Chord Energy Sells $550M Marcellus Assets, Focuses on Williston Basin
Chord Energy Corporation (NASDAQ:CHRD) announced that it has agreed to sell its non-operated Marcellus assets for $550 million in gross consideration. A subsidiary of the company will receive a $55 million deposit, with closing expected in the fourth quarter, subject to customary conditions.
The assets produced approximately 121 million cubic feet of natural gas daily over the preceding 12 months. Selling them would concentrate the portfolio entirely in the Williston Basin.
Investors are questioning whether this focus and the released capital outweigh the earnings and diversification surrendered. Exiting a separate, non-operated position simplifies investment decisions and allows management to concentrate resources in its core basin.
The company expects annual capital requirements to fall by approximately $25 million after the sale. The proceeds create options, such as debt repayment, selective reinvestment, or shareholder distributions, which could improve returns.