Good article. Makes sense why they are showing the accounting this way. Unfortunately it is probably too little, too late to prevent bankruptcy.
Yeah but they are taking these used to be deductions as low costs out of my revenue. Like to the tune of paying 2 cents per mcf
I agree with Kitchen.
I would also remind people that Chesapeake sold off some, or possibly all, of their intrastate pipeline in Pennsylvania but still hold a lot of stock in the pipeline company/s which raised significantly the rates for transporting gas. Part of the deal was that Chesapeake's own gas moved at a large discount and only the mineral owners gas was virtually worthless after transport costs were taken. Chesapeake profited from those charges on the mineral owners gas because they had a large amount of the pipeline company stock.
I don't think Chesapeake is raking in money because there just isn't that much to rake in in this market and I do believe Chesapeake is going to go under but that doesn't mean they are not making money anywhere. There are more ways in oil and gas to make money than producing and selling product, it doesn't do anything for the mineral owner though. If Chesapeake is your operator, you have my sympathy.