Chesapeake Energy Corporation (CHK): Watch This News

The roughly 162,000 net acres sold include currently producing wells, whose net production totals roughly 2 MMcf per day from 17 gross, or 1.2 net, wells, according to Southwestern Energy Company (NYSE:SWN)’s CEO Steve Mueller. The key acreage is mainly located in Pennsylvania’s Susquehanna, Wyoming, Tioga, and Sullivan counties.

The fact that the per-acre price Chesapeake Energy Corporation (NYSE:CHK) received was far below comparable transactions in the Marcellus is especially surprising considering the recent surge in natural gas prices, which should have made those assets more valuable to potential buyers.

What’s next?
Chesapeake Energy Corporation (NYSE:CHK) will continue with its asset sales strategy, though it plans on being less aggressive and toning down its sales pitch in an effort to avoid looking like a distressed seller. The company reckons that by achieving $4 billion in asset sales this year – the low-end of its target – it should be able to fully finance its investments for the year, while maintaining long-term debt at or below its year-end 2012 level.

The article Chesapeake’s Asset Sales Continue to Disappoint originally appeared on Fool.com and is written by Arjun Sreekumar.

Motley Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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