Chord Energy has agreed to sell its entire non-operated Marcellus natural gas position to South Korea’s POSCO International for $550 million. The transaction includes approximately 32,000 net acres and trailing 12-month production of roughly 121 million cubic feet per day of residue gas, with no natural gas liquids.
The purchase price represents approximately six times adjusted earnings before interest, taxes, depreciation and amortization, based on gross proceeds and a Henry Hub natural gas price of $3.50 per million British thermal units. POSCO International has provided a $55 million deposit, with the remaining consideration due at closing. The transaction has an effective date of July 1, 2026, and is expected to close during the fourth quarter of 2026, subject to customary conditions.
Chord inherited the Marcellus interests through its 2024 combination with Enerplus but classified them as non-core. Following the divestiture, Chord will operate as a pure-play Williston Basin producer. The company expects the sale to reduce annual capital spending by approximately $25 million, increase its oil weighting by four to five percentage points, and further strengthen its balance sheet.
For POSCO International, the acquisition adds immediate, cash-generating U.S. natural gas production to an energy portfolio spanning upstream development, liquefied natural gas, terminals and power generation. It also increases the company’s exposure to North American supply at a time when U.S. gas production and LNG export capacity are becoming increasingly important to global energy markets.
Industry Impact
The transaction reinforces the United States’ position as a “safe barrel”—and, in this case, a secure molecule—supported by established infrastructure, private ownership, transparent regulation and relatively low geopolitical risk. For international buyers, U.S. oil and gas assets offer reliable production and access to expanding export markets. The deal also illustrates continued portfolio specialization, with Chord concentrating on oil-rich Williston assets while POSCO expands its gas and LNG supply platform.
Sales Strategy
Oilfield service companies should identify the operating partners responsible for the non-operated acreage and monitor post-closing capital plans, authorizations for expenditure and vendor requirements. Prioritize services connected to production optimization, well workovers, compression, gathering, emissions monitoring, water management and asset integrity. Position proposals around lowering operating costs, maintaining production and meeting Appalachian environmental and regulatory requirements.
Author: phinds