Chord Energy has announced that one of its subsidiaries has entered into an agreement to sell its entire non-operated Marcellus position to POSCO International Corporation for total gross consideration of $550MM. The transaction is expected to close in the fourth quarter of 2026 subject to customary closing conditions.
Transaction Highlights:
- Divesting non-operated Marcellus position consisting of approximately 32k net acres and trailing 12-month (TTM) production of approximately 121 MMcfpd. Volumes consist of 100% residue gas with no NGLs;
- Transaction is highly accretive across key metrics. Transaction value represents approximately 6x Adjusted EBITDA(1) based on gross proceeds of $550MM and $3.50/MMBtu Henry Hub;
- Chord received a $55MM deposit with the remaining consideration payable at closing. Effective date for the transaction is July 1, 2026;
- Chord's net leverage(2) is expected to decline further as a result of the divestiture, and remain well below peer levels;
- Proceeds will be deployed over time in a manner consistent with the Company's disciplined capital allocation framework. Following the transaction, Chord's portfolio will be focused exclusively in the Williston Basin, where the Company expects to continue driving significant value creation through its size, scale and robust inventory life.
(1) Non-GAAP financial measure. Adjusted EBITDA multiple is based on an estimated TTM solely with respect to the divested Marcellus assets. See "Non-GAAP Financial Measures" below.
(2) Non-GAAP financial measure. Net Leverage is defined as net debt (total long-term debt less cash and cash equivalents) at June 30, 2026 divided by TTM Adjusted EBITDA at June 30, 2026. See "Non-GAAP Financial Measures" below.
'The divestiture of our non-operated Marcellus position builds on Chord's multi-year track record of disciplined capital allocation and portfolio optimization,' said Danny Brown, Chord Energy's Chief Executive Officer. 'Following the close of the Enerplus transaction in May 2024, Chord identified its non-operated Marcellus position as non-core. Since then, we have benefited from the Marcellus' significant free cash flow generation and are pleased to bring substantial value forward through the divestiture announced today. 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.'
Chord expects to update guidance in conjunction with its 3Q26 earnings release in November. On a pro forma basis, Chord expects the following impacts to its post-divestiture key metrics:
- Oil weighting would increase by approximately 4 to 5 percentage points;
- Given stronger gas realizations in the Marcellus, gas realizations would decrease by approximately 16 to 30 percentage points;
- Due to higher oil weighting in the Williston Basin, LOE would increase by approximately 70 to 80 cents per Boe;
- Cash GPT3 would decrease by 20 to 25 cents per Boe;
- Production taxes would increase by approximately 0.15% to 0.45% of oil, NGL, and natural gas sales; and
- CapEx would decrease by approximately $25MM annually.
Moelis & Company LLC and RBC Capital Markets acted as strategic and financial advisors to Chord Energy, and Orrick, Herrington & Sutcliffe LLP acted as legal advisor.
Bank of America acted as strategic and financial advisor to Chord's counterparty, POSCO International Corporation, and DLA Piper acted as legal advisor.
Source: Chord Energy
