Chesapeake Energy (NYSE:CHK) Inks $4 Billion Pact with GIP to Sell Pipeline Stake – CHK, LINE, GST, BCEI

The Oklahoma City-based Chesapeake Energy Corporation (NYSE:CHK) agreed to sell its pipeline interests to Global Infrastructure Partners for more than $4 billion.

Chesapeake Energy, the United States energy explorer facing a $22 billion cash shortfall due to falling natural-gas prices, reported in a statement on Friday that Chesapeake would sell its interests in Chesapeake Midstream Partners, LP (NYSE:CHKM) to Global Infrastructure for $2 billion. Also, Chesapeake will add over $2 billion by divesting its pipeline development business and some central United States channels to Chesapeake Midstream.

Chief Executive Officer of Chesapeake Energy Aubrey McClendon is seeking buyers for assets from Appalachia to the Rocky Mountains to stop a cash-flow shortfall that Alembic Global Advisors has projected may top $22 billion by the end of coming year.

Shifting readers focus to broader market, let’s consider market performance of other stocks that significantly affect same sector. Linn Energy, LLC (NASDAQ:LINE) plunged -0.46% to settle at $36.44, Gastar Exploration Limited (USA) (AMEX:GST) moved down -4.07% to end at $1.65 while Bonanza Creek Energy Inc (NYSE:BCEI) plunged -1.68% to finish on Friday at $15.79.

Chesapeake Energy Corporation (NYSE:CHK) began the last trading session with a price of $17.89 and throughout the session climbed at a high of $18.42 but when day-trade ended the stock finally advanced +2.86% to $18.36.

CHK had a trade volume of 31.02 million shares was lower as compared to average trading capacity of 47.03 million shares.

The stock is ahead its 52 week low with +37.84% and lagging behind from its 52 week high price with -48.05%. CHK last month stock price volatility remained 6.73%. In its share capital CHK has 662.34 million outstanding shares among them 657.23 million shares have been floated in market exchange. CHK stock institutional ownership remained 74.45% while insider ownership included 1.25%.

Shares price of CHK moved up from its 20 days moving average with +16.47% and remote positively from 50 days moving average with +2.10%. CHK current year earnings per share experienced an addition with -7.81% while its current quarter performance remained -24.88%. Company’s beta coefficient included 1.26. Beta factors measures the amount of market risk associated with market trade.

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