Chesapeake, KKR to partner in oil and gas investments- WSJ

Tue, Mar 06 03:03 AM EST

March 6 (Reuters) - Chesapeake Energy Corp is likely to announce a $250 million partnership with private equity group KKR to invest in U.S. oil and gas fields, the Wall Street Journal reported, citing people familiar with the matter.

The companies would initialy invest in mineral rights and royalty interests in the U.S. drilling fields, mainly those focusing on shale and other unconventional energy sources, the paper said, adding the amount could grow over time.

Of the initial investment, Chesapeake would contribute $25 million and focus on finding, acquiring and managing royalty interests, the people told the paper. KKR would control three of five seats on the new entity's board.

Chesapeake and KKR were not available for comment.
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UPDATE 1-Chesapeake raises $2.6 bln in three deals
Mon, Apr 09 16:24 PM EDT

HOUSTON, April 9 (Reuters) - Chesapeake Energy Corp said on Monday it has struck three deals that will raise a total of $2.6 billion, a cash infusion needed by the U.S. oil and gas company facing a funding shortfall this year.

The Oklahoma City, Oklahoma company will sell 58,4000 acres in Oklahoma to a subsidiary of Exxon Mobil Corp for $590 million. Chesapeake also is selling preferred shares worth $1.25 billion and also struck a $745 million natural gas production deal with an affiliate of Morgan Stanley.

Shares of Chesapeake rose to $21.76 in post-close trading, up from a New York Stock Exchange close of $21.47.

Chesapeake and other natural gas companies have cut production, as slumping gas prices have sapped(To deplete or weaken gradually.) profits.
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