Chesapeake Energy Director Buys 75,000 Shares (CHK)

Chesapeake Energy Corp. (NYSE: CHK) Director Archie Dunham bought 75,000 shares of CHK common stock at $20 per share, according to a regulatory filing.

CHK shares are currently trading 1.15% lower at $19.74 on volume of 7.91 million. Year-to-date, the stock has fallen more than 11%, underperforming the broad market.

Last week, Chesapeake Energy announced that it entered into multiple agreements to sell the vast majority of its Permian properties, almost all of its midstream assets and some noncore leasehold for total net cash proceeds of approximately $6.9 billion. Part of the proceeds from the sale of these assets will be used by the company to repay its $4 billion of term loans during the fourth quarter of 2012.

Aubrey K. McClendon, CEO of Chesapeake Energy, said last week that CHK is pleased to announce further progress towards its asset sale goals for 2012. McClendon said that the net proceeds of approximately $6.9 billion from the sales of these assets are in addition to the $4.7 billion of sales previously closed in the first half of 2012 and will bring the company’s 2012 sales to $11.6 billion, or approximately 85% of its full-year goal of $13-$14 billion, which the company expects to achieve by year end.

Chesapeake Energy reported its second-quarter financial and operational results last month. For the second quarter of 2012, CHK reported net income of $929 million, or $1.29 per share. The company reported second-quarter EBITDA of $2.385 billion. Operating cash flow for the second quarter of 2012 was $895 million. Revenue for the second quarter stood at $3.389 billion. The company reported production of 347 billion cubic feet of natural gas equivalent for the second quarter of 2012.

McClendon last month said that as a result of CHK’s strong operational performance, ongoing drilling efficiency gains and an increased focus on optimal asset development, the company has increased its production guidance for 2013 despite a $750 million drop in its drilling and completion capital expenditure plans for next year.