Chesapeake Energy, one of the first in the United States to begin exploration and production of shale oil, filed for bankruptcy. She sent the documents to the District Bankruptcy Court in Texas, according to the company’s website.
Chesapeake Energy asks the court for protection under Chapter 11 of the United States Bankruptcy Act, which allows for the reorganization of the company. The company’s debt is estimated at about $ 7 billion, the report said. Losses of Chesapeake Energy in the I quarter of 2020 amounted to $ 8.3 billion, liquidity at the end of March – $ 82 million. Previously, the company entered into an agreement with creditors. According to him, companies will provide a loan of $ 925 million and another $ 600 million for the issuance of debt bills.
Since January, Chesapeake shares have fallen by more than 93%, from $ 172 to $ 11.85, according to data at the close of trading on Friday, June 26. In early June, Bloomberg, citing sources, said that control of the company could go to one of the main lenders. According to CNBS, including Franklin Templeton, which manages assets, and Fidelity Investments, which provides financial services.
US shale oil producers write off up to $ 300 billion of assets in the second quarter of 2020, in the first quarter they wrote off assets of $ 38 billion. According to Deloitte estimates, 30% of shale oil developers can go bankrupt with an average oil price of $ 35 per barrel (in this quarter it is still $ 27), and another 20% will experience serious financial problems. According to the New York Times, about two dozen U.S. oil producers have already filed applications since the beginning of the year by resorting to Chapter 11 of the U.S. Bankruptcy Act. By the end of May, US average daily oil production fell to 11.2 million barrels from more than 13 million barrels in March, according to the Energy Information Administration. A decrease in production of approximately 1.75 million barrels this spring is directly related to the cessation of work on existing wells, according to IHS Markit. According to her forecasts, most of the production will be able to return by the end of September.