Chesapeake shares pop on asset sale plans

Shares of natural gas producer Chesapeake Energy Co. popped to their highest point in more than two years Monday after the company detailed its plan to sell more than $5 billion worth of assets and use the proceeds to pay down debt.

THE SPARK: Chesapeake said it would sell a large natural gas field in the Fayetteville shale in central Arkansas, as well as its 25.8 percent stake in Frac Tech Holdings LLC and its 20 percent stake of Chaparral Energy Inc.

The Oklahoma City company hopes to receive more than $5 billion from the sales.

THE BACKGROUND: Chesapeake is trying to cut the debt it has accumulated through of its purchases of natural gas and oil fields by 25 percent by 2012. At the end of September, it owed $11.45 billion in long-term debt.

Read Full Article from Bloomberg

- Posted: 2011-02-07 22:41:11

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