It seems like we’re writing “more bad news for Chesapeake Energy” at least twice a week these days.
The latest bad news comes from Standard and Poors, which has downgraded the natural gas-driller’s credit rating to “BB-”. From the AP:
The credit ratings agency believes that Chesapeake is struggling to generate enough cash to pay off its debts as natural gas prices plunge. Standard & Poor’s also noted Tuesday the “mounting turmoil” from CEO Aubrey McClendon’s personal financial dealings, saying that it could make it tougher for the company to raise money in the future.
The news is leading to another drop in the company’s stock price. Chesapeake was trading for around $25 in mid-March. At 12:45, shares are going for around $14.55.
Chesapeake has been under a microscope ever since news outlets began reporting on questionable loans CEO Aubrey McClendon took out against the company’s wells. The Oklahoma-based corporation has continued to expand despite falling natural gas prices, which has led to increased debt.
Chesapeake operates 191 producing gas wells in Pennsylvania.