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.
Billionaire investor Carl Icahn, the founder of Icahn Associates, just keeps killing it. Yesterday, Chesapeake Energy's CEO Aubrey McClendon, who has been under fire, said that he will be retiring effective April 1.
Stockerblog submits: On Monday, it was announced that billionaire trader and investor Carl Icahn increased his stake in Chesapeake Energy (CHK) from 16.6 million shares to 38.6 million shares, an increase of over 132%. This announcement set off a buying frenzy, causing the stock to jump almost 9% during the day.
By Hype Zero:Chesapeake Energy Corporation (CHK), the embattled U.S. oil and natural gas producer, has had a tough year. It has lost more than 30% of its market value due to historic low natural gas prices and Aubrey McClendon's potential conflict of interest between his role as CEO/Chairman and his personal stake in some of its assets.
By Devon Shire:
I admire Sandridge (SD) CEO Tom Ward. Ward co-founded Chesapeake Energy (CHK) with Aubrey McClendon and helped set it on its course towards shale gas dominance. He left Chesapeake in 2006 and founded Sandridge through a purchase of a stake of a company called Riata Energy.
The Manual of Ideas submits:Chesapeake Energy (CHK) has for some time been synonymous with the vast untapped opportunity in U.S. onshore natural gas shale plays. As gas prices have remained depressed relative to oil prices longer than most expected, it appears many investors have slowly but surely given up on the company.