Chesapeake Energy Corp has sold its stakes in trucking and natural gas companies and is trying to shed real estate in Oklahoma City, the company told regulators this week, as its new chief executive attempts to turn it around. The second-largest U.S. natural gas producer has slashed spending and pledged capital discipline following last year's liquidity crunch, brought on by years of heavy spending on acreage in U.S. shale formations and low natural gas prices.While it's now more financially fit, the company still faces a gap between operating cash flow and capital expenditure that analysts at Barclays estimate at $1.8 billion this year. But asset sales and cash on hand may help fill the shortfall.Chief Executive Doug Lawler, who replaced former CEO Aubrey McClendon in May, told investors on the company's second-quarter earnings call last Thursday that he and senior management have undertaken a comprehensive review of all the company's assets, partnerships and investments in other companies to determine which are not providing "the proper returns" or a competitive advantage."I think when you are investing in so many different things, it just takes you away from concentrating on your core business," said Mike Breard, analyst with Hodges Capital Management in Dallas on Friday. "They've got some good properties but they've tied it up with all this miscellaneous stuff."
Chesapeake Energy Corporation (Chesapeake) is a natural gas and oil exploration and production company. Shares of CHK remained unchanged at $25.01. In the past year, the shares have traded as low as $16.23 and as high as $25.64. On average, 11638700 shares of CHK exchange hands on a given day and today's volume is recorded at 5377762.
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