Deals
Chesapeake's $2 Billion Shale Sale Boosts Investor Fervor
- Proceeds to be used to erode gas driller’s debt burden
- Deal to advance CEO’s transition of company into oil driller
Chesapeake Energy Corp. signage.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Chesapeake Energy Corp.’s agreement to sell shale assets in Ohio for about $2 billion boosted the natural gas producer’s shares as it moves to whittle down debt.
The deal announced Thursday with closely held Encino Acquisition Partners is Chief Executive Officer Doug Lawler’s biggest in 3 1/2 years. After Chesapeake said almost all of the proceeds will be used to pay debt, its shares surged as much as 13 percent, the most in intraday trading since May 21.