Chesapeake Energy Corp.(NYSE:CHK) said Jan. 17 that it has sold 100% of its ownership interest in Chaparral Energy Inc.for $215 million.

Domenic J. Dell’Osso Jr., Chesapeake’s chief financial officer, commented, “This sale demonstrates the continued refinement and focus of our portfolio around core assets and continues our strategy of reducing financial complexity.”

Chesapeake said the asset had been non-core for some time and was ready to sell when the right offer came along. As an equity investment, the sale will have no revenue or cash flow impact to Chesapeake, the company said.

In connection with this transaction, Dell’Osso resigned from the Chaparral board of directors.

The company said in 2011 that it owned a 20% interest in Chaparral. As part of its 2011-12 strategic and financial “25/25 Plan,” the company decided to sell its Fayetteville shale assets, as well as its equity investments in Frac Tech Holdings LLC and Chaparral.

In Feburary 2011, Chesapeake sold the Fayetteville holdings for $4.75 billion, which included 487,000 net acres of leasehold. It isn’t clear why it took so long to cut a deal for Chaparral.

Chesapeake continues to turn the company into a slimmer producer and has lowered total capital expenditures such as drilling and completion, by 57%.

Chesapeake Outlook Summary, January 2014

2012

2013E

Natural gas (Bcf)

1,129

1,080 – 1,090

Oil MM barrels

31,265

40,000 – 42,000

NGL MM barrels

17,615

20,000 – 21,000

Natural gas equivalent (Bcfe)

1,422

1,440 – 1,468

Y/Y production increase (adjusted for planned asset sales)

19%

3%

Natural gas production increase (decrease)

12%

(4%)

Liquids Y/Y production increase

54%

26%

% production from liquids

20%

25%

% realized revenues from liquids

59%

63%

Operating costs per Mcfe: Production expense, production taxes and G&A

$1.38

$1.20 – $1.35

Operating cash flow ($MM)

$4,053

$5,050 – $5,100

Drilling and completion costs on proved and unproved properties ($MM)

($8,831)

($5,500 – $5,800)

Acquisition of unproved properties, net ($MM)

($1,718)

($200 – $250)

The Chaparral transaction closed on Jan. 13.