Court filings and information about the claims process are available at https://dm.epiq11.com/chesapeake. The accompanying schedules of this news release provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. The company has secured $925 million in debtor-in-possession financing in order to continue operations, as well as an additional $600 million commitment for new equity once the company emerges from bankruptcy.
The company said it entered into a Restructuring Support Agreement with 100% of its lenders under the revolving credit facility; holders of about 57% of the obligations under its Term Loan Agreement; about 60% of its senior secured second lien notes due 2025; and roughly 27% of its senior unsecured notes.
Chesapeake had once been a leading driver of Oklahoma City's urban renaissance, but it stepped back from that role after McClendon, who helped found the company in 1989 and who named it after the Mid-Atlantic region that he admired, left as chief executive.
Chesapeake was the "undisputable master" of USA shale gas, according to Rystad Energy's head of analysis Per Magnus Nysveen. Chesapeake Energy grew fast under the management of then CEO Aubrey McClendon.
"By eliminating approximately $7 billion of debt and addressing the legacy contractual obligations that have hindered our performance, we are positioning Chesapeake to capitalize on our diverse operating platform and proven track record of improving capital and operating efficiencies and technical excellence".
Chesapeake Energy Corporation (NYSE:CHK) today announced that the U.S. Bankruptcy Court for the Southern District of Texas ("the Court") has approved the Company's motions seeking a variety of "first-day" relief, including authority to pay owner royalties, employee wages and benefits, and certain vendors and suppliers in the ordinary course for goods and services provided. Chesapeake Energy lost US$ 8.3 billion in the first quarter of 2020.
"But the shale drilling boom of recent years has unleashed more crude oil than the world needs, sending prices lower".
Founded in 1989, it would take more than a decade for Chesapeake to become one of the most-influential and well-known companies in the U.S. shale sector. "It was likely going to happen with or without COVID-19", said Alex Beeker, an analyst with the consultancy Wood Mackenzie, in a note Sunday.
The producer, which spent heavily to become the top US producer of natural gas at one point, is still the No. 2 shale gas producer behind EQT Corp, according to data provider Enverus.
But the gas market is only part of the story.
McClendon was ultimately ousted from the company in 2013, and in 2016 was indicted on federal charges of conspiring to rig bids for oil and natural gas leases for a new venture he had started. McClendon was ousted in 2013 and died in an auto accident three years later. Lawler was eligible for $15.4 million in total compensation in 2019, although his payout shrank to $9.7 million because the company's share price dropped. "Chesapeake showed the market-and its competitors-how quickly production could grow, how fast projects could develop, and what the updated United States model for engaging with stakeholders looked like".