CHK +.07 to 0.74 in pre-market after the company responds to the sharp sellof in the stock price. At this point the stock might be a good trading buy. Even if the company eventually declares bankruptcy, with no significant debt to roll over until 2021, it seems that that's still a long way off. So all the speculation and heavy volume in the stock is going cause lots of ups and downs, providing opportunities for the savvy trader .....
I bought Chesapeake bonds back in 2016 when the company was facing a bankruptcy scare and that worked out very well .... the longer term bonds, now at roughly a 50% discount to par may be the better long term play versus the stock, because even in bankruptcy they would probably be worth more than that since the company has lots of saleable assets .....
I might soon be buying some bonds. Just a small position though - they're deep in junk territory and highly speculative, not to mention the complexities of bond seniorities in bankruptcy court.
PR -
Chief Executive Officer Doug Lawler commented, "Chesapeake continues to strongly believe our current capital and operating program, coupled with the planned 30% reduction in capital expenditures in 2020, will strengthen the financial position of the company for the long term. We have substantial liquidity with no significant near-term maturities. We continue to pursue strategic levers to reduce debt, including asset sales, capital markets transactions, and focus on cost discipline. Additionally, we are de-risking our cashflows through our hedging program and remain confident in our long-term liquidity."
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