Aka beginning of the end. More layoffs. BOL to all.
6 replies (most recent on top)
Can someone please explain to me what a “going concern” means???? Thank you....
FP admitted he knew nothing about shale plays when he can here but was happy to have this opportunity to learn.....Completed sentence: With a gross compensation of over $6,000,000. Great pay for an intern!!
Employees were told by FP that we have no financial issues until 2023 and that provides time. Not quite the statement in 10Q warning: Failure to comply with this covenant, if not waived, would result in an event of default under our Chesapeake revolving credit facility, the potential acceleration of outstanding debt thereunder and the potential foreclosure on the collateral securing such debt, and could cause a cross-default under our other outstanding indebtedness. 10Q was worded to keep board, CEO, and executive VP’s from a well deserved prison sentence.
While it is a little misleading as reprinted, it's actually straight from the 10-Q, not some short investors:
"Fluctuations in oil and natural gas prices have a material impact on our financial position, results of operations, cash flows and quantities of oil, natural gas and NGL reserves that may be economically produced. Historically, oil and natural gas prices have been volatile, and may be subject to wide fluctuations in the future. If continued depressed prices persist, combined with the scheduled reductions in the leverage ratio covenant, our ability to comply with the leverage ratio covenant during the next 12 months will be adversely affected which raises substantial doubt about our ability to continue as a going concern. Failure to comply with this covenant, if not waived, would result in an event of default under our Chesapeake revolving credit facility, the potential acceleration of outstanding debt thereunder and the potential foreclosure on the collateral securing such debt, and could cause a cross-default under our other outstanding indebtedness. We are actively pursuing with support from the Board of Directors a variety of transactions and cost-cutting measures, including but not limited to, reduction in corporate discretionary expenditures, refinancing transactions by us or our subsidiaries, capital exchange transactions, asset divestitures, reductions in capital expenditures by approximately 30% in 2020 and operational efficiencies. We believe it is probable that these measures, as we continue to implement them, will enable us to comply with our leverage ratio covenant."
It’s funny how things can be taken out of context and overblown. They make it sound like the company issued a separate press release stating that they are uncertain about their future. Nothing could be further from the truth. Looks like a coordinated short attack if you ask me.
"Shale Pioneer Chesapeake Warns It May Fall Victim to Gas Slump
November 5, 2019, 6:20 AM CST Updated on November 5, 2019, 10:15 AM CST
Chesapeake Energy Corp. – the company that was once the epitome of America’s shale-gas fortunes – is warning it may not be able to outlast low fuel prices.
Reflecting growing pain across the energy sector, the Oklahoma-based company’s shares and bonds tumbled Tuesday after it said it may not be viable as a “going concern” if low oil and natural gas prices persist. The warning came just over an hour after the company posted a wider-than-expected loss for the third quarter."...