Chesapeake Energy is seeking to sell or spin off its oilfield services division, the company announced today. Chesapeake Oilfield Services (COS), which offers drilling, fracking and oilfield rentals among other services, had revenues of $2.2 billion in 2013. COS is led by former Boots & Coots CEO Jerry Winchester. Third parties operate approximately 35% of its drilling rigs.
“We believe that our separation from Chesapeake will position us to further capitalize on our expertise and capture additional third-party work,” Winchester said in a statement.
It was reported earlier this month that Chesapeake Energy investor Carl Icahn, who owns a 10% stake, was seeking a cash bid for the company. Rumored prospective buyers include ExxonMobil, BP and Royal Dutch Shell. Whether any of those major players emerges to buy COS from Chesapeake Energy remains to be seen.
