Chesapeake Cash Crunch May Shrink on Increase in Gas Prices
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Rising natural-gas prices have provided some relief to Chesapeake Energy Corp., which has seen its shares plummet this year on management controversy and a looming cash-flow shortfall.
Gas rose to a 13-week high of $2.705 per million British thermal units on the New York Mercantile Exchange today. The fuel has gained 42 percent since touching a 10-year low last month of $1.902. Chesapeake, the second-largest U.S. gas producer, told investors on May 2 that $2 per million Btu gas prices would result in a loss this year, whereas at $3 the company would be profitable.