The US natural gas producer Chesapeake Energy Corp would need to sell as much as US$7billion in order to make up for a projected cash funding issue. One of the assets eyed to be sold is its stake in the Clean Energy Fuels Corp or CLNE.
CLNE's main business is building filling stations that sell fuels to consumers. The announcement led to a 1.1% drop in its share values according to the company totaling a 4.1% share value drop to US$12.50 per share. Over the past year, CLNE had already lost 32% of its overall value.
Chesapeake first invested in CLNE back in 2011 to help in the expansion of the use of natural gas for long haul truck rigs. Unfortunately, a cash shortfall because of declining gas prices has forced the Oklahoma based company to auction off nearly US$11 billion in oil field interests, gas processing plants and other similar properties. The asset sales target for the company has been set between US$4billion to US$7billion.
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