Chord Energy Corporation (NASDAQ: CHRD) has agreed to sell its entire non-operated Marcellus natural gas position to POSCO International Corporation for $550 million, according to a press release from the Houston-based company.

The assets include approximately 32,000 net acres and trailing 12-month production of approximately 121 MMcfpd of 100% residue gas. The transaction's effective date is July 1, 2026, and it is expected to close in the fourth quarter of 2026, subject to customary closing conditions. Chord has already received a $55 million deposit, with the remaining consideration due at closing.

The sale price represents approximately 6x adjusted EBITDA based on gross proceeds of $550 million and $3.50/MMBtu Henry Hub pricing, a non-GAAP measure based on trailing 12-month figures for the divested assets.

Following the close, Chord's portfolio will be concentrated exclusively in the Williston Basin. The company said it expects the divestiture to reduce annual capital expenditures by approximately $25 million and increase oil weighting by four to five percentage points. Gas realizations are projected to decrease by 16 to 30 percentage points, and lease operating expenses are expected to rise by approximately $0.70 to $0.80 per barrel of oil equivalent due to higher oil weighting in the Williston Basin.

"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. He added that the Marcellus position was identified as non-core following the Enerplus transaction that closed in May 2024.

Chord said it expects to update guidance alongside its third-quarter 2026 earnings release in November.

Moelis & Company LLC and RBC Capital Markets served as strategic and financial advisors to Chord Energy, with Orrick, Herrington & Sutcliffe LLP acting as legal advisor. Bank of America advised POSCO International, and DLA Piper acted as its legal counsel.