Analyst: Chesapeake could soon sell stake in Chaparral

A Wells Fargo analyst Tuesday said Chesapeake Energy Corp. is likely to soon sell its 20 percent stake in Chaparral Energy. The analyst valued Chaparral at $1.4 billion.
by Adam Wilmoth Published: April 3, 2013
Advertisement
;

Chesapeake Energy Corp.'s plan to sell up to $7 billion in assets this year could include the company's 20 percent stake in Oklahoma City-based Chaparral Energy, according to an analyst report released Tuesday.

Chesapeake bought the stake in 2006 and previously said it would begin trying to sell it late last year.

A Chesapeake spokesman declined to comment Tuesday.

Chaparral CEO Mark Fischer said his company is working with Chesapeake to find a buyer for its share of Chaparral. Fischer said he is hopeful the company will have a new shareholder before next year when it plans to become publicly traded.

“The impact on Chaparral would be positive provided that the party that acquires it is aligned with us as to the various growth drivers we have in the country,” Fischer said. “It is very clear that in an attempt of a public offering, Chesapeake's desire to sell would be an overhang.”

While Chesapeake's position could hurt the company's initial public offering price, the uncertainty of the possible sale has had little effect on Chaparral, Fischer said.

| |

by Adam Wilmoth
Energy Editor
Adam Wilmoth returned to The Oklahoman as energy editor in 2012 after working for four years in public relations. He previously spent seven years as a business reporter at The Oklahoman, including five years covering the state's energy sector....
+ show more

Advertisement


Trending Now



AROUND THE WEB

  1. 1
    Barresi opposes bill to cut state testing in social studies
  2. 2
    Oklahoma basketball: Guard Je'lon Hornbeak to transfer
  3. 3
    Man re-arrested in Pakistan for cannibalism
  4. 4
    Report: Joe Buck, Greg Norman to lead Fox Sports' golf coverage in 2015
  5. 5
    Opinion: What if the government guaranteed you an income?
+ show more