Chesapeake Cash Crunch to Widen Without Oilfield Sales: Energy
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Slumping oil and natural-gas prices threaten to exacerbate a cash crunch at Chesapeake Energy Corp., adding to pressure on Chief Executive Officer Aubrey McClendon to sell oilfields from Texas to Ohio.
Chesapeake relies on gas and its byproducts such as ethane for 90 percent of its production, and gas prices in the second quarter were down 46 percent from a year ago. That will probably force the company to lower its 2012 operating cash flow forecast, said Mark Hanson, an analyst at Morningstar Investment Services in Chicago.