![]() While Chesapeake’s shale revolution painted a rosy picture, it is also where the company’s debt problems stemmed from. oil prices to rise in the years prior to 2008. ![]() Chesapeake was a pioneer in shale drilling that put them in the global spotlight and allowed U.S. ![]() ![]() The Fall of a Shale GiantĪlthough Chesapeake may be seeing its end days, the company played a prominent role in giving the U.S its title as a top oil producer. The company even made out a $25 million bonus payment to its top-line executives before the Chapter 11 filing was announced. All arrows pointed to a bankruptcy filing. Chesapeake Energy was left with no prospect of an asset sell-off or the opportunity to refinance the business. However, things were thrown into disarray when oil prices hit a downward spiral as a result of the novel coronavirus. The goal was to offload $300-$500 million of its non-core assets in order to meet its obligations. The company had ambitious plans to tackle the burden that stood at nearly $9 billion in the current fiscal year. Mounting Debt Led to the Demise of CHK StockĬhesapeake Energy started the year on a sour note with a mountain of debt on its balance sheet. However, the company faced a slew of issues throughout the years that led to its inevitable decline. The stock is trending at $17.55 as of this writing.Ĭhesapeake Energy’s downfall was partly fueled by a massive amount of debt on its balance sheet and talks of bankruptcy. The stock price hit rock bottom towards the end of the week from $69.92 on June 8 to just $17.64 on June 11. Investors raised their hopes for a major comeback, but it was short-lived. As crude oil prices began to pick up after a monstrous decline, Chesapeake stock rallied at a 450% increase on Monday.
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