Chesapeake Energy explores strategic options for oilfield services unit
24 February 2014
Chesapeake Energy Corp, the second-largest producer of natural gas in the US, today said that it is looking at strategic alternatives for its oilfield services division, including an outright sale or a spin-off to its shareholders.
Chesapeake Oilfield Services' (COS), which generated revenues of $2.2 billion in 2013, operates through Chesapeake's wholly-owned subsidiary, Chesapeake Oilfield Operating, LLC, the Oklahoma City-based company said in a statement.
COS offerings include drilling, hydraulic fracturing, oilfield rentals, rig relocation, and fluid handling and disposal.
Led by CEO, Jerry Winchester, former head of oilfield services company Boots & Coots, COS owns or leases 115 land drilling rigs, including 10 PeakeRigs that utilise advanced electronic drilling technology.
It also owns nine hydraulic fracturing fleets, a diversified oilfield rentals business, an oilfield trucking fleet comprising of 260 rig relocation trucks. 67 cranes and forklifts used to move drilling rigs and other heavy equipment, and 246 fluid hauling trucks.
Doug Lawler, CEO of Chesapeake, said, ''A separation of COS is aligned with our strategies of financial discipline and profitable and efficient growth from captured resources.''
In early 2012, Chesapeake, in which activist investor Carl Icahn holds an interest, had said that it would raise around $12-billion by selling assets as part of its 2012 financial plan to reduce debt and fund its ongoing operations. (See: Chesapeake Energy announces $12-bn asset sale to reduce debt)
It has since several shale gas and pipeline assets in the US to companies like China's Sinopec, BHP Billiton, EXCO Resources, and Access Midstream Partners LP.