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
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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.

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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....
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