Shale pioneer Chesapeake considers bankruptcy filing after oil rout

[turbinetree]

Source: Reuters

DEALS MAY 11, 2020 / 8:50 AM / UPDATED 10 MINUTES AGO

(Reuters) - Chesapeake Energy Corp (CHK.N) said on Monday it is no longer able to access financing and is considering a bankruptcy court restructuring of its over $9 billion debt if oil prices don’t recover from their sharp fall caused by the COVID-19 pandemic.

Reuters reported last month that the pioneering shale gas producer was in talks to line up bankruptcy financing and was discussing a possible loan to help maintain operations through the court proceedings.

Debt maturities and interest expenses combined total more than $1 billion, according to company filings. About $250 million of its senior notes are due this year.

The Oklahoma City-based company re-issued bit.ly/2Li4YGr a going concern warning on Monday, its second since November, and said this quarter's review of the value of its untapped oil and gas reserves is likely to show a decline due to its distressed financial position, reducing its ability to borrow against those assets.

Reporting by Shariq Khan in Bengaluru; Editing by Ramakrishnan M. and Rashmi Aich

Read more: https://www.reuters.com/article/us-chesapeake-enrgy-bankruptcy/shale-pioneer-chesapeake-considers-bankruptcy-filing-after-oil-rout-idUSKBN22N1RJ?il=0

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So prior to the filing the Hamm's, decided all by themselves to pay out to the bonuses, and what exactly did the workers get..............unemployment, in states mind you that says those on unemployment don't deserve.............and to add further insult he made his billion on junk bonds and borrowed like there was no tomorrow and the treasury is going to held holding the bag right along with taxpayers.............

[redstatebluegirl]

1. We have more than a few friends who work for them.

Everyone is terrified right now about everything, but this just adds another level. There are not a lot of good paying jobs in Oklahoma to begin with.

[bucolic_frolic]

2. Fracking was always destined to fail from rising costs after low-hanging fruit harvest

It was never going to get less capital intensive, its costs were always going to increase, exactly the opposite of the information economy, and ever higher costs attracted competition even if from low-tech renewables. Quintessential supply side business with little consideration of the economic landscape.

[Botany]

3. Chesapeake was a complete dirt bag operation... they stuck the land owner with the "post production"

... costs. So if the land owner had say a $1,200 per month payment from Chesapeake in reality
they got something like $36.00 after the post production costs were debited from their payments.

[Lonestarblue]

4. Not sorry.

I’m sorry that people will lose jobs, but many of these companies have only been profitable with federal subsidies that you and I pay for companies that help destroy our environment. I’m really, really of subsidizing the fossil fuel industry.

[greenjar_01]

5. Fuck Chesapeake Energy

[SWBTATTReg]

6. I have to laugh, not at those workers facing hardships, but at all of the major players that ...

pretty stuck their foot in their mouths. The Saudi are moving to curtail payments to their population (and other things), the Russians are receiving far less for their products after they made their agreement w/ the Saudi. Oil producers here in the US as this story states (shale oil operators) are also hurting.

Other producers along the entire food chain (in the oil industry) are probably hurting in all categories, as well as the owners of low producing wells (being shut down, not worth producing the meager amount of oil).

Amazing, an entire industry, not driven by supply and demand, but by political demands to overproduce so governments can meet their budgets. In short, they all shot themselves in the foot. I can't say that I'm sorry, being that they've all been pretty arrogant to the rest of us for far too long, and have taken a lion's share of tax benefits w/o really putting anything back. Isn't it time to concentrate on other energy producing assets?

[Paladin]

7. Even in the energy business, Chesapeake has a shitty reputation. (nt)