Chesapeake Energy files for Chapter 11 bankruptcy protection in the U.S.

Fracking pioneer Chesapeake files for bankruptcy

If its proposal ultimately is approved, Chesapeake would emerge from the process with a $2.5 billion line of credit, supplied through a $750 million term loan and $1.75 billion of new credit.

Chesapeake drilled for oil and gas trapped in layers of rock buried deep underground, and has a history of more than 30 years in the energy business.

Chesapeake had once been a leading driver of Oklahoma City's urban renaissance, but it stepped back from that role after McClendon, who helped found the company in 1989 and who named it after the Mid-Atlantic region that he admired, left as chief executive.

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.

These were the details of the news Shale pioneer Chesapeake files for bankruptcy for this day.

Analysts say over 200 energy companies face possible bankruptcy in the next two years in case oil prices remain around current levels, according to the Wall Street Journal. The purchase sent its shares lower and this year the value of Chesapeake's oil and gas holdings fell by $700 million this quarter. In April, Denver-based Whiting Petroleum also sought court protection from its lenders which are owed $3.6 billion.

Kirkland & Ellis LLP is serving as legal counsel, Alvarez & Marsal is serving as restructuring advisor, Rothschild & Co and Intrepid Financial Partners are serving as financial advisors, and Reevemark is serving as communications advisor to the Company.

The Oklahoma City energy pioneer on Sunday made official what had been expected for some time, filing for bankruptcy protection in Texas. Court filings and information about the claims process are available at Niobrara, and Eagle Ford Shale.

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. Chesapeake Energy grew fast under the management of then CEO Aubrey McClendon.

Founded in 1989, it would take more than a decade for Chesapeake to become one of the most-influential and well-known companies in the U.S. shale sector.

At its peak a decade ago, Chesapeake was the second-largest natural gas producer in the country, and it controlled the drilling rights on an area the size of West Virginia.

"The tech sector dubs companies or people that shake up that status quo as disruptors".

Rystad's head of shale research, Artem Abramov, said Chesapeake had a "challenging" financial situation for "many years" but added that "some processes were accelerated by the Covid-19 pandemic and the associated oil market downturn". "Chesapeake showed the market-and its competitors-how quickly production could grow, how fast projects could develop, and what the updated United States model for engaging with stakeholders looked like. Remember, they brought global upstream investors back to U.S. onshore". The achievement also came with high costs and a lot of borrowing.

In 2016, McClendon died in a one-vehicle auto accident while facing a federal indictment on charges that he colluded on bids for drilling leases-charges that were dropped upon his death.



Latest news

India bans TikTok, other Chinese apps amid border standoff
Opening up on how it could be a temporary thing, she added, "As far as I know, there was a temporary ban in TikTok earlier". Now, the government has reportedly taken an official decision to ban a total of 59 Chinese apps in the country.

Manchester City have initiated contact with Kingsley Coman over summer transfer
Bayern Munich have agreed a fee of £54.8m with Manchester City for Leroy Sane , with the German set to sign a five-year deal at the club.

Judge blocks release of tell-all book by Donald Trump niece
Both a representative for Simon & Schuster and an attorney for Mary Trump told ABC News they intend to appeal the ruling. Boutrous said the order was "a prior restraint on core political speech that flatly violates the First Amendment".

YouTube TV’s Price Has Nearly Doubled in 3 Years
Sling TV, on the other hand, offers two packages - Sling Blue and Sling Orange - for $30 each or $45 for both packages combined. As we continue to evaluate how to provide the best possible service and content for you, our membership price will be $64.99.

Alberta reports five new cases of COVID-19 in RMWB
Alberta is doubling the number of people who can gather at an outdoor event from 100 to 200, officials announced Tuesday. All public health measures, including physical distancing, remain in place, the province notes in a release .

Other news