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Monday, February 25, 2013

CORRECTED-Chesapeake sells stake in assets to Sinopec for $1.02 bln, (NYSE: CHK)

Chesapeake Energy Corp will sell a 50 percent interest in some of its oil and gas properties in the Mississippi Lime shale formation to Sinopec Group for $1.02 billion cash, a valuation that fell short of some expectations.Shares of Chesapeake declined 4 percent in morning New York Stock Exchange trading following news of the deal on Monday.Hammered by prolonged low natural gas prices and a hefty debt load, Chesapeake plans to sell up to $7 billion of assets this year to help close a $4 billion gap between capital expenditures and cash flow.A number of Wall Street analysts had expected Chesapeake to bring in a higher valuation for the Mississippi Lime deal, but they welcomed the liquidity boost the cash deal brings.

Chesapeake Energy Corporation (Chesapeake) is a natural gas and oil exploration and production company. Shares of CHK fell by 6.78% or $-1.39/share to $19.11. In the past year, the shares have traded as low as $13.32 and as high as $26.09. On average, 14547700 shares of CHK exchange hands on a given day and today's volume is recorded at 29273582.