Chesapeake Oilfield Plans IPO Of Up To $862.5M



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.



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.

RELATED COMPANIES