Join Venture Accent Resources Take Over CNX & Hess Assets On Ohio-Utica for $400 million. Two independent producers CNX Resources Corp. & Hess Corp. announced this morning each has closed on its previously announced deal to sell substantially all its Ohio Utica joint venture assets for roughly $400 million in cash. Ascent Resources is the buyer who benefits from this joint venture for $400 million.
Ascent Resources—Utica, a company founded by Chesapeake Energy co-founder and CEO Aubrey McClendon, is a leading private exploration and production company focused on acquiring, exploring for, developing, producing and operating natural gas and oil properties in the Utica Shale. The Company is capitalized with equity investments from various private equity sponsors, led by funds managed by The Energy & Minerals Group and First Reserve.
The sale was previously announced in late June but finally closed on August 31, 2018, according to the press release. This deal package divestiture includes 50 net producing wells with an average net revenue interest (NRI) of 48%; five 50% working interest; two 50% working interest and approximately 26,000 net undeveloped acres.
CNX, according to the press release, expects the proceeds from the sale to be used to pay down debt, continue the ongoing share repurchase program, invest in drilling and completion activities or to make bolt-on acreage acquisitions as opportunities become available.
“The transaction is immediately accretive and brings forward the value of assets that were simply outranked by other options in CNX’s opportunity set,” said Nicholas J. Deluliis, CNX president and CEO.