Chesapeake Energy announced today that its board of directors have approved the planned spin-off of the company’s oilfield services business into a stand-alone, publicly traded company called Seventy Seven Energy Inc. (SSE).
SSE and Chesapeake will be separated through distribution of SSE common stock to existing Chesapeake stockholders on a pro rata basis.
Chesapeake shareholders will receive one share of SSE common stock for every 14 shares of Chesapeake common stock held at the close of business on June 19, 2014.
No fractional shares of SSE common stock will be issued.
Following completion of the SSE common stock distribution, SSE will be an independent, publicly traded company.
Chesapeake will retain no equity interest in SSE.