Not because of Chesapeake's troubles, that's a good thing.
I am sad because on Friday we posted "Natural Gas: EIA Weekly Supply/Demand Report":
A quick heads-up, next week we'll be writing about Rossby waves and how their interaction with the jet stream looks to be setting up a long trade before we head into the widowmaker shoulder season.And today the futures are at $2.162 up 0.099 on the day and up $1260 per contract since that teaser.
I know I'm all atingle.
$2.036 up 0.064.
That's 56% cash-on-cash based on the $2250 margin per contract and gentle reader has not yet
D.C. area forecast: Some snow tonight and Tuesday kicks off winter’s coldest week yet
So it's back to the headline story. From Reuters:
Natural gas producer Chesapeake Energy (CHK.N) has hired restructuring lawyers from Kirkland & Ellis, people familiar with the matter told Reuters.
The company's shares (CHK.N) plunged 51 percent to $1.50 in early trading.
Chesapeake, which has more than $10 billion in debt, has been hit by a steep fall in both oil and gas prices. Many energy-related companies have hired financial and legal advisors to help them manage heavy debt loads.
Trade publication Debtwire first reported the engagement of Kirkland & Ellis on Friday evening.
About 40 energy companies entered bankruptcy in 2015 and more are expected in the next few months as oil prices have dropped by 75 percent since mid-2014.
Chesapeake recently completed a debt exchange, converting $3.8 billion of unsecured debt into new second-lien notes, but saw the new bonds drop on the secondary market. A limited number of holders of debt with near-term maturities participated in the exchange.
The Oklahoma City-based company also suspended payment of dividends on preferred stock last month, following in lockstep with other oil and gas companies seeking to conserve cash. Chesapeake reported cash and cash equivalents of approximately $1.8 billion on Sept. 30, according to public filings....MORE