{"id":135241,"date":"2010-01-04T09:33:00","date_gmt":"2010-01-04T14:33:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/total-wants-a-whiff-of-cheap-american-shale-gas-2010-1"},"modified":"2010-01-04T09:33:00","modified_gmt":"2010-01-04T14:33:00","slug":"energy-giant-total-drops-800-million-on-chesapeakes-american-shale-revolution-chk","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/135241","title":{"rendered":"Energy Giant Total Drops $800 Million On Chesapeake&#8217;s American Shale Revolution (CHK)"},"content":{"rendered":"<div style=\"float: left; padding: 15px 15px 15px 0;\">\n<script type=\"text\/javascript\">\/\/ <![CDATA[\ntweetmeme_source = 'moneygame'; tweetmeme_service = 'bit.ly';\n\/\/ ]]><\/script><br \/>\n<script src=\"http:\/\/tweetmeme.com\/i\/scripts\/button.js\" type=\"text\/javascript\"><\/script>\n<\/div>\n<p>France&#8217;s Total is diving into U.S. shale gas via a new joint venture with Chesapeake Energy (CHK). It&#8217;s yet another vote of confidence in the future of U.S. natural gas, as if Exxon&#8217;s XTO acquisition wasn&#8217;t enough.<\/p>\n<p style=\"padding-left: 30px;\"><a href=\"http:\/\/www.chk.com\/News\/Articles\/Pages\/ChesapeakeEnergyCorporationAnnounces$225BillionBarnettShaleJointVenturewithTotalEPUSAInc.aspx\">Chesapeake press release:<\/a> Chesapeake Energy Corporation (NYSE:CHK) today announced the execution of an agreement for a $2.25 billion joint venture with Total E&amp;P USA, Inc., a wholly-owned subsidiary of Total S.A. (NYSE:TOT, FP:FP) (&#8220;Total&#8221;), whereby Total will acquire a 25% interest in Chesapeake&#8217;s upstream Barnett Shale assets. Total will pay $800 million in cash at closing and will pay an additional $1.45 billion by funding 60% of Chesapeake&#8217;s share of drilling and completion expenditures until the $1.45 billion obligation has been funded, which Chesapeake expects to occur by year-end 2012. Closing of the transaction, which is subject to regulatory approval, is anticipated by the end of January 2010.<\/p>\n<p>For investors, Chesapeake Energy provides an interesting way to go long U.S. natural gas for the long-term given they claim to have some of the lowest production costs around and are levered to the shale gas revolution. The shares also remain well below the $66 peak they hit in 2008.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4b41fa8900000000000acf9e&amp;maxX=550\" border=\"0\" alt=\"Chart\" width=\"550\" \/><\/p>\n<p><em>Everyone should complete their own due diligence on any company. The author has exposure to Chesapeake Energy through a fund. UPDATE 9:48 AM &#8212; The author has purchased Chesapeake (CHK) shares.<br \/><\/em><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/total-wants-a-whiff-of-cheap-american-shale-gas-2010-1#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/natural-gas-companies-ditching-gas-investment-going-to-oil-2010-1\">Natural Gas Companies Fleeing Back To Oil After Exxon Dives Into Their Turf<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/united-states-natural-gas-cant-even-perform-in-an-up-market-2009-12\">Even When Natural Gas Rallies, United States Natural Gas Still Sucks<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/new-york-city-kills-the-shale-gas-revolution-2009-12\">New York City Kills The Shale Gas Revolution<\/a><\/li>\n<\/ul>\n<p><a href=\"http:\/\/feedads.g.doubleclick.net\/~a\/CLG2RLWbzMiOIhZBENVhJKKbWf8\/0\/da\"><img decoding=\"async\" src=\"http:\/\/feedads.g.doubleclick.net\/~a\/CLG2RLWbzMiOIhZBENVhJKKbWf8\/0\/di\" border=\"0\" ismap=\"true\"><\/img><\/a><br \/>\n<a href=\"http:\/\/feedads.g.doubleclick.net\/~a\/CLG2RLWbzMiOIhZBENVhJKKbWf8\/1\/da\"><img decoding=\"async\" src=\"http:\/\/feedads.g.doubleclick.net\/~a\/CLG2RLWbzMiOIhZBENVhJKKbWf8\/1\/di\" border=\"0\" ismap=\"true\"><\/img><\/a><\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?a=MMH6kWhFBRk:L7EubSdZCOU:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?a=MMH6kWhFBRk:L7EubSdZCOU:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?i=MMH6kWhFBRk:L7EubSdZCOU:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?a=MMH6kWhFBRk:L7EubSdZCOU:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?i=MMH6kWhFBRk:L7EubSdZCOU:V_sGLiPBpWU\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?a=MMH6kWhFBRk:L7EubSdZCOU:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?d=qj6IDK7rITs\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?a=MMH6kWhFBRk:L7EubSdZCOU:gIN9vFwOqvQ\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/greensheet?i=MMH6kWhFBRk:L7EubSdZCOU:gIN9vFwOqvQ\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/greensheet\/~4\/MMH6kWhFBRk\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>France&#8217;s Total is diving into U.S. shale gas via a new joint venture with Chesapeake Energy (CHK). It&#8217;s yet another vote of confidence in the future of U.S. natural gas, as if Exxon&#8217;s XTO acquisition wasn&#8217;t enough. Chesapeake press release: Chesapeake Energy Corporation (NYSE:CHK) today announced the execution of an agreement for a $2.25 billion [&hellip;]<\/p>\n","protected":false},"author":809,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-135241","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/135241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/809"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=135241"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/135241\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=135241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=135241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=135241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}