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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.

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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