Memphis, Tennessee, USA, 31 July 2008 -- /PRNewswire/ -- International Paper (NYSE: IP) has agreed to sell approximately 13,000 net acres of subsurface mineral rights located in the Haynesville Shale natural gas formation in northwest Louisiana to Chesapeake Energy Corporation (NYSE: CHK) for approximately USD 263 million, subject to various adjustments at closing. The transaction is expected to close in late August.
"The proceeds will be used to pay down debt," said John Faraci, International Paper's chairman and chief executive officer. "We will continue to look for opportunities to monetize our remaining U.S. forestlands, real estate, and mineral holdings, to strengthen our balance sheet and maximize shareholder value."
This agreement is part of International Paper's transformation plan to focus on global uncoated paper and packaging, as well as xpedx, its North American distribution business.
International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tennessee, the company employs more than 50,000 people in more than 20 countries and serves customers worldwide. The company's 2007 net sales were approximately USD $22 billion. For more information about International Paper, its products, and stewardship efforts, visit www.internationalpaper.com