(Reuters) – Chesapeake Energy Corp shares dropped as much as 6.5 percent on Tuesday following a credit rating downgrade and news that the natural gas producer will boost its borrowings to $4 billion from the planned $3 billion as it faces a liquidity crunch.
The company, facing a funding shortfall of $9 billion to $10 billion this year, said on Friday that Goldman Sachs and Jefferies Group would provide it with $3 billion.
HOUSTON/NEW YORK (Reuters) – Chesapeake Energy Corp’s increasing shift from bank loans to costly funding is raising fresh questions about how long the spigot of cash will remain open and whether the company can sell enough assets quickly enough to pay for day-to-day operations.
The company’s problems were brought into sharp focus Monday when CEO Aubrey McClendon, who has a reputation for scrambling to close financing deals, told skeptical stock and bond holders how his company will use a loan from Jefferies & Co. and Goldman Sachs to pay down a $4 billion loan commitment from banks.
May 14 (Reuters) – Chesapeake Energy Corp sought to
calm Wall Street worries about its financial position, telling
investors on Monday it was confident it would complete asset
sales to plug a funding gap, sending shares up as much as 11
The stock rebound came after a steep drop last week and was
driven by news late Friday that the company had secured a $3
billion loan, as well as a report that activist investor Carl
Icahn would take a stake in the company.
HOUSTON, May 9 (Reuters) – Ryan Lance, the new chief
executive officer of ConocoPhillips, on Wednesday
confirmed that the U.S. exploration and production company plans
to sell its Nigerian assets, but said a deal was not imminent.
“We’re testing the market on our Nigerian assets,” Lance
told reporters after the company’s annual meeting.
(Reuters) – Chesapeake Energy Corp’s largest shareholder urged the natural gas company to remain open to acquisition, despite the weakness of its share price
Chesapeake and Chief Executive Aubrey McClendon have been under pressure in recent from investors who are advocating for change in the company’s leadership and now its business model.
(Reuters) – Shares of Chesapeake Energy Corp posted their largest decline in more than three years on Wednesday as Chairman and Chief Executive Aubrey McClendon said he was “deeply sorry” for the turmoil caused by his personal financial dealings.
McClendon is under fire over investigations by Reuters into his personal financial dealings. He characterized many of the reports as “misinformation,” without elaborating.
(Reuters) – Chesapeake Energy Corp shares fell sharply on Wednesday morning, even as Chief Executive Officer and Chairman Aubrey McClendon, under fire over investigations by Reuters into his personal financial dealings, criticized many of the reports as “misinformation.”
“There’s been enormous and unprecedented scrutiny of our company, and of me personally. And a great deal of misinformation has been published, and uncertainty created,” McClendon told an earnings conference call on Wednesday.
HOUSTON (Reuters) – Chesapeake Energy Corp will find an independent, nonexecutive chairman to replace Aubrey McClendon, who will retain his position as chief executive officer, the natural gas producer said on Tuesday.
McClendon, who is Chesapeake’s co-founder, also agreed to an early end to a controversial program that grants him minority stakes in Chesapeake’s wells, a perk that had sparked investor anger and inquiries from U.S. regulatory and tax agencies.
(Reuters) – As Chesapeake Energy Corp.’s board of directors moves to distance itself from loans taken by CEO Aubrey McClendon, documents reviewed by Reuters show that at least one former board member had undisclosed personal financial ties to him in the past.
Now-retired board member Frederick Whittemore lent money to McClendon in the late 1990s, the documents show, even as Whittemore helped determine how much the CEO should be paid to run Chesapeake.
April 27 (Reuters) – As Chesapeake Energy Corp.’s (CHK.N: Quote, Profile, Research)
board of directors moves to distance itself from loans taken by
CEO Aubrey McClendon, documents reviewed by Reuters show that at
least one former board member had undisclosed personal financial
ties to him in the past.
Now-retired board member Frederick Whittemore lent money to
McClendon in the late 1990s, the documents show, even as
Whittemore helped determine how much the CEO should be paid to