Chesapeake Energy Earnings Call Insights: The Asset Sale and Monetizing the Marcellus

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Chesapeake Energy Corp (NYSE:CHK) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

The Asset Sale

Doug Leggate – Bank of America Merrill Lynch: I’ve got a couple of questions. I guess I’ll start off with Nick or whoever wants to take this one on the asset sale. Nick it sense like you’re pretty close to the Mississippi Lime disposal. Could you share with us any color in terms of whether this is solely and acreage deal or the forma in terms of joint venture or whatever or particularly if there was any production associated with your likely transaction? I’ve got a couple of follow-ups.

Domenic J. Dell’Osso, Jr. – EVP and CFO: Sure. Doug, I’m going to hold back on giving you any specifics on the transaction given we’re in the throes of working on it. But I would say that there is some production associated with it and we have included the impact of that in our outlook.

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Doug Leggate – Bank of America Merrill Lynch: Maybe a follow on related then. One of the biggest criticisms perhaps Nick of the company is still outspend or the over spend, you highlighted the liquidity position at the beginning of the year or at least at the end of last year. However if you don’t achieve the $5 billion to $7 billion of asset sales it doesn’t really help you. So, can you help or provide any kind of color as to how the Board is influencing the spending decision versus the potential ultimate scale of disposals and any comfort you can give us on the line of sight as to how you get to such a big numbers $5 billion to $7 billion this year? Then, I’ve got one final one please.

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