Chesapeake Energy Corp announced to sell a portion of its oil and gas holdings in southern Texas and northern Louisiana. The deal was priced at US$1 billion and was offered to Dallas based, Exco Resources Inc. This would enable the natural gas giant to pay for operations costs without having to take on more debt.
The sale was announced last Wednesday with Chesapeake aiming to raise US$3.6 billion from asset sales this year. This would cover the company's US$3.5 billion gap between its planned spending and cash flow in 2013. However, the company needed to sell more assets before it can trim its incurred debt.
Chesapeake Energy is the second biggest natural gas producer in the US. The company helped in pioneering American energy industry boom. The company is directed to shed its assets by sale to be able to raise cash and focus in oil production and debt payment.
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