“We are fundamentally resetting Chesapeake’s capital structure and business to address our legacy financial weaknesses and capitalize on our substantial operational strengths,” CEO Doug Lawler said in a statement.
Top executives at U.S. oil and gas producers are taking big bonuses even as companies stagger into bankruptcy.
Occidental Petroleum separately said it would buy back up to $1.5 billion worth of senior notes as it tries to reduce its debt, which ballooned after an ill-timed acquisition of Anadarko Petroleum last year.
California Resources, which had about $4.9 billion in long-term debt at the end of 2019, recently entered forbearance agreements with banks after missing another interest payment due on May 29.
The companies that operate offshore drilling rigs for major oil producers face a second wave of bankruptcies in four years amid a historic drop in energy prices that likely will leave surviving drillers more closely tied to big oil firms.
The reverse stock split is expected to increase the per share trading price of Northern Oil and Gas’ common stock, which may improve marketability and facilitate its trading, the Minneapolis-based company said.
Chesapeake Energy applied for the lease suspensions in late April and had received 108 approvals by mid-May, according to an analysis of the data.
Among the acquired assets are multiple prolific, producing fields in the Gulf of Mexico Shelf that were originally discovered and/or operated by predecessor companies led by current Talos Energy management.
Impairments expected to be made by U.S. shale companies in the second quarter could trigger insolvencies as the sector accounts for oil price fall, Deloitte says in a new study.