Chesapeake Energy to boost oil projects, reduce debt by raising $5 billion over 2 years

Chesapeake Energy plans to raise $5B over 2 years

OKLAHOMA CITY — Chesapeake Energy Corp. plans to raise about $5 billion over the next two years to expand its investment in oil and to reduce its debt.

Chesapeake on Monday announced a “strategic and financial plan” that includes the sale of 20 percent equity interest in its Chesapeake Appalachia LLC subsidiary within the next three to 12 months. Chesapeake, based in Oklahoma City, is a key driller in the Appalachian Basin.

Chesapeake also announced a private placement of $600 million of a new series of convertible preferred stock to investors in Asia. They will have an option for up to $500 million more shares.

The company is also looking at various joint ventures.