Chesapeake Energy Explores Alternatives For Oilfield Services Unit, Incl. Sale

(RTTNews) - Chesapeake Energy Corp. (CHK) announced Monday that it is exploring strategic alternatives for its oilfield services division, Chesapeake Oilfield Services, including a potential spin-off to Chesapeake shareholders or an outright sale.

Chesapeake Oilfield Services or COS' operations are currently conducted through the company's wholly owned subsidiary, Chesapeake Oilfield Operating, L.L.C. COS had revenues in 2013 of about $2.2 billion, and its service offerings include drilling, hydraulic fracturing, oilfield rentals, rig relocation, and fluid handling and disposal, the company said.

As of December 31, 2013, COS owned or leased 115 land drilling rigs, including 10 proprietary, fit-for-purpose PeakeRigs that utilize advanced electronic drilling technology.

Any separation of COS is subject to satisfaction of several conditions, some of which are beyond our control, including market conditions, board approvals, consents, regulatory review and approvals, among others.