More than 5.4 million shares of Seventy Seven Energy Inc. changed hands Tuesday on the former Chesapeake Energy Corp. subsidiary’s first day as a stand-alone, publicly traded company.
The company now trades on the New York Stock Exchange under the ticker symbol “SSE.” It gained $1.51 on the day to close at $25.06 a share. The stock opened at $23.62.
Chesapeake spun off its former oil-field services businesses at the close of business Monday, distributing about 47.6 million shares: one share of the new company’s stock for every 14 shares of Chesapeake stock outstanding. Holders with partial shares received cash.
Seventy Seven Energy, which is led by CEO Jerry Winchester, 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.
77 counties in state
As part of Chesapeake in 2013, the company generated $2.2 billion in revenue. That is up from $1.9 billion the year before.
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 last month.
The new company, which has its headquarters at 777 NW 63, has about 5,500 employees.