The following video is part of our "Motley Fool Conversations" series, in which analyst Paul Chi and senior analyst Matt Argersinger discuss topics across the investing world.
In today’s edition, Paul and Matt discuss Chesapeake Energy’s upcoming asset sales aimed at closing its funding gap for 2012, as well as reducing its long-term debt load in accordance with its 25/25 plan. Chesapeake has already raised $6.6 billion in cash in the first half of 2012, and aims to raise $5 billion to $7.5 billion more in the second half by selling additional assets. Investors are worried that Chesapeake may not be able to raise the cash it needs, but Paul looks at recent transaction comps to see if Chesapeake’s estimates of value are reasonable.
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Matt Argersinger has no positions in the stocks mentioned above. Paul Chi owns shares of Chesapeake Energy and has the following options: short DEC 2012 $6 puts on SandRidge Energy. The Motley Fool has the following options: long JAN 2013 $16.00 calls on Chesapeake Energy, long JAN 2013 $25.00 calls on Chesapeake Energy, long JAN 2014 $20.00 calls on Chesapeake Energy, and long JAN 2014 $30.00 calls on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.