Chesapeake (CHK) Hits 85% of Asset Sales Goal for FY12 with Latest Agreements
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Chesapeake Energy (NYSE: CHK) shares are ticking higher as the nat gas and oil giant announced further asset and non-core leasehold divestitures earlier. Shares are up about 3.5 percent ahead of the bell Wednesday.
According to Chesapeake's release, the company will "sell the vast majority of its Permian properties, substantially all of its midstream assets and certain noncore leasehold for total net cash proceeds of approximately $6.9 billion."
Sales will take place with Chevron (NYSE: CVX), Shell (NYSE: RDS-A), and privately-held EnerVest Ltd. The Permian Basin assets being sold produced approximately 21,000 barrels of liquids and 90 million cubic feet of natural gas per day during the 2012 second quarter, or approximately 5.7% of Chesapeake’s production during the quarter.
Chesapeake also entered into a sales agreement with Global Infrastructure Partners (GIP), covering gathering and processing systems in the Eagle Ford, Utica, Haynesville and Powder River Basin Niobrara shale plays and certain other assets.
Closing of the sales is expected within 30 days.
In August, Chesapeake raised its outlook for asset sale proceeds in 2012 from $11.5 billion to a range of $13 billion to $14 billion.
CEO Aubrey McClendon said year-to-date sales were $11.6 billion, equaling about 85 percent of expected proceeds.
Ahead of the bell, Chesapeake shares are up 2.8 percent.
According to Chesapeake's release, the company will "sell the vast majority of its Permian properties, substantially all of its midstream assets and certain noncore leasehold for total net cash proceeds of approximately $6.9 billion."
Sales will take place with Chevron (NYSE: CVX), Shell (NYSE: RDS-A), and privately-held EnerVest Ltd. The Permian Basin assets being sold produced approximately 21,000 barrels of liquids and 90 million cubic feet of natural gas per day during the 2012 second quarter, or approximately 5.7% of Chesapeake’s production during the quarter.
Chesapeake also entered into a sales agreement with Global Infrastructure Partners (GIP), covering gathering and processing systems in the Eagle Ford, Utica, Haynesville and Powder River Basin Niobrara shale plays and certain other assets.
Closing of the sales is expected within 30 days.
In August, Chesapeake raised its outlook for asset sale proceeds in 2012 from $11.5 billion to a range of $13 billion to $14 billion.
CEO Aubrey McClendon said year-to-date sales were $11.6 billion, equaling about 85 percent of expected proceeds.
Ahead of the bell, Chesapeake shares are up 2.8 percent.
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