The future for Chesapeake Energy is, according to some, in serious doubt. Yesterday CEO Doug Lawler unveiled his strategy for keeping the company afloat. His strategy is to sell up to $500 million worth of “non-core” shale assets (in a down market, flooded with shale assets), and do a reverse stock split. Lawler’s plan and the company’s 2019 annual update spooked investors and Chessy’s share price collapsed down to $0.31/share (down even more this morning)–the lowest it has EVER been since the company went public in 1993. With some $9 billion in debt hanging around its neck, the company faces a big challenge in staying out of bankruptcy court.
