NYSE debut for Chesapeake spin-off

New arrival: Seventy Seven Energy becomes separate listing

Seventy Seven Energy has begun trading in New York under the symbol SSE after the oilfield services outfit completed its spin-off from Oklahoma’s Chesapeake Energy.

The new company has retained the duo of Jerry Winchester and Cary Baetz who had been the chief executive and chief financial officer of the Chesapeake Oilfield Services business unit.

At close of business on Monday, Chesapeake Energy shareholders got one share of Seventy Seven Energy for every 14 Chesapeake shares that were held as of 19 June.

Shareholders entitled to fractional shares received the value of that stock in cash.

Seventy Seven Energy was trading up around 2% at $24.23 by 1500 GMT on Tuesday.

The oilfield services branch had 2013 revenues of $2.2 billion and a net profit of $369 million, according to Chesapeake.

Its primary holdings include a fleet of 115 drilling rigs, a pressure pumping fleet of 360,000 horsepower units, 260 trucks to move rigs, 67 cranes and about 250 fluid-hauling trucks.

The subsidiary was originally established in 2011 as Chesapeake Oilfield Operating when Chesapeake merged five different units: driller Nomac Drilling, pressure pumper Performance Technologies, trucking and excavation outfit Thunder Oilfield Services, compression specialist Compass Manufacturing and CHK Directional Drilling.

Newsletter signup

User

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login