Chesapeake says Top Investor NGP Distributed Shares to Partners
(Bloomberg) – Chesapeake Energy Corp., the US natural gas producer struggling under the burden of a high debt load and low prices, said the second largest investor distributed its stake to its limited partners.
NGP Energy Capital Management LLC "made a good natural distribution of the shares" to fund partners, Oklahoma City Chesapeake said in a statement late Tuesday. The statement made no further clarification, and talks and messages to Chesapeake and NGP after normal opening hours were not immediately returned.
NGP had a 16% ownership interest with a market value of $ 208.2 million. The private equity company became a major shareholder after Chesapeake bought WildHorse Resource Development for $ 1.86 billion this year.
Chesapeake's shares have fallen 68% so far this year. They plunged to under $ 1 last week after the company warned that it could not be a viable going concern if low oil and gas prices persist. The company, once worth more than $ 30 billion, is now valued at around $ 1.3 billion. The stock fell again Tuesday, falling by 17%.
Its current capital and operating program, along with a planned 30% reduction in investment in 2020, will strengthen the company's long-term financial position, Chesapeake said Tuesday.
"We have significant liquidity with no significant maturity in the short term," CEO Doug Lawler said in the statement.
– With help from Rachel Adams-Heard.
To contact the reporter about this story: Carlos Caminada of Calgary at ccaminada1@bloomberg.net
To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Joe Carroll
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