(Wyo)-Fracking Giant Chesapeake Energy Files For Bankruptcy
OKLAHOMA CITY, OK (AP) - Chesapeake Energy, a pioneer in fracking in shale rock formations, has filed for bankruptcy protection.
Once one of the largest natural gas producers in the U-S and a leader in the shale boom, Oklahoma City-based Chesapeake fell victim to its own success.
It and other frackers produced so much natural gas that the price crashed and has remain low for a decade, but the boom was fueled largely by debt and many of those bills are coming due.
Chesapeake says its debt load is nearing $9 billion dollars, so it has entered a plan with lenders to cut $7 billion of its debt while continuing to operate as usual during the bankruptcy process.
More than 200 oil and gas producers have filed for bankruptcy protection in the past 5 years, a trend that's expected to continue as the global economic slowdown caused by the coronavirus pandemic saps demand for energy and depresses prices further.
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