Chesapeake Offers Buyouts to 275 Employees

chesapeake-energy-logoThe country's second largest natural gas producer, Chesapeake Energy Corp. (NYSE: CHK) today announced that it has offered a voluntary separation program to approximately 275 employees "as part of the company's ongoing efforts to improve efficiencies and reduce costs." The employees who received the offer were selected "based upon a combination of age and years of Chesapeake service."

Chesapeake has set a goal of selling $13 to $14 billion in assets by the end this year, and recently announced the sale of $2.16 billion in midstream assets to Access Midstream Partners LP (NYSE: ACMP) and about $300 million more in midstream assets to Plains All American Pipeline LP (NYSE: PAA) among others. At the end of September, the company had sold about $11.6 billion in assets for the year, so the recent dispositions put total sales right at about $13.96 billion.

The buyouts offered today indicate that the company still needs to adjust its expenses to its revenues. Natural gas prices are up nicely this year, but remain stubbornly below $4 per thousand cubic feet, trading around $3.32 today, down about 15% from a recent high near $3.90.

Chesapeake has already laid off about 185  of more than 12,000 employees so far this year.

Shares are up 0.5% at $16.77 in a 52-week range of $13.32 to $26.09.

Paul Ausick


Filed under: 24/7 Wall St. Wire, Commodities, Jobs, Oil & Gas Tagged: ACMP, CHK, PAA
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.