OKLAHOMA CITY (AP) -- Natural gas driller Chesapeake Energy Corp. said on Wednesday that Chesapeake Granite Wash Trust has begun an initial public offering of common units that represent about half of the interest in the trust.
The common units for the trust will be listed on the New York Stock Exchange under the ticker symbol "CHKR," Chesapeake Energy said.
The offering includes 23.375 million common units. Underwriters have the option to buy an additional 3.506 million common units.
Once the offering is done, Chesapeake will own 11,687,500 common units and the same number of subordinated units in the trust.
The trust will own royalty interests that it gets from Chesapeake that will entitle it to a percentage of the proceeds from 69 wells in Washita County in western Oklahoma that are producing now and 118 more than are under development.
Chesapeake Energy shares had risen $1.01, or 3.7 percent, to close at $28.01 before the announcement. They rose another 14 cents to $28.15 in aftermarket trading.