Chesapeake Rushes to Spin Off Oilfield Services into New Company

Three weeks ago MDN brought you the news that Doug “the ax” Lawler, nominal CEO of Chesapeake Energy (his boss corporate raider Carl Icahn really runs the show) had decided to either spin off or sell Chessy’s oilfield services division (see Chesapeake Energy Looks to Dump Oilfield Services Division). Doug and Carl are impatient men–they’re on a mission to fatten Carl’s bank account. Since there were no immediate takers for this latest fire sale item, Doug and Carl announced yesterday they’re spinning the oilfield services division out into it’s own company–a company that will be named Seventy Seven Energy Inc.

This action comes on the heals of selling off many (most? all?) of the remaining compressor plants owned by Chesapeake, including all 103 of the compressors they owned in the Marcellus (see Chesapeake Fire Sale Continues: Marcellus/Utica Compressor Plants). We have to ask–what is there left to sell at this point? Er, right–the company itself! However, no one will buy the company with the current cloud of accusations hanging over it that they’ve been cheating landowners out of royalties. Here’s the announcement that Chessy is saying sayonara to their oilfield services division…

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