Analysts are divided on Chesapeake’s (CHK) plan to sell its midstream assets for ~$4B. The deals will help CHK by "bringing cash in the door [and] lowering capital commitments," but the price is steep, ISI says, figuring CHK will forgo…
Posted by admin | Posted on 10-06-2012
Category : World News
Tags: assets, cash, chk, comments, financings, flow, forgo, transactions
Analysts are divided on Chesapeake’s (CHK) plan to sell its midstream assets for ~$4B. The deals will help CHK by “bringing cash in the door [and] lowering capital commitments,” but the price is steep, ISI says, figuring CHK will forgo annual cash flow of ~$195M plus various fees; they’re “‘rob-Peter-to-pay-Paul transactions that are effectively financings.”
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Go here to read the rest: Analysts are divided on Chesapeake’s (CHK) plan to sell its midstream assets for ~$4B. The deals will help CHK by "bringing cash in the door [and] lowering capital commitments," but the price is steep, ISI says, figuring CHK will forgo…