Tag: Chesapeake Energy

Sheila McNulty

The announcement by Chesapeake Energy that it will sell several assets to raise $5bn to put toward paying down debt was warmly greeted by analysts who have been lamenting prospects for a sector under intense pressure by low US natural gas prices.

Indeed,  Standard & Poor’s, the ratings agency, placed a BB rating on Chesapeake, BB senior unsecured issue ratings and B preferred stock issue ratings on CreditWatch with positive implications. Here is what Standard & Poor’s credit analyst Scott Sprinzen had to say:

We placed the ratings on Watch positive because Chesapeake today announced its plan to sell all of its Fayetteville Shale assets, as well as its equity investments in Frac Tech Holdings LLC and Chaparral Energy Inc. and that it plans to reduce its long-term debt through 2012.

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