Concerns about the company's ability to execute on asset sales in the near-term dominated the recent news flow alongside the CEO headlines. On May 11, Chesapeake disclosed in a 10-Q filing that asset sales could be delayed, and confirmed the following Monday that it wouldn't monetize its Eagle Ford shale assets this year in a planned $1 billion volumetric production payment.
Chesapeake also said an oilfield services IPO may be pushed out to 2013 instead of 2012, but reaffirmed its efforts to raise billions through the sale of its Permian assets and a joint venture in the Mississippian Lime.
"We have chosen to, at least temporarily, defer the sale of Eagle Ford VPP," said Chesapeake Energy CFO Nick Dell'Osso. "We do not expect to have covenant issues this year," he added. The company still expects to sell its Permian Basin and Missippian assets by the third quarter, but if those aren't completed by September, it might breach debt covenants.
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