Summary
Chesapeake Energy Corporation (EXE) announced on June 9, 2014, a significant strategic move: the spin-off of its oilfield services business into a new, independent, publicly traded company named Seventy Seven Energy Inc. (SSE). This separation will be executed through a pro rata distribution of SSE common stock to existing Chesapeake shareholders. For every 14 shares of Chesapeake Energy held on June 19, 2014 (the record date), shareholders will receive one share of Seventy Seven Energy. The spin-off is anticipated to be completed by June 30, 2014, subject to certain conditions outlined in SSE's Form 10 registration statement. Following the distribution, Chesapeake Energy will hold no equity interest in SSE, making it a completely separate entity.
Key Highlights
- 1Chesapeake Energy (EXE) is spinning off its oilfield services business.
- 2The new independent company will be named Seventy Seven Energy Inc. (SSE).
- 3Shareholders will receive SSE stock on a pro rata basis.
- 4The distribution ratio is 1 share of SSE for every 14 shares of EXE held.
- 5The record date for determining eligible shareholders is June 19, 2014.
- 6The spin-off is expected to be completed by June 30, 2014.
- 7Chesapeake Energy will retain no equity interest in Seventy Seven Energy post-spin-off.