Chesapeake is planning to raise $10 billion to help shore up its cash position given the low natural gas prices. It will plan to sell all or part of its Permian basin holdings. It is also selling pipeline and oil service units. Chesapeake is the second largest gas producer behind Exxon Mobil. It is keeping its properties in the other major shale basins.
Chesapeake has been a highly levered gas play around the US and the recent declines in prices has hit short-term cash flows hard. The adjustment of leverage and assets is what should be expected in a market facing dramatic change.
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