Chesapeake files for possible spinoff of oilfield services

|About: Chesapeake Energy Corporation (CHK)|By:, SA News Editor

Chesapeake Energy (CHK) +2.6% premarket on news that it has filed with the SEC for a possible spinoff of its oilfield services division.

CHK says it intends for the spinoff to be tax-free to its shareholders for U.S. federal income tax purposes.

The business, which would be called Seventy Seven Energy after the spinoff, operates the fifth-largest U.S. land-based rig fleet, with 77 walking, pad-capable units; it drills, provides oilfield tools and operates fracking services in the Permian Basin, Eagle Ford, Marcellus and other U.S. shale plays.