Chesapeake Energy Corp.’s board has signed off on the move company officials have been discussing for several months.
The Oklahoma City-based oil and natural gas producer will spin off its oil-field services business, Chesapeake Oilfield Operating LLC, into a separate stand-alone company.
Seventy Seven Energy, the new company has been christened, offers drilling, hydraulic fracturing, oil-field rentals, rig relocation, and fluid handling and disposal. Companies like Nomac Drilling LLC, Performance Technologies LLC, Great Plains Oilfield Rental LLC and Hodges Trucking LLC operate under its umbrella.
The new company will be led by CEO Jerry Winchester.
Officials chose the name Seventy Seven Energy to show the company’s commitment to Oklahoma, which has 77 counties. The name also evokes U.S. 77, a main thoroughfare connecting Kansas, Oklahoma and Texas, like the new company intends to do with its services, spokesman Bob Jarvis said.
“Obviously, many of our best customers are literally located in our own backyard and we realize that our success is dependent upon having great relationships with those companies,” he said.
Stock in the new company will be distributed to Chesapeake shareholders by the end of the month, according to Monday’s announcement.