Chesapeake Energy

IEEFA Research

IEEFA U.S.:  Appalachian frackers report $504M in negative free cash flow despite capex slashing

IEEFA U.S.: Appalachian frackers report $504M in negative free cash flow despite capex slashing

Tide of red ink shows little sign of ebbing any time soon for shale-focused regional gas producers

December 3, 2020 (IEEFA)—Even after cutting their capital expenditures (capex) by more than one-third from the previous year, nine shale-focused gas producers in Appalachia spent a half-billion dollars more during the third quarter on drilling and building projects than they earned from selling oil and gas. Capex investments during the third quarter were the lowest […]

IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers

IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers

Nine major E&P companies collectively lost more than $1 billion over past year

September 10, 2020 (IEEFA) — Even after cutting capital expenditures to their lowest quarterly point in more than six years, nine Appalachian shale-focused gas producers continued to hemorrhage money, reporting more $134 million negative free cash flows in the second quarter of 2020.  Together, they have spilled $1.1 billion in red ink over the past […]

IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry

IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry

Capex reductions, financial hedging offset plunging demand

June 25, 2020 (IEEFA)—Nine fracking-focused gas companies in Appalachia reported a positive free cash flow during the first quarter of 2020—but only after slashing capital expenditures and reporting significant revenues from financial hedging, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA). The positive first quarter results, however, didn’t […]

IEEFA update: Appalachia fracking industry faces uphill battle for earnings

IEEFA update: Appalachia fracking industry faces uphill battle for earnings

Companies perform poorly, even compared with other struggling E&Ps

November 26, 2019 (IEEFA U.S.) ‒ Faced with persistently low natural gas prices, exploration and production (E&P) companies with operations in Appalachia continued to struggle financially in the third quarter of 2019. An IEEFA analysis reveals that seven of Appalachia’s largest producers collectively spent half a billion dollars more on drilling than they realized by […]

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IEEFA U.S.:  Appalachian frackers report $504M in negative free cash flow despite capex slashing
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IEEFA U.S.: Appalachian frackers report $504M in negative free cash flow despite capex slashing

Tide of red ink shows little sign of ebbing any time soon for shale-focused regional gas producers

December 3, 2020 (IEEFA)—Even after cutting their capital expenditures (capex) by more than one-third from the previous year, nine shale-focused gas producers in Appalachia spent a half-billion dollars more during the third quarter on drilling and building projects than they earned from selling oil and gas. Capex investments during the third quarter were the lowest […]

IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers
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IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers

Nine major E&P companies collectively lost more than $1 billion over past year

September 10, 2020 (IEEFA) — Even after cutting capital expenditures to their lowest quarterly point in more than six years, nine Appalachian shale-focused gas producers continued to hemorrhage money, reporting more $134 million negative free cash flows in the second quarter of 2020.  Together, they have spilled $1.1 billion in red ink over the past […]

U.S. shale pioneer Chesapeake Energy files for bankruptcy

CNBC: Chesapeake Energy, the poster child of the U.S. shale revolution, filed for bankruptcy protection on Sunday. The move comes as the company and industry more broadly has been rocked by a drop in oil and gas prices amid the coronavirus pandemic. Chesapeake said that $7 billion in debt will be wiped out through the […]

June 29, 2020 Read More →
IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry
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IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry

Capex reductions, financial hedging offset plunging demand

June 25, 2020 (IEEFA)—Nine fracking-focused gas companies in Appalachia reported a positive free cash flow during the first quarter of 2020—but only after slashing capital expenditures and reporting significant revenues from financial hedging, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA). The positive first quarter results, however, didn’t […]

U.S. shale pioneer Chesapeake Energy likely to file for bankruptcy soon, sources say

Reuters: Chesapeake Energy Corp. is preparing to file for bankruptcy as soon as this week, said three people familiar with the matter, becoming the largest oil and gas producer to unravel after an energy market rout caused by the coronavirus outbreak. The Oklahoma City-based company, co-founded by the late wildcatter Aubrey McClendon, is in the […]

June 16, 2020 Read More →
IEEFA update: Tipping point looms for fossil fuels as capital flows to renewables
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IEEFA update: Tipping point looms for fossil fuels as capital flows to renewables

Shareholder wealth destroyed as thermal coal goes up in smoke

December 21, 2019 (Sydney IEEFA) — A tipping point for the future of fossil fuels may have been reached this year as financial markets massively down-rated traditional energy companies, with their slumping share prices destroying “staggering” amounts of shareholder wealth. That is the view of Tim Buckley, Director of Energy Finance Studies at the Institute […]

and December 20, 2019 Read More →
IEEFA update: Appalachia fracking industry faces uphill battle for earnings
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IEEFA update: Appalachia fracking industry faces uphill battle for earnings

Companies perform poorly, even compared with other struggling E&Ps

November 26, 2019 (IEEFA U.S.) ‒ Faced with persistently low natural gas prices, exploration and production (E&P) companies with operations in Appalachia continued to struggle financially in the third quarter of 2019. An IEEFA analysis reveals that seven of Appalachia’s largest producers collectively spent half a billion dollars more on drilling than they realized by […]

Fracking leader Chesapeake Energy struggles under soaring debt and plummeting prices

CNN: Chesapeake Energy helped pioneer America’s shale natural gas revolution. Now, the company is warning that it may not survive the era of cheap gas it helped to usher in. The Oklahoma-based energy company said Tuesday in a filing to the Securities and Exchange Commission that if “depressed prices persist,” there is “substantial doubt” about […]

November 6, 2019 Read More →

Canadian pension fund, Williams form pipeline entity targeting Marcellus and Utica basins

Reuters: Canada Pension Plan Investment Board is expanding its presence in the North American natural gas market through a $3.8 billion joint venture with U.S. energy firm Williams Cos Inc, which will hold pipeline assets in the Marcellus and Utica shale basins, the biggest gas-producing region in the United States. Canada’s largest pension fund will […]

March 19, 2019 Read More →

Chesapeake cutting capital expenditures and drilling in response to low natural gas prices

Chesapeake Energy plans to reduce its capital expenditure by $500 million and to reduce its rig count by more than 50% in 2015. Reporting in SNL, Mark Passwaters notes that Chesapeake has also cut back on its production targets in 2015. These revisions to 2015 forecasts are driven by continued low natural gas prices. Excerpts: […]

March 24, 2015 Read More →