Friday, June 8, 2012

Scrambling Chesapeake Sheds Pipeline Operations



Chesapeake Energy told the WSJ that  it would sell another $4 billion of assets Friday morning, this time shedding its pipeline operations in three separate deals.

The natural-gas giant says the sales will reduce its capital-expenditure budget by $3 billion over the next three years, notable given the company’s free-spending ways have been among the concerns investors have raised recently.

The biggest chunk of Friday’s deal is a $2 billion sale of Chesapeake’s stake in Chesapeake Midstream Partners to Global Infrastructure Partners, a private-equity firm.  The sale marks a strategic shift for the company, which has long boasted of its vertical integration, and show the extent the company is scrambling…..


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