I was advised that Chesapeake is filing for bankruptcy, is this true?

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The true value of minerals is what a willing seller and a willing buyer can agree to.  I've run across mineral owners that think the bonus paid has some relevance on value of their minerals, it doesn't.  That being said those entertaining a sale need to do some homework and know the details of their minerals, prospects for future wells, remaining reserves and how to access all that information.  It's not hard.  We discuss how to often here on GHS.  There is even a SONRIS Help Group page.  And it is pronounced "Sunrise", not sohnriss.  :-)

They are officially done.  Reverse stock split was a failure which was no surprise.  Look for a pre packaged Chapter 11 filing coming soon.


The stock split was to keep from being de-listed.  Immediately after the 1 for 200 split I think the stock was at $26 per share.  Now it is $16.  Soon to be $1?

Chesapeake Energy’s Reverse Stock Split Won’t Solve Its Debt Problem

By   Avi Salzman   April 15, 2020 3:00 pm ET 

At the end of 2019, the company was carrying $9.5 billion in net debt.

Chesapeake Energy executed a 200-for-1 reverse stock split late Tuesday, reducing its share count and propping up its stock price. The change may save the company from having its shares delisted, but it won’t change the company’s debt problems. Investors with more than 200 shares will get one share for every 200. Anyone with fewer than 200 shares will receive cash for their shares.

The stock had fallen to 13 cents on Monday, and was at risk of being delisted. A delisting would have triggered a $1 billion preferred-stock offering, Credit Suisse analyst William Featherston noted. So the reverse split was a smart move. But Chesapeake’s debt position remains precarious and, clearly, investors aren’t convinced that the split will change its fortunes. Shares dropped 36% Wednesday afternoon to $16.80 as the S&P 500 lost 1.7%.

Featherston’s price target on the stock is $1.

At the number of shares prior to the split, $26 would be 13 cents per share.  At $1, that would be a half a cent per share.  I'd say to those who have not sold their stock before now, it's too late.  Don't bother.  I truly wish Aubrey was around to see this.  Hubris is common in the "C" suites of O&G companies.

yep, we are at that "can we just get this over with" point.

Chesapeake Energy lays off 200 Oklahoma employees

ReutersApril 16, 2020

April 16 (Reuters) - Chesapeake Energy has laid off 200 employees in Oklahoma, the state said on Wednesday.

Half of the job cuts were at the company's Oklahoma City headquarters and half were in the oilfield, according to Oklahoma Office of Workforce Development.

The word was that those laid off were from assets previously sold and in the due diligence phase. They had to be kept on during the transition.  This is common.  From what I see, don't put the nail in CHK's coffin yet as they don't seem to be slowing down in their core assets.  Nothing would surprise me now though.

Any idea of what assets previously sold were still in due diligence phase?  What are CHK's core assets now?

I don't have a list handy for their divestitures but they have had offerings on all auction houses for a while now.  They have been spinning off non-core assets in all of their basins to service their debt.  Their most profitable asset now has to be NEPA Marcellus.  They have 3 rigs running and are looking at picking up a 4th.

The last asset sale was their Utica stake and that was 20 months ago.  That due diligence phase is long past.  IMO the debt hole is too deep although I do expect that CHK will be drilling right up to the end unless there is a pre-packaged bankruptcy.


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