The Strategist

Chesapeake Energy shares fall by 29%

11/07/2019 - 08:52

Chesapeake Energy quotes for one day lost almost a third against the background of publication of another weak reporting.

Chesapeake Energy shares fall by 29%
One of the leading US oil and gas shale deposits developers is teetering on the brink of bankruptcy. In early November 2019, Chesapeake shares fell to new absolute lows around $ 1 per share. The publication on November 5 of the reporting for the III quarter of 2019 was the reason for a new collapse of quotations: the results were worse than market expectations.

The company reported a decrease in the average level of production by 11% to 478 thousand barrels of oil equivalent per day. Chesapeake's revenue decreased by 14.8% to $ 2.06 billion; the company recorded a net loss of $ 101 million. A number of experts noted that Chesapeake throughout 2019 have been reporting on results that turned out to be worse than investors expected.

Chesapeake Energy's current debt is currently around $ 9 billion. As part of its published reporting, company executives have also expressed concern about its continued operation if there is no significant increase in oil and gas prices in the future.

Against this background, quotes of the company on Wednesday, November 6, fell by 29% to $ 0.91 per share; during the trading most strong decline in Chesapeake quotes reached 30%. For Chesapeake stocks, this is the minimum level for the last 20 years - lower values were observed only in early 1999, as well as in 1993-1994.