Chesapeake Pledges Almost Everything It Owns to Secure Debt
- Shale gas driller may be entering `end game': analyst
- Chesapeake's stock surges most in S&P 500 after announcement
Chesapeake Energy Gets Some Relief
Chesapeake Energy Corp. pledged “substantially all” of its gas fields, office buildings and derivatives contracts to maintain access to a $4 billion credit line as the shale driller grapples with falling energy prices. The shares surged the most since their debut 23 years ago.
Chesapeake renegotiated a revolving credit agreement for the third time in 16 months and convinced lenders to postpone the next evaluation until June 2017, the Oklahoma City-based company said in a statement Monday. Such reassessments normally occur twice a year. In exchange, Chesapeake pledged almost everything it owns, “including mortgages encumbering 90 percent of all the company’s proved oil and gas properties” as collateral, according to a separate regulatory filing on Monday.