Chesapeake Energy Filing For Bankruptcy; In Debt, Facing Class-Action Suits For Cheating Landowners
One of Pennsylvanias largest and most controversial shale gas drillers, Chesapeake Energy, has taken steps toward filing for Chapter 11 bankruptcy, according to a Reuters report.
Under the direction of its high-spending, risk-taking CEO, Aubrey McClendon, the Oklahoma-based company led the land rush into northeast and north central Pennsylvania that helped kick off the fracking boom about a decade ago. They would come into a community and lease and lease and lease, said Bill Holland, who covers natural gas for S&P Global Market Intelligence.
By doing so, the company took on debt. And eventually, the fracking boom it helped create led to a glut of natural gas, and prices tanked. At the beginning of Pennsylvanias shale boom in 2009, the price of Marcellus Shale gas was about $14/million British thermal units, but by 2016 it had dropped to less than $2/MmBtu, and it remains in that range today.
McClendon resigned from Chesapeake in 2013 and started another energy company. He died in March 2016 after his car slammed into an overpass in Oklahoma City a day after he was indicted on federal conspiracy charges.
EDIT
https://stateimpact.npr.org/pennsylvania/2020/04/30/chesapeake-energy-plans-to-file-for-bankruptcy-reuters-reports/