Is This Deal Good for Chesapeake?


The following video is part of our "Motley Fool Conversations" series, in which energy editor/analyst Joel South discusses topics around the investing world.

There have been a few blockbuster deals this past year in the midstream energy sector, from Kinder Morgan's acquisition of El Paso to Energy Transfer Partners' (NYS: ETP) purchase of Sunoco. However, the rumors that Chesapeake Energy is selling its midstream assets to Global Infrastructure Partners is not like those deals. In fact, this sale could be a huge faux pas for Chesapeake. Yes, Chesapeake needs to sell assets to cover its gigantic cash shortfall, but are the pipelines the best option to unload? Are Carl Icahn and Southeastern Asset Management forcing the company to offload the wrong assets? Check out the video to find out more:

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At the time thisarticle was published Joel Southhas no positions in the stocks mentioned above. The Motley Fool owns shares of Chesapeake Energy.Motley Fool newsletter services recommendChesapeake Energy, Statoil, and Total. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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