|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's range||11.55 - 12.89|
|52-week range||4.15 - 430.00|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Earnings date||08 May 2020 - 11 May 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||10.00|
While the market thinks Crestwood Equity Partners will cut its high-yielding dividend, the energy company's responses suggest otherwise.
In this episode of Industry Focus: Energy, Nick Sciple chats with Bethany McLean, contributing editor at Vanity Fair and financial journalist widely known for writing on the Enron scandal and the global financial crisis. Finally, they talk about the important role of local journalism, her new book analyzing the United States' response to coronavirus, and much more. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
Chesapeake has run up debt of more than $9 billion, but the company has reached a deal with creditors to restructure and cut the debt amount by about $7 billion. The New York Stock Exchange has started the process for delisting the company's common stock and has in effect suspended trading for CHK.
National investment fraud law firm, KlaymanToskes ("KT"), continues its investigation into damages of more than $500,000 sustained by current/former employees who held large positions in Chesapeake Energy (NYSE:CHK) stock at full-service brokerage firms. Investment portfolios holding large positions can carry significant downside risks. The investigation focuses on full-service brokerage firms’ negligence and failure to supervise the management of large concentrated positions that resulted in investors suffering substantial losses.
While hopes of a global economic recovery have kept oil markets afloat, the fear of a second wave of COVID cases is threatening to send oil prices lower
The Zacks Analyst Blog Highlights: Whiting Petroleum, Extraction OG, Chesapeake Energy and California Resources
The long struggling shale pioneer Chesapeake Energy (CHK) filed for Chapter 11 bankruptcy protection, while Italy's Eni SpA (E) acquired three wind farm projects.
Prices could fall sharply lower if there is another inventory build because of the already existing oversupply concerns.
National investment fraud law firm, KlaymanToskes ("KT"), continues its investigation into damages of more than $500,000 sustained by investors who held large positions in Chesapeake Energy (NYSE:CHK) stock at full-service brokerage firms. Investment portfolios holding large positions can carry significant downside risks. The investigation focuses on full-service brokerage firms’ negligence and failure to supervise the management of large concentrated positions that resulted in investors suffering substantial losses.
(Bloomberg) -- The shale bust has reached a grim milestone by claiming the pioneer of America’s drilling renaissance. But Chesapeake Energy Corp., which filed for bankruptcy protection on Sunday, is just the latest in a long list of casualties.More than 200 North American oil and gas producers, owing over $130 billion in debt, have filed for bankruptcy since the beginning of 2015, according to a May report from law firm Haynes & Boone. This month alone, seven oil and gas companies have gone under, tying December 2015 for the busiest on record after crude prices plunged amid the Covid-19 pandemic, according to data compiled by Bloomberg.The shale boom spearheaded by the likes of Chesapeake a decade ago was fueled by debt. Profitability and shareholder returns have been consistently disappointing, and investors had already grown wary of throwing more money into shale before this year’s oil crash. The rate of default on high-yield energy debt stood at 11%, Fitch Ratings said in a June 11 report, the highest level since April 2017.Here are a handful other notable shale bankruptcies so far this year:Whiting PetroleumAn oil explorer focused on the Bakken Shale in North Dakota, Whiting Petroleum Corp. was already facing headwinds prior to 2020. Last year, the Denver-based company announced it would fire a third of its workforce and scale back production targets after posting a surprise quarterly loss.Crude prices had their worst quarter ever in the first three months of 2020, with oil heavyweights Saudi Arabia and Russia failing to agree on supply cuts just as worldwide lockdowns wiped out demand for fuel. That was enough to push Whiting, saddled with $3.6 billion in debt, into bankruptcy on April 1.But not before the board approved $14.6 million in cash bonuses for top executives in order to “ensure the stability and continuity of the company’s workforce and eliminate any potential misalignment of interests that would likely arise if existing performance metrics were retained,” the company said in a filing the same day it filed for Chapter 11 protection.Extraction Oil & GasAnother Colorado driller, Extraction Oil & Gas Inc. focused exclusively on the Denver-Julesburg Basin in the Rockies. It filed for Chapter 11 on June 15, offering to ease its debt burden of roughly $1.5 billion by giving note holders 97% of new common stock to be issued.Extraction had withdrawn its 2020 guidance in May and warned it may have to file for bankruptcy. Then, in early June, the company announced plans to pay 16 executives and senior managers a total of $6.7 million in return for staying with Extraction ahead of a possible default on its bond payments.Ultra PetroleumOnce wasn’t enough.Ultra Petroleum Corp. filed for its second bankruptcy in May, four years after its first. Listing $2.56 billion in debt and $1.45 billion in assets in its Chapter 11 filing, the Englewood, Colorado, driller reached a deal with most of its senior creditors that would slash $2 billion in debt, while looking to restructure within three months.In its struggles to stay afloat, Ultra went so far as to suspend its drilling program in January to bolster free cash flow and focus on paying down debt. The explorer first filed for bankruptcy in 2016 and emerged the following year, just as the shale patch was beginning to crawl out of what had been the worst oil industry crash in a generation -- until this year.Sable Permian ResourcesSoon after his ouster from Chesapeake in 2013, co-founder Aubrey McClendon went to work building a new empire, American Energy Partners. But after McClendon died in a car crash three years later, the company shut down.Part of that business, American Energy - Permian Basin, merged with Sable Permian Resources LLC last year. That particular business was widely seen as having among the best assets of a half dozen oil-and-gas acquisition vehicles that McClendon set up during his brief tenure at American Energy Partners.Sable filed for bankruptcy last week in Houston alongside affiliates, listing at least $1 billion of assets and liabilities each.Lilis EnergyThe Permian explorer Lilis Energy Inc. followed right on the heels of Chesapeake, filing for bankruptcy protection on Monday.The company said it was a victim of the coronavirus-induced downturn. Lilis was struggling even before the pandemic, warning in January that it might default after lenders slashed its credit line.“Like many companies in the oil and gas industry, we have been impacted by the severe downturn in commodity prices throughout the Covid-19 pandemic,” Joseph C. Daches, Lilis’s chief executive officer, said in a statement announcing the filing.(Updates with June bankruptcies in 2nd paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Finding difficulties in dealing with its now $10 billion in debt, fracking pioneer Chesapeake Energy (CHK) has announced it is filing for Chapter 11 bankruptcy protection.
(Bloomberg) -- Chesapeake Energy Corp., the archetype for America’s extraordinary shale-gas fortunes, filed for bankruptcy, becoming one of the biggest victims of a spectacular collapse in energy demand from the virus-induced global lockdown.The Oklahoma City-based company filed for Chapter 11 protection from creditors in U.S. Bankruptcy Court in the Southern District of Texas on Sunday, listing assets and liabilities in the range of $10 billion and $50 billion, and more than 100,000 creditors.The company also entered into an agreement to eliminate about $7 billion in debt and secure $925 million in debtor-in-possession financing.“We are fundamentally resetting Chesapeake’s capital structure and business to address our legacy financial weaknesses and capitalize on our substantial operational strengths,” Chief Executive Officer Doug Lawler said in a statement.Chesapeake is, to a certain extent, victim of the success both it and its peers had in extracting huge volumes of gas from previously hard-to-exploit shale basins. While that turned the U.S. into a global supplier of the fuel to rival any other, it also contributed to a glut that weighed on prices. Natural-gas futures in New York traded last week at a 25-year low.But the gas market is only part of the story. Earlier in its history, under the direction of its late co-founder Aubrey McClendon, a colorful and outspoken advocate for the natural gas industry, Chesapeake expanded aggressively. The heavy debt load it acquired in the process was a burden it ultimately couldn’t shake off.About a decade ago, Chesapeake was a $37.5 billion giant at the forefront of the fracking revolution that transformed the U.S. oil and gas industry. The company cut eye-popping checks to Fort Worth businesses and residents as inducements to drill on their land in the Barnett Shale of North Texas, America’s first shale field to hit the big time.U.S. natural gas slumped after the 2008 financial crisis as the frackers overwhelmed demand, and prices still haven’t revisited their previous highs. Investors soured on Chesapeake, which by that point wasn’t only debt-laden but saddled with a real estate empire that included shopping centers, a church, and a grocery store. McClendon was ousted in 2013 and died in an auto accident three years later.In subsequent years, management sought to compensate for the decline in its gas fortunes by shifting into oil exploration as fracking turned the U.S. into the world’s largest producer of crude as well as a major exporter. However, any optimism about that strategy evaporated with oil’s recent price collapse amid the Covid-19 pandemic.Despite the company’s efforts over the years to address leverage and profitability, “the recent and dramatic drop in commodity prices and resulting tightening of the credit markets have frustrated the Debtors’ ability to further deleverage absent a chapter 11 proceeding,” Chief Financial Officer Domenic J. Dell’Osso said in a declaration in support of the bankruptcy filings.Lawler took over Chesapeake in 2013 with an aim of reducing its debt load that was larger than Exxon Mobil Corp.’s, a company 29 times Chesapeake’s market value at the time. He had counted on capital spending cuts and asset sales to cover debt obligations. The company was in talks last year with Jerry Jones, the billionaire Dallas Cowboys owner, about a $1 billion sale of shale assets, but no deal resulted.In May, Lawler was forced to discard his company’s full-year outlook and write down the value of $8.5 billion in assets as energy demand tumbled amid the Covid-19 lockdown. By then, the producer’s market value had dropped to less than $200 million. The company had about 2,300 employees at the end of last year.“Despite having removed over $20 billion of leverage and financial commitments, we believe this restructuring is necessary for the long-term success and value creation of the business,” Lawler said Sunday.Chesapeake shares were halted during early trading Monday.The bankruptcy follows that of another highflier in the U.S. oil patch, Whiting Petroleum Corp., which filed for Chapter 11 at the start of April after championing what was once the premiere U.S. shale field, the Bakken of North Dakota.The case is Chesapeake Energy Corp., 20-33233, U.S. Bankruptcy Court, Southern District of Texas(Updates with share-trading halt in third-last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Chesapeake Energy (CHK) is likely to emerge from the Chapter 11 process on the back of its diverse operating platform, and improving capital and operating efficiencies.
Among shale investors, 30% are technically insolvent with oil prices at $35, while 20% are stressed financially. So, investors should be cautious while investing in this industry
U.S. stocks are set to open mixed Monday, consolidating after Friday’s sharp losses amid caution as Covid-19 cases mount worldwide. Volumes are likely to be limited given the holiday-shortened week and with key economic releases and verbal interventions from Federal Reserve speakers due. At 07:05 AM ET (1105 GMT), S&P 500 Futures traded 5 points, or 0.2%, higher, Nasdaq Futures down 23 points, or 0.2%.
European stock markets are set to open lower Monday, with investors displaying a cautious tone as the ever-rising number of Covid-19 cases threatens the global economic recovery. At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 0.8% lower. France's CAC 40 futures were down 0.8%, while the FTSE 100 futures contract in the U.K. fell 0.5%.
Chesapeake Energy, a pioneer of the American shale revolution, declared bankruptcy on Sunday, the biggest US producer to have succumbed in an oil-price crash that is ravaging the country’s energy sector. “We are fundamentally resetting Chesapeake’s capital structure and business to address our legacy financial weaknesses and capitalise on our substantial operational strengths,” said Doug Lawler, Chesapeake’s chief executive. The company said it had gained agreement with the majority of its creditors to eliminate $7bn of debt and had secured $925m of debtor-in-possession financing to continue operating through the bankruptcy.
KlaymanToskes ("KT"), http://www.klaymantoskes.com, continues their investigation on behalf of investors who sustained losses in excess of $250,000 in Chesapeake Energy (NYSE:CHK) ("Chesapeake") as a result of recommendations from their financial advisor including unsuitable asset allocations in the Energy sector. This investment may have been marketed and sold to customers who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation and were not explained the potential risks.
Chesapeake Energy (NYSE: CHK) is nearing the end of an era. The oil and gas producer is reportedly just days away from declaring bankruptcy. At its peak, the company was America's second largest natural gas producer, behind ExxonMobil (NYSE: XOM).
There are plenty of great companies whose shares trade on the stock market, and investing in those companies for the long haul can be extremely rewarding. Although a few lucky companies emerge from bankruptcy proceedings and go on to bigger and better things, nearly all of them end up worthless for their existing shareholders. Whiting was just one of the victims (there will inevitably be many) of the plunge in oil prices during the coronavirus crisis.