Chesapeake Energy (CHK), America's second-largest natural gas producer, has agreed to sell 50% of its stake in some of its oil and gas assets in the Mississippi Lime shale formation in Oklahoma to China's Sinopec, continuing a series of efforts to monetize its assets and cut debt. Chesapeake will receive around $1.02 billion cash and will make Sinopec its joint venture partner in this play while continuing to operate the properties. Although we believe the deal is a step in the right direction for Chesapeake, the selling price is seen as being too low. The stock fell by around 7% in Monday's trading following the news. Selling Price a Fraction of Previous Estimates as Firm Lacks Bargaining Power The Mississippi Lime stake had been on the block for almost a year. Given low natural gas prices and its dire need for cash, Chesapeake hasn't had too much bargaining power in its asset sales.