Chesapeake Energy said it plans to sell more than $4 billion in assets this year, and will spin off its oilfield services division to focus on drilling more profitable wells and improving returns.
CEO Doug Lawler has been at the helm of Chesapeake for nearly a year.
Under Lawler, the Oklahoma City-based company has worked to drastically cut costs and debt, as well as increase output of higher-margin crude oil and natural gas liquids.
The strategy marks a dramatic shift from former CEO Aubrey McClendon, who spent heavily to acquire million of acres in North American shale formations.
“This company is no longer going on a million-acre, three million-acre spending spree,” Lawler said during a meeting of Wall Street analysts.
Lawler’s plan also included cutting 10 percent of Chesapeake’s workforce, which has been welcomed by Wall Street.
The company’s stock is up 39 percent for the past 52 weeks.