represents 15.3% of the 1.63 billion shares outstanding as of July 31.
Can you say dilution?!!
This screws the common share holder by diluting shares further so execs can have more preferred shares and add debt. Writing on the wall
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Total Liabilities
12/31/18 - $10.48 Billion
6/30/19 - $12.31 Billion
I would say that’s adding debt
This was a really strong signal - remember, in bankruptcy, bond holders get first dibs on profits from liquidating assets. In bankruptcy, CHK common shares are worth $0. The shares have absolutely ZERO value in bankruptcy.
So.. think about this. Somebody had $100's of millions of bonds - money CHK owed to the owner of bonds. They chose to swap the bonds for common shares. They felt there was more opportunity in owning common shares than holding the debt, which was paying a good annual yield. Yes, common owners were diluted a bit, but the fact somebody was willing to swap is pretty positive. Less overall debt, and less debt service & preferred dividend expense.
Yeah because the paying down debt plan is working so so well
Post is incorrect. Dilution was swapped to retire a small amount of debt. diluted shares are worth more than $0 which is where we'll be if we don't make meaningful progress on the debt wall and fall into bankruptcy. This is why FCF positive is more important than anything else to keep the company afloat.
Those worried about the stock price, asking about buybacks, etc. are incompetent in basic business finance or don't grasp the magnitude of CHK's MASSIVE debt.
You believe the press releases? Lol look at press releases of the past talking about decreases. Debt is up this year over last lol
Didn’t the press release specially outline they would paydown $587.8MM in debt? Not add to it. Plus reduce annual interest by $35MM.