Massive Write-Downs at Chesapeake

The $2.06 billion write-down of the value of its oil and gas assets due to low O&G prices was the major force behind Chesapeake Energy’s $2.23 billion fourth-quarter loss, the independent producer reported this morning. For all of 2015, the Oklahoma City, Oklahoma-based company reported a net loss of $14.86 billion, with again the write-down of the value of its oil and gas assets due to prices contributing the bulk of the red ink, $14.53 billion for the year. Chesapeake s profit in 2014 s fourth quarter was $586 million, while the full-year profit was $1.27 billion. In light of the challenging commodity price environment, our focus for 2016 is to improve our liquidity, further reduce our cost structure and address our near-term debt maturities to strengthen our balance sheet,” Chesapeake CEO Doug Lawler said. Chesapeake s fourth-quarter daily production averaged roughly 661,100 barrels of oil-equivalent (BOE), a year-over-year increase of 1% adjusted for asset sales, Kallanish Ene
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