Status Report on Chesapeake’s Utica Shale Drilling Program
Chesapeake Energy is the second largest natural gas producer in the United States, behind ExxonMobil. If you’ve followed the shale gas drilling space for any length of time, you no doubt have heard about Chesapeake’s “problems” this past year. Their main problem is overextension: Leasing too much acreage without possessing enough money to drill on it. A further complication has been the low price of natural gas, meaning Chesapeake doesn’t make as much profit when they do drill. Too many bills to pay, not enough cash to pay them. The solution? Sell some of your assets.