Simplifying the Most Complex Energy Deal of the Year

Simplifying the Most Complex Energy Deal of the Year

When Exco Resources made its bid for Chesapeake Energy's assets in the Eagle Ford and Haynesville shales, it appeared to be just another $1 billion asset deal that has been the modus operandi of Chesapeake over the past two years. In reality, though, the structure that Exco needed to implement to make this deal happen makes it one of the most complex asset deals of the year.

Between expiring buy-in options from British company BG Group and farming out exploration of the Eagle Ford to private equity firms, this deal has lots of moving parts that will affect Exco's investment decisions for the next five years. Check out the video below where contributor Tyler Crowe will walk you through the details of this deal and help make sense of it for investors.

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Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool. The Motley Fool has the following options: long January 2014 $30 calls on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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