Jan 25 (Reuters) - Chesapeake Energy Corp said on Tuesday it would buy natural gas producer Chief E&D Holdings LP and some non-operated stakes held by affiliates of Tug Hill Inc for about $2.6 billion in cash and stock.

The company also signed an agreement to sell its Powder River Basin assets in Wyoming to Continental Resources Inc for about $450 million in cash. (Reporting by Arathy Somasekhar in Bengaluru; Editing by Ramakrishnan M.)