Of course, the fact that CHK has an opportunity to sell assets with a price tag of more than $1 billion is exciting. However, the real excitement surrounds the assets being sold.
While Chesapeake Energy is the largest producer in the Haynesville region, it’s doing absolutely nothing with the assets… literally.
For some time now, CHK has cutting back on its activity in the region. About a week ago, the company announced that it would be releasing its rigs and completion crews for the rest of the year.
Ultimately, the largest producer in the region isn’t producing. Crews and equipment at these assets will be on a standstill for the next couple of months at least. This means wasted time and money.
Considering this, investors aren’t happy with what’s going with these assets. So, to sell the assets now and retain their value, CHK would be making one of the most important moves that we’ve seen as of late.
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