Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Chesapeake Deals Mississippi Lime

Chesapeake Energy (NYSE: CHK  ) has now agreed to sell a stake of its Mississippian Lime assets, receiving $1.02 billion for its 425 thousand acres, or about $2,400 per acre. While this is lower than analysts had expected the company to make in this deal, Motley Fool energy analyst Joel South tells us in this video why this is a prudent move for the company. The move not only continues to reduce Chesapeake's funding gap, but is also in line with its longer-term strategy of moving away from plays that have a high percentage of natural gas, such as the Mississippian, and concentrating more heavily on the higher-margin oil plays, such as the company's assets in the Eagle Ford.

Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning 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.

Read/Post Comments (0) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2276161, ~/Articles/ArticleHandler.aspx, 9/29/2016 1:37:12 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,152.11 -187.13 -1.02%
S&P 500 2,155.07 -16.30 -0.75%
NASD 5,275.00 -43.55 -0.82%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 1:21 PM
CHK $6.37 Down -0.38 -5.63%
Chesapeake Energy CAPS Rating: ***
CEO $124.78 Up +1.55 +1.26%
CNOOC CAPS Rating: ***
CVX $101.04 Down -1.11 -1.09%
Chevron CAPS Rating: ****
RDS-A $49.56 Up +0.84 +1.72%
Royal Dutch Shell… CAPS Rating: ****