"Chesapeake Energy Corporation Announces Agreement to Sell a Substantial Majority of Its Remaining Midstream Assets for $2.16 Billion" ($CHK)
Just announced after hours, Chesapeake Energy Corporation Announces Agreement to Sell a Substantial Majority of Its Remaining Midstream Assets for $2.16 Billion. A Credit Bubble Stocks correspondent writes,
"A lot of hay has been made (on the short side) that CHK still doesn't even have a purchase and sale agreement for its remaining midstream assets.The Chesapeake convertible preferred that I have mentioned ad nauseam has fallen again and is now yielding 6.5%.
They now have one in place, to sell $2.16 billion worth of their midstream assets to GIP in a transaction expected to close this year. They also have sold $175 million worth to other entities in the quarter and expect to sell the remaining $425 million worth by the end of Q1 2013.
This basically completes the midstream sale, which will now fetch $2.75 billion instead of the original $3 billion amount (par for the course here). I think the market was expecting a worse outcome and this is certainly good news."
A better investment than, say, a triple-net lease big box store with a cap rate of 4% and a tenant that's trying to make a go of it selling cell phones.
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4 comments:
Where does one go to read "a lot of hay on the short side". I bought the pref and like reading about chk. My google alert on the company and the yahoo message baord aren't doing it for me :(
Meaning I've never read an article or post mentioning no midstream purchase and sale agreement in place. But I would love to have read something discussing that level of detail.
most articles on chk at seekingalpha.com are bullish but there are a few that are bearish.
This would be like sell side research.
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