingent upon customary closing conditions.
Transaction Highlights
This divestiture includes a detailed financial breakdown as follows:
- - The Marcellus assets have recorded a trailing 12-month production of about 121 million cubic feet per day (MMcfpd), entirely composed of residue gas, with no natural gas liquids involved.
- - The valuation is highly favorable, equating to roughly six times the Adjusted EBITDA based on the sale price and current gas pricing benchmarks at $3.50 per MMBtu at Henry Hub.
- - Chord Energy has reportedly received a $55 million deposit, with the remainder due at closing, effective July 1, 2026.
- - Post-transaction, the company anticipates a reduction in its net leverage, positioning it significantly lower than its peers, which bodes well for its financial health.
- - The proceeds from this divestiture will be reinvested in alignment with Chord's stringent capital allocation strategy, focusing primarily on its assets in the Williston Basin, where the firm expects to maintain robust value creation.
CEO's Remarks
Danny Brown, the CEO of Chord Energy, highlighted the significance of this divestiture in the context of the company's strategic capital allocation and optimization efforts. According to Brown, the company recognized its non-operated Marcellus position as non-core following a prior transaction with Enerplus in May 2024. The divestiture enables Chord to capitalize on the substantial free cash flow generated by the Marcellus while enhancing its balance sheet strength.
Brown stated, “This highly accretive transaction allows us to further strengthen our peer-leading balance sheet and focus on creating significant value from our world-class Williston Basin position. Chord's disciplined capital allocation, operational efficiency, and financial strength position us to create value while navigating a volatile macro environment.”
Expected Changes to Key Metrics
Following the sale, Chord Energy's operational metrics will adjust accordingly:
- - The oil weighting in its portfolio is expected to increase by approximately 4 to 5 percentage points.
- - Due to the stronger gas realizations previously associated with the Marcellus, the company anticipates gas realizations will decrease by about 16% to 30%.
- - The increased oil weighting may result in a rise in lease operating expenses (LOE) of approximately 70 to 80 cents per barrel of oil equivalent (Boe).
- - Cash generated per ton (GPT3) is projected to reflect a decrease of 20 to 25 cents per Boe, and production taxes may rise by 0.15% to 0.45% across oil, natural gas liquids (NGL), and natural gas sales.
- - In terms of capital expenditures, a reduction of approximately $25 million annually is anticipated.
As Chord Energy gears up for its third-quarter earnings release in November 2026, stakeholders can expect an updated guidance reflecting the impacts of these changes.
Advisory Support
During this transaction, Moelis & Company and RBC Capital Markets provided strategic and financial advice to Chord Energy, while Orrick, Herrington & Sutcliffe LLP handled legal matters. On the other side, Bank of America and DLA Piper advised POSCO International Corporation.
Company Profile
Chord Energy Corporation is a U.S.-based independent exploration and production company dedicated to the development of its sustainable oil-rich resources primarily located in the Williston Basin. With its commitment to operational efficiency and financial discipline, Chord Energy continues to position itself for sustained growth within the volatile energy sector.
For more information, visit Chord Energy's official website.
Topics Energy）
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