Chesapeake Energy Corp. announces capital expenditure funding plans

Chesapeake Energy Corp. announces capital expenditure funding plans

OKLAHOMA CITY

Chesapeake Energy Corp. today announced capital expenditure funding plans totaling about $10 to $12 billion for 2012.

Plans include an anticipated $2 billion infusion from two transactions expected in the next 60 days, which could include a joint-venture transaction in the Mississippi Lime and Permian Basin in Texas and New Mexico.

The company said it would sell all of its 1.5 million acres in the Permian Basin should it receive a “compelling offer.”

A joint venture and sale could bring in $6 to $8 billion, the company said.

Chesapeake also anticipates $2 billion in proceeds for its midstream and service company assets and miscellaneous investments.

Chesapeake also said it will commence a public offering of $1 billion of senior notes with a maturity date of 2019.

The company said it intends to use the net proceeds from the offering for general corporate purposes.

Chesapeake, the second-largest producer of natural gas, is also the largest holder of Utica and Marcellus shale mineral rights in the Mahoning Valley.