Chesapeake Energy Corp., the fracking giant, filed for bankruptcy protection. This is latest victim of a pandemic induced depressed oil market. Chesapeake at one time, was one of the largest natural gas producers in the United States. The companies debt load is nearing $9 billion, but has managed to enter a plan to cut $7 billion of its debt.
The company was founded in 1989 by Aubery McClendon for $50,000. Chesapeake primarily focused operations in Texas, Ohio, Pennsylvania and Louisiana. Chesapeake’s (CHK) share price was $172 in January and is $11.85 as of Friday, June 26th.
Over 200 oil producing companies have filed for bankruptcy protection in the last 5 years. Canadian oil and gas companies have been decimated as well (not only because of Covid). It is unlikely that North American oil companies will see any daylight in the near future.