Chesapeake Energy Plunges on Cash Concerns
- Gas driller probably will tap credit line rather than cash
- Maelstrom of plunging prices, downgrades battering industry
Chesapeake Energy: No Plans to Pursue Bankruptcy
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Chesapeake Energy Corp.’s ability to pay off a half-billion dollars in debt next month hinges on how much of a $1.76 billion nest egg and $4 billion credit line has already been burned by the second-largest U.S. natural gas producer.
On Monday, uncertainty on those resources helped fuel the steepest one-day drop in the stock’s history. Chesapeake now becomes the latest shale driller punished by gluts of gas and crude that have rendered companies increasingly desperate to conserve cash.