Chesapeake Energy To Sell Texas Property

Shares of Chesapeake Energy (CHK) - Get Report , a member of Real Money's Stressed Out watch list, were higher Thursday after announcing that it will sell its Barnett Shale operating area in North Texas to Saddle Barnett Resources, which is backed by private-equity firm First Reserve. The price of the deal was not disclosed. Chesapeake said that the company will be able to use the proceeds to reduce about $1.9 billion of midstream and downstream commitments and to boost reserves. Chesapeake CEO Doug Lawler said the announcement marks 'a major step' in Chesapeake's transformation, and could boost operating income through 2019 by $200 to $300 million annually.

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