Chesapeake (CHK) Considering Sale of Oil Services Division
Shares of Chesapeake Energy Corporation (CHK) were trading up +0.41 or +1.54 percent to $26.98 per share in pre-market trading early Monday, after the company announced it was considering strategic alternatives for its Oilfield Services Division. Chesapeake Energy stock closed at $26.57, down -0.08 or -0.30 percent to $26.57 in Fridayâ s regular trading session.
Oklahoma City, Oklahoma based Chesapeake Energy Corp. is the second largest producer of natural gas in the United States and focuses primarily on the discovery and development of unconventional oil and natural gas fields. The company has acquired leading positions in major unconventional liquid and natural gas plays in the continental United States and also owns extensive marketing and oilfield services through its Chesapeake Energy Marketing and Chesapeake Oilfield Services subsidiaries. The company announced earlier today that it was considering alternative strategies for its Chesapeake Oilfield Services division. Chesapeake said plans included a possible spin-off to shareholders or even an outright sale of the division. Chesapeake Oilfield Services is currently operated through a wholly owned subsidiary, Chesapeake Oilfield Operating LLC. The division provides services that include drilling, rig relocation, fluid handling, hydraulic fracturing and disposal and had revenues of around $2.2 billion in 2013. In the companyâ s press release announcing the plan, Doug Lawler, Chesapeakeâ s Chief Executive Officer, stated that, â
Published on Feb 24, 2014
By Jay Hawk