Could a Large Portion of Chesapeake Energy's Ohio Assets Be for Sale?
Doug Lawler, the Oklahoma City company's chief executive, told analysts Wednesday that Chesapeake has plenty of options to sell non-core assets this year and in 2016.
"At this point in time, we have not provided which exact assets," he said. "I will tell you we are working multiple options across the portfolio. We don't see any one solution necessarily. We see several that are possible for us."
Chesapeake's portfolio is vast, especially in eastern Ohio, where it has about 1 million acres under lease. That's enough to drill thousands of wells. But with just two rigs planned in Ohio for the remainder of the year, it would take generations to reach that figure.
Much of that Chesapeake's acreage appears to be in valuable parts of the Utica shale play. The company alleges its former founder and CEO Aubrey McClendon took its research data on Ohio acreage when he formed his new company, which McClendon denies.Read more by clicking here.
There seems to be very little question at this point that Chesapeake is going to have to sell off more assets as the company's stock continues to slide lower and lower.
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