The Motley Fool Previous Page

Chesapeake Scores

David Lee Smith
July 3, 2008

For one Saturday in October, Texans and Okies don’t particularly get along, as the universities of Texas and Oklahoma square off in the Cotton Bowl. On the other 364 days of the year, though, the two states are united by their common energy bond. The relationship has only been strengthened by the announcement of a joint venture between Oklahoma City-based Chesapeake Energy (NYSE: CHK  ) and Houston's Plains Exploration & Production (NYSE: PXP  ) .

It's a straightforward deal, and I think it's another example of the steady leadership that Chesapeake CEO Aubrey McClendon and his team have provided for their company and its shareholders. Chesapeake will sell a 20% interest – or about 110,000 acres -- in its promising Haynesville Shale gas play in northeast Texas and Louisiana to Plains for $1.65 billion.

There are a couple of other key points to the newly ann