Should Investors Worry About Owning Chesapeake Energy's Spin Off?

In its younger days, Aubrey McClendon had visions of grandeur to build Chesapeake Energy (NYSE: CHK  ) into an integrated natural gas producer. Since his ouster, the pieces have slowly been crumbling away in the form of asset sales. The latest deal, however, will be the spin off of its oilfield services unit into publicly traded, Seventy Seven Energy.

Current investors will likely receive shares of each, but should they want to hang on to them? While their ownership of Chesapeake Energy has exposed them to this segment, our analysts wonder if they would be wise to dispose of those newly granted shares once the company goes public. For more on this news, check out the short clip below.

What companies are better bets on the U.S. commodity boom than Chesapeake Energy?

Have you missed out on the record oil and natural gas production that has been revolutionizing the United States' energy position? If so, it's not too late to start investing in it. For this reason, the Motley Fool is offering a comprehensive look at three energy companies with plenty of room left to grow. To find out which three companies we have identified, we invite you to check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.


Read/Post Comments (0) | Recommend This Article (2)

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.

DocumentId: 2881463, ~/Articles/ArticleHandler.aspx, 7/31/2014 5:59:41 AM

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...


Advertisement