CHK Sell-Off

Oklahoma City-based Chesapeake Energy (CHK) is looking to sell holdings, again, and the rumors are abounding but for now, let's stick to the story.  From the Oklahoman:

Chesapeake Energy Corp. is selling all of its holdings in Arkansas' Fayetteville Shale as part of its plan to slash a quarter of its debt over the next two years, the company announced today.

Chesapeake expects to net more than $5 billion from the sale, which includes its equity holdings in Oklahoma City-based Chaparral Energy Inc. and Frac Tech Holdings LLC of Cisco, Texas.

Chesapeake CEO Aubrey K. McClendon said the company has gotten positive feedback from investors about its debt-reduction plan, which was announced last month, and recent $1.3 billion joint venture with China's CNOOC limited.

“We believe the three proposed assets sales announced today ... will provide us with strong momentum into the second half of 2011 as we move forward in executing our plan,” he said.

Can Oklahoma City afford to lose CHK?  I think not.