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.
Chesapeake bought its stake in the oil company in 2006 as a way to expose the natural gas company to oil prices.
Tuesday's Wells Fargo report estimated that the 20 percent stake in Chaparral is worth about $280 million, up from the $178 million Chesapeake paid for it in 2006. At that price, Chaparral's total valuation would be about $1.4 billion.
“Chesapeake has been a very good shareholder,” Fischer said. “They've been very passive, but when necessary, they would give us important information they thought we might need.”
Chesapeake has announced $1.5 billion in asset sales so far this year and has said it plans to sell a total of $4 billion to $7 billion by the end of the year. Chesapeake sold more than $11 billion in assets in 2012.