Energy Sector Review: Exxon Ousted from Iraqi Auction, Chesapeake Joint Ventures
Exxon Mobil Corporation (NYSE:XOM) won’t be allowed to take part in Iraq’s fourth licensing auction, as it signed deals with the semi-autonomous region in Kurdistan, a spokesman for Iraq’s Deputy Prime Minster for Energy tells the Wall Street Journal.
The shares closed at $84.42, up $0.62, or 0.74%, on the day. Its market capitalization is $399.64 billion.
Chesapeake Energy Corp. (NYSE:CHK) is pursuing joint venture transactions in its Mississippi Lime and Permian Basin plays where it owns 1.8 million and 1.5 million net acres of leasehold, respectively. Chesapeake has also recently received industry inquiries about a complete exit from the Permian Basin and today is announcing that it may consider a 100% sale of its Permian Basin assets if it receives a compelling offer. Chesapeake’s assets in the Permian Basin represent approximately 5% of the company’s total net proved reserves and current production. Chesapeake believes the Mississippi Lime joint venture, a Permian Basin transaction and various other minor asset sales could result in cash proceeds to Chesapeake of approximately $6B-$8B in 2012. Chesapeake anticipates monetization proceeds of approximately $2B during 2012 involving a portion of its midstream assets, service company assets and miscellaneous investments, bringing estimated total monetization cash proceeds in 2012 to $10B-$12B.
The shares closed at $22.66, up $0.53, or 2.39%, on the day. Its market capitalization is $14.94 billion.
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