Shares of Chesapeake Energy (NYSE: CHK)were up as much as 24% by 10:15 a.m. EDT on Thursday. While there wasn't any company-specific news fueling the oil stock's rally, there were two likely catalysts: oil prices and an interest-paying peer. So what One likely driver of today's rally in Chesapeake Energy was an uptick in the price of oil.
Is Chesapeake Energy stock now completely worthless?
Chesapeake Energy (OTCMKTS: CHKAQ) stock is now 100% completely worthless and all the existing shares will be canceled. If you buy Chesapeake Energy stock now and do not sell before the shares are canceled by the company, your investment will go to zero.
What is the ticker symbol for Chesapeake Energy?
Chesapeake Energy trades on the OTCMKTS under the ticker symbol "CHKAQ." How do I buy shares of Chesapeake Energy? Shares of CHKAQ can be purchased through any online brokerage account.
What does Chesapeake Energy do for a living?
Chesapeake Energy Corporation engages in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids (NGL) from underground reservoirs in the United States. It operates in two segments, Exploration and Production; and Marketing, Gathering, and Compression.
Who is the founder of Chesapeake Energy?
The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK. There is not enough analysis data for Chesapeake Energy.
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Is Chesapeake Energy stock a good buy?
Chesapeake Energy has received a consensus rating of Buy.
Is Chesapeake going out of business?
Chesapeake Energy emerges from bankruptcy and shifts back to natural gas. HOUSTON (Reuters) - U.S. shale producer Chesapeake Energy Corp on Tuesday exited Chapter 11 bankruptcy with business plan that nods to its founders' emphasis on natural gas after a recent push into crude oil.
Will Chesapeake Energy get delisted?
As of market close on July 30, 2020, Chesapeake Energy (CHK) has been delisted from the New York Stock Exchange. As a result, Cash App Investing will no longer support trading of the company's stock.
Why did my Chesapeake Energy stock disappear?
Chesapeake Energy (NASDAQ:CHK) was one of 2020's stranger penny stocks. The combination of the pandemic and plunging oil prices put the final nail in the coffin for Chesapeake Energy stock. With the company facing nearly $10 billion in debt, Chesapeake simply couldn't hang on any longer.
Can Chesapeake Energy Survive?
No Comeback Story for Chesapeake Energy Stock Chesapeake Energy will emerge from bankruptcy by the end of the 2021 first quarter. Most of the $7 billion debt extinguished during the restructuring process will be swapped for shares. Debtholders, not stockholders, will drive the company's future moving forward.
What is going to happen to Chesapeake Energy?
Officials said Tuesday that the company's stock will move to Nasdaq on Wednesday and will be traded under the ticker “CHK.” That's the same ticker symbol Chesapeake shares traded under before the bankruptcy. Those prebankruptcy shares now are worthless.
Who is buying Chesapeake Energy?
Continental ResourcesBig independent oil producer Continental Resources said Jan. 25 it will buy Chesapeake Energy's Powder River Basin oil and gas assets for $450 million in cash, the acquirer's second significant transaction in the past three months and one which bulks up its operations in the basin it entered last year.
What happens when a stock delisted?
Here's what happens when a stock is delisted. A company receives a warning from an exchange for being out of compliance. That warning comes with a deadline, and if the company has not remedied the issue by then, it is removed from the exchange and instead trades over the counter (OTC), meaning through a dealer network.
When did Chesapeake Energy go public?
19931989 — Chesapeake Energy Corp. is founded by Aubrey McClendon and Tom Ward with about 10 employees. 1993 — Chesapeake goes public, and the stock soars over next few years as the company successfully employs horizontal drilling and fracking to produce huge amounts of natural gas.
What happened Oasis Petroleum?
Oasis Petroleum declared bankruptcy in September 2020 and emerged, recapitalized, on November 19, 2020. In May 2021, it announced the acquisition, for $745 million, of Diamondback Energy's Bakken reserves and production.
What is Chkaq stock?
Chesapeake Energy Corp (CHKAQ)
How has Chesapeake Energy's stock price been impacted by COVID-19?
Chesapeake Energy's stock was trading at $0.1503 on March 11th, 2020 when COVID-19 reached pandemic status according to the World Health Organizati...
How were Chesapeake Energy's earnings last quarter?
Chesapeake Energy Co. (OTCMKTS:CHKAQ) issued its quarterly earnings results on Wednesday, February, 26th. The oil and gas exploration company repor...
When did Chesapeake Energy's stock split? How did Chesapeake Energy's stock split work?
Chesapeake Energy's stock reverse split before market open on Wednesday, April 15th 2020. The 1-200 reverse split was announced on Monday, April 13...
Who are Chesapeake Energy's key executives?
Chesapeake Energy's management team includes the following people: Doug Lawler , President, Chief Executive Officer & Director Nick Dell’Osso ,...
Who are some of Chesapeake Energy's key competitors?
Some companies that are related to Chesapeake Energy include ConocoPhillips (COP) , EOG Resources (EOG) , Pioneer Natural Resources (PXD) , Dev...
What is Chesapeake Energy's stock symbol?
Chesapeake Energy trades on the OTCMKTS under the ticker symbol "CHKAQ."
How do I buy shares of Chesapeake Energy?
Shares of CHKAQ can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBu...
What is Chesapeake Energy's stock price today?
One share of CHKAQ stock can currently be purchased for approximately $3.05.
How much money does Chesapeake Energy make?
Chesapeake Energy has a market capitalization of $29.83 million and generates $8.49 billion in revenue each year. The oil and gas exploration compa...
How much does Chesapeake Energy make?
Chesapeake Energy has a market capitalization of $29.83 million and generates $8.49 billion in revenue each year. The oil and gas exploration company earns $-308,000,000.00 in net income (profit) each year or ($54.00) on an earnings per share basis.
When is Chesapeake Energy's reverse split?
The 1-200 reverse split was announced on Monday, April 13th 2020. The number of shares owned by shareholders was adjusted after the market closes on Tuesday, April 14th 2020. An investor that had 100 shares of Chesapeake Energy stock prior to the reverse split would have 1 shares after the split.
The beleaguered oil and gas driller is taking steps to protect its lucrative losses
Matthew is a senior energy and materials specialist with The Motley Fool. He graduated from Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries: Follow @matthewdilallo
What happened
Shares of Chesapeake Energy ( OTC:CHKA.Q) are skyrocketing today, up by more than 37% as of 10:30 a.m. EDT, following news that the oil and gas specialist adopted a poison pill to shield its "net operating loss carryforwards" (NOLs) from a potential acquirer.
So what
Chesapeake Energy's board of directors has adopted a shareholder rights plan, also known as a poison pill, to protect the availability of its NOLs. The company had racked up about $7.6 billion of NOLs as of the end of last year that it could use to offset future federal income taxes.
Now what
Speculators see the adoption of a poison pill as an indication that an investor (such as a hedge fund) might want to take control of Chesapeake. That seems highly unlikely given the energy company's massive $9 billion debt.
What happens if you buy Chesapeake Energy stock?
That will happen the day the company emerges from Chapter 11 bankruptcy. If you own the existing common stock shares, your investment will be zero.
Is Chesapeake Energy a gambler?
If you are considering buying the Chesapeake Energy stock shares now, you are nothing more than a gambler. You must be very clear in your mind that there is an extremely high probability of losing your investment.
Is there going to be a 600 million stock offering in Chapter 11?
It cannot operate indefinitely under the constrictive rules of Chapter 11 and DIP financing and expect to get healthy financially. In fact, there is going to be a $600 million common stock rights offering at the time of the emergence from Chapter 11. That might be an opportune time for existing shareholders to get back in.
Is Chesapeake Energy stock worthless?
Chesapeake Energy (OTCMKTS: CHKAQ) stock is now 100% completely worthless and all the existing shares will be canceled. If you buy Chesapeake Energy stock now and do not sell before the shares are canceled by the company, your investment will go to zero.
With considerable debt and decimated commodity prices, the writing is on the wall for CHK stock
With earnings right around the corner, a few die-hard investors might think that there’s hope for Chesapeake Energy (NYSE: CHK) stock to make some sort of wild comeback. While it would certainly make for a heartwarming story, sadly I don’t think there’s any hope left.
Chesapeake Energy Plunges on Reports of Bankruptcy Filing
Thanks to high levels of debt, and decimated oil and gas prices, Chesapeake Energy is preparing to file for bankruptcy.
Chesapeake Energy Will Be Pushing Up Daisies Soon
Thanks to the novel coronavirus, economic growth has stalled. Worse, there’s far too much oil supply, and no demand. There’s also far too much natural gas supply. Aside from Chesapeake Energy’s debt load, none of this will end well for the company.
Optionality
The issue is not that Chesapeake’s business has no value. The issue is that its business is worth less than its debt.
The Problem for CHK Stock
That rough example would seem to apply to Chesapeake. Certainly, its assets are worth less than its debt right now. Indeed, it’s exceedingly hard to argue otherwise.
Bankruptcy Looms
Last week, Chesapeake skipped interest payments on two of its bonds, according to a Form 8-K filed with the U.S. Securities and Exchange Commission. That basically starts the clock. Chesapeake has a 30-day grace period from June 15, the day those interest payments were due.
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