However, the move didn’t do anything to bolster prices. The two warring sides, along with members of OPEC and their allies, agreed to a historic production cut.
When that failed due to Russia balking, the two nations entered a shocking price war. For one thing, Saudi Arabia initially tried to negotiate a production cut among major oil exporters. Sadly, this move was emblematic of the bad decisions that completely changed the company’s trajectory.īecause now, with oil prices plummeting to shocking depths, vulnerable outfits such as Chesapeake increasingly find themselves with limited options. Just before the pandemic sent the oil markets into the abyss, Chesapeake was attempting to shift its focus from gas to oil production. CHK Stock Loses Badly from Deflated Auto Demand This is a company that is staring down a trifecta of pain. As well, CHK stock faces dilution.īut even with a restructuring, you would do best to avoid Chesapeake. But after a likely restructuring, shares will probably be delisted from the New York Stock Exchange.
Of course, Chesapeake’s possible Chapter 11 bankruptcy filing doesn’t necessarily spell the end for CHK stock. But for Chesapeake, it’s an existential one. However, a glut in natural gas killed prices, sending CHK into a long bearish trend channel. natural gas producer,” trailing only Exxon Mobil (NYSE: XOM). According to Reuters, by 2005, “Chesapeake was the second-largest U.S. Cofounded by the late Aubrey McClendon, the outspoken businessman pushed his organization aggressively toward natural gas. Though the Covid-19 pandemic has apparently put the nail in the coffin, Chesapeake’s troubles began long ago.
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