Chesapeake Energy Hits Record High

Shares of Chesapeake Energy (NYSE CHK) hit a record high on Wednesday after the company announced a joint venture with Plains Exploration & Production Co. to develop a natural gas deposit in the Haynesville shale.


Plains Exploration has agreed to buy a 20 percent interest in Chesapeake's leasehold for $1.65 billion in cash.

Plains Exploration and Production also agreed to finance half of Chesapeake's 80 percent share of drilling and completion costs for future wells. These payments would be made over several years and would cap out at an additional $1.65 billion.

Shares of CHK hit a record high of $74 before retreating to close at $69.40.

CHK Poised To Become Largest Natural Gas Producer

NEW YORK (Associated Press) - Chesapeake Energy Corp. is poised to soon become the largest producer of U.S. natural gas, the company's chairman and chief executive officer said Friday.

Speaking at the company's annual shareholders meeting, Aubrey McClendon said he expects the company's gas production to surpass that of the top two producers, BP PLC and Anadarko Petroleum Corp., within the next two months.

McClendon said Chesapeake's daily gas production during the first quarter of this year was only 86 million cubic feet, or MMcf, behind that of BP PLC. Chesapeake's average daily production in 2007 was 1,957 MMcf per day, a 23 percent increase over the previous year.
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