Chesapeake Energy Corp., Oklahoma City, Okla., (NYSE: CHK) will seek to monetize assets in the Anadarko basin through an IPO for its Chesapeake Granite Wash Trust, according to an S-3 filing with the U.S. Securities and Exchange Commission. The IPO for the royalty trust will seek to raise up to $583.6 million.
The offering will launch under the CHKR symbol on the New York Stock Exchange with the company conveying a 90% royalty interest in its producing wells in the Colony Granite Wash and a 50% royalty interest in its development wells in the play.
Chesapeake intends to use the IPO's proceeds to repay debt and fund capex projects. In the past the company has utilized joint venture agreements for a percentage of its holdings in various shale plays that have provided the company with $13 billion in drilling carries since 2008.
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