Chesapeake Energy Corporation (NYSE: CHK) is making a run for the top in the market this morning, trading on gains of more than 18% early on. While the company hasn’t issued a press release or filed anything with the FDA, there’s good reason for the move. The company may be selling a high-value asset very soon. Here’s what’s happening:
CHK Stock Gains On CRK Interest
According to Reuters, Chesapeake Energy is in advanced talks surrounding the sale of assets worth more than $1 billion. According to the announcement, Comstock Resources (NYSE: CRK) is interested in getting its hands on the company’s Haynesville shale assets in Louisiana.
Sources suggest that the two companies have already settled on a structure for the deal. It is hoped that CHK and CRK will reach an agreement by the end of the year.
As it stands, CHK is the largest operator in Haynesville. The position as the the leading player in Haynesville was solidified after the company purchased Covey Park in a deal worth $1.1 billion.
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Why This News Is So Exciting
As with just about any company of the size of Chesapeake Energy, an asset sale that could have a price tag of more than a billion dollars is a very exciting concept. However, the excitement goes far beyond that.
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