Oil and gas: Chesapeake sells clean energy investments

Chesapeake sells clean energy investments Chesapeake Energy Corp., a leading natural gas producer, has agreed to unload its stake in Clean Energy Fuels Corp., according to the company's quarterly filings.

The Oklahoma-based Chesapeake had multiple investments in Clean Energy Fuels, including a 1.1 percent stake in the company purchased for $10 million that has increased in value by an additional $3 million. Chesapeake also purchased convertible notes, or short-term bonds, at a valuation of $100 million, but agreed to part with them for $85 million in cash. The unnamed buyer is now obligated to buy a remaining $50 million valuation of convertible securities as well.

T. Boone Pickens, the chairman of hedge fund BP Capital and a large supporter of Chesapeake, has been outspoken about the value of clean energy and its potential to be converted into transportation fuel.

Clean Energy Fuels is the leading provider of natural gas fuel for transportation in North America. The company claims to fuel more than 30,000 vehicles per day. Pickens owns 20 percent of Clean Energy Fuels.

More information about natural gas in Oklahoma can be found at PennEnergy's research area.

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