Chesapeake Energy Announces Roadwork Developments


Chesapeake Energy Announces Roadwork Developments

Chesapeake Energy Corporation (NYSE:CHK) continued to present its development plans to public after it had announced some key milestone targets for July and August 2012.

The company has announced a list of upcoming, ongoing and completed roadwork projects in Bradford and Sullivan counties. This is seen as an effort to boost the company’s regional transformations and infrastructure within the two regions.

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The latest developments are seen as part of Chesapeake’s commitment to develop responsibly the Marcellus Shale in Pennsylvania. The total amount invested in the project since 2010 has grown to the sum of $300 million, which accounts for more than 450 miles of Northern Pennsylvania road infrastructure repaired.

Furthermore, Chesapeake is planning to invest additional $25 million before the end of current financial year, which will contribute to the upgrade of another 56 miles of state road infrastructure, while $15 million will be spent on township roads.
Continuing Projects:

  • On July 9-13, paving will continue for SR1029 (Lake Rd.), 2 miles, Wysox Township from Route 187 to Claverack Rd, the road will be finished soon.
  • Another road, which is about to be finished, is SR2002 (Quicks Bend Rd.), 2.2 miles – Wilmot Township from Route 187 to the end (Quicks Bend, Dietz and Morris roads); where paving should be done by tomorrow, July 10, and clean and dusting by close are scheduled to end on Business Friday 13.

Upcoming Projects:

Mid-July will mark the beginning of a number of projects at different stages of development.

  • SR1033 (Lanning Creek Rd.), .5 mile – Wysox Township from Route 6 to 5th Street.
  • SR2005 (Panther Lick Rd.), 1.3 miles – Wilmot Township from SR2009 to Douglass Rd.
  • SR2006, 1.3 miles – Wilmot Township from Route 187 to SR2001 (Sugar Hill Rd.).
  • SR4024 (Litzelman Rd.), .8 mile – Cherry Township from Route 220 to Toursher Rd.

August 1st:

  • SR187, 8 miles – Terry and Wilmot townships from the Wyalusing bridge to the Wyoming County line.

Completed Projects:

  • SR1002 (Fitzgerald Rd.), 1 mile – Cherry Township from the SR1013/1002/1014 intersection to the Colley Township line.

Latest Financial Developments:

On July 2nd, the company also made the following crucial announcements with regard to its business health:

Global Infrastructure Partners (GIP) has closed the previously announced acquisition of all of Chesapeake’s ownership interests in Chesapeake Midstream Partners, L.P. (NYSE:CHKM) for $2.0 billion, this resulted in an estimated pretax Chesapeake income of, approximately, $1.0 billion.

GIP paid $2.0 billion to acquire Chesapeake’s general partner and limited partner interests. Today’s deal resulted in GIP’s ownership of 100% of the general partner’s interest and 69% of the limited partner’s units.

Chesapeake Energy Corporation (NYSE:CHK) has been at the center of attention in the recent past including activist investor influence (Carl Icahn), Ohio pension fund fraud allegations, and a consequent board reforms. Nonetheless, company’s stock price is experiencing a pre-market decline as at the time of this writing, after having enjoyed a bull trend toward the market close last week.