Chesapeake Oilfield Plans IPO Of Up To $862.5M

Chesapeake Energy Corp.'s oilfield services business filed plans to go public as a separate company that would remain closely tied to its founder and main customer.

Chesapeake Oilfield Services Inc. filed plans for an initial public offering of up to $862.5 million in common stock. The move comes after Chesapeake Energy in October finished reorganizing its oilfield services operations under a new subsidiary, which was called COS Holdings LLC at the time.

Chesapeake Oilfield said its exploration and production company will provide a stable source of revenue because it guarantees it will maintain the utilization of the oilfield services company's drilling rigs at above certain thresholds.

The business provides a range of well-site services to Chesapeake Energy, the largest U.S. natural-gas producer after Exxon Mobil Corp.

Chesapeake Energy currently owns all of the oilfield services company and will continue to own its Class B common stock after the offering.

The company plans to list its Class A common stock on the New York Stock Exchange under the symbol COS.

Copyright (c) 2013 Dow Jones & Company, Inc.

WHAT DO YOU THINK?

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.