Chesapeake looking to more acreage deals for profit

HOUSTON, Nov 3 (Reuters) - Drilling for natural gas is often not the most profitable part of Chesapeake Energy Corp's (CHK.N)> business, so it plans to keep buying acreage in new oil gas fields and sell to partners for a fat profit.

"Over the last couple of years, we've recognized that our company has a unique ability to develop new plays and seek out partners who for one reason or another aren't in those plays," Aubrey McClendon, Chesapeake's chief executive officer, told investors on a conference call.

For example, Chesapeake has struck billion-dollar deals with companies including BP Plc (BP.L) and Norway's StatoilHydro ASA (STL.OL) for stakes in valuable shale gas acreage in North America.

In the deal with Statoil, Chesapeake sold a 32.5 percent interest in its Marcellus Shale assets in Appalachia for $1.25 billion in cash and $2.125 billion to fund drilling costs from 2009 to 2012.

But Chesapeake has been criticized for spending too heavily to lease acres. And as gas prices collapsed in 2009, some analysts questioned whether there was even a market for natural gas joint ventures.

The company insists its unconventional sideline is a good way to boost value for shareholders.

"Given this unique track record of creating value from $12 billion of monetization during the past seven quarters, we believe we should be encouraged to make further leasehold investments rather than be discouraged from making them," McClendon said.

For the year ending 2009, Chesapeake expects net leasehold acquisitions and sales to total $750 million to $900 million. In 2010, that figure is seen growing to $1 billion to $1.35 billion.

Still, some analysts questioned how to value a real estate company as part of an exploration and production company.

"I don't have an answer for that," McClendon said on the call. (Reporting by Anna Driver; editing by Andre Grenon)