finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

Chesapeake Energy makes statement following 50% drop in share prices

Posted: 12th February 2016 by
katinahristova
Share this article

Chesapeake Energy, the second-largest natural gas producer in the United States, plunged as much as 50% on Monday 8th after multiple reports that it had hired restructuring attorneys.

Chesapeake shares fell from $2.05 to $1.01, with morning trading halted at least eight times. The company, which has more than $10 billion of debt, seems to have been affected by the steep worldwide fall in oil and gas prices. According to Reuters, the company's bonds maturing next month plunged 20 points, to a level of 75 cents on the dollar, once the news was made public.

Despite these reports, the energy company said in a statement (below) that it has no plans to pursue bankruptcy, and that their shareholders are the main concern.

"Chesapeake Energy Corporation (NYSE:CHK) stated today that Kirkland & Ellis LLP has served as one of Chesapeake's counsel since 2010 and continues to advise the company as it seeks to further strengthen its balance sheet following its recent debt exchange. Chesapeake currently has no plans to pursue bankruptcy and is aggressively seeking to maximize value for all shareholders.

Chesapeake Energy Corporation (NYSE:CHK) is the second-largest producer of natural gas and the 12th largest producer of oil and natural gas liquids in the U.S. Headquartered in Oklahoma City, the company's operations are focused on discovering and developing its large and geographically diverse resource base of unconventional natural gas and oil assets onshore in the U.S. The company also owns substantial marketing and compression businesses." 

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram