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Chesapeake Energy sells $470 million in assets to Newfield

Staff writer |
Chesapeake Energy is selling $470 million in assets in Oklahoma to Newfield Exploration as part of a plan to collect money through divestitures.

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The company, which has more than $9 billion in debt, said it would sell about 42,000 net acres in Oklahoma's STACK field, with current production of 3,800 barrels of oil equivalent per day.

Low natural gas and oil prices have hit the heavily leveraged company, which plans to sell assets worth an additional $500 million to $1 billion this year.

"We anticipate subsequent divestitures during the second and third quarters," CEO Doug Lawler said.

The company lowered its forecast for 2016 production costs to $3.40-$3.60 per barrel of oil equivalent from $3.60-$3.80 per boe.

"We continue to look at all of our options, including the use of additional secured debt, private transactions with bondholders and other types of exchange offers and open market purchases," said CFO Nick Dell'Osso.

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