CMS Energy Corporation Signs Letter of Intent to Sell Michigan Oil and Gas Properties to Quicksilver Resources

Strategic Insights -

CMS Energy Corporation, a leading American energy company, has announced a significant step in its strategic transformation. The company has signed a letter of intent with Quicksilver Resources, Inc. to sell its Michigan oil and gas exploration and production properties, including Terra Energy Ltd., for an undisclosed amount. This transaction is expected to close by the end of the first quarter, representing a significant portion of CMS Energy's planned non-strategic asset sales worth at least $500 million.

Key Takeaways:

  • CMS Energy Corporation will sell its Michigan oil and gas exploration and production properties, including Terra Energy Ltd., to Quicksilver Resources, Inc.
  • The transaction includes over 180,000 net leasehold acres producing about 54 million cubic feet per day equivalent in the Antrim Shale Fields.
  • The sale also includes interests in Niagaran and Praire du Chien wells, but estimated reserves were not disclosed.
  • Quicksilver Resources, Inc. is a natural gas and crude oil production company engaged in the acquisition, exploitation, and development of long-lived producing natural gas and crude oil properties.
  • CMS Oil and Gas Company, a subsidiary of CMS Energy, is among America's 50 largest independent oil and gas companies in production and reserves, operating in five states and internationally in eight countries.
  • CMS Energy Corporation has annual sales of about $6 billion and assets of about $14 billion throughout the U.S. and in 22 countries around the world.

Statistics:

  • The transaction includes over 180,000 net leasehold acres.
  • The properties produce about 54 million cubic feet per day equivalent in the Antrim Shale Fields.
  • CMS Energy plans to complete at least $500 million of non-strategic asset sales by the end of the first quarter.
  • CMS Energy has annual sales of about $6 billion.

Sources:

  • CMS Energy Corporation press release, dated January 19, 2023.