Upcoming AWS Coverage on Oasis Petroleum Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 6, 2016 / Active Wall St. blog coverage looks at the headline from Chesapeake Energy Corp. (NYSE: CHK) as the Company announced on December 05th, 2016, that it has signed an agreement to sell a portion of its acreage and producing properties in its Haynesville Shale operating area in northern Louisiana for approximately $450 million to a private company. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

One of Chesapeake Energy's competitors within the Independent Oil & Gas space, Oasis Petroleum Inc. (NYSE: OAS), reported on November 07, 2016, results for the quarter ended September 30, 2016. AWS will be initiating a research report on Oasis Petroleum in the coming days.

Today, AWS is promoting its blog coverage on CHK; touching on OAS. Get all of our free blog coverage and more by clicking on the links below:

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Chesapeake Energy stated that the sale includes approximately 78,000 net acres, of which 40,000 net acres is considered as core acreage. The sale also includes 250 wells currently producing approximately 30 million cubic feet of gas per day, net to Chesapeake Energy. The company expects the transaction to complete by Q1 2017.

Furthermore, Chesapeake Energy announced that it is also marketing approximately 50,000 net acres located in the north-eastern part of its Haynesville Shale operating area, which the company also expects to close in Q1 2017. Following both of these planned divestitures; Chesapeake will retain approximately 250,000 net acres in the core of the Haynesville Shale. The company's 2017 development program in the Haynesville will be focused on longer laterals and further enhanced completions, resulting in projected adjusted production growth of approximately 13% from its Haynesville operations in 2017.

The Debt Reduction Program

In its Q3 2016 earnings results announced on November 03, 2016, Chesapeake Energy's debt principal balance as of September 30, 2016, was approximately $8.7 billion, including approximately $240 million of borrowings outstanding on the company's revolving credit facility compared to $9.7 billion as of December 31, 2015, and $11.7 billion as of September 30, 2015. During Q3 2016, the company entered into a $1.5 billion secured five-year term loan facility. Chesapeake used the net proceeds from this term loan to purchase and retire $898 million principal amount of its senior notes and $708 million principal amount of its contingent convertible senior notes for $1.5 billion pursuant to tender offers.

In Q3 2016, the company entered into an agreement to convey its interests in the Barnett Shale operating area located in North Texas to Total S.A. (NYSE: TOT) and simultaneously terminate future commitments associated with this asset. The transaction closed on October 31, 2016, and Chesapeake paid $334 million to terminate an existing gathering agreement with Williams Partners L.P. (NYSE: WPZ). Also in Q3 2016, the company entered into a purchase and sale agreement to sell the majority of its upstream and midstream assets in the Devonian Shale located in West Virginia and Kentucky, which includes approximately 882,000 net acres and approximately 5,600 wells along with related gathering assets, as well as other property, plant and equipment.

Chesapeake Energy stated that with its first sale in Haynesville and its previously announced Devonian asset divestiture, the company has reached approximately $2.0 billion gross proceeds from divestitures either signed or closed in 2016, excluding certain volumetric production payment repurchase transactions. The company expects this total to grow in the Q1 2017 with the second proposed acreage sale in the Haynesville.

Doug Lawler, Chesapeake's Chief Executive Officer, commented:

"With our long-term target of $2 billion to $3 billion in debt reduction, we will continue to look for opportunities to accelerate value through the sale of additional non-core assets in 2017 and beyond. Through the continual optimization of our asset base, reduction in our net leverage, improvement in liquidity and cash flow generating capabilities, we believe Chesapeake is well positioned for the years ahead."

Stock Performance

On Monday, following the sale announcement, the stock closed the trading session at $7.48, rising 3.46% from its previous closing price of $7.23. A total volume of 59.65 million shares have exchanged hands, which was higher than the 3-month average volume of 55.49 million shares. Chesapeake Energy's stock price advanced 38.52% in the last month, 10.00% in the past three months, and 60.17% in the previous six months. Furthermore, since the start of the year, shares of the company have skyrocketed 66.22%. The stock currently has a market cap of $6.47 billion.

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SOURCE: Active Wall Street