NEW YORK (TheStreet) -- Chesapeake Energy's (CHK) board approved a previously announced spin-off of the company's oil field services into a separate, public company called Seventy Seven Energy.
Chesapeake shareholders will receive one share of the new company for every 14 shares of Chesapeake they own.
Seventy Seven Energy applied for SSE as its ticker symbol and is expected to begin trading on July 1.
Chesapeake Energy shares are up 0.4% to $29.85 on Monday.
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 number of 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."