Chesapeake Energy Corporation to Spin Off Oilfield Services Business to Shareholders (CHK)

Chesapeake Energy Corporation (CHK) reported on Friday that it now plans to spin off its Oilfield Services Business to its shareholders.

The company announced in February that it was seeking alternatives for its oilfield services business which is operated by CHK’s subsidiary Chesapeake Oilfield Operating. The spin off will be completed in tax free transaction that will eliminate $1.1 billion in debt from the company’s balance sheet. This is part of CHK’s plan to divest non-core businesses in order to focus on the highest rate of return businesses.

Looking forward, the company expects production to grow by 7%-10% in 2015 with the asset sales.

CHK Dividend Snapshot

As market close on May 15, 2014

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Chesapeake Energy shares were down 18 cents, or 0.62%, during pre-market trading Friday. The stock is up 6.82% YTD.