Chesapeake Energy & Giant Eagle Talking About Possible CNG Partnership

Chesapeake Energy & Giant Eagle Talking About Possible CNG Partnership
Chesapeake Energy Corporation (NYSE:CHK) is exploring the possibility to develop a partnership with Giant Eagle, a privately-held supermarket, fuel, and convenience stores operator, to bring compressed natural gas (CNG) refueling infrastructure to GetGo gas stations in Pennsylvania, according to a report from Pittsburgh Business Times.
Chesapeake Energy & Giant Eagle Talking About Possible CNG Partnership

The report cited a statement from Norman Herrera, director of market development for Chesapeake Energy, that the company is willing to invest in CNG’s infrastructure, recruit fleets to convert to CNG, and encourage them to patronize GetGo. During a previous shale gas conference, Herrera informed attendees that Chesapeake is in talks with light-duty fleets, convincing them to switch to CNG.

Giant Eagle started operating CNG fueling stations in Pennsylvania in July of last year. The company initially opened two CNG fueling stations at its retail support and distribution center in Pittsburgh. During the opening of its CNG stations, John Lucot, EVP and COO of Giant Eagle, emphasized the company’s commitment in operating its business in the most sustainable manner. He also pointed out that operating CNG fueling stations help improve the air quality in the region.

In a previous report, analysts from Stifel Nicolaus believed that Chesapeake Energy’s chances in finding profitable bids for its Ultica Shale property are diminishing.  According to them, the second largest oil and natural gas producer is not comparing well with its competitors, and appreciation of the company’s stock price from further sales of assets is not good. The research firm noted that Chesapeake already sold out its most valuable asset, and it is implausible for the company to get a good price for its remaining assets, such as the undeveloped acreage of Miss Lime JV.

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On the other hand, Chesapeake Energy Corporation (NYSE:CHK) continues to buy land in Oklahoma City, through its affiliate Property Development LLC. Many described some of the land acquired by the company as crumbled and worthless. Observers are wondering about the real intention of Chesapeake in purchasing the properties. Since 2011, Property Development LLC bought 35 acres of land in the northwestern part of the city, worth $8 million.

Chesapeake Energy Corporation (NYSE:CHK) also appointed James Web as the company’s new legal counsel. He succeeded Henry Hood, who will serve as senior vice president for land and legal.

Last September 24, Chesapeake Energy Corporation (NYSE:CHK) announced that its board of directors approved a $0.0875 per share quarterly dividend for common shareholders starting October 31, 2012. The company has approximately 665 million common shares.

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