Southwestern Energy spends $5.38 billion for drilling assets in Pennsylvania and West Virginia

Southwestern Energy will spend about $5.38 billion to acquire drilling assets in West Virginia and southwest Pennsylvania now owned by Chesapeake Energy.

The acquisition includes 256 operated and producing horizontal wells in the Marcellus and Utica shale regions, and an additional 179 non-operated or non-producing wells in the same areas.

Southwestern will also assume part of the transportation and processing capacity commitments from Chesapeake Energy Corp.

Southwestern said Thursday that it considering the sale of some non-core assets to finance the deal.

The acquisition is subject to consent of the principal co-owner of the acreage, which also has a 30-day preferential right to purchase.

The transaction is targeted to close by the end of the year.

Southwestern Energy Co. is based in Houston.