Chesapeake Energy lost more than $1 billion in stock-market value in 46 minutes of trading on Friday after the company disclosed it might be forced to delay plans to sell assets to fund its operations this year.
Chesapeake Energy Corporation (NYSE:CHK) took a beating last year by losing 78% of its stock price. Amid the downturn, Chesapeake is striving hard to generate positive cash flow, managing its indebted balance sheet, and to adapt the depressed commodity price environment.
Chesapeake Energy Corp. pledged almost all of its natural gas fields, real estate and derivatives contracts to maintain access to a US$4-billion line of credit as the shale gas producer grapples with falling energy prices. The stock was the top performer in the Standard & Poor’s 500 Index.
On December 16, Chesapeake Energy Corporation (NYSE:CHK) announced increment of its maximum aggregate principal amount of the 8% senior secured second lien notes payable in 2022, to $3 billion, from previously announced $1.5 billion. The energy company has extended the deadline for the Exchange Offer to December 18, as it received $2.8 billion tenders in the initial offering. The terms of the Exchange Offers remain unchanged, except for the maximum exchange amount and the tender date.
On November 19, Chesapeake Energy Corporation’s (NYSE:CHK) bonds nose-dived to the lowest level in the history of the company. Investors and creditors exhibit a loss of confidence in the company, as the downturn in the commodity market continues. In the past years, the company’s notes have been the second largest, most actively traded notes in the high-yield market.
Stock of Chesapeake Energy Corporation (NYSE:CHK), the second largest US natural gas producer, is facing significant downward pressure as falling oil and gas prices coincide with negative analyst commentary.
The market value of Chesapeake Energy Corporation’s (NYSE:CHK) bonds have plunged 9.63% in the past one week, as creditors are worried that a fall in commodity prices will affect the company’s ability to repay its debts. The $1.5 billion in company notes which are due in 2022 fell to 50.38 cents on the dollar, as reported by Bloomberg.
Chesapeake Energy Corporation (NYSE:CHK) is facing troubled times, as a significant drop in commodity prices weighs down on its sales and profitability. Amid substantially lower realized prices of oil and natural gas, Chesapeake reported its financial results for the third quarter of fiscal year 2015 (3QFY15) on Wednesday.
Chesapeake Energy Corporation (NYSE:CHK) is currently struggling to generate cash flow, manage its heavy debt load and adapt to a lower commodity price environment. Although investors were initially optimistic about the company’s restructuring plan after the 2013 appointment of CEO Doug Lawler, this optimism has now faded. The current CEO has worked to reduce the size of the company through asset sales, to develop its most profitable acreage, and to keep capital spending within the limits of operating cash flow.
Chesapeake Energy Corporation (NYSE:CHK), a crude oil and natural gas company, is caught in an industry-wide downturn as low commodity prices haunt the energy sector. The second largest natural gas producer in the US – behind only Exxon Mobil Corporation (NYSE:XOM) – has lost more than 75% of its market value since January 1.
Chesapeake Energy Corp. Chief Executive Officer Aubrey McClendon will resign from the company he built into the second-largest U.S. natural gas producer after scrutiny of his personal finances and a corporate cash crunch erased as much as 43% of its market value last year.