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Wed Nov 6, 2019, 02:17 PM

Fracking pioneer Chesapeake Energy is drowning in debt

Chesapeake Energy helped pioneer America's shale natural gas revolution. Now the company is warning that it may not survive the era of cheap gas it helped to usher in.

The Oklahoma energy company said Tuesday in a filing to the Securities and Exchange Commission that if "depressed prices persist," there is "substantial doubt" about its ability to continue as a "going concern."

The warning underlines just how far Chesapeake Energy has fallen. The company's early bets on fracking made it a natural gas powerhouse, and at one point it was the nation's No. 2 natural gas producer. Aubrey McClendon, Chesapeake's late founder and CEO, was considered one of the leaders of the shale boom.

But the company now is drowning in $10 billion of debt. And it's struggling to pay it all back, because America is swimming in excess natural gas, keeping prices very weak. Chesapeake's average realized natural gas price dropped nearly 12% during the third quarter.

https://www.msn.com/en-us/money/companies/fracking-pioneer-chesapeake-energy-is-drowning-in-debt/ar-AAJTV9C?li=BBnbfcN

Boohoo.

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Reply Fracking pioneer Chesapeake Energy is drowning in debt (Original post)
Yo_Mama_Been_Loggin Nov 2019 OP
gratuitous Nov 2019 #1
bluecollar2 Nov 2019 #2
gratuitous Nov 2019 #4
bluecollar2 Nov 2019 #5
redstatebluegirl Nov 2019 #3

Response to Yo_Mama_Been_Loggin (Original post)

Wed Nov 6, 2019, 02:27 PM

1. Only one thing to do

Liquidate any pension funds, distribute it to the company executives, declare bankruptcy, and all the fatcats walk away with a buttload of money while the workers spend years in court trying to get a few dollars out of the corporate corpse.

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Response to gratuitous (Reply #1)

Wed Nov 6, 2019, 02:42 PM

2. Are you an airline CEO by any chance?

Tom Horton...is that you?

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Response to bluecollar2 (Reply #2)

Wed Nov 6, 2019, 02:52 PM

4. Just a lucky guess on my part

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Response to gratuitous (Reply #4)

Wed Nov 6, 2019, 02:53 PM

5. Lol...n/t

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Response to Yo_Mama_Been_Loggin (Original post)

Wed Nov 6, 2019, 02:46 PM

3. I know a lot of people who work there.

I am not fond of the oil and gas industry but the number of families who will be in huge trouble if this happens is staggering. There are not many good paying jobs with benefits here in Oklahoma.

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