This week has been especially busy on the acquisition front, with Plains Exploration & Production purchasing $6 billion of Gulf of Mexico deepwater assets from BP and Shell, and now Chesapeake is shedding $6.9 billion in land and midstream assets. The former deal was unexpected, with the markets reacting strongly after the announcement, but the Chesapeake deal has already been factored into its stock price since management announced that significant divestments would be executed during the third quarter in their second-quarter-earnings call. To gain a better perspective of what this deal means for Chesapeake and its three-year asset-harvesting plan, as well as gather more information on the multiparty deal, than check out the video below. 

This significant deal will not be the last for Chesapeake, as management expects to sell an additional $7 billion-$8 billion by the end of 2013 in order to improve its credit metrics. The company's goal is to increase its liquids production by 250% by 2015 in order to hedge from low natural gas prices with attractive crude. However, Chesapeake is just one of a plethora of companies making this move. If you're on the lookout for some other intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." You can get free access to this special report by clicking here.

The article Chesapeake Makes Good on Asset Sales originally appeared on Fool.com.

Joel South has no positions in the stocks mentioned above. The Motley Fool has the following options: long JAN 2013 $16.00 calls on Chesapeake Energy, long JAN 2013 $25.00 calls on Chesapeake Energy, long JAN 2014 $20.00 calls on Chesapeake Energy, and long JAN 2014 $30.00 calls on Chesapeake Energy. Motley Fool newsletter services recommend Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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kcwranglrz

Very rare Chesapeake does anything they promise. They have for years and with the aid of the legal litigation they are capable of further cheat people. In recent years even in house emails show VP of land Dave Bolton,Jeff Brooks and Gary Dunlap discussing on how to circumvent a contract they just signed. That speaks volumes as to their business ethics and they wonder why they are swimming in debt. Further in that deal they spent according to Brian Tully a attorney for CHK 15 million dollars so far and have nothing in return. However Romac Energy LLC,President Wayne Hartt and the company owner Mac Clevenstine and partner Jeff D. Thomas all of Longview Texas pocketed 3.5 million of those funds. All of this witrh the help of their attorney Jared Barrett of Barrett & Bull of Longview. Even thou Jared has allowed his client to lie in a affidavit to a judge Romac claims to be in their pocket. And he must be because William Todd Hughey has bowed down and kissed Jared's ass every turn of the way. Who knew perjury was not a crime in Harrison Couinty Texas. And I sure didnt know it was legal for a Romac partner to be going around talking about being (****** RICH) like Jeff Thomas love to do...............

September 12 2012 at 4:31 PM Report abuse rate up rate down Reply