NEW YORK (TheStreet) – After bringing in the new year with a multi-billion dollar shale sale, Chesapeake Energy is adding to its string of 2012 divestitures with three oil and gas asset sales worth a total of $2.6 billion.
The nation’s second largest natural gas producer is using sales to cut its debt and fund new oil exploration ventures that will shift its portfolio away from natural gas, which is near decade a low. In three sales announced on Monday, Chesapeake Energy also signaled that it will continue to aggressively target capital-raising sales in a multiyear divestiture plan that may bring $17.5 billion to the company by 2013.
Asset sales: A sign of the times for cash-strapped Chesapeake Energy.
After the market close on Monday, Oklahoma City-based Chesapeake Energy said that it had sold shares in a subsidiary with 1,000 oil and gas wells called CHK Cleveland Tonkawa to private equity firms The Blackstone Group, TPG Capital, hedge fund Magnetar Capital and EIG Global Energy Partners for $1.25 billion. The subsidiary has the rights to 245,000 acres in the Cleveland and Tonkawa basins, which contain tight sand oil and gas liquids assets.
Click to view a price quote on CHK.Click to research the Energy industry.
See the rest here: Chesapeake Continues Gas Sell-Off With $2.6B in Deals
Free Penny Stock Picks