During the company’s routine dividend per share announcement, Chesapeake Energy Corp. said Friday it has decided to sell or trade its Permian Basin assets so that it can further tighten its focus on the Mid-Continent region, where 85% of its assets are currently located.

The company said it will favor proposals that involve a trade of Mid-Continent assets for Permian assets. In the Permian, Chesapeake produces approximately 18 MMcfe (60% gas). By comparison, in the Mid-Continent the company is the region’s largest producer with proved reserves exceeding 1,800 Bcfe and daily production exceeding 450 MMcfe. Chesapeake said it has retained the services of Petrie Parkman & Co. to assist it with the Permian asset sale or trade process.

Aubrey K. McClendon, Chesapeake’s CEO said he believes getting out of the Permian Basin would be beneficial to the company’s shareholders for several reasons. “First, our planned exit from the Permian reflects the reality that while Chesapeake is the largest gas producer in the Mid-Continent, we are a minor player in the Permian,” said McClendon. “We see many other companies in the reverse position and expect to execute a trade or series of trades that can be mutually beneficial for the companies involved. As a result of higher gas prices, lower operating costs, more accessible land and better drilling results, our returns on investment have been greater in the Mid-Continent than in the Permian. Chesapeake’s unmatched regional scale has been an important key to delivering top-tier financial returns to our shareholders during the past four years. We intend to continue this strategy in the years ahead.”

Headquartered in Oklahoma City, Chesapeake Energy Corp. is one of the largest independent natural gas producers in the United States.

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