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Friday, January 22, 2021

Chesapeake to spin off oilfield services unit

OKLAHOMA CITY (AP) — Chesapeake Energy Corp. has filed regulatory paperwork for a possible spinoff its oilfield services business unit.

The Oklahoma City-based natural gas company said in February that it was considering selling or spinning off the unit to help maximize shareholder value. Chesapeake said Monday that the spinoff will be tax-free to its shareholders. It has not determined the exact scope or timing of the spinoff, according to the paperwork filed with the U.S. Securities and Exchange Commission. It has retained Morgan Stanley & Co. LLC as its financial adviser in connection with the deal.

The division is expected to change its name to Seventy Seven Energy Inc. as part of the spinoff. The unit posted a profit of $19.9 million on revenue of $1.3 billion in 2011, the most recent fiscal year included in the SEC filing. Chesapeake Energy is the second-largest producer of natural gas and tenth-largest producer of oil and natural gas liquids in the U.S.

Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

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