Chesapeake Energy files for bankruptcy protection due to COVID-19 pandemic
Sonn Law Group is representing investors who have suffered losses investing in Chesapeake Energy. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Chesapeake Energy, an Oklahoma-based company, filed for bankruptcy protection amid the coronavirus pandemic after losing approximately $8.3 billion in the first quarter of 2020. Chesapeake also reported having debt of approximately $9 million.
Chesapeake was founded in 1989 with a $50,000 investment. The company focused on drilling in underdeveloped areas, primarily in Oklahoma and Texas. Rather than traditional vertical well drilling, Chesapeake employed lateral drilling techniques to free natural gas from unconventional shale formations. Chesapeake led the fracking boom, which has recently been scrutinized due to its environmental impact.
Many oil and gas producers have filed for bankruptcy protection in recent years, a trend that is expected to be exacerbated by COVID-19. One-time CEO Aubrey McClendon employed an aggressive strategy in acquiring oil and gas drilling rights. He pushed for Chesapeake to acquire large tracts of land in several states, accumulating massive debt.
During that time, Chesapeake expanded at lightning speed as natural gas prices remained high. However, as Chesapeake filled the market with cheap natural gas, the prices have dropped significantly. McClendon left the company in 2013 and was indicted on charges of conspiring to rig bids on energy leases in Oklahoma in March 2016.
Contact Sonn Law to Discuss Recovery Options
If you suffered losses investing in Chesapeake Energy, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.