Energy Biz Review: Shell’s Involvement In Chesapeake’s SALE, Heckmann Shares JUMP

Chevron Corporation’s (NYSE:CVX) involvement in Chesapeake Energy Corporation’s (NYSE:CHK) $6.9 billion land divestiture in the Permian Basin did not come as a shock to Tudor Pickering, since the former’s footprint is there already, but the analyst thinks it “somewhat surprising” that Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) was in on the deal, as it has “not much, if any, Permian exposure currently.” However, Macquarie says that Shell’s tech enables it to be better positioned than its competitors to benefit from low domestic gas prices, and that the sale price is reasonable when its superior cash generation is considered.

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Shares of the hydro-fracking water solutions supplier Heckmann Corporation (NYSE:HEK) moved up almost 10 percent higher during Wednesday for no apparent reason, although they could be benefitting from Chesapeake’s asset divestitures, as the former claims that the latter comprised 25 percent of its total revenues last year.

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