US shale oil pioneer Chesapeake Energy filed for bankruptcy protection on Sunday, bowing to pressure from heavy debt and rock-bottom energy demand levels during COVID-19.
Chesapeake filed for Chapter 11 protection in a Texas bankruptcy court to facilitate a “comprehensive balance sheet restructuring,” according to its filing.
Founded in 1989 in energy-state Oklahoma, the company has long battled high levels of debt, but came under particular pressure during the pandemic.
Chesapeake was slammed with a “strong sell” rating and a $0 price target when global energy prices collapsed and oil prices briefly turned negative earlier this year.
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Chesapeake Energy filed for bankruptcy on Sunday, making it the biggest casualty among US energy giants as the coronavirus pandemic upends the oil industry.
Chesapeake has been loaded with debt for a long time but even more so since the start of the pandemic, which has weighed heavily on demand for energy markets.
When oil prices briefly turned negative in April after a collapse in energy prices, the company was issued a rare “strong sell” rating and slapped with a $0 price target by CFRA Research.
The oil-and-gas group, which was once worth $35 billion by market capitalization, pioneered the …read more
Source:: Businessinsider – Finance