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) 2012 Dow Jones & Company, Inc.
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