Chesapeake Energy Corporation (CHK), the second-largest producer
of natural gas in the U.S., said Monday it is pursuing strategic
alternatives for its oilfield services division, Chesapeake
Oilfield Services, including a potential spin-off to Chesapeake
shareholders or an outright sale.
COS had a revenue of about $2.2 billion in 2013, with service
offerings include drilling, hydraulic fracturing, oilfield rentals,
rig relocation, and fluid handling and disposal.
Chesapeake Oilfield Services is well positioned to succeed as a
stand-alone company, the parent firm said in a news release.
"COS is an outstanding business with a talented management team
that we believe will offer Chesapeake and its shareholders enhanced
return opportunities as a stand-alone company. It has provided, and
will continue to provide, superior service to Chesapeake's upstream
business...A separation of COS is aligned with our strategies of
financial discipline and profitable and efficient growth from
captured resources," Chesapeake Energy Chief Executive Doug Lawler
said in the statement.
The separation of Chesapeake Oilfield Services from Chesapeake
Energy will allow the company to further capitalize on its
expertise and capture additional third-party work, COS Chief
Executive Jerry Winchester said in the same statement.
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