Oklahoma City-based Chesapeake closed on its sale of Arkansas assets to BHP Billiton, an Australian oil and gas conglomerate that acquired Chesapeake for $4.65 billion earlier this year.
Chesapeake reported a companywide loss of $205 million for its first quarter of 2011 on revenue of $1.61 billion. One year ago,Chesapeake reported first quarter profits of $732 million on revenue of $2.8 billion.
It blamed losses in its hedging division for this year's poor quarter, but the BHP deal will soften the landing. Because of its size, BHP could choose to ratchet down operations in Arkansas until market conditions in the natural gas industry improve their profit margins.
Chesapeake also disclosed a recapitalization of Frac Tech Services, LLC, raising its ownership in the drilling support services firm (with a major presence in Searcy) from 26% to 30%.
Source: Talk Business. Net
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