Chesapeake Considers Sale, Spinoff of Oilfield Services
Chesapeake Energy Corp. is exploring strategic alternatives for its oilfield services business, including a possible spin-off or sale, as the company continues its rationalization of non-core assets to reduce its financial leverage and complexity and enhance liquidity.
Chesapeake said that Chesapeake Oilfield Services (COS) is “well positioned” to succeed as a standalone company through the leadership of its Chief Executive Officer Jerry Winchester, who previously served as CEO of publicly traded oilfield services company Boots & Coots Inc., and experienced management team.
“A separation of COS is aligned with Chesapeake’s strategies of financial discipline and profitable and efficient growth from captured resources,” said Chesapeake CEO Doug Lawler in a Feb. 24 press release.
He noted that company has provided and will continue to provide superior service to Chesapeake’s upstream business.
“We look forward to maintaining our close and valuable relationship with Jerry and his team as they COS’ ventures outside of Chesapeake.”
COS, which had 2013 revenues of approximately $2.2 billion, currently is operated through Chesapeake’s wholly owned subsidiary, Chesapeake Oilfield Operating LLC. The company offers drilling, hydraulic fracturing, oilfield rentals, rig relocation and fluid handling and disposal. The company has 115 leased or owned land rigs and 360,000 HP of hydraulic fracturing equipment.
Approximately 35 percent of COS’ marketable drilling rigs are currently working for third-party operators and COS intends to grow its third-party customer base as an independent provider of oilfield services.
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