Chesapeake Takes Texas Oil Sale Off Table to Keep Cash Flow
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Chesapeake Energy Corp., the worst-performing U.S. oil and natural-gas stock this year, postponed a sale of future production from Texas oilfields and the spinoff of its drilling subsidiary as slumping prices worsened a cash crunch.
The company canceled plans to raise as much as $1 billion this year through a so-called volumetric production payment from its Eagle Ford wells in south Texas, Chief Executive Officer Aubrey McClendon said during a conference call with analysts today. An initial public offering for Chesapeake’s oilfield-services unit also is on hold until at least next year, he said.