Exclusive: Chord Marketing Non-Op Gas Assets in Marcellus Core
Chord Energy is gauging market interest for non-operated gas assets in the Marcellus Shale’s core, sources told Hart Energy. Experts say it’s attractive Marcellus dry gas inventory under a premier Appalachian operator.
Chord Energy is gauging market interest for non-operated Marcellus Shale interests it acquired from Enerplus last year.
Chord is working with investment bank and advisory Moelis & Co. to market the Marcellus package in northeast Pennsylvania, sources told Hart Energy under the condition of anonymity.
The legacy Enerplus assets include approximately 33,000 net acres in the Marcellus dry gas play. Net production from the Marcellus assets averaged 128.5 MMcf/d in the first quarter, Chord said.
Expand Energy, one of Appalachia’s largest bellwether producers, serves as the operator for most of the Marcellus assets, according to multiple sources.
Based on recent Marcellus transactions, Chord’s non-op package could potentially fetch around $500 million in a sale, according to an Energy Advisors Group (EAG) analysis.
Experts describe it as a non-op package with an attractive remaining inventory of low-cost dry gas locations, managed by one of the basin’s strongest operators.
Moelis & Co. declined to comment. Hart Energy has reached out to Chord Energy for comment on the marketing process.
Chord’s management has been clear about its intent to sell the legacy Marcellus interests, viewing them as non-core to the development of its sizable Williston Basin asset.
The company recently touted the assets in its first-quarter earnings, noting they are in the core of the Marcellus play targeting premium dry gas acreage.
Chord realized a price of $4.75/Mcf from the Marcellus assets in the first quarter, reflecting strong pricing dynamics.
Enerplus’ Marcellus assets
Houston-based Chord, formed through the 2022 merger of Whiting Petroleum and Oasis Petroleum, has focused on developing the Williston Basin of North Dakota and Montana.
Chord got larger in the Bakken play through a $4 billion acquisition of Enerplus Corp. last year, growing to a combined 1.3 MM net acres—98% of which were in the Williston Basin.
But in addition to its Bakken acreage, Enerplus held onto its legacy non-operated Marcellus assets across Susquehanna, Bradford, Wyoming, Sullivan and Lycoming counties, Pennsylvania.
Enerplus originally acquired non-op stakes in northeastern and southwestern Pennsylvania through deals with Chief Oil & Gas and Tug Hill affiliates in 2009.
The asset changed hands in 2022, when Chesapeake Energy acquired Chief Oil & Gas along with non-operated Tug Hill interests in a $2.6 billion cash-and-equity deal. The Appalachian deal coincided with Chesapeake’s push into natural gas production.
Chesapeake merged with Southwestern Energy last year, forming Expand Energy.
Chesapeake grew in northeast Pennsylvania’s Marcellus Shale through a $2.6 billion acquisition of Chief Oil & Gas in 2022. (Source: Chesapeake filings)
Appalachian dealmaking has picked up alongside rising natural gas prices. In April, EQT announced a $1.8 billion acquisition of private E&P Olympus Energy.
Blackstone-backed Olympus owns 90,000 net acres in southwest Pennsylvania, adjacent to EQT’s core Marcellus portfolio. Net production averages 500 MMcf/d.
Last year, Equinor acquired EQT’s non-operated Marcellus interests in two transactions totaling $1.75 billion, adding a combined 575 MMcf/d of net production.
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.
