Chesapeake Energy
The CEO of Chesapeake Energy Corp. (NYSE: CHK), the nation's second-largest natural gas producer, has received over $1.1 billion in unreported loans over three years, Reuters reported on Wednesday. REUTERS

Chesapeake Energy Corporation (NYSE: CHK), the nation's second largest natural gas producer, is seeking to patch a massive shortfall, resulting from falling natural gas prices, by selling pipeline assets to Global Infrastructure Partners (GIP) for $4 billion, the company announced Friday.

It is unclear exactly how large Chesapeake's shortfall is, with Bloomberg Businessweek reporting a $22 billion deficit while Reuters reports a $10 billion deficit.

Total expected cash proceeds from the transaction are expected to be more than $4 billion, and the divestitures will allow Oklahoma City-based Chesapeake to reduce capital expenditures by roughly $3 billion over the next three years. Under the deal, Chesapeake will sell its Chesapeake Midstream Partners LP subsidiary to Global Infrastructure Partners, an infrastructure investment fund founded by Credit Suisse and General Electric Company (NYSE: GE).

The proceeds of these transactions are an important part of our 2012 asset sales program that is on track to generate cash proceeds of $11.5-14 billion, Aubrey McClendon, Chesapeake CEO said, adding that the company felt very good about our ability to meet our targeted range for 2012 asset sales.

Chesapeake Energy Corporation (NYSE: CHK) shares fell 10 cents to $17.75 Friday morning. General Electric Company (NYSE: GE) shares were flat.