Chesapeake Continues Gas Sell-Off With $2.6B in Deals

While the sales add to Chesapeake Energy's deal making with large private equity investors like KKR(KKR) and oil giants like Total(TOT) , few expect asset sales to slow. Currently, Chesapeake Energy plans to sell $17.5 billion in oil and gas assets through 2013 to help the company shift its natural gas-focused reserves toward higher priced oil assets. Meanwhile, the company is also looking to manage its debt of over $10 billion, which has kept its bond ratings below investment grade.

"We plan to monetize other non-strategic assets during 2012, including our assets in the East Texas Woodbine play where we own approximately 50,000 net acres of leasehold," said Chief Executive Aubrey McClendon in a statement announcing the deals. "We look forward to the completion of our Texoma Woodford transaction and other planned 2012 asset monetization transactions in the months ahead for proceeds of approximately $8-10 billion."

Chesapeake Energy shares rose 1.54% in after hours trading to $21.80. The company's shares are off nearly 4% in 2012, putting 12 month losses near 40% on worries about the company's debt, profitability and low natural gas prices.