Bulletin
Investor Alert

London Markets Open in:

Aug. 10, 2020, 4:59 p.m. EDT

10-Q: CHESAPEAKE ENERGY CORP

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

(EDGAR Online via COMTEX) -- ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Introduction

TABLE OF CONTENTS

connection with preparation for the Chapter 11 Cases and expect that we will continue to incur significant professional fees and costs throughout our Chapter 11 Cases.

TABLE OF CONTENTS

with the current depressed prices, has impacted and is expected to continue to adversely impact our business. The continued low level of demand and prices for oil and natural gas or otherwise has had and will continue to have a material adverse effect on our business, cash flows, liquidity, financial condition and results of operations.

TABLE OF CONTENTS

limited if we experience an "ownership change," as such term is defined in

TABLE OF CONTENTS

We believe our cash flow from operations, borrowing capacity under the DIP Credit Facility and cash on hand will provide sufficient liquidity during the bankruptcy process. We expect to incur significant costs associated with the bankruptcy process, including fees for legal, financial and restructuring advisors to the Company, certain of our creditors and royalty interest owners. Therefore, our ability to obtain confirmation of the Plan in a timely manner is critical to ensuring our liquidity is sufficient during the bankruptcy process. Our ability to continue as a going concern is contingent on our ability to comply with the financial and other covenants contained in our DIP Credit Facility, the Bankruptcy Court's approval of the Plan and our ability to successfully implement the Plan and obtain exit financing, among other factors. As a result of the Bankruptcy Filing, the realization of assets and the satisfaction of liabilities are subject to uncertainty. While operating as debtors-in-possession under Chapter 11, we may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business (and subject to restrictions contained in the DIP Credit Facility), for amounts other than those reflected in the accompanying condensed consolidated financial statements. Further, the Plan could materially change the amounts and classifications of assets and liabilities reported in the condensed consolidated financial statements. The factors noted above raise substantial doubt about our ability to continue as a going concern.

TABLE OF CONTENTS

Derivative and Hedging Activities







                                     Oil Derivatives(a)
        Year   Type of Derivative Instrument   Notional Volume    Average NYMEX Price
                                                   (mmbbls)
        2020   Swaps                                         6          $41.69
        2021   Swaps                                        12          $41.90
        2022   Swaps                                         5          $41.41
                                 Natural Gas Derivatives(a)
        Year   Type of Derivative Instrument   Notional Volume    Average NYMEX Price
                                                    (bcf)
        2020   Swaps                                       164           $2.45
        2021   Swaps                                       235           $2.44
        2022   Swaps                                       133           $2.46
        ___________________________________________
        


See Note 11 of the notes to our condensed consolidated financial statements included in Item 1 of Part I of this report for further discussion of derivatives and hedging activities.

TABLE OF CONTENTS







        . . .
        


Aug 10, 2020

COMTEX_369185391/2041/2020-08-10T16:58:58

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

(c) 1995-2020 Cybernet Data Systems, Inc. All Rights Reserved

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.