Chesapeake Energy Posts Q1 Loss On Impairment; To Analyze Strategic Alternatives

(RTTNews) - Chesapeake Energy Corp. (CHK) reported a first quarter loss to shareholders of $8.3 billion compared to a loss of $44 million, prior year. The company recognized an $8.446 billion impairment during the quarter. Loss per share was $852.97 compared to a loss of $6.37 per share, last year. The company noted that the per share information has been retroactively adjusted to reflect a 1-for-200 (1:200) reverse stock split effective April 14, 2020.

First quarter total revenues and other was $2.54 billion compared to $2.20 billion, previous year. Total revenues were $2.53 billion compared to $2.16 billion.

In light of the unprecedented market environment, the company has decided to withdraw its financial outlook.

Chesapeake Energy Corp. said, based on current forecast, the company does not expect to be in compliance with its financial covenants beginning in the fourth quarter of 2020. The company has engaged advisors to assist with the evaluation of strategic alternatives, which may include, but not be limited to, seeking a restructuring, amendment or refinancing of existing debt through a private restructuring or reorganization under Chapter 11 of the Bankruptcy Code. The management has concluded that there is substantial doubt about the company's ability to continue as a going concern.

The company will not hold a conference call or webcast to discuss its results for the quarter.

Shares of Chesapeake Energy Corp. were down 4% in pre-market trade on Monday.