Chesapeake announces first-quarter profit

Chesapeake Energy Corp. on Wednesday reported a first-quarter profit of $15 million and announced the sale of $300 million in midstream assets.
by Adam Wilmoth Modified: May 1, 2013 at 9:51 pm •  Published: May 2, 2013

“Chesapeake is off to a strong start in 2013,” Dixon said.

Chesapeake also said it has sold or agreed to sell about $2 billion in assets so far this year as part of the company's previously announced goal of selling $4 billion to $7 billion by the end of 2013.

“We anticipate closing our previously announced Mississippi Lime joint venture transaction with Sinopec before the end of the second quarter and expect to sign agreements to sell our northern Eagle Ford Shale assets, the majority of our remaining midstream assets and other noncore properties during the second quarter,” Dixon said. “These transactions will allow us to fund current capital expenditures and reduce debt.”

Tulsa-based SemGroup Corp. said Wednesday it has agreed to buy pipelines and other midstream assets from Chesapeake for $300 million. The sale is comprised of assets in the Mississippi Lime formation of northern Oklahoma and western Kansas, including 200 miles of gathering pipeline and two processing plants.


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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