Has anyone heard that Chesapeake is having $$$$$ problem? A guy from Hess oil told me that Chesapeake is in trouble and is selling off 30%. He said they would probably make it but were in some big trouble due to some of their billion and a half dollar liabilities.
Chesapeake’s problems are common knowledge. CHK recently got a loan so they have time to liquidate some of their holdings without having to accept fire sale prices. CHK is a large company and would still be large if it were 1/4 the size it is, I don’t think it’s going away and hopefully they will get a handle on some of the management issues that have plagued it for some time.
Their problems are due to the low price of natural gas. They are the #2 producer of natural gas behind ExxonMobil.
This will not cause problems with the liquid-rich Eagle Ford play. They are putting 90% of their working capital into a move towards oil production.