Oil breaks Chesapeake Energy
The travel restrictions imposed once the pandemic started are easing, but companies in the energy sector are still feeling the curtailment's effects.
One of those impacted by this is the hydrocarbon explorer and shale gas pioneer, Chesapeake Energy. According to Bloomberg, the company is considering filing for Chapter 11 bankruptcy protection. If it does so, $49 billion worth of debt will be controlled by creditors. The Oklahoma-based group's decision could send an alarm to an industry trying to cope with the 40% drop in U.S. crude prices.
Both the pandemic and the conflict between Saudi Arabia and Russia contributed to the depreciation of the Chesapeake market capitalization. According to specialists, the company's value could reach $380 million if today's pre-market data holds. The stock dropped by more than 40%.
For the past few days, the company had a mixed trading session. On Friday, it lost more than 76%, but the OPEC+ announcement regarding the production cut agreement pumped its share price up to 195% during Monday’s trading session.
Although since April, the stock rose 326.9%, overall, it lost more than 57% since the beginning of the year. USA500 gained 0.1%.
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Sources: thestreet.com, marketwatch.com, fool.com, Bloomberg.com
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