Chesapeake Energy (CHK +3.8%) reportedly is selling more than 28K net acres in the Granite Wash...

Chesapeake Energy (CHK +3.8%) reportedly is selling more than 28K net acres in the Granite Wash and Hogshooter Wash areas in western Oklahoma, an oil-and-gas play it recently called a "significant boost" to its long-term strategy. CEO Aubrey McClendon had called Hogshooter "one of the best oil wells drilled onshore in the Lower 48 in the past several decades."
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Comments (7)
  • wigit5
    , contributor
    Comments (4365) | Send Message
    So why are they selling it if it's one of the best? Isn't that counter-intuitive?
    11 Oct 2012, 02:27 PM Reply Like
  • P. Dennis
    , contributor
    Comments (399) | Send Message
    I hope they sell to LINE or LGCY!
    11 Oct 2012, 02:30 PM Reply Like
  • daveog
    , contributor
    Comments (178) | Send Message
    Bloomberg is reporting that CHK is NOT selling the panhandle Hogshooter leases and wells. I think Alpha is shooting from the hip, like Obama.
    11 Oct 2012, 02:35 PM Reply Like
  • rhiannion
    , contributor
    Comments (2637) | Send Message
    CHK just keeps selling off assets - did McClendon and the board overspend? Collectibles, jets, trips cost - justify company assets for private enjoyment - sell off more company assets when finally held accountable, not private assets for what has been acquired for private use. And of course, this is sooooo good for CHK.
    11 Oct 2012, 03:59 PM Reply Like
  • richard48
    , contributor
    Comments (462) | Send Message
    You are omitting one other little item: CHK spent $20 million on naming rights where the CEO's basketball team plays. Why they have to advertise their name in that city gets me. It does not result in any more natural gas being drilled or sold. A waste of money but it gives $20 million of investor money away for nothing.
    11 Oct 2012, 04:19 PM Reply Like
  • NatGasGHshale
    , contributor
    Comments (90) | Send Message
    Hey... I must be lost... Hasn't Mr. Chesapeake been touting "giant shift towards "OIL" and AWAY from "GAS"???
    Why sell off the "OIL" assets????
    He must be drinking waaay too much of that "Aubrey McClendon's Collection" of $10K a bottle vino! LOL
    11 Oct 2012, 06:59 PM Reply Like
  • Factzplz
    , contributor
    Comments (306) | Send Message
    Is it true or another lie? We will not know, until we know. No source, no price, no facts. Is Bloomberg correct and is this another SA slander report?


    The Hogshooter is a good play, but very small in size. Given the recent activities of others in the area CHK might have gotten a great price. CHK completes a well every 3 hours. Gosh, do you really think this will put a dent in the operation?


    Selling off non core assets was announced five (5) years ago, and has been done for five (5) years, which has me confused as to why so many think this is "news."


    Lets see, CHK will have sold roughly 10% of its non-core assets for $14 billion and the remaining 90% is valued at $13 billion. 50 billion BOE valued at $0.21 per barrel.


    Nat gas is back to $3.60 as McClendon predicted. Guess gas sales will be double the Q1's this quarter. Gosh, just like he said.


    McClendon took $50K and turned it into $20+ billion of shareholder equity. That is $30+ per share book value. He operated, exactly, within shareholder approved policies (for those of us who actually took the time to read the 3 pages in the annual disclosures). He built the largest area of reserves, some 22,000 sq. miles, and the largest domestic reserves of any company. No other driller has done that, much less in just 23 years -- a billion dollars per year.


    The naming rights were $3 million. It is not "the CEO's basketball team," as he has just a 20% interest.


    I spent several days in Oklahoma City, talking to "the people" and CHK and McClendon are HIGHLY regarded by them all. He has done more to rebuild the spirit of the city than any other person (remember the right wing nut job McVeigh?). richard48 appears young and naive, or questioning civic pride and the benefits would never be questioned. What did your tour of the city, and discussions with the residents tell you?


    The employees of CHK contributed 25% of the budget of United Way, yet those are just 5-10,000 people in a city of 1.2 million (I do not know how many of the 13,000 work in Oklahoma City, versus where all the operations are). Civic pride comes from accomplishments, helping people, following religious principles, and "do unto others as you would have them do unto yourself." Apparently this concept is not understood by those who have not accomplished, have religious grounding, or experienced civic pride.


    Oh contrary, what a person does in his personal life, is, his personal life. Perhaps you forgot to check that he made $100K selling that wine (investment) collection. How much are you getting on your MD20 collection?


    Yes, 90% of the budget is oil drilling, with only 10 rigs completing contracts for gas. Yes, there is a giant shift, as over 50% of revenues are now oil.


    My guess is NatGasGHale and richard48 have yet to create their $20+ billion for their investors. When you do, then you will have earned the right to talk stupid. LOL
    12 Oct 2012, 01:22 AM Reply Like
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