Chesapeake Energy’s $5 Billion Shuffle

Joe Drake (Abrahm Lustgarten for Propublica)

The energy giant raised the cash it needed to survive by slashing royalties it paid property owners to drill on their land.

propublica.org - by Abrahm Lustgarten - March 13, 2014

At the end of 2011, Chesapeake Energy, one of the nation’s biggest oil and gas companies, was teetering on the brink of failure.

Its legendary chief executive officer, Aubrey McClendon, was being pilloried for questionable deals, its stock price was getting hammered and the company needed to raise billions of dollars quickly.

The money could be borrowed, but only on onerous terms.

(READ COMPLETE ARTICLE)