Chesapeake CEO expects Q3 sale of 'vast majority' of Permian asset
BY BEN LEFEBVRE
OKLAHOMA CITY -- Chesapeake Energy Corp. still expects to sell its assets in west Texas and announce a joint venture in its Mississippi Lime operations by the end of this month, Chief Executive Aubrey McClendon said Thursday.
Chesapeake has been trying to sell $14 billion worth of assets to cut debt and finance the company's move into oil drilling. The Oklahoma City-based company, like many natural gas producers, saw cash flow dry up as a warm winter last year and a boom in production led to prices falling below $2 a million British thermal units in April.
Chesapeake, the second-largest natural gas producer after Exxon Mobil Corp. , in the second quarter brought its oil production to 21% of the company's total output from 10% earlier, Mr. McClendon said during a presentation to investors.
Chesapeake expects to have asset sales of $11.7 billion completed or announced by end of the third quarter, Mr. McClendon said during an investors presentation.
Chesapeake is still working on selling assets or finding a joint venture partner for its operations in the Mississippi Lime, a region in north Oklahoma and south Kansas, with an announcement expected to be made this month, Mr. McClendon said.
Chesapeake also expects by the end of the quarter to announce a sale of 'the vast majority' of its assets in the oil-rich Permian Basin in West Texas, Mr. McClendon said.
Chesapeake reported long-term debt of $14 billion in the second quarter; it aims to bring that down to $9.5 billion by year end.
Dow Jones Newswires