Chesapeake peers over the precipice
Rapid expansion beyond core natural gas assets has stretched the firm to the verge of bankruptcy
The US shale sector may be able to take a deep breath after months of ruinously low oil prices, as the unprecedented drop in global energy demand was compounded by a domestic storage crisis. The gradual easing of economic restrictions and swingeing output cuts have lifted WTI above $40/bl, barely two months after futures contracts plunged into negative territory for the first time in history. But for US independent Chesapeake Energy the welcome news risks being too little, too late. The firm is on the brink of bankruptcy following missed payments that were due on 15 June and the loss of $700mn in available credit. Chesapeake has just 30 days to avoid default before becoming the most high-pro
Also in this section
10 June 2025
The bloc may find it very difficult to replicate Japan’s approach due to fundamental differences in policy and the markets
10 June 2025
Scapegoating foreign buyers will not solve country’s gas shortages
10 June 2025
US gasoline consumption is at its high level since before COVID, but while stocks remain healthy, the hurricane season threatens
10 June 2025
There has been a flourishing of non-governmental initiatives aimed at incentivising voluntary action on emissions over the past five years, and momentum is not slowing down.
