Chesapeake Energy to buy back $1.26B of preferred shares

Chesapeake Energy (NYSE:CHK) says it plans to spend $1.26B to buy back all outstanding preferred shares issued by its CHK Utica unit to simplify its balance sheet and eliminate ~$75M in annual dividend payments.

CHK also says it will pay $450M as part of an agreement to exchange some acreage in Wyoming's Powder River Basin with private oil and gas producer RKI Exploration to consolidate its holdings in the southern portion of the basin.

CHK -0.7% premarket.

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Comments (1)
  • GamCap LLC
    , contributor
    Comments (571) | Send Message
    More of what the dr. ordered. Less complexity/debt...incr... their oil exposure and took the NRI in the PRB from 40% to 79%. Highlighted some recent PRB well results which in aggregate will show much improvement from their 17% IRR in Q1.


    Looking for positive results from their test wells in the Utica oil window and possibly from their Utica test well in W. VA. to be mentioned when earnings are released.


    Also, mentioned continued paring down of non-core E+P assets AND non-E+P assets by year end(hopefully, selling their stake in Sundrop Fuels and 30% stake in FTS. which wants CHK out before they go public in Q4 or Q1 2015.
    29 Jul 2014, 08:26 PM Reply Like
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