Chesapeake Energy Corporation (NYSE:CHK) has been gaining some favor from investors lately with some of their recent news about stepping up its oil production in some areas while selling off some assets in other areas with the intent of using the proceeds to pay down it’s debt by more than 30 percent by the end of the year. In response of this news, Chesapeake Energy stock rose about 10 percent Tuesday and is up another 3 percent Wednesday to just shy of $20 a share.
Chesapeake Energy Corporation (NYSE:CHK), whish had been the nation’s second-largest producer of natural gas, has been beaten up lately as int makes the transitio away from natural gas and focuses more attention on oil and gas production. The company, in its earnings report this week, raised its own 2012 production estimates thanks to new discoveries in Ohio and Texas. The company reported net profit in the second quarter of $929 million, double its profit number from the same quarter in 2011.
Chesapeake Energy Corporation (NYSE:CHK) reported this week that it was selling three parts of its 1.5 million-acre play in the Permian Basin of west Texas, looking to pay down some its $14 billion debt to about $9.5 billion by the end of the calendar year. A fourth portion may be sold later this year, the company said. Over in Ohio, the company announced in a separate story that it was increasing its drilling rig operation by nearly 50 percent in eastern Ohio by the end of the year. The company currently has 11 rigs in the area and would increase it to 16. The company also announced more agressive movements in overall development, exploration and production of the Utica shale formations in the area. The company reported it had drilled 87 wells in the area, but only 38 or completed and are producing about 1,000 barrels of oil equivalents each day, per well.
In tying these two items, CEO Aubrey McClendon said in a statement”We are taking aggressive and focused actions to increase cash flow and net asset value per share, while also reducing long-term debt as we continue on ongoing transformation to a more-balanced asset base between higher-margin liquids and lower-margin natural gas.”
For investors, apparently, aggression is good from Chesapeake Energy Corporation (NYSE:CHK).