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Chesapeake Energy (CHK) Prices & Upsizes Senior Notes
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Natural gas producer Chesapeake Energy Corporation (CHK - Free Report) recently declared the upsizing and pricing of senior notes that are set to mature on Jan 15, 2025. The notes, offered to private eligible purchasers, have been upsized from $750 million to $1 billion and will carry an interest rate of 8%.
The notes will start paying interest from Jul 15, 2017 and are anticipated to pay semi-annual interest rate on Jan 15 and Jul 15, every year. The offering of the notes will be closed on Dec 20, 2016, upon fulfillment of customary closing conditions.
Investors should also know that Chesapeake could redeem some or all of the notes at any time before Jan 15, 2020 at a price of 100% of principal. Thereafter, Chesapeake could redeem some or all of the notes as per the terms and the indenture and supplemental indenture.
The net proceeds from the offerings, along with cash on hand, will likely be utilized to fund tender offers of part of its aforementioned senior notes. The remainder, if any, will be allotted for general corporate activities.
On Dec 5, Chesapeake inked a divestment agreement for part of its acreages in Haynesville Shale area. The transaction amount is expected to be roughly $450 million. Per Reuters, natural gas producer Indigo Minerals LLC will buy the properties.
Per the accord, Chesapeake is anticipated to sell 78,000 net acres from the region, of which approximately 40,000 net acres is considered to be core acreage. The sale – likely to be completed by the first quarter of 2017 – also comprises 250 wells with production capacity of 30 million cubic feet of gas every day. These initiatives reflect the company’s aim to lower its $2–$3 billion debt load by selling non-core properties.
Those developments will definitely help the company to continue the ongoing positive price momentum. Chesapeake’s recent price chart showed that year to date its shares gained more than 68% compared with 48% for the Zacks categorized Oil & Gas-U.S Exploration and Production industry.
Oklahoma-based Chesapeake is an independent oil and gas company engaged in the acquisition, development, and production of onshore U.S. natural gas resources. The company currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Newfield Exploration Company , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
EQT Midstream is projected to witness year-over-year earnings growth of more than 14% in the current year. It has a Zacks Rank #2 (Buy).
Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2.
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Chesapeake Energy (CHK) Prices & Upsizes Senior Notes
Natural gas producer Chesapeake Energy Corporation (CHK - Free Report) recently declared the upsizing and pricing of senior notes that are set to mature on Jan 15, 2025. The notes, offered to private eligible purchasers, have been upsized from $750 million to $1 billion and will carry an interest rate of 8%.
The notes will start paying interest from Jul 15, 2017 and are anticipated to pay semi-annual interest rate on Jan 15 and Jul 15, every year. The offering of the notes will be closed on Dec 20, 2016, upon fulfillment of customary closing conditions.
Investors should also know that Chesapeake could redeem some or all of the notes at any time before Jan 15, 2020 at a price of 100% of principal. Thereafter, Chesapeake could redeem some or all of the notes as per the terms and the indenture and supplemental indenture.
The net proceeds from the offerings, along with cash on hand, will likely be utilized to fund tender offers of part of its aforementioned senior notes. The remainder, if any, will be allotted for general corporate activities.
On Dec 5, Chesapeake inked a divestment agreement for part of its acreages in Haynesville Shale area. The transaction amount is expected to be roughly $450 million. Per Reuters, natural gas producer Indigo Minerals LLC will buy the properties.
Per the accord, Chesapeake is anticipated to sell 78,000 net acres from the region, of which approximately 40,000 net acres is considered to be core acreage. The sale – likely to be completed by the first quarter of 2017 – also comprises 250 wells with production capacity of 30 million cubic feet of gas every day. These initiatives reflect the company’s aim to lower its $2–$3 billion debt load by selling non-core properties.
Those developments will definitely help the company to continue the ongoing positive price momentum. Chesapeake’s recent price chart showed that year to date its shares gained more than 68% compared with 48% for the Zacks categorized Oil & Gas-U.S Exploration and Production industry.
Oklahoma-based Chesapeake is an independent oil and gas company engaged in the acquisition, development, and production of onshore U.S. natural gas resources. The company currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Newfield Exploration Company , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
Newfield is likely to witness year-over-year earnings growth of almost 4% in the current year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT Midstream is projected to witness year-over-year earnings growth of more than 14% in the current year. It has a Zacks Rank #2 (Buy).
Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>