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Chesapeake Soars Most in S&P 500 on Pledge to Lower Debt Load

  • Company sold $700 million in assets vs. planned $300 million
  • 2016 budget of $1.3-$1.8 billion 57% less than last year
Bloomberg business news

Chesapeake Surges on Pledge to Lower Debt Load

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Chesapeake Energy Corp. surged 23 percent after saying it will pay off the remainder of a half-billion dollar debt that’s coming due in three weeks with proceeds from asset sales that were twice as large as the company expected.

Chesapeake has signed agreements to divest $700 million in gas fields and other assets, overshooting the $200 million to $300 million target communicated to investors as recently as Dec. 16, the Oklahoma City-based shale driller said in a statement on Wednesday. The company plans to sell another $500 million to $1 billion in properties this year while shutting down at least half the drilling rigs it has under contract.