Chesapeake Energy (NYSE: CHK ) took another step toward lowering its net debt by selling $2.16 billion in midstream assets to Access Midstream Partners (UNKNOWN: ACMP.DL ) . After closing the deal, Chesapeake will meet its debt reduction goals as set by management in its 25/25 plan. With a large collection of valuable assets and an improved balance sheet, will Chesapeake's share price start to increase?
For this to happen, Chesapeake will need to continue its focus on improving its oil production growth by harvesting its assets in liquid-heavy plays. Also, with no natural gas hedges in place for 2013, Chesapeake will need natural gas prices to continue their upward trend. For the complete picture, check out the video below.
If Chesapeake is about to soar, energy investors need to look into the company before its too late. Chesapeake Energy is a trading at a deep discount after its share price depreciated from negative news surfacing about the company's management and spiraling debt picture. While these issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand new premium report on the company. Simply click here now to access your copy, and as an added bonus, you'll receive a full year of key updates and expert guidance as news continues to develop.