Chesapeake Energy plans to sell $5B in assets (AP)

NEW YORK (AP) -- Chesapeake Energy Corp. said Monday it will sell all of its assets in a massive natural gas field and stakes in two companies as part of a plan to reduce debt....

[AP] - Chesapeake Energy Corp. said Monday it will sell all of its assets in a massive natural gas field and stakes in two companies as part of a plan to reduce debt.

Chesapeake Energy (CHK) declined 4.7% to close at $27.64,making it the worst performing energy stock in the S&P 500 Index yesterday.

China Petroleum & Chemical Corp (Sinopec) , Asia’s largest oil refiner, will buy half of Chesapeake Energy Corp’s Mississippi Lime oil and gas properties for $1.02 billion, becoming the latest Chinese company to pick up shale assets in North America. Chesapeake shares were up 2% at $20.90 in premarket trading on Monday. The stock has risen about 23% this year. Output from shale fields in the United States and Canada has jumped over the last three years due to the advent of drilling methods such as hydraulic fracturing.

Chevron Corp. said its decision Monday to go ahead with the development of the Alder natural gas field in the British sector of the North Sea builds on an already strong foundation in the area. While regionally, the sector is in decline, there are few reasons to write it off completely. Chevron said the Alder field in the British waters of the North Sea has a planned capacity of 100 million cubic feet of natural gas per day. George Kirkland, the company’s vice president, said the investment decision builds on a strong foundation established in the region.

Chesapeake Energy Corp reported quarterly profit that exceeded Wall Street expectations on Wednesday, as the U.S. oil and gas company produced more crude oil from shale basins like the Eagle Ford in Texas and expenses fell. Chesapeake, under the direction of a board handpicked by its largest investors and interim Chief Executive Steve Dixon, is focused on drilling its best properties and increasing output of more profitable crude oil while lowering spending.

By Osman Gulseven: by Ahmed Isthiaq

By Sarfaraz A. Khan:The U.S natural gas giant Chesapeake Energy (CHK) has been offloading its assets to pump up its balance sheet. The company has been struggling due to the weak natural gas pricing environment, a mounting pile of debt -- which stood at $12 billion by the end of last year -- and some serious management problems, coming largely from the former CEO Aubrey McClendon.