Doug Lawler, President and CEO of Chesapeake Energy Corp., was named after the fall of former CEO Aubrey McClendon.
The Chesapeake Energy Corp. plans to detach its Petroleum Services division in a separate publicly traded company.
The news came weeks after the oil and gas producer said it was looking for strategic alternatives for the region, including a potential sale.
The Oklahoma City-based company, which is the second-largest natural gas producer in the United States, has cut costs after a year of upheaval, including the dismissal of managing director Aubrey McClendon.
McClendon was overthrown in April after a liquidity crisis and a government scandal. It helped to increase the company’s debt after years of high spending, including millions of acres of slate in North America.
McClendon’s successor, Doug Lawler, said the company plans to sell its assets and cut expenses by 20% in 2014.
The spin-off would divide the company into two divisions – one focused on oil services and the other on exploration and production. Chesapeake told the Securities and Exchange Commission on Monday that the split would allow both companies to manage their businesses more efficiently and take advantage of opportunities.
The new oil company will be called Seventy Seven Energy Inc. and will trade under the symbol SSE.