Chesapeake Energy Corp said it would spend $1.26 billion to purchase back all of the outstanding preferred shares issued by its CHK Utica unit to simplify its balance sheet and eliminate about $75 million in annual dividend payments.The No.2 U.S. natural gas producer also said it would swap some acreage in Wyoming's Powder River Basin with a private oil and gas producer RKI Exploration & Production LLC to consolidate its holdings in the southern part of the basin.The company, due to report results next week, also estimated prices for natural gas and natural gas liquids fell in the second quarter from the first quarter.Chesapeake's shares dropped about 1.2 percent to $26.51 in light trading before the bell on Tuesday.
Chesapeake Energy Corporation (Chesapeake) is a natural gas and oil exploration and production company. Shares of CHK traded higher by 1.04% or $0.28/share to $27.12. In the past year, the shares have traded as low as $21.41 and as high as $29.92. On average, 8839840 shares of CHK exchange hands on a given day and today's volume is recorded at 3684970.
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