“Chesapeake Swings to 3rd-Quarter Loss”
Filed by KOSU News in State Impact.
November 3, 2012
Chesapeake Energy posted a $2.01 billion loss in the third quarter. The Oklahoma City natural gas giant is struggling with low natural gas prices, growing debt and “weak cash flow,” the WSJ reports.
Chesapeake has been hurt by low natural-gas prices resulting from a glut, which eroded its revenues, as well as its strategy of spending heavily to find and drill new locations. This has left the company reliant on selling assets to pay for its operations, including an expensive switch to producing more oil, which is more profitable than gas.
The Oklahoma City-based company continued its torrid pace of drilling and buying oil-rich acreage, spending $3.3 billion in the quarter while reporting revenue of $2.97 billion.
Read more at: online.wsj.com
Powered by WPeMatico