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Chesapeake Energy Has Taken These Steps to Decrease Its Debt

Keisha Bandz - Author
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Nov. 20 2020, Updated 3:00 p.m. ET

Chesapeake’s debt management efforts

Chesapeake Energy (CHK) has been intently focusing on reducing its debt load. For example, over the past three quarters, it has reduced its 2017 maturing and puttable debt commitments by ~$830 million, which is a ~38% reduction. It achieved this through a combination of debt exchanges, open market repurchases, and equity-for-debt exchanges.

Asset sales are another key strategy CHK is deploying to reduce its debt. Upstream companies such as Hess (HES) and Anadarko Petroleum (APC) have also made asset sales one of their key strategies to bolster financial strength while energy prices (USO) (UNG) remain volatile.

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