Attention, those of you who own Chesapeake Energy Corporation (CHK): CHK announced a spin-off of Seventy Seven Energy, Inc. (SSE). Shareholders will receive 1 shares of SSE for every 14 shares of CHK or approximately 7 shares of SSE for every 100 shares of CHK. Due to the spin-off, if CHK is not called away, you should sell your shares of SSE after July expiration.
Due to the relative small value of the spin-off, we recommend recording the net proceeds of the sale as a dividend.
Lattco PRO clients: please sell the shares of SSE after July expiration and give us a call and we will make the adjustments for you.
For more information on the spin-off and the adjustments necessary for tax purposes, please see the Chesapeake website: http://www.chk.com/news/articles/Pages/1944007.aspx
