NEW YORK (TheStreet) -- Shares of Chesapeake Energy Corp. (CHK) are up 1.26% to $29.66 today after it was announced Rose Rock Midstream LP (RRMS) would purchase crude trucking operations from the company for an undisclosed amount in a deal aimed to extend Rose Rock's reach in oil producing shale basins, Reuters reports.
The deal is expected to close in the second quarter and includes 124 trucks, 122 trailers, and other equipment in Texas, Oklahoma, and Ohio.
Chesapeake's Chief Executive, Doug Lawler has been selling assets and cutting costs in an effort to lower debt, and improve profitability, Reuters said.
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Separately, TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHESAPEAKE ENERGY CORP (CHK) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."