Chesapeake's Asset Sales Are a Mixed Bag
Sep 16th 2012 7:40AM
Updated Sep 16th 2012 7:42AM
As natural gas prices have collapsed, Chesapeake Energy has been making enormous moves to get out from the effect of low natural gas prices. That's no easy feat for the second largest natural gas producer in the U.S.. To make the move, Chesapeake has been operating a drilling program that will average more than 100 rigs in 2012. And to fund this immense drilling program, Chesapeake has been selling off assets from the massive collection it got during the shale gas and shale oil land grabs over the past several years. Recently, Chesapeake announced almost $7 billion in asset sales this quarter, which included much of its Permian Basin acreage, some of its Utica shale holdings, and the rest of its midstream holdings. Watch the following video for the full analysis.
With the swelling of the global middle class, energy consumption will skyrocket over the next few decades, and long-term investors know that you want exposure to this space now. We've picked one incredible natural gas company that presents a rare "double-play" investment opportunity today. We're calling it The One Energy Stock You Must Own Before 2014, and you can uncover it today, totally free, in our premium research report. Click here to read more.
The article Chesapeake's Asset Sales Are a Mixed Bag originally appeared on Fool.com.Matthew Argersinger has no positions in the stocks mentioned above. Paul Chi and The Motley Fool have options on Chesapeake Energy. Motley Fool newsletter services recommend Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.