Chesapeake Energy says pursuing strategic alternatives for oilfield services unit

Tue Feb 25, 2014 8:43am EST

Chesapeake Energy Corporation's 50 acre campus is seen in Oklahoma City, Oklahoma, April 17, 2012. REUTERS/Steve Sisney

Chesapeake Energy Corporation's 50 acre campus is seen in Oklahoma City, Oklahoma, April 17, 2012.

Credit: Reuters/Steve Sisney

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(Reuters) - Chesapeake Energy Corporation (CHK.N) said it is pursuing strategic alternatives for its oilfield services division, including an outright sale or a potential spin off to Chesapeake shareholders.

Chesapeake Oilfield Services's (COS) operations are currently conducted through Chesapeake's wholly owned subsidiary, Chesapeake Oilfield Operating, L.L.C, the company said in a statement.

Chesapeake said it believes that COS can maximize its value to shareholders outside of the current ownership structure.

In 2013, COS had revenue of about $2.2 billion, and its service offerings include drilling, hydraulic fracturing, oilfield rentals, rig relocation, and fluid handling and disposal.

In addition to services performed for Chesapeake, about 35 percent of COS' marketable drilling rigs are currently working for third-party operators and COS intends to grow its third-party customer base as an independent provider of oilfield services.

(Reporting by Chris Peters in Bangalore; Editing by Supriya Kurane)

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