Cash-Strapped Chesapeake Energy is Selling Assets

Chesapeake Energy Corp. (NYSE:CHK) is looking to sell roughly 450,000 acres of its holdings in Northern Michigan to cover an expected $9 billion to $10 billion cash shortfall, according to a prospectus released by one of its advisors on the matter.

Meagher Energy Advisors, an asset acquisition and divestiture firm that has sold assets for Chesapeake in the past, posted the prospectus on its website. Meagher is currently selling other Chesapeake assets as well.

Meagher said bids for the Michigan assets are due on June 29.

Chesapeake plan to sell as much as $11.5 billion in assets this year to bridge a funding gap. The energy company already announced it planned to sell its 1.5 million acres of lease holdings in the oil-rich Permian basin in West Texas, a half-million acres in Wyoming and Colorado, and about 337,000 acres in Ohio. Chesapeake is also seeking a joint venture partner in the natural gas liquids-rich Mississippi Lime basin.

Investing Insights: Can Halliburton Make Investors HAPPY Again?