Analyst believes Chesapeake is a ‘dead man drilling’
Monday, January 20, 2020
In a recent contribution to InvestorPlace, Dana Blankenhorn writes, “Chesapeake Energy is the very definition of a ‘dead man drilling,’” believing the company’s situation is hopeless.
Blankenhorn’s analysis of Chesapeake’s financial situation takes notice of its troubling annual interest expense. The company paid $286 million to service its loans, on revenue of nearly $7.9 billion in 2016. It paid $518 million in annual interest expenses last year. It is projected to pay nearly $700 million with revenue expected to remain under $10 billion this year.
Meanwhile, shares are trading for under a dollar as investors are realizing the only ones receiving payouts are Chesapeake’s bankers, to whom it owes roughly $9 billion in debt.
Learn more: InvestorPlace > Chesapeake Energy is drowning in debt, without a life raft in sight
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