Chesapeake CFO reminds us about an important event coming up in energy markets
Chesapeake Energy is one of the companies facing hard times with commodity and energy prices at long term lows. They are already trying to flog assets as well as cutting costs and investment. The squeeze is fully on.
The CFO says they are finding interest sparse in asset packages they are offering over the $1bn mark. That shouldn't be a shock in the current environment. I suspect that the vultures are circling the industry but their prey is far from being dead enough yet.
The other important point is from the headline. The bank redetermination season is a bi-annual event where finance lenders to the industry reassess loans and mark producers and players loans against current market commodity prices, and thus their ability to service those loans. The next round kicks off in April and that's going to be a big market risk event if lenders start to reel in finances.
One to stick in the diary.
