Chesapeake Spins-Off Seventy Seven Energy; SSE Shares Up Roughly 2.25 Percent On First Day Trading

Back in May Chesapeake Energy CHK said it would spin-off it's oil services unit in an effort to relieve the parent company of roughly $1B in debt.  The new unit will be identified as Seventy Seven Energy SSE.  This is not related to the Ukraine based Seven Seventy Petroleum firm which operates gasoline filling stations in the Chernihiv region.  Chesapeake's spin-off will be recapitalized and push back a $400M dividend to manage intra-company debts.  The entire move is expected to be tax-free.

After Monday's close Chesapeake distributed one share of Seven Seventy for every 14 shares of Chesapeake outstanding as of the June 19th 5:00PM EDT record time.  Any shareholder entitled to fractional shares were paid the cash-value of such shares, no fractional shares were to be issued.

As of today, Tuesday July 1st, Seventy Seven Energy opened for trading at $23.62 and is up roughly 2.25 percent currently to $24.10.