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Energy

Chesapeake Will Take a Charge and Issue Debt (CHK)

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By Douglas A. McIntyre Updated Published
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Money_stack_pic_3After the market closed yesterday, Chesapeake Energy Corporation (NYSE:CHK) announced that it would take a $1.8 billion non-cash, after-tax impairment charge, nearly all of which is allocated to the company’s oil and gas properties. Chesapeake also noted that it increased its proved reserves by about 11% since the end of 2007.

The company sold about 740 billion cubic feet equivalent of naturalgas, and produced about 834 billion cubic feet equivalent. Net newproved reserves totaled 2.8 trillion cubic feet equivalent, bringingthe company’s total proved reserves to about 12.1 trillion cubic feetequivalent.

In a separate announcement, Chesapeake said that it was offering $500million worth of senior notes due in 2015. The company plans to use theproceeds to pay down its revolving credit facility, "which itanticipates reborrowing from time to time to fund drilling andleasehold acquisition initiatives and for general corporate purposes."

We’ve already noted buyout rumors aroundChesapeake. Looks the company is adding a little nail polish andlipstick.

Paul Ausick
January 28, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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