There isn’t a for-sale sign at NW 63 and Western, despite Chesapeake Energy Corp.’s ongoing quest to raise cash, but the company’s largest shareholder has urged officials not to rule out the possibility of a sale.
The Wall Street Journal on Monday identified a potential buyer: oil major Chevron Corp.
Chevron has amassed $21 billion in cash, according to the report, spurring observers to wonder when the company may be mulling a potential acquisition.
Chesapeake’s market capitalization is about $12.39 billion, based on Tuesday afternoon’s stock price of $19.34 a share, although officials have maintained its oil and natural gas assets are more valuable than that.
Chevron, which is reportedly carrying more cash on its balance sheet than any other publicly traded energy company, maintains it is hoarding money to finance several multi-billion projects, but that hasn’t stopped analysts from speculating about a possible acquisition.
“That’s the only thing I can think of,” Oppenheimer analyst Fadel Gheit told WSJ.
Chesapeake declined to comment for the WSJ report.
Analysts have dismissed the possibility of a Chesapeake sale in the past because of the company’s complex financing structure, which includes venture partners and volumetric production payment plans.