Corporate Finance Case Study: Chesapeake Energy Corporation

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Chesapeake Energy Corporation-
For Chesapeake Energy (NYSE: CHK) things aren’t looking good. The stock has lost more than 57% of its market capitalization so far this year. This drop in the stock’s market capitalization is due to a variety of factors such as suspension of preferred dividend, recent debt exchange and continued slump in the oil price.
Earlier this month, Chesapeake Energy had announced that it would suspend payments of dividend for its preferred stock instantly. Its Chief Executive Officer Doug Lawler said, “The board and management believe this decision is in the best long-term interest of all Company stakeholders. Today's decision to suspend our preferred stock dividends will allow the company to retain approximately $170

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