NEW YORK: Chesapeake Energy, an icon of the US shale boom that fell on hard times, emerged from bankruptcy Tuesday after reorganizing itself amid the coronavirus pandemic.
The Oklahoma City producer, which filed for bankruptcy protection last year, has "fundamentally reset our business," said Chief Executive Doug Lawler in announcing the company's completion of the Chapter 11 reorganization. "With an improved capital and cost structure, disciplined approach to capital reinvestment, diverse asset base and talented employees, we are poised to deliver sustainable free cash flow for years to come." In the bankruptcy proceeding, Chesapeake shed $7.8 billion in debt and said an operations overhaul had cut more than $1 billion in annual costs compared with the 2019 levels.
Chesapeake said it will focus its production profile on natural gas assets but also pledged to achieve net-zero greenhouse gas emission by 2035. The company now has $1.3 billion in outstanding debt. Equity shares are expected to begin trading Wednesday under the "CHK" ticker.
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